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Sanatana Resources (TSE:STA)
:STA
Canadian Market

Sanatana Resources (STA) AI Stock Analysis

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Sanatana Resources

(STA)

Rating:36Underperform
Price Target:
Sanatana Resources faces significant financial challenges, including no revenue, negative equity, and persistent cash flow issues, which heavily impact its overall score. Despite some neutral technical indicators, the negative trend and lack of profitability further weigh down the stock's attractiveness. The absence of earnings call data or notable corporate events means these factors did not influence the score, leaving the financial performance as the dominant concern.

Sanatana Resources (STA) vs. iShares MSCI Canada ETF (EWC)

Sanatana Resources Business Overview & Revenue Model

Company DescriptionSanatana Resources Inc., an exploration stage company, engages in the acquisition, exploration, and development of mineral properties. It explores for copper and gold. The company was formerly known as Sanatana Diamonds Inc. and changed its name to Sanatana Resources Inc. in April 2011. Sanatana Resources Inc. was incorporated in 2004 and is based in Vancouver, Canada.
How the Company Makes MoneySanatana Resources generates revenue primarily through the exploration and development of mineral properties, which involves identifying valuable mineral deposits such as gold, silver, and copper. The company's revenue model typically includes selling or leasing these properties to larger mining companies once substantial mineral resources have been identified and assessed. Additionally, Sanatana may form joint ventures or partnerships with other mining companies to co-develop projects, sharing costs and profits. These partnerships can provide necessary capital and expertise, enhancing project viability and potential returns. Furthermore, the company could earn revenue through options or royalties agreements, receiving payments based on the production or sale of minerals from their properties.

Sanatana Resources Financial Statement Overview

Summary
Sanatana Resources is facing severe financial challenges with no revenue generation, declining asset base, and increasing debt levels. The negative equity and persistent cash flow issues highlight significant risks, questioning the company’s ability to sustain operations without significant changes or external funding.
Income Statement
10
Very Negative
Sanatana Resources shows significant financial stress with no revenue generation and continuous negative net income over the periods analyzed. The company's inability to generate revenue or profit is a critical concern, particularly in the highly competitive mining industry.
Balance Sheet
20
Very Negative
The company exhibits a negative stockholders' equity position in the TTM, indicating financial distress and potential solvency issues. High total debt relative to the negative equity suggests a precarious financial structure, raising concerns about its long-term viability.
Cash Flow
15
Very Negative
Sanatana Resources has consistently negative free cash flow and operating cash flow, indicating poor cash generation capabilities. The reliance on financing activities to sustain operations is unsustainable in the long run, posing a significant risk to financial health.
BreakdownTTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income Statement
Total Revenue0.000.000.000.000.000.00
Gross Profit-29.92K-29.92K-26.57K-17.90K-3.72K-8.46K
EBITDA-1.86M-412.98K-5.42M-1.32M1.37M-1.09M
Net Income-1.91M-528.42K-3.59M-2.18M1.37M-1.10M
Balance Sheet
Total Assets93.60K153.64K4.67M5.03M6.42M568.22K
Cash, Cash Equivalents and Short-Term Investments13.00K55.46K427.37K2.61M4.45M10.47K
Total Debt291.50K38.64K174.53K0.000.000.00
Total Liabilities782.21K141.57K408.71K159.58K447.79K452.94K
Stockholders Equity-688.61K12.06K4.26M4.87M5.97M115.28K
Cash Flow
Free Cash Flow-1.54M-593.32K-669.11K-2.35M-1.78M-1.10M
Operating Cash Flow-1.54M-593.32K-591.16K-571.32K-1.07M-346.63K
Investing Cash Flow23.84K32.27K-3.06M-1.86M641.82K-747.35K
Financing Cash Flow1.24M243.13K2.79M600.00K3.46M3.58K

Sanatana Resources Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.74
Price Trends
50DMA
0.49
Positive
100DMA
0.29
Positive
200DMA
0.26
Positive
Market Momentum
MACD
0.06
Positive
RSI
58.95
Neutral
STOCH
46.74
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:STA, the sentiment is Positive. The current price of 0.74 is below the 20-day moving average (MA) of 0.75, above the 50-day MA of 0.49, and above the 200-day MA of 0.26, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 58.95 is Neutral, neither overbought nor oversold. The STOCH value of 46.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:STA.

Sanatana Resources Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
$14.89B9.766.38%5.34%4.12%-66.77%
TSHVG
52
Neutral
C$10.14M-18.29%-0.88%
43
Neutral
C$5.44M-82.63%-377.27%
TSSTA
36
Underperform
C$10.84M
52.02%
TSGGM
27
Underperform
C$4.13M15.80%11.35%
$2.42M
$12.86M-97.97%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:STA
Sanatana Resources
0.74
0.16
27.59%
TSE:GGM
Granada Gold Mine Inc
0.03
<0.01
50.00%
TSE:HVG
Harvest Gold
0.13
0.09
225.00%
TSE:OPHR
Ophir Gold
0.06
-0.04
-40.00%
EDWZF
Edgewater Exploration
0.06
-0.02
-25.00%
RYES
Rise Gold
0.14
-0.02
-12.50%

Sanatana Resources Corporate Events

Sanatana Resources to Consolidate Shares on Seven-for-One Basis
Jan 8, 2025

Sanatana Resources Inc. has announced a consolidation of its common shares on a seven-for-one basis, effective January 13, 2025. The move aims to adjust the share structure, with approximately 14,648,995 shares expected to be issued and outstanding post-consolidation, affecting exercise prices and share counts under outstanding options and warrants.

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