Solaris Resources (SLS) AI Stock Analysis

• Market Cap: $1.02B
• Dividend Yield: N/A
• Average Volume (3M): 245.44K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.57
• Revenue Growth: N/A
• EPS Growth: -69.63%
• Country: CA
• Employees: 66
• Sector: Basic Materials
• Sector Strength: 67
• Industry: Other Precious Metals
• EPS (TTM): -0.14
• Shares Outstanding: 164,595,960
• 10 Day Avg. Volume: 181,323
• 30 Day Avg. Volume: 245,444
• PEG Ratio: 0.18
• Price to Book (P/B): -29.97
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -9.02
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $13.17
• Price Target Upside: 111.12% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 31 Underperform
• Price Target: ―

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

Funding

The royalty funding deal reduces near-term dilution for Solaris Resources.

Leadership

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

Permitting

The presidential election result in Ecuador lowers the risk premium of owning Solaris Resources shares, as the new president supports a favorable permitting process for mining.

Negative Factors

Capital Needs

Expectation that SLSR will need to raise additional capital before the end of the second quarter due to cash burn and capital needs.

Cash Flow

The structure of the royalty funding deal reduces Solaris Resources' long-term cash flow potential from the Warintza project.

Operating Costs

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

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
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00	0.00
	Gross Profit
0.00	0.00	0.00	0.00	0.00	0.00
	EBIT
-48.30M	-41.17M	-60.31M	-59.35M	-19.34M	-5.43M
	EBITDA
-71.00M	-40.42M	-59.70M	-59.05M	-19.31M	-9.61M
	Net Income Common Stockholders
-77.02M	-41.01M	-55.69M	-54.87M	-32.54M	3.28M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
28.77M	38.87M	14.77M	33.90M	73.59M	6.09M
	Total Assets
52.79M	61.82M	38.53M	57.65M	94.92M	32.35M
	Total Debt
30.50M	29.45M	235.00K	324.00K	135.00K	97.00K
	Net Debt
1.73M	-9.41M	-14.54M	-33.57M	-73.46M	-6.00M
	Total Liabilities
39.43M	36.39M	10.30M	14.53M	8.36M	2.03M
	Stockholders Equity
5.47M	17.52M	20.32M	35.21M	78.64M	22.50M
Cash Flow		Free Cash Flow
-60.87M	-38.40M	-59.51M	-48.34M	-14.80M	-4.56M
	Operating Cash Flow
-58.21M	-38.31M	-58.39M	-46.66M	-14.11M	-4.55M
	Investing Cash Flow
-2.66M	-347.00K	-1.35M	-1.09M	-684.00K	-77.00K
	Financing Cash Flow
54.29M	62.27M	41.25M	7.21M	81.17M	10.43M

Solaris Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.24
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 6.24 is above the 20-day moving average (MA) of 5.89, above the 50-day MA of 5.41, and above the 200-day MA of 4.46, indicating a bullish trend. The MACD of 0.19 indicates Positive momentum. The RSI at 56.29 is Neutral, neither overbought nor oversold. The STOCH value of 66.28 is Neutral, 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
LUN	75 Outperform	$12.03B	25.63	2.66%	2.45%	-8.36%	-200.42%
IVN	69 Neutral	$14.38B	26.07	9.67%	―	―	137.28%
FM	67 Neutral	$17.54B	93.99	1.22%	―	-13.79%	―
TECK.B	65 Neutral	$25.39B	73.96	1.32%	0.93%	-22.39%	-77.05%
CS	64 Neutral	$5.89B	54.14	2.71%	―	37.30%	―
Sector *	51 Neutral	$2.02B	-1.12	-21.36%	3.65%	2.87%	-30.54%
SLS	31 Underperform	$1.02B	―	-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.