World Copper (WCU) AI Stock Analysis

• Market Cap: C$9.60M
• Dividend Yield: N/A
• Average Volume (3M): 351.01K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.19
• Revenue Growth: N/A
• EPS Growth: -463.67%
• Country: CA
• Employees: 1
• Sector: Basic Materials
• Sector Strength: 62
• Industry: Copper
• EPS (TTM): -0.14
• Shares Outstanding: 240,071,500
• 10 Day Avg. Volume: 264,054
• 30 Day Avg. Volume: 351,015
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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

World Copper faces significant financial and operational challenges, highlighted by the absence of revenue and persistent losses. While recent corporate actions, such as the Zonia project sale, provide a potential financial boost, the overall outlook remains weak due to bearish technical indicators and poor valuation metrics.

World Copper Business Overview & Revenue Model

Company Description

World Copper Ltd. engages in the exploration and development of copper projects in Chile and the United States. It has an option to acquire 100% interests in the Escalones and Cristal projects located in Chile; and Zonia copper oxide project located in central Arizona. The company was formerly known as Wealth Copper Ltd. and changed its to World Copper Ltd. in July 2020. World Copper Ltd. is headquartered in Vancouver, Canada.

How the Company Makes Money

World Copper makes money through the exploration, development, and eventual production of copper from its mining projects. The company's primary revenue stream comes from selling extracted copper to various industries, including construction, electronics, and renewable energy sectors. Key factors contributing to its earnings include the successful acquisition and development of high-grade copper deposits, efficient mining operations, and favorable market conditions for copper prices. Additionally, strategic partnerships or joint ventures with other mining companies can enhance resource access, reduce operational costs, and increase profitability.

World Copper Financial Statement Overview

Summary

World Copper is experiencing severe financial difficulties, with no revenue and significant operational losses. While there is a strong equity base, the lack of liquidity and persistent negative cash flows necessitate immediate strategic changes.

Income Statement

World Copper has faced persistent revenue challenges with no revenue generation over the observed period. The company has been operating at a loss with both EBIT and EBITDA deeply negative, indicating significant operational inefficiencies. The net profit margin is effectively non-existent due to zero revenue, highlighting a critical need for revenue growth strategies.

Balance Sheet

The balance sheet shows a relatively high level of stockholders' equity compared to total assets, indicating a strong equity base. However, the debt-to-equity ratio is concerning, given the company's lack of revenue, which poses a risk for long-term financial sustainability. The low level of cash and cash equivalents also suggests limited liquidity.

Cash Flow

Operating cash flows have consistently been negative, reflecting ongoing cash burn without revenue support. While there have been injections of financing cash flow, free cash flow remains negative, suggesting cash flow challenges. The company needs to achieve positive operating cash flow to stabilize its financial position.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00
	Gross Profit
-4.98K	-5.01K	0.00	0.00	0.00
	EBIT
-3.48M	-16.02M	-6.36M	-1.97M	-661.26K
	EBITDA
-2.93M	-15.93M	-6.37M	-1.97M	-65.22K
	Net Income Common Stockholders
-3.66M	-16.45M	-6.37M	-1.97M	-681.79K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
14.33K	567.41K	2.32M	330.65K	166.71K
	Total Assets
42.93M	43.75M	10.60M	4.82M	4.23M
	Total Debt
4.50M	3.99M	12.50K	0.00	150.00K
	Net Debt
4.49M	3.98M	-2.31M	-330.65K	-16.71K
	Total Liabilities
6.86M	7.06M	1.08M	1.74M	1.57M
	Stockholders Equity
36.07M	36.69M	9.51M	3.08M	2.66M
Cash Flow		Free Cash Flow
-2.51M	-7.10M	-6.22M	-1.89M	-463.32K
	Operating Cash Flow
-1.93M	-6.34M	-5.85M	-1.50M	-463.32K
	Investing Cash Flow
-83.82K	-836.91K	-929.48K	-393.70K	-70.05K
	Financing Cash Flow
2.02M	4.87M	8.77M	2.06M	700.08K

World Copper Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:WCU, 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 0.05, and below the 200-day MA of 0.07, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 42.11 is Neutral, neither overbought nor oversold. The STOCH value of 11.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:WCU.

World Copper Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	49 Neutral	$1.96B	-1.23	-21.20%	3.72%	0.88%	-29.24%
FOM	46 Neutral	C$1.45B	―	-3.01%	―	―	8.92%
HEM	41 Neutral	C$14.10M	―	34.47%	―	―	43.45%
CUU	39 Underperform	C$135.15M	―	-0.74%	―	―	42.11%
WCU	33 Underperform	C$9.60M	―	-104.33%	―	―	-463.67%

World Copper Corporate Events

World Copper Announces Progress on Zonia Project Sale and ATM Offering

World Copper Ltd. has announced an update on the sale of its Zonia Copper project in Arizona to a third-party metals and mining investment manager for CAD $26 million. The transaction is structured with payments in tranches, and the company is actively working with the purchaser to complete due diligence. This sale is expected to provide shareholders with a significant premium over the current trading price and reflects strong alignment between both parties. Additionally, World Copper raised $579,654 through an at-the-market offering, issuing 11,501,000 common shares.

Spark’s Take on TSE:WCU Stock

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

World Copper’s financial health is the primary concern, characterized by no revenue and significant operational losses. The technical indicators do not offer much optimism, as the stock shows a bearish trend. The weak valuation metrics further underscore the company’s challenges, resulting in a low overall score.

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

World Copper to Sell Zonia Project for CAD $26 Million

World Copper Ltd. has entered into a binding agreement to sell its interest in the Zonia copper project in Arizona to a European-based metals and mining investment manager for CAD $26 million. This transaction, subject to due diligence and regulatory approvals, involves staged payments and safeguards for World Copper, ensuring the project’s future development while allowing the company to focus on its other projects and financial strategy.

World Copper Ltd. Successfully Closes Financing and Reports ATM Offering Results

World Copper Ltd. has successfully closed a non-brokered private placement, raising $227,000 through the issuance of 2,837,500 units. The proceeds from this offering are intended for general working capital and the Zonia work programs. Additionally, World Copper reported its quarterly at-the-market (ATM) offering results, which raised $1,340,203 by issuing 20,664,000 common shares. These financial activities indicate an effort to bolster the company’s financial standing and support its ongoing project developments.