Tinka Resources (TK) AI Stock Analysis

• Market Cap: C$18.39M
• Dividend Yield: N/A
• Average Volume (3M): 1.29M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.04
• Revenue Growth: N/A
• EPS Growth: 35.14%
• Country: CA
• Employees: 41
• Sector: Basic Materials
• Sector Strength: 67
• Industry: Industrial Materials
• EPS (TTM): >-0.01
• Shares Outstanding: 408,696,900
• 10 Day Avg. Volume: 65,046
• 30 Day Avg. Volume: 1,291,919
• PEG Ratio: -0.66
• Price to Book (P/B): 0.18
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.99
• 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: ―

Tinka Resources faces significant financial challenges due to its lack of revenue and persistent losses, which heavily weigh on its stock score. While the balance sheet is strong, the cash flow situation is precarious. Technical indicators suggest bearish momentum, albeit with potential for a rebound. The valuation is unattractive due to a negative P/E ratio and no dividend yield. However, recent strategic shareholder approvals may offer future strategic advantages.

Tinka Resources Business Overview & Revenue Model

Company Description

Tinka Resources Limited, a junior mineral exploration company, engages in the acquisition and exploration of base and precious metals mineral properties in Peru. It primarily explores for zinc, lead, silver, gold, and copper deposits. The company's flagship project is the 100% owned the Ayawilca project that includes 59 granted mining concessions covering an area of approximately 16,548 hectares located in the Department of Pasco, Central Peru. The company was incorporated in 1987 and is headquartered in Vancouver, Canada.

How the Company Makes Money

Tinka Resources generates revenue primarily through the exploration and potential future extraction and sale of mineral resources, particularly zinc, silver, and tin from its Ayawilca project. The company seeks to increase the value of its mineral properties through exploration and development, making them attractive for acquisition or joint ventures with larger mining companies. Additionally, Tinka may engage in strategic partnerships or secure financing to advance its projects and bring them to production, which will enable the sale of extracted minerals in global markets.

Tinka Resources Financial Statement Overview

Summary

Tinka Resources shows a mixed financial landscape. The absence of revenue significantly impacts the income statement, resulting in persistent losses. The balance sheet is strong due to zero debt and high equity, while the cash flow statement reflects challenges in cash generation, offset by a solid cash reserve. The company's financial health is contingent upon its ability to initiate revenue streams while managing expenditures efficiently.

Income Statement

Tinka Resources exhibits a challenging income profile with no revenue generation over the years, resulting in consistent negative net income and EBIT. This lack of revenue limits the ability to assess growth or margin improvements, presenting a significant hurdle for financial stability and potential profitability.

Balance Sheet

The balance sheet is relatively stable, with zero debt and a substantial equity base, reflected in a solid equity ratio. The company maintains a strong cash position, which is crucial given the absence of revenue. However, the lack of revenue generation and continued net losses could pose a risk to long-term sustainability.

Cash Flow

Cash flow analysis indicates negative free cash flow and operating cash flow, raising concerns about the company's cash generation capabilities. However, the company has managed to maintain a significant cash position, likely through financing activities, which provides some short-term financial flexibility.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00	0.00
	Gross Profit
0.00	0.00	0.00	0.00	-534.00	-2.70K
	EBIT
-735.84K	-1.34M	-1.56M	-3.35M	-1.10M	-3.24M
	EBITDA
-1.33M	-1.33M	-1.55M	-916.45K	-1.48M	-2.82M
	Net Income Common Stockholders
-952.77K	-1.22M	-1.46M	-916.45K	-2.05M	-2.68M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.06M	2.08M	7.48M	9.60M	4.04M	12.81M
	Total Assets
76.45M	75.03M	76.47M	77.90M	67.11M	69.31M
	Total Debt
0.00	0.00	0.00	0.00	0.00	0.00
	Net Debt
-3.06M	-2.08M	-7.48M	-9.60M	-4.04M	-12.81M
	Total Liabilities
338.57K	437.69K	656.90K	652.64K	596.20K	781.04K
	Stockholders Equity
76.11M	74.59M	75.81M	77.24M	66.51M	68.53M
Cash Flow		Free Cash Flow
-2.39M	-1.31M	-1.30M	-4.91M	-9.18M	-4.41M
	Operating Cash Flow
-1.04M	-1.31M	―	-328.21K	-2.04M	-1.61M
	Investing Cash Flow
-3.29M	-4.10M	-9.06M	-4.58M	-7.14M	-2.81M
	Financing Cash Flow
1.71M	0.00	0.00	11.05M	0.00	18.37M

Tinka Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.05
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TK, the sentiment is Positive. The current price of 0.05 is above the 20-day moving average (MA) of 0.04, above the 50-day MA of 0.04, and below the 200-day MA of 0.08, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 71.35 is Negative, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:TK.

Tinka Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EPL	61 Neutral	C$14.96M	2.22	-0.21%	―	-1.60%	-103.61%
Sector *	51 Neutral	$2.02B	-1.12	-21.36%	3.65%	2.87%	-30.54%
SEAG.X	45 Neutral	C$12.07M	―	-9.58%	―	―	1.67%
TK	43 Neutral	C$18.39M	―	-1.57%	―	―	35.14%
NMI		C$10.89M	―	-2.11%	―	―	―
SME	40 Underperform	C$12.10M	2.40	24.42%	―	―	―
ATCMF		$12.87M	―	-6.37%	―	―	―

Tinka Resources Corporate Events

Tinka Resources to Delist from Lima Stock Exchange

Tinka Resources Limited has announced its voluntary delisting from the Bolsa de Valores de Lima, while maintaining its listings on the TSX Venture Exchange and OTCQB. This strategic move is expected to streamline operations and focus on its primary exchanges, potentially impacting its market presence in Peru and aligning with its broader business objectives.

Spark’s Take on TSE:TK Stock

According to Spark, TipRanks’ AI Analyst, TSE:TK is a Underperform.

Tinka Resources faces significant challenges, primarily due to its lack of revenue and consistent losses, which are evident in its financial performance and negative valuation metrics. The technical analysis further supports a cautious outlook with bearish trends. However, the strong balance sheet provides some resilience, and potential strategic investments could offer future growth opportunities. Overall, the company needs to establish revenue streams to improve its financial stability and investor sentiment.

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

Tinka Resources Announces AGM Results and Strategic Shareholder Approvals

Tinka Resources Limited announced the results of its Annual General and Special Meeting of Shareholders, where all proposed matters were approved, including the election of six board members and the ratification of the company’s stock option plan. Additionally, shareholders approved the potential for Nexa Resources S.A. and Compañia de Minas Buenaventura SAA to become control persons of the company, contingent on future investments. These developments could significantly impact Tinka’s operational strategy and stakeholder dynamics, enhancing its position within the mining sector.

Tinka Resources Announces Director Resignation

Tinka Resources announced the resignation of Pieter Britz from its board of directors, effective immediately, as he focuses on commitments with Sentient Resources. Britz, who joined Tinka in 2018, was a nominee of Sentient and contributed significantly to the company during his tenure. His departure may impact the company’s board dynamics, but Tinka expressed gratitude for his service.

Tinka Resources Initiates Strategic Review to Maximize Shareholder Value

Tinka Resources has announced the commencement of a strategic review process with the help of a financial advisor to explore various strategic and financing alternatives aimed at maximizing shareholder value. The company has deferred its drilling activities at the Ayawilca project during this review, highlighting the project’s promising economic potential. However, no specific timeline or decisions have been set, and there is no certainty that the process will result in a transaction.