Surge Copper Corp (SURG) AI Stock Analysis

• Market Cap: C$30.55M
• Dividend Yield: N/A
• Average Volume (3M): 129.54K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.16
• Revenue Growth: N/A
• EPS Growth: 57.39%
• Country: CA
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Industrial Materials
• EPS (TTM): >-0.01
• Shares Outstanding: 290,979,920
• 10 Day Avg. Volume: 148,946
• 30 Day Avg. Volume: 129,541
• PEG Ratio: -0.56
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.44
• 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: 41 Neutral
• Price Target: ―

Surge Copper Corp's overall stock score is primarily impacted by its financial performance challenges, including zero revenue and persistent losses. The technical analysis offers a slightly positive outlook due to potential oversold conditions, but the valuation remains a concern due to the company's negative earnings. The recent corporate event regarding energy-saving technology is a positive and could offer future benefits, but it does not significantly alter the current financial struggles.

Surge Copper Corp Business Overview & Revenue Model

Company Description

Surge Copper Corp. engages in the acquisition, exploration, and development of mineral properties in Canada. It explores for copper, gold, silver, and molybdenum deposits. The company holds a 100% interest in the Ootsa property that comprises 138 mineral claims covering 87,574.7 hectares located in central British Columbia; and the Berg Property located in British Columbia. It also owns 2% net smelter return royalty on the Auro and Auro South properties located in British Columbia. The company was formerly known as Gold Reach Resources Ltd. and changed its name to Surge Copper Corp. in February 2018. Surge Copper Corp. was incorporated in 1965 and is based in Vancouver, Canada.

How the Company Makes Money

Surge Copper Corp generates revenue primarily through the exploration and potential development of its copper and precious metals assets. The company seeks to increase the value of its properties by conducting detailed exploration programs, which can lead to the discovery of economically viable mineral deposits. Once a viable resource is confirmed, Surge Copper can either develop the mining project itself, leading to potential future revenue from copper and metal extraction, or enter into joint ventures or partnerships with larger mining companies. These partnerships can provide upfront payments, milestone payments, or royalties, contributing to the company's earnings. Additionally, the company may raise capital through equity financing to fund its exploration activities, which can also impact its financial standing.

Surge Copper Corp Financial Statement Overview

Summary

Surge Copper Corp faces significant financial challenges, primarily driven by zero revenue and persistent losses. The balance sheet shows financial stability due to low leverage, but poor cash flow performance and lack of profitability severely impact overall financial health.

Income Statement

Surge Copper Corp shows a persistent lack of revenue generation, with total revenue remaining at zero for both TTM and annual periods. The company continues to post net losses, indicating no net profit margins. EBIT and EBITDA margins are negative, reflecting ongoing operational losses. The absence of revenue and profitability highlights significant challenges in the company's income generation capabilities.

Balance Sheet

The company's balance sheet shows a solid equity base with a strong equity ratio, suggesting financial stability. However, the debt-to-equity ratio is low due to minimal debt levels, which lowers financial risk. Despite a strong equity position, the lack of revenue and profitability affects the return on equity, which remains negative. This points to inefficiencies in generating returns on shareholders' investments.

Cash Flow

The cash flow statements highlight negative operating and free cash flows, suggesting cash burn in operations and investments without sufficient cash inflow from revenues. Financing activities indicate reliance on external funding for liquidity. The operating cash flow to net income ratio is negative, reflecting challenges in converting accounting profits into cash flow. This raises concerns about the sustainability of cash flows.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00	0.00
	Gross Profit
-33.72K	-36.06K	-39.33K	-48.79K	-51.52K	-51.48K
	EBIT
-1.52M	-2.58M	-1.85M	-2.32M	-4.51M	-228.70K
	EBITDA
-2.14M	-2.60M	-1.77M	-2.27M	-4.46M	-177.22K
	Net Income Common Stockholders
-1.87M	-1.73M	-2.11M	-4.89M	-5.80M	-169.94K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
814.74K	84.66K	2.82M	7.82M	3.27M	35.05K
	Total Assets
22.39M	51.34M	50.35M	47.28M	33.91M	22.07M
	Total Debt
0.00	80.37K	105.03K	126.11K	25.22K	73.80K
	Net Debt
-814.74K	-4.29K	-2.72M	-7.70M	-3.25M	38.75K
	Total Liabilities
1.11M	4.91M	5.65M	5.75M	1.95M	330.39K
	Stockholders Equity
21.28M	46.43M	44.70M	41.53M	31.96M	21.74M
Cash Flow		Free Cash Flow
-5.00M	-859.24K	-874.71K	-1.60M	-1.51M	-50.96K
	Operating Cash Flow
-1.54M	-849.75K	-871.36K	-1.56M	-1.47M	-43.38K
	Investing Cash Flow
-3.48M	-2.03M	-8.25M	-7.84M	-4.39M	-7.59K
	Financing Cash Flow
7.31M	144.25K	4.12M	13.95M	9.11M	77.92K

Surge Copper Corp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SURG, the sentiment is Negative. The current price of 0.1 is below the 20-day moving average (MA) of 0.11, below the 50-day MA of 0.11, and below the 200-day MA of 0.11, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 41.59 is Neutral, neither overbought nor oversold. The STOCH value of >-0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:SURG.

Surge Copper Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	50 Neutral	$2.00B	-1.02	-21.34%	3.70%	2.00%	-30.65%
PGZ	48 Neutral	C$34.96M	―	-69.28%	―	―	49.63%
KC	48 Neutral	C$22.65M	―	-7.74%	―	―	-116.84%
SURG	41 Neutral	C$30.55M	―	-3.82%	―	―	57.39%
WHY	39 Underperform	C$33.89M	―		―	―	-24.04%
FT	36 Underperform	C$31.69M	―	-20.64%	―	―	-20.34%

Surge Copper Corp Corporate Events

Surge Copper Explores Energy-Saving Technology for Berg Project

Surge Copper Corp. has released results from an energy efficiency study exploring the use of high-pressure grinding rolls (HPGR) at its Berg Project in British Columbia. The study, conducted with Ausenco Engineering and BC Hydro, indicates that HPGR technology could reduce grinding power requirements by 25% and overall energy consumption by 20% compared to traditional methods. This could offer strategic flexibility and address power supply challenges in large-scale milling operations. Further analysis is needed to assess additional factors like environmental impact as the company progresses towards a pre-feasibility assessment.

Spark’s Take on TSE:SURG Stock

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

Surge Copper Corp’s stock score is primarily impacted by its financial performance challenges, including zero revenue and persistent losses. While technical analysis shows strong upward momentum, caution is advised due to overbought indicators. The recent promising drilling results provide a positive outlook, but valuation concerns due to negative earnings persist.

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

Surge Copper Corp. Grants Equity Incentives and Finalizes Property Agreement

Surge Copper Corp. has announced the grant of equity-based incentive awards, distributing restricted share units to employees and executives, and deferred share units to non-executive directors. Additionally, the company has completed the MacLean East Property agreement, receiving approval from the TSX Venture Exchange, with a cap on the maximum number of shares issuable under the agreement.