Sarama Resources (SWA) AI Stock Analysis

• Market Cap: C$20.84M
• Dividend Yield: N/A
• Average Volume (3M): 53.63K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.41
• Revenue Growth: N/A
• EPS Growth: -51.94%
• Country: CA
• Employees: 4
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Gold
• EPS (TTM): >-0.01
• Shares Outstanding: 463,070,530
• 10 Day Avg. Volume: 59,754
• 30 Day Avg. Volume: 53,635
• PEG Ratio: -0.04
• Price to Book (P/B): -13.25
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.33
• 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: 47 Neutral
• Price Target: C$0.04 ▲(10.00% Upside)

The score is held down primarily by weak financial performance (persistent losses, negative cash flow, and negative equity). Technicals provide a modest offset with the price above key moving averages and neutral momentum, while valuation remains constrained by negative earnings and no dividend data.

Positive Factors

No Financial Debt

Zero reported debt materially lowers financial leverage and default risk for an explorer. This durable balance-sheet strength improves flexibility to pursue farm-outs or staged project work, making external equity or partner funding less encumbered by fixed obligations.

Flexible Monetization Model

A multi-path monetization strategy (sales, earn-ins/JVs, or advancing to development) provides structural optionality. It lets the company conserve capital, attract partner-funded exploration, and crystallize value at different stages, reducing reliance on a single funding route.

Focused Gold Portfolio in West Africa

Concentration on gold in a prolific West African jurisdiction aligns the company with a structurally supported commodity and proven regional prospectivity. This geographic and commodity focus enhances the long-term potential to discover bankable resources attractive to acquirers or JV partners.

Negative Factors

Persistent Negative Cash Flow

Sustained cash burn indicates the business cannot self-fund exploration or studies and will need recurring external financing. Over months, this raises dilution and execution risk, constraining the pace of resource conversion and increasing dependence on capital market or partner support.

Deep and Widening Net Losses

Growing net losses amid minimal revenue reflect inability to reach sustainable operating scale. Persistent negative earnings erode retained capital, weaken negotiating positions with partners or lenders, and may force asset sales or distressed funding choices over the medium term.

Negative Shareholders' Equity

Negative equity signals accumulated losses exceed the capital base, limiting balance-sheet resilience. This structural weakness can restrict credit access, necessitate recapitalization or dilutive raises, and increase the risk that assets must be sold or farmed down to restore solvency.

Sarama Resources Business Overview & Revenue Model

Company Description

Sarama Resources Ltd, an exploration stage company, engages in the sourcing, exploration, and development of gold deposits in West Africa. The company holds 100% interest in the Sanutura Project covering an area of approximately 1,420 square kilometers; and 18% interest in the Karankasso Project covering an area of approximately 700 square kilometers located within the southern Houndé Belt, south-west Burkina Faso. It also holds 100% interest in the Koumandara Project comprises four exploration properties covering an area of approximately 467 square kilometers located within the northern Banfora Greenstone Belt, south-west Burkina Faso. The company was incorporated in 2010 and is headquartered in Subiaco, Australia.

How the Company Makes Money

Sarama Resources Ltd generates revenue primarily through the exploration and development of gold mining projects. The company’s revenue model involves increasing the value of its mining assets through successful exploration, which can lead to joint ventures, partnerships, or the sale of these assets to larger mining companies. Key revenue streams include proceeds from the sale of gold or gold properties, joint venture agreements where partners may fund exploration activities in exchange for an interest in the property, and potential royalties from any eventual production. Strategic partnerships with other mining entities can also provide funding for exploration and development efforts, contributing to the company's earnings.

Sarama Resources Financial Statement Overview

Summary

Sarama Resources is facing significant financial challenges, with no revenue generation and consistent operating losses. The balance sheet reflects a precarious financial position with negative equity, despite the absence of debt. Cash flow analysis indicates dependency on external financing, which is not a sustainable strategy without revenue. The company must focus on establishing revenue streams to improve financial health and stability.

Income Statement

The company has consistently reported zero revenue over the years, indicating a lack of commercial operations. Both EBIT and EBITDA margins are negative, reflecting ongoing operating losses. The net profit margin is also negative, with net losses increasing in the latest year, signaling deteriorating performance.

Balance Sheet

The balance sheet shows significant volatility in stockholders' equity, which turned negative in the latest period, highlighting potential financial instability. Total assets have decreased, and the equity ratio is negative, indicating more liabilities than assets. However, the company maintains a debt-free position, which is a positive aspect.

Cash Flow

Operating cash flow and free cash flow have been negative, reflecting cash burn without revenue. Although free cash flow improved slightly in the latest year, it remains negative. The company relies heavily on financing activities for liquidity, which is unsustainable in the long term without revenue generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.70K	0.00	0.00	0.00	179.40K	0.00
Gross Profit	-3.59K	0.00	0.00	-4.05K	179.40K	-2.28K
EBITDA	-3.21M	-2.68M	-2.74M	-4.02M	-2.44M	-2.76M
Net Income	-5.06M	-4.28M	-2.48M	-4.20M	-2.61M	-2.58M
Balance Sheet
Total Assets	1.32M	1.24M	2.46M	3.05M	3.20M	3.82M
Cash, Cash Equivalents and Short-Term Investments	1.26M	1.15M	492.52K	843.09K	1.03M	1.62M
Total Debt	0.00	0.00	0.00	0.00	267.70K	0.00
Total Liabilities	1.62M	1.47M	1.13M	706.98K	1.95M	1.58M
Stockholders Equity	-305.83K	-233.00K	1.33M	2.35M	1.24M	2.24M
Cash Flow
Free Cash Flow	-1.95M	-1.32M	-1.90M	-5.06M	-2.10M	-2.34M
Operating Cash Flow	-1.94M	-1.32M	-1.90M	-4.97M	-2.10M	-2.34M
Investing Cash Flow	9.02K	212.34K	40.75K	-97.85K	-2.75K	158.20K
Financing Cash Flow	2.78M	1.85M	1.54M	5.22M	1.55M	1.50M

Sarama Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.04
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SWA, the sentiment is Positive. The current price of 0.04 is below the 20-day moving average (MA) of 0.04, above the 50-day MA of 0.04, and above the 200-day MA of 0.04, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 51.24 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 Positive sentiment for TSE:SWA.

Sarama 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%
IRV	50 Neutral	C$22.09M	-4.18	-10.18%	―	―	-165.27%
OMM	48 Neutral	C$18.35M	-5.74	-58.36%	―	―	-23.23%
SGC	48 Neutral	C$25.27M	-16.67	-1390.86%	―	―	-100.00%
SWA	47 Neutral	C$20.84M	-2.30	-3995.40%	―	―	-51.94%
PRG	47 Neutral	C$29.98M	-19.83	-30.77%	―	―	-296.61%
FFOX	45 Neutral	C$19.36M	-2.98	-130.54%	―	―	-47.82%

Sarama Resources Corporate Events

Sarama Resources Enhances Investor Engagement with New Interactive Platform

Sarama Resources Ltd. has partnered with InvestorHub to enhance its investor engagement through a new interactive platform. This initiative aims to provide investors with easy access to company updates, project insights, and a channel for submitting questions, thereby fostering transparency and deeper engagement with stakeholders.

Sarama Resources Files $242M Claim Against Burkina Faso Over Permit Expropriation

Sarama Resources Ltd. has filed a US$242 million damages claim against the Government of Burkina Faso for the unlawful expropriation of its Tankoro 2 Exploration Permit, a key component of its Sanutura Project. The arbitration process, initiated under the Canada-Burkina Faso Bilateral Investment Treaty, is supported by a non-recourse loan facility and involves a comprehensive legal strategy to protect shareholder value and seek compensation for the expropriation, which halted project activities in Burkina Faso.

Sarama Resources Completes Third Tranche of Equity Placement

Sarama Resources Ltd. has completed the third tranche of its A$2.7 million equity placement, raising A$100,000 through the issuance of CHESS Depositary Interests and unlisted options. The funds will support exploration activities at the Cosmo Gold Project and general working capital, including an arbitration claim against the Government of Burkina Faso. The placement involved existing shareholders and new investors, with participation from Sarama’s board and management, and remains subject to TSX Venture Exchange approval.