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West High Yield Resources Ltd (TSE:WHY)
:WHY
Canadian Market

West High Yield Resources (WHY) AI Stock Analysis

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West High Yield Resources

(WHY)

Rating:39Underperform
Price Target:
West High Yield Resources' overall stock score is low due to critical financial challenges, including negative equity and inadequate cash flows. While technical indicators show upward momentum, potential overbought conditions warrant caution. The successful private placement is a positive step, enhancing financial stability, but significant risks remain due to ongoing financial instability and lack of earnings.

West High Yield Resources (WHY) vs. iShares MSCI Canada ETF (EWC)

West High Yield Resources Business Overview & Revenue Model

Company DescriptionWest High Yield Resources (WHY) is a Canadian-based junior mining exploration company focused on the acquisition, exploration, and development of mineral resource properties. The company's primary asset is the Record Ridge magnesium project located in British Columbia, Canada. West High Yield Resources aims to capitalize on the growing demand for magnesium by advancing its flagship project and exploring additional opportunities in the resource sector.
How the Company Makes MoneyWest High Yield Resources generates revenue through the exploration and potential future extraction and sale of mineral resources, primarily magnesium, from its Record Ridge project. The company is still in the exploration and development phase, and its revenue model is primarily centered around raising capital through equity financing to fund its exploration activities. The company's future profitability depends on successfully developing its mineral properties into economically viable mining operations. Significant factors contributing to its earnings potential include strategic partnerships, securing necessary permits, and fluctuations in commodity prices that impact the valuation of its mineral resources.

West High Yield Resources Financial Statement Overview

Summary
West High Yield Resources faces severe financial challenges, with no revenue generation and continuous losses. The balance sheet shows high leverage with negative equity, and cash flows are inadequate to support operations without external funding. These factors pose significant risks to the company's sustainability and highlight the need for strategic restructuring or capital infusion.
Income Statement
5
Very Negative
The company consistently reports zero revenue over the years, which is highly concerning for long-term viability. The persistent negative net income indicates continual losses, exacerbating financial instability. Gross profit and EBIT margins are negative, reflecting the company's inability to control costs efficiently relative to its nonexistent revenue.
Balance Sheet
10
Very Negative
The company has a negative stockholders' equity, which highlights financial distress and potential insolvency risk. The debt-to-equity ratio cannot be calculated due to negative equity, but the high level of total debt relative to assets suggests significant leverage, posing potential liquidity risks.
Cash Flow
15
Very Negative
Operating cash flow is consistently negative, indicating fundamental challenges in generating cash from operations. Free cash flow is also negative, raising concerns about the company's ability to sustain its operations without external financing. The reliance on financing cash flow for cash needs suggests a precarious cash position.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue0.000.000.000.000.00
Gross Profit-12.01K-18.75K-22.74K-11.47K-30.43K
EBITDA-2.77M-2.86M-4.02M-2.17M-998.14K
Net Income-4.30M-3.14M-3.81M-2.56M-1.35M
Balance Sheet
Total Assets1.94M1.85M2.85M4.40M1.64M
Cash, Cash Equivalents and Short-Term Investments245.39K168.54K1.05M133.47K18.02K
Total Debt5.83M2.52M3.75M5.34M4.37M
Total Liabilities8.18M6.04M5.86M7.96M6.72M
Stockholders Equity-6.23M-4.18M-3.00M-3.55M-5.08M
Cash Flow
Free Cash Flow-2.52M-2.35M-1.81M-3.97M-192.11K
Operating Cash Flow-2.52M-2.35M-1.77M-3.93M-192.11K
Investing Cash Flow-2.50K0.00-45.47K-37.99K-13.50K
Financing Cash Flow2.60M1.48M2.72M4.09M214.77K

West High Yield Resources Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.44
Price Trends
50DMA
0.39
Positive
100DMA
0.33
Positive
200DMA
0.28
Positive
Market Momentum
MACD
0.01
Positive
RSI
51.37
Neutral
STOCH
8.59
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:WHY, the sentiment is Positive. The current price of 0.44 is below the 20-day moving average (MA) of 0.46, above the 50-day MA of 0.39, and above the 200-day MA of 0.28, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 51.37 is Neutral, neither overbought nor oversold. The STOCH value of 8.59 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:WHY.

West High Yield Resources Peers Comparison

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSHBM
76
Outperform
$5.88B27.026.50%0.13%10.69%79.56%
TSIVN
69
Neutral
$14.42B24.149.67%137.28%
TSFM
67
Neutral
$20.93B110.091.22%-13.79%
TSTKO
62
Neutral
C$1.44B11.15-12.40%7.36%-159.52%
52
Neutral
C$2.91B-0.93-3.26%6.13%2.20%-43.43%
TSLAC
49
Neutral
$807.76M-8.91%
TSWHY
39
Underperform
C$46.07M
-24.04%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:WHY
West High Yield Resources
0.44
0.05
12.82%
TSE:HBM
Hudbay Minerals
14.88
1.66
12.52%
TSE:TKO
Taseko Mines
4.57
1.00
28.01%
TSE:FM
First Quantum Minerals
25.09
6.11
32.19%
TSE:IVN
Ivanhoe Mines
10.65
-8.21
-43.53%
TSE:LAC
Lithium Americas Corp.
3.69
0.07
1.93%

West High Yield Resources Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
West High Yield Resources Completes Oversubscribed Private Placement
Positive
Mar 25, 2025

West High Yield Resources Ltd. announced the final closing of its oversubscribed private placement, raising a total of $1,073,937.33 through the issuance of 4,669,290 units. The proceeds from this offering will be used to conclude the company’s permitting process, support essential operations, and cover general working capital expenses. This successful fundraising effort reflects strong investor confidence and positions the company to advance its strategic objectives, particularly in developing its Record Ridge project in British Columbia.

Private Placements and FinancingBusiness Operations and Strategy
West High Yield Resources Completes Oversubscribed Private Placement
Positive
Mar 25, 2025

West High Yield Resources Ltd. has announced the final closing of its oversubscribed private placement, raising a total of $1,073,937.33 through the issuance of 4,669,290 units. The funds will be used to support the company’s permitting process, essential operations, and general working capital. The completion of this financing round highlights the company’s strategic focus on advancing its mineral projects and maintaining its operational momentum.

Private Placements and FinancingBusiness Operations and Strategy
West High Yield Resources Closes First Tranche of Private Placement
Positive
Mar 10, 2025

West High Yield Resources Ltd. has announced the closing of the first tranche of its private placement offering, raising $674,220.33 through the issuance of 2,931,391 units. The funds will support the company’s permitting process, essential operations, and general working capital, potentially enhancing its operational capabilities and market position.

Private Placements and FinancingBusiness Operations and Strategy
West High Yield Announces Private Placement and Magnesium Battery Breakthrough
Positive
Feb 20, 2025

West High Yield (W.H.Y.) Resources Ltd. announced a private placement offering to raise up to CAD$900,000 through the sale of units consisting of common shares and warrants. This initiative aims to support the company’s permitting process, essential operations, and working capital. Additionally, the company reported amendments to loan agreements with Big Mountain Development Corp Ltd. and highlighted a significant breakthrough in magnesium battery technology, potentially enhancing its market position and offering new opportunities for stakeholders.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 26, 2025