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Salazar Resources (TSE:SRL)
:SRL

Salazar Resources (SRL) AI Stock Analysis

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Salazar Resources

(SRL)

Rating:43Neutral
Price Target:
Salazar Resources is struggling financially with no revenue and sustained losses, which significantly undermines its stock attractiveness. While technical indicators show a positive trend, the stock is potentially overbought, and valuation metrics are weak due to negative earnings. The company's financial instability is the most significant concern, overshadowing any technical or valuation positives.

Salazar Resources (SRL) vs. iShares MSCI Canada ETF (EWC)

Salazar Resources Business Overview & Revenue Model

Company DescriptionSalazar Resources (SRL) is a mineral exploration company primarily focused on the discovery, exploration, and development of precious and base metal deposits in Ecuador. The company operates within the mining sector, concentrating on identifying and advancing high-potential mineral properties. Salazar Resources' core activities include geological exploration, drilling, and evaluating mineral resource potential to create value through the development of mining projects.
How the Company Makes MoneySalazar 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
Salazar Resources faces significant financial challenges with no revenue generation, ongoing losses, and negative cash flows. The balance sheet reflects a debt-free status with substantial equity, but the lack of income and cash flow generation poses a risk to sustainability.
Income Statement
15
Very Negative
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
40
Negative
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
30
Negative
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue0.000.000.000.000.00
Gross Profit-103.11K-179.07K-211.71K-150.82K-146.82K
EBITDA-4.39M-1.30M-3.29M-1.31M-984.16K
Net Income-4.64M-5.68M-3.90M2.73M-997.46K
Balance Sheet
Total Assets22.38M23.83M29.27M29.18M26.09M
Cash, Cash Equivalents and Short-Term Investments636.65K609.30K2.17M3.72M1.35M
Total Debt0.000.000.000.000.00
Total Liabilities270.42K459.26K619.62K401.92K2.26M
Stockholders Equity22.11M23.37M28.66M28.78M23.83M
Cash Flow
Free Cash Flow-2.11M-1.69M-2.27M-5.05M-2.75M
Operating Cash Flow-1.34M-495.47K225.95K-1.56M-1.21M
Investing Cash Flow-764.40K-1.36M-4.50M-3.18M-1.20M
Financing Cash Flow2.19M408.52K2.62M6.74M84.10K

Salazar Resources Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.14
Price Trends
50DMA
0.14
Negative
100DMA
0.12
Positive
200DMA
0.10
Positive
Market Momentum
MACD
<0.01
Positive
RSI
50.69
Neutral
STOCH
38.89
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 0.14 is below the 20-day moving average (MA) of 0.14, below the 50-day MA of 0.14, and above the 200-day MA of 0.10, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 50.69 is Neutral, neither overbought nor oversold. The STOCH value of 38.89 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

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
52
Neutral
C$2.91B-0.88-3.26%6.30%2.20%-43.43%
TSLUM
48
Neutral
C$527.12M105.38%-97.12%
TSSRL
43
Neutral
C$35.59M-20.39%29.22%
TSLIO
41
Neutral
C$86.35M-8.48%3111.09%-120.48%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:SRL
Salazar Resources
0.14
0.06
75.00%
TSE:LIO
Lion One Metals
0.29
-0.17
-36.96%
TSE:LUM
Lumina Gold
1.26
0.73
137.74%

Salazar Resources Corporate Events

Business Operations and Strategy
Salazar Resources Updates on El Domo Mine Development
Neutral
Apr 23, 2025

Salazar Resources Limited has provided an update on the construction and development plans for the El Domo mine, a joint venture with Silvercorp Metals Inc. The project is on track to start production by the end of 2026 with an estimated cost of $240.4 million, closely aligned with previous feasibility study estimates. The company holds a 25% free carried interest, and once commercial production begins, Silvercorp will initially receive the majority of dividends until its investment is recouped. The updated construction plan includes advanced engineering and infrastructure developments, aiming to improve the project’s payback time and overall efficiency.

Spark’s Take on TSE:SRL Stock

According to Spark, TipRanks’ AI Analyst, TSE:SRL is a Neutral.

Salazar Resources has a precarious financial position with ongoing losses and no revenue generation, significantly impacting its overall stock score. The technical indicators show strong upward momentum, but the financial fundamentals and valuation metrics highlight significant risks. The lack of earnings call data and corporate events means these factors could not be considered in the score.

To see Spark’s full report on TSE:SRL stock, click here.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 29, 2025