Salazar Resources (SRL) AI Stock Analysis

• Market Cap: C$55.55M
• Dividend Yield: N/A
• Average Volume (3M): 33.33K
• Price to Earnings (P/E): 131.5
• Beta (1Y): 1.15
• Revenue Growth: N/A
• EPS Growth: 73.94%
• Country: CA
• Employees: 225
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): >-0.01
• Shares Outstanding: 264,523,600
• 10 Day Avg. Volume: 23,417
• 30 Day Avg. Volume: 33,330
• PEG Ratio: 0.11
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -7.01
• 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: 44 Neutral
• Price Target: C$0.20 ▼(-11.30% Downside)
• Action: Reiterated Date: 03/05/26
• Date: Action: Reiterated 03/05/26

The score is held down primarily by weak financial performance (no revenue, ongoing losses, and negative free cash flow), only partially offset by a debt-free balance sheet. Technical indicators are neutral-to-soft with limited momentum, and valuation metrics are unattractive given the very high P/E and no dividend yield.

Positive Factors

Debt-free balance sheet

Zero reported debt provides durable financial flexibility and lowers solvency risk, giving management optionality to fund operations, pursue development or withstand continued cash burn without interest expense. This structural leverage advantage supports longer-term resilience if maintained.

Improving net loss trend

A materially smaller net loss year-over-year indicates the company is narrowing its path to profitability through cost control or efficiency gains. Sustained improvement reduces cumulative cash drain, lengthens runway, and increases the chance of achieving a revenue-generating model over the medium term.

Narrower free cash flow deficit

Reduced FCF outflow signals progress in managing cash consumption or operations, improving runway and lowering near-term financing needs. If maintained, this structural improvement enhances sustainability and gives management time to execute on growth or commercialization strategies.

Negative Factors

No revenue reported

Absence of revenue is a fundamental weakness: without sales there is no operating cash generation or proven product-market fit. This forces reliance on external financing, increases execution risk, and means improvements in profitability must be driven by structural commercial progress rather than temporary cost cuts.

Persistent negative cash flow

Ongoing negative OCF and FCF indicate structural cash burn from operations, creating a durable financing need. Continued deficits constrain strategic options, raise dilution or debt risk, and make the company's near-term survival contingent on sustained operational improvements or fresh capital.

Declining equity and negative ROE

Falling equity and persistent negative ROE reflect ongoing value erosion and weak capital efficiency. Over months this undermines investor returns and signals the business has not generated acceptable returns on invested capital, increasing doubt about long-term viability absent structural change.

Salazar Resources Business Overview & Revenue Model

Company Description

Salazar Resources Limited, a junior mineral exploration company, engages in the acquisition, exploration, and development of mineral properties in Latin America. The company primarily explores for copper, zinc, lead, gold, and silver, as well as volcanogenic massive sulfide deposits. Its principal project is the Curipamba project that consists of seven concessions which covers approximately 21,500 hectares located in Ecuador. The company also holds interests in three concessions covering an area of 3,246 hectares in the Pijili project located in Azuay, Ecuador; the Macara project which includes Macara Mina concession covering an area of 288 hectares, and Bonanza mining concession which covers an area of 1,519 hectares; two concessions in the Rumiñahui project; a single concession covering 229 hectares in the Los Osos Project; and a single concession covering an area of 2,350 hectares in the Santiago Project. In addition, it has interests in Los Santos Concession covering an area of 2,215 hectares located in southwest Ecuador; and the El Potro project located in southern Ecuador. Salazar Resources Limited was incorporated in 1987 and is based in Vancouver, Canada.

How the Company Makes Money

Salazar Resources makes money through a combination of exploration success and strategic partnerships. The company's primary revenue stream is generated by advancing exploration projects to a stage where they become attractive to larger mining companies or investors, leading to joint ventures or outright sales of the project rights. Additionally, Salazar Resources benefits from strategic partnerships with other mining companies, which may involve joint exploration agreements, where partners contribute funding in exchange for a stake in the project. These collaborations often provide the financial backing needed to conduct extensive exploration activities and enhance the value of its resource portfolio. By focusing on high-potential mineral assets and leveraging industry partnerships, Salazar Resources aims to create value for shareholders through successful project development and eventual resource extraction or monetization.

Salazar Resources Financial Statement Overview

Summary

Financial performance is weak overall: the company reports no revenue in the provided periods, with persistent operating losses and negative free cash flow (TTM OCF ~-1.5M; FCF ~-1.6M). The key offset is balance-sheet strength with zero reported debt, but equity has trended down and ROE remains negative (TTM ~-9%), indicating ongoing value erosion despite improved TTM net loss vs 2024.

Income Statement

Profitability is weak: the company reports no revenue across the disclosed periods, with consistently negative gross profit and operating results. Losses improved materially in TTM (Trailing-Twelve-Months) (net loss of ~-2.1M) versus 2024 (net loss of ~-4.6M), but earnings remain firmly negative and the business has not demonstrated a revenue-generating trajectory in the provided data.

Balance Sheet

The balance sheet is a relative strength: total debt is reported at zero across all periods, providing financial flexibility and lowering solvency risk. However, shareholder equity has trended down from 2022 levels, and returns on equity have been consistently negative since 2022 (TTM (Trailing-Twelve-Months) ROE ~-9%), indicating continued value erosion despite low leverage.

Cash Flow

Cash generation is pressured: operating cash flow and free cash flow are negative in TTM (Trailing-Twelve-Months) (OCF ~-1.5M; FCF ~-1.6M) and were also negative in most years shown, pointing to ongoing cash burn. While free cash flow outflow is less negative than 2024 (improvement from ~-2.1M), the sharp negative free cash flow growth in TTM (Trailing-Twelve-Months) and recurring deficits suggest the company may need continued funding unless cash spending is reduced.

Breakdown	TTM	Dec 2024	Dec 2023	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00	0.00
Gross Profit	-83.19K	-103.11K	-179.07K	-211.71K	-150.82K	-146.82K
EBITDA	-2.33M	-4.39M	-1.30M	-3.29M	2.88M	-984.16K
Net Income	-2.13M	-4.64M	-5.68M	-3.90M	2.73M	-997.46K
Balance Sheet
Total Assets	25.42M	22.38M	23.83M	29.27M	29.18M	26.09M
Cash, Cash Equivalents and Short-Term Investments	1.99M	636.65K	609.30K	2.17M	3.72M	1.35M
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	2.08M	270.42K	459.26K	619.62K	401.92K	2.26M
Stockholders Equity	23.34M	22.11M	23.37M	28.66M	28.78M	23.83M
Cash Flow
Free Cash Flow	-1.61M	-2.11M	-1.69M	-2.27M	-5.05M	-2.75M
Operating Cash Flow	-1.54M	-1.34M	-495.47K	225.95K	-1.56M	-1.21M
Investing Cash Flow	-331.93K	-764.40K	-1.36M	-4.50M	-3.18M	-1.20M
Financing Cash Flow	3.14M	2.19M	408.52K	2.62M	6.74M	84.10K

Salazar Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.23
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 0.23 is above the 20-day moving average (MA) of 0.21, above the 50-day MA of 0.23, and above the 200-day MA of 0.17, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 51.18 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, 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
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
AAN	52 Neutral	C$87.94M	-2.52	―	―	―	―
RTG	48 Neutral	C$76.47M	-7.87	-42.68%	―	―	33.33%
GMA	47 Neutral	C$57.03M	7.33	-102.86%	―	-100.00%	-33.58%
TK	47 Neutral	C$49.45M	-105.70	-1.53%	―	―	5.26%
CNRI	46 Neutral	C$49.16M	-128.63	-1.60%	―	―	88.42%
SRL	44 Neutral	C$55.55M	131.54	-11.93%	―	―	73.94%

Salazar Resources Corporate Events

Salazar Resources Lifts El Domo Budget to US$284 Million and Pushes Start-Up to Mid-2027

Salazar Resources reported a significant revision to the construction budget and timeline for the El Domo mine in Ecuador, with total capital costs now estimated at US$284 million, up US$44 million from the prior April 2025 estimate and modestly above the 2021 feasibility study. The increase is driven by a higher VAT rate, added and upgraded infrastructure (including access roads, external powerline, and waste dump buttressing), more complete and larger-scale processing plant equipment to handle higher sulfur content, expanded local procurement, and the inclusion of previously omitted items such as engineer-of-record, TSF QA/QC, internal power distribution, environmental rehabilitation and a site 4G network, partly offset by lower mining and stripping costs, project-wide savings and a sharply reduced contingency. Based on the new budget, first production is now targeted for July 1, 2027, representing a six-month delay from earlier guidance, implying higher upfront capital outlay and a longer wait for cash flow but potentially a more robust, fully specified operation for stakeholders as cost estimates and engineering designs are refined.

The most recent analyst rating on (TSE:SRL) stock is a Hold with a C$0.24 price target. To see the full list of analyst forecasts on Salazar Resources stock, see the TSE:SRL Stock Forecast page.

Salazar Resources Grants Equity Incentives to Directors and Officers

Salazar Resources Limited has granted stock options to its directors and officers to purchase up to 3,950,000 common shares at an exercise price of $0.25 per share for a five-year term, alongside issuing 522,000 restricted share units that will vest over two years. The awards, directed to senior leadership, are designed to align management incentives with shareholder interests and support the company’s long-term exploration and development strategy in Ecuador’s copper-gold sector, reinforcing its commitment to advancing its project pipeline and maintaining a competitive position in the country’s growing mining industry.

The most recent analyst rating on (TSE:SRL) stock is a Hold with a C$0.24 price target. To see the full list of analyst forecasts on Salazar Resources stock, see the TSE:SRL Stock Forecast page.

Salazar Resources Raises $1.43 Million and Hires IR Firm to Support Ecuador Exploration

Salazar Resources has closed a non-brokered private placement, raising approximately $1.43 million through the issuance of over 11 million common shares at $0.13 per share, with net proceeds earmarked for advancing its resource properties in Ecuador and for general working capital. The financing, which included participation by company insiders under related-party transaction rules but within thresholds that exempt formal minority protections, remains subject to standard regulatory approvals, including from the TSX Venture Exchange. In a parallel move to bolster its market visibility, Salazar has hired Baystreet.ca Media Corp. for a three-month investor relations and marketing mandate starting January 2026, paying $20,000 per month in cash and issuing no securities, a step that may support broader investor outreach as the company funds exploration and project development.