Salazar Resources (SRL) AI Stock Analysis

• Market Cap: C$36.08M
• Dividend Yield: N/A
• Average Volume (3M): 106.56K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.32
• Revenue Growth: N/A
• EPS Growth: 29.22%
• Country: CA
• Employees: 225
• Sector: Energy
• Sector Strength: 46
• Industry: Industrial Materials
• EPS (TTM): -0.02
• Shares Outstanding: 248,859,250
• 10 Day Avg. Volume: 63,611
• 30 Day Avg. Volume: 106,556
• PEG Ratio: -0.42
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -10.62
• 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

• Rating: 43 Neutral
• 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 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

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: Neutral
• Last Price: 0.14
• 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:SRL, the sentiment is Neutral. The current price of 0.14 is below the 20-day moving average (MA) of 0.14, above the 50-day MA of 0.13, 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 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:SRL.

Salazar Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	57 Neutral	$7.22B	3.16	-4.49%	5.63%	0.82%	-49.15%
SALT	47 Neutral	C$45.72M	―	-19.43%	―	-200.00%	-12.68%
SRL	43 Neutral	C$36.08M	―	-20.39%	―	―	29.22%
NCF	39 Underperform	C$60.70M	―	-8.64%	―	―	56.63%
NWST		C$46.08M	―	-4.50%	―	―	―
NZAUF		$39.49M	―	-526.11%	―	―	―
TOC	39 Underperform	C$35.84M	―	-25.75%	―	―	-17.70%

Salazar Resources Corporate Events

Salazar Resources Updates on El Domo Mine Development

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.