Southern Empire Resources (SMP) AI Stock Analysis

• Market Cap: C$4.18M
• Dividend Yield: N/A
• Average Volume (3M): 52.47K
• Price to Earnings (P/E): ―
• Beta (1Y): -1.27
• Revenue Growth: N/A
• EPS Growth: -286.86%
• Country: CA
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Gold
• EPS (TTM): >-0.01
• Shares Outstanding: 69,597,800
• 10 Day Avg. Volume: 23,102
• 30 Day Avg. Volume: 52,467
• PEG Ratio: >-0.01
• Price to Book (P/B): -5.99
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -9.95
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 17 Underperform
• Price Target: ―

Southern Empire Resources faces significant financial distress due to zero revenue generation and consistent losses. The stock's technical indicators suggest a lack of momentum, and poor valuation metrics further weigh down its attractiveness. However, recent corporate events, such as the potential financial gain from project transfers and stakeholder alignment, provide some hope for improvement.

Southern Empire Resources Business Overview & Revenue Model

Company Description

Southern Empire Resources Corp. engages in the acquisition, exploration, and development of metal and mineral resources in North America. The company has an option to acquire 100% interest in the Oro Cruz Property covering an area of 2,160 hectares located in the Cargo Muchacho mountains of Imperial County, southeast California; and option to acquire 100% interest in Pedro Gold Project covering an area of 1,750 hectares located in Durango State, Mexico. It also owns an 85% interest in the Eastgate Gold project comprising 101 unpatented lode mining claims covering an area of 817 hectares located in Churchill County, Nevada. The company was formerly known as Owl Capital Corp. and changed its name to Southern Empire Resources Corp. in March 2018. Southern Empire Resources Corp. was incorporated in 2017 and is headquartered in Vancouver, Canada.

How the Company Makes Money

Southern Empire Resources generates revenue primarily through the exploration and development of its mining properties, aiming to increase the value of these assets. The company seeks to make money by enhancing the resource estimates of its properties, which can lead to increased valuation and potential sale or partnership opportunities with larger mining companies. Additionally, Southern Empire Resources may also engage in joint ventures or strategic partnerships to fund exploration activities, sharing costs and future profits. Revenue can also be derived from the sale or optioning of mineral rights to other interested parties, as well as potential future production activities if the projects advance to that stage.

Southern Empire Resources Financial Statement Overview

Summary

Southern Empire Resources is facing significant financial challenges. The company has no revenue, substantial net losses, and negative equity, indicating a need for strategic changes. The absence of debt provides some leverage flexibility, but ongoing cash flow issues highlight liquidity concerns.

Income Statement

Southern Empire Resources has consistently reported zero total revenue across all periods, which is concerning. The company’s net losses have been significant and increasing, indicating poor profitability. The absence of revenue growth and negative profit margins highlight severe challenges in generating income.

Balance Sheet

The balance sheet shows a negative stockholders' equity in the latest TTM period, suggesting potential financial distress. Although the company has no debt, which reduces financial risk, the steady decline in total assets and equity ratio reflects an eroding asset base and equity position.

Cash Flow

Cash flow analysis reveals persistent negative free cash flow and operating cash flow, reflecting challenges in generating cash from operations. The company's cash reserves are depleting, and the inability to produce positive cash flow suggests liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00	0.00
Gross Profit	-2.34K	-3.02K	-11.36K	-6.16K	-8.80K	-4.19K
EBITDA	-687.97K	-705.00K	-897.00K	-916.00K	-1.27M	-2.14M
Net Income	-11.74M	-11.83M	-3.97M	-709.00K	-1.61M	156.65K
Balance Sheet
Total Assets	1.42M	1.26M	12.27M	15.62M	14.88M	15.88M
Cash, Cash Equivalents and Short-Term Investments	6.17K	23.68K	244.21K	2.98M	4.05M	6.88M
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	2.11M	1.64M	850.03K	520.65K	576.28K	144.69K
Stockholders Equity	-693.05K	-383.86K	11.42M	15.10M	14.31M	15.74M
Cash Flow
Free Cash Flow	-115.08K	-231.13K	-1.80M	-2.58M	-2.55M	-3.22M
Operating Cash Flow	-255.23K	-172.08K	-519.82K	-842.67K	-785.37K	-1.53M
Investing Cash Flow	136.07K	141.12K	524.77K	-384.23K	-2.85M	-1.83M
Financing Cash Flow	100.00K	0.00	0.00	1.24M	0.00	6.64M

Southern Empire Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
AVG	56 Neutral	C$1.92M	3.96	152.16%	―	―	-81.75%
NVX	47 Neutral	C$5.32M	-2.39	-50.32%	―	―	-40.12%
GRHK	41 Neutral	C$1.29M	-0.53	-213.10%	―	―	-110.45%
SMP	17 Underperform	C$4.18M	-0.35	-231.76%	―	―	-286.86%

Southern Empire Resources Corporate Events

Southern Empire Resources Grants 2.7 Million Stock Options to Advance North American Gold Projects

Southern Empire Resources Corp. has granted 2.7 million stock options to its directors, officers, employees and consultants, with each option exercisable at C$0.07 per share for a period of five years, effectively aligning management and staff incentives with shareholders as the company advances its gold exploration portfolio in Mexico and California. The option grant underscores Southern Empire’s strategy to retain and motivate key personnel while it seeks to unlock value at its Pedro and Oro Cruz-area projects, which together position the junior miner for potential growth in North American gold exploration, subject to the usual geological and market risks.

Southern Empire Advances Exploration at Centauro Gold Project

Southern Empire Resources Corp. has announced that Monumental Minerals, a subsidiary of Fortuna Mining Corp., has completed initial exploration at the Centauro Gold Project in Chihuahua, Mexico, defining drill targets and permitting 56 drill pads. The project shows promising geological characteristics similar to other successful epithermal systems, with a scheduled 3,500-meter core drill program targeting potential precious metal-bearing structures. This development could enhance Southern Empire’s strategic positioning in the mining sector, with potential financial benefits from the option agreements and future production royalties.