Salazar Resources (SRL) AI Stock Analysis

• Market Cap: C$23.64M
• Dividend Yield: N/A
• Average Volume (3M): 143.94K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.84
• Revenue Growth: N/A
• EPS Growth: 29.22%
• Country: CA
• Employees: 1
• Sector: Energy
• Sector Strength: 82
• Industry: Mining
• EPS (TTM): -0.02
• Shares Outstanding: 248,859,250
• 10 Day Avg. Volume: 70,049
• 30 Day Avg. Volume: 143,943
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -13.40
• P/FCF Ratio: 0.00
• 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

Salazar Resources' most significant challenges lie in its financial performance, characterized by ongoing losses and negative cash flows, offsetting the positive aspect of a debt-free balance sheet. Technical analysis shows neutral momentum with slight bearish indicators. The valuation is unfavorable due to a negative P/E ratio, and the absence of dividends further diminishes its attractiveness. Overall, the company's financial struggles and lack of operational income heavily weigh down its stock score.

Salazar Resources Business Overview & Revenue Model

Company Description

Salazar Resources (SRL) is a mineral exploration company focused on the discovery and development of mineral assets in Ecuador. The company primarily engages in the exploration of gold, copper, and other precious and base metals, aiming to unlock significant value from its portfolio of high-potential projects. Salazar Resources is committed to sustainable and responsible mining practices, working closely with local communities and stakeholders.

How the Company Makes Money

Salazar Resources generates revenue through a combination of exploration success, strategic partnerships, and potential eventual production. The primary revenue stream is derived from the successful discovery and delineation of mineral resources, which can lead to joint ventures or partnerships with larger mining companies interested in developing the projects. Additionally, Salazar Resources may enter into agreements to sell or lease its exploration properties to other mining entities, earning income from these transactions. The company also focuses on raising capital through equity financing to fund its exploration activities, which can be a significant factor in its financial strategy.

Salazar Resources Financial Statement Overview

Summary

Salazar Resources faces significant financial challenges with no revenue generation, ongoing losses, and negative cash flows. While the balance sheet reflects a debt-free status with substantial equity, the lack of income and cash flow generation poses a risk to sustainability. Without operational improvements or revenue generation, the company's financial position remains precarious.

Income Statement

Salazar Resources has consistently reported zero revenue over the years, indicating a lack of operational income. The company has a negative net income, suggesting ongoing losses, and a negative EBIT and EBITDA, reflecting operational challenges. The gross profit is also negative, highlighting cost inefficiencies or lack of production. Overall, the income statement shows financial distress with no visible revenue growth.

Balance Sheet

The company's balance sheet shows a strong equity position with zero debt, reflected in a favorable debt-to-equity ratio. However, the return on equity is negative due to ongoing losses, which weakens the financial stability. The equity ratio is relatively high, suggesting reliance on equity rather than debt, which is a positive sign of financial health but is overshadowed by the persistent negative income.

Cash Flow

The cash flow statement reveals a negative free cash flow and operating cash flow, indicating cash outflows from operations. There is no free cash flow growth, and the operating cash flow to net income ratio is unfavorable. The company is reliant on financing activities for cash inflows, which is unsustainable in the long term.

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
-103.11K	-179.07K	-211.71K	-150.82K	-146.82K	-146.72K
	EBIT
-1.53M	-1.30M	1.31M	-6.10M	-1.47M	-2.84M
	EBITDA
-2.27M	-1.30M	-3.29M	-1.31M	-984.16K	-1.78M
	Net Income Common Stockholders
-4.64M	-5.68M	-3.90M	2.73M	-997.46K	-1.32M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
636.65K	609.30K	2.17M	3.72M	1.35M	4.08M
	Total Assets
22.38M	23.83M	29.27M	29.18M	26.09M	26.26M
	Total Debt
0.00	0.00	0.00	0.00	0.00	0.00
	Net Debt
-636.65K	-609.30K	-2.17M	-3.72M	-1.35M	-4.08M
	Total Liabilities
270.42K	459.26K	619.62K	401.92K	2.26M	752.02K
	Stockholders Equity
22.11M	23.37M	28.66M	28.78M	23.83M	25.51M
Cash Flow		Free Cash Flow
-2.11M	-1.69M	-2.27M	-5.05M	-2.75M	-2.47M
	Operating Cash Flow
-1.34M	-495.47K	225.95K	-1.56M	-1.21M	-1.37M
	Investing Cash Flow
-764.40K	-1.36M	-4.50M	-3.18M	-1.20M	2.55M
	Financing Cash Flow
2.19M	408.52K	2.62M	6.74M	84.10K	0.00

Salazar Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.09
• 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:SRL, the sentiment is Positive. The current price of 0.09 is above the 20-day moving average (MA) of 0.09, below the 50-day MA of 0.09, and above the 200-day MA of 0.08, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 59.92 is Neutral, neither overbought nor oversold. The STOCH value of 133.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:SRL.

Salazar Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AKR	70 Outperform	C$16.73M	15.10	48.05%	―	-0.10%	128.57%
Sector *	57 Neutral	$8.61B	5.26	-5.86%	7.30%	-0.33%	-69.69%
LIO	46 Neutral	C$96.77M	―	-12.04%	―	3111.09%	-120.48%
LUM	42 Neutral	C$263.33M	―	105.38%	―	―	-223.31%
SRL	35 Underperform	C$23.64M	―	-20.39%	―	―	29.22%

Salazar Resources Corporate Events

Salazar Resources Completes $1.75 Million Private Placement to Advance Ecuador Projects

Salazar Resources Limited has successfully completed a non-brokered private placement financing, raising $1.75 million through the issuance of 25 million common shares at $0.07 per share. The funds are intended for working capital, tenure payments, and exploration activities, with certain insiders participating in the transaction. The announcement reflects the company’s commitment to advancing its projects in Ecuador and is expected to support its strategic objectives, although it involved a ‘related party transaction’ due to insider participation.

Salazar Resources Closes First Stage of Private Placement

Salazar Resources Limited announced the initial closing of its non-brokered private placement, raising gross proceeds of $1,066,940 through the issuance of 15,242,000 common shares. The company expects to complete the remaining placement soon, with proceeds allocated for working capital, tenure payments, and exploration activities. Notably, certain insiders participated in this financing round, which was deemed a related party transaction but was exempt from certain regulatory requirements due to the transaction’s value relative to the company’s market capitalization.

Silvercorp Advances El Domo Project with Strategic Developments

Silvercorp Metals Inc., along with its subsidiaries, has made significant progress in the development of the El Domo Project, targeting production in the latter half of 2026. Key advancements include streamlining operations in Ecuador, enhancing community engagement, advancing detailed engineering and infrastructure, and awarding a major earthworks contract to a seasoned international mining contractor. This progress suggests a strategic focus on optimizing project delivery and fostering community relations, potentially strengthening the company’s position in the mining sector.

Salazar Resources Expands Ecuadorian Exploration Portfolio

Salazar Resources has announced the acquisition of several exploration properties in Ecuador from Silvercorp Metals, enhancing its portfolio with full ownership of key projects. This strategic move will allow Salazar to focus on advancing these assets while Silvercorp concentrates on its El Domo project. The transaction is expected to conclude in early 2025.