Sarama Resources (SWA) AI Stock Analysis

• Market Cap: C$18.52M
• Dividend Yield: N/A
• Average Volume (3M): 53.63K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.13
• 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: 44 Neutral
• Price Target: C$0.04 ▼(-2.50% Downside)

The score is primarily constrained by weak financial performance: large and widening losses, negative equity, and ongoing negative operating/free cash flow. Technicals are comparatively better with the price slightly above key moving averages and neutral momentum, but valuation remains challenged due to unprofitability (negative P/E) and no indicated dividend yield.

Positive Factors

Asset focus: gold projects in West Africa

Concentrated focus on gold projects in West Africa gives Sarama a coherent, specialist asset base. That concentration supports technical continuity, clearer prioritization of drilling and studies, and the potential to attract partner interest for resource definition and later‑stage funding.

Low reported financial leverage

Reporting no debt reduces fixed financing costs and lowers short‑term solvency pressure, giving Sarama flexibility to pursue farm‑outs or staged development. Lower leverage improves resilience through lengthy exploration cycles and simplifies structuring of partnership deals.

Capital‑efficient monetization model

Sarama’s explicit monetization pathways (project sales, farm‑outs, and advancing to financeable development) are capital‑efficient. This model allows projects to be de‑risked via partner funding, preserving company cash while still progressing technical studies and value creation.

Negative Factors

Persistent negative operating and free cash flow

Material negative operating and free cash flow indicate ongoing cash burn and reliance on external equity or partner funding. This constrains continuous exploration expenditure, raises dilution risk for shareholders, and can delay essential technical studies needed to advance projects.

Negative shareholders' equity

Negative shareholders' equity reflects accumulated losses that weaken the balance sheet and limit financial flexibility. It can reduce counterparties' confidence, restrict access to non‑dilutive capital, and complicate joint‑venture or financing negotiations for project advancement.

Minimal revenue and widening net losses

Minimal TTM revenue and large, widening net losses show Sarama remains pre‑revenue and not self‑funding. This creates dependence on external financing to progress resource definition and studies, increasing execution risk and the possibility of slowed project timelines or impairments if funding tightens.

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

Income statement is very weak with minimal TTM revenue (9.7k) and large losses (EBIT -3.1M; net income -5.1M) that widened vs 2024. Balance sheet has no reported debt, but negative equity (TTM -0.31M) limits financial flexibility. Cash flow shows ongoing, worsening cash burn (TTM operating cash flow -1.94M; free cash flow -1.95M), implying continued reliance on external funding.

Income Statement

TTM (Trailing-Twelve-Months) revenue is minimal (9.7k) and profitability is deeply negative (gross profit -3.6k; EBIT -3.1M; net income -5.1M), indicating the business is not operating at a sustainable scale. The net loss has widened versus 2024 (from -4.3M to -5.1M), and margins are heavily distorted by the very small revenue base. Strength: the presence of some TTM revenue is a modest improvement versus several prior annual periods with zero revenue, but overall earnings power remains very weak.

Balance Sheet

The company reports no debt in TTM (Trailing-Twelve-Months) and across most annual periods, reducing financial leverage risk. However, stockholders’ equity is negative in TTM (-0.31M) and 2024 (-0.23M), a meaningful weakness that limits balance-sheet flexibility and signals accumulated losses outweigh the capital base (despite total assets of ~1.32M TTM). Strength: low reported debt; Weakness: negative equity and a shrinking asset base versus 2023–2022.

Cash Flow

Cash generation remains pressured with negative operating cash flow in TTM (Trailing-Twelve-Months) (-1.94M) and negative free cash flow (-1.95M), consistent with an exploration-stage profile that is consuming cash rather than producing it. Cash burn increased versus 2024 (operating cash flow -1.32M), though it is improved versus the particularly heavy outflow in 2022 (operating cash flow -5.0M). Strength: burn rate is below 2022 levels; Weakness: ongoing negative operating and free cash flow with no clear self-funding capacity in the provided data.

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SWA, the sentiment is Negative. The current price of 0.04 is below the 20-day moving average (MA) of 0.04, below 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 Negative momentum. The RSI at 48.18 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	53 Neutral	C$22.09M	-3.82	-10.18%	―	―	-165.27%
OMM	50 Neutral	C$22.28M	-6.97	-58.36%	―	―	-23.23%
FFOX	49 Neutral	C$23.76M	-3.65	-130.54%	―	―	-47.82%
PRG	47 Neutral	C$55.41M	-36.64	-30.77%	―	―	-296.61%
SGC	46 Neutral	C$24.01M	-15.83	-1390.86%	―	―	-100.00%
SWA	44 Neutral	C$18.52M	-2.04	-3995.40%	―	―	-51.94%

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.