Solaris Resources (SLS) AI Stock Analysis

• Market Cap: $685.59M
• Dividend Yield: N/A
• Average Volume (3M): 307.74K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.62
• Revenue Growth: N/A
• EPS Growth: -69.63%
• Country: CA
• Employees: 66
• Sector: Basic Materials
• Sector Strength: 59
• Industry: Other Precious Metals
• EPS (TTM): -0.17
• Shares Outstanding: 163,234,940
• 10 Day Avg. Volume: 410,588
• 30 Day Avg. Volume: 307,743
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -8.40
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $12.11
• Price Target Upside: 96.91% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

The overall stock score for Solaris Resources is 31, reflecting significant financial challenges including persistent losses, negative equity, and cash flow issues. While technical analysis provides mixed signals, the valuation remains unattractive due to the negative P/E ratio and lack of dividends. These factors collectively suggest a high-risk investment with substantial uncertainty.

Positive Factors

Leadership

New CEO, Matthew Rowlinson, with a strong background in copper mining, is expected to provide leadership strength and advance the Warintza project.

Project Development

Solaris recently submitted its Environmental Impact Assessment, and technical approval is anticipated to drive further permitting progress.

Resource Expansion

The 2024 drilling target at the company's copper mining project in Ecuador was exceeded, indicating strong progress in resource expansion.

Negative Factors

Financial Performance

Increase in expenses due to higher than expected operating costs and multiple project initiatives, impacting financial outlook.

Market Sentiment

Copper prices have declined 10.7% quarter-to-date, putting pressure on the overall copper market sentiment.

Political Risk

Analyst downgrades SLSR shares to Hold due to uncertainty surrounding Ecuador's presidential election and the increased focus on domestic mineral production in the U.S.

Solaris Resources Business Overview & Revenue Model

Company Description

Solaris Resources (SLS) is a mining exploration company focused on advancing copper and gold projects in the Americas. With a primary focus on its flagship asset, the Warintza Project located in southeastern Ecuador, Solaris Resources is engaged in the exploration and development of mineral resources to meet the growing global demand for copper, a critical metal for the green energy transition.

How the Company Makes Money

Solaris Resources generates revenue primarily through the exploration and potential development of its mineral properties. The company's revenue model is centered around increasing the value of its projects through exploration activities, such as drilling and resource estimation, which enhance the attractiveness of these projects to potential investors or buyers. Revenue can be realized through the sale of mineral properties, joint ventures, or production agreements. Strategic partnerships with other mining companies or investors can also provide funding and technical expertise, contributing to the advancement of their projects. Additionally, as the projects progress towards production, Solaris may generate income through the sale of extracted minerals, primarily copper and gold.

Solaris Resources Financial Statement Overview

Summary

Solaris Resources faces significant financial challenges, including zero revenue, persistent losses, negative equity, and cash flow deficits. The company is heavily reliant on financing to cover its operational costs, indicating an urgent need for strategic changes.

Income Statement

Solaris Resources has consistently reported zero revenue, indicating no sales activity. The company has been operating at a loss, with negative EBIT and net income figures across all periods. This reflects significant operational challenges and lack of profitability, which is a major concern for the company's financial health.

Balance Sheet

Solaris Resources has a negative stockholders' equity in the latest TTM period, indicating financial instability. The debt-to-equity ratio is not meaningful due to negative equity. The declining assets and increasing liabilities suggest deteriorating financial strength and potential liquidity issues.

Cash Flow

The company exhibits negative operating and free cash flows, indicating cash burn and potential liquidity challenges. Although there was a slight increase in financing cash flow, it is primarily used to cover deficits rather than growth. The cash flow situation underscores the need for operational improvements.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00
	Gross Profit
0.00	0.00	0.00	0.00	0.00
	EBIT
-41.17M	-60.31M	-59.35M	-19.34M	-5.43M
	EBITDA
-40.42M	-59.70M	-59.05M	-19.31M	-9.61M
	Net Income Common Stockholders
-41.01M	-55.69M	-54.87M	-32.54M	3.28M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
38.87M	14.77M	33.90M	73.59M	6.09M
	Total Assets
61.82M	38.53M	57.65M	94.92M	32.35M
	Total Debt
29.45M	235.00K	324.00K	135.00K	97.00K
	Net Debt
-9.41M	-14.54M	-33.57M	-73.46M	-6.00M
	Total Liabilities
36.39M	10.30M	14.53M	8.36M	2.03M
	Stockholders Equity
17.52M	20.32M	35.21M	78.64M	22.50M
Cash Flow		Free Cash Flow
-38.40M	-59.51M	-48.34M	-14.80M	-4.56M
	Operating Cash Flow
-38.31M	-58.39M	-46.66M	-14.11M	-4.55M
	Investing Cash Flow
-347.00K	-1.35M	-1.09M	-684.00K	-77.00K
	Financing Cash Flow
62.27M	41.25M	7.21M	81.17M	10.43M

Solaris Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SLS, the sentiment is Positive. The current price of 6.15 is above the 20-day moving average (MA) of 5.00, above the 50-day MA of 4.91, and above the 200-day MA of 4.14, indicating a bullish trend. The MACD of 0.39 indicates Negative momentum. The RSI at 66.69 is Neutral, neither overbought nor oversold. The STOCH value of 81.69 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:SLS.

Solaris Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IVN	69 Neutral	$19.29B	60.99	9.67%	―	―	-33.54%
LUN	68 Neutral	$8.88B	25.63	0.24%	3.06%	-2.71%	-188.94%
TECK.B	63 Neutral	$23.47B	74.15	1.32%	1.01%	-22.39%	-77.05%
CS	58 Neutral	$5.07B	44.11	2.90%	―	20.74%	―
FM	58 Neutral	$15.67B	82.45	1.22%	―	-13.79%	―
Sector *	49 Neutral	$1.95B	-1.37	-21.20%	3.73%	0.84%	-29.84%
SLS	31 Underperform	$685.59M	―	-9999.00%	―	―	-69.63%

Solaris Resources Corporate Events

Solaris Resources Strengthens Leadership Amid Key Project Advancements

Solaris Resources Inc. has expanded its leadership team with key appointments to strengthen its finance and investor relations capabilities, signaling a strategic push to enhance operational efficiency and stakeholder engagement. These appointments come at a pivotal time as the company progresses with its Warintza project, aiming to maximize returns and de-risk activities, which could significantly bolster its market position in the copper industry.