Western Copper (WRN) AI Stock Analysis

• Market Cap: C$362.01M
• Dividend Yield: N/A
• Average Volume (3M): 170.63K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.18
• Revenue Growth: N/A
• EPS Growth: -77.62%
• Country: CA
• Employees: 15
• Sector: Basic Materials
• Sector Strength: 72
• Industry: Industrial Materials
• EPS (TTM): 0.00
• Shares Outstanding: 200,006,160
• 10 Day Avg. Volume: 136,598
• 30 Day Avg. Volume: 170,626
• PEG Ratio: -3.38
• Price to Book (P/B): 1.81
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -15.71
• 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: C$5.50
• Price Target Upside: 203.82% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 46 Neutral
• Price Target: ―

Western Copper's overall stock score reflects its strong equity position and recent positive corporate developments. However, the lack of revenue, ongoing operational losses, and negative earnings significantly weigh down the stock's attractiveness. Future performance will depend on successful project advancement and achieving profitability.

Positive Factors

Funding and Financial Support

Natural Resources Canada conditionally approved $40.0M in funding to advance pre-feasibility efforts for a high-voltage transmission energy corridor.

Investment and Shareholder Confidence

Rio Tinto’s continued interest and support of Casino reaffirm confidence in the longer-term potential of the asset.

Project Viability and Cost-Efficiency

A transportation study identified multiple transportation alternatives with costs in line or lower than the company’s 2022 feasibility estimates.

Negative Factors

Share Dilution and Currency Fluctuations

The decreased price target is primarily driven by dilution from an increased share count amid fluctuations in the CAD/USD exchange rate.

Western Copper Business Overview & Revenue Model

Company Description

Western Copper and Gold Corporation, an exploration stage company, engages in the exploration and development of mineral properties in Canada. The company explores for gold, copper, silver, and molybdenum deposits. Its principal property is the Casino mineral property that comprise 1,136 full and partial quartz claims, and 55 placer claims located in Yukon, Canada. The company was formerly known as Western Copper Corporation and changed its name to Western Copper and Gold Corporation in October 2011. Western Copper and Gold Corporation was incorporated in 2006 and is headquartered in Vancouver, Canada.

How the Company Makes Money

Western Copper and Gold Corporation makes money primarily through the development of its mineral resources. The company generates revenue by advancing its Casino Project towards production, which involves activities such as exploration, feasibility studies, and obtaining necessary permits. Once operational, the company plans to extract and sell copper, gold, and molybdenum, which are the primary revenue streams. Additionally, WRN may also earn income through strategic partnerships, joint ventures, or selling stakes in its projects to other mining companies. These partnerships can provide financial resources and technical expertise, contributing significantly to project development and potential earnings.

Western Copper Financial Statement Overview

Summary

Western Copper's financial performance is typical for a mining company in the exploration phase with no revenue generation. The strong equity position and minimal debt provide financial stability. However, ongoing operational losses and negative cash flows raise concerns unless the company can advance projects to generate revenue.

Income Statement

Western Copper's income statement reveals a consistent lack of revenue generation, which is typical for mining companies in the exploration phase. The company has maintained negative net income over multiple periods, highlighting ongoing operational challenges and significant costs relative to nonexistent revenue. Margins such as Gross Profit Margin, Net Profit Margin, EBIT, and EBITDA Margins are not applicable due to zero revenue. This pattern suggests a need for successful project development to improve financial outcomes.

Balance Sheet

The balance sheet of Western Copper shows a strong equity position relative to its liabilities, indicating low leverage and financial stability. The Debt-to-Equity ratio is minimal due to low debt levels, and the Equity Ratio is high, reflecting the company's reliance on equity financing. However, the lack of income generation poses risks to long-term sustainability unless new revenue streams are established.

Cash Flow

The company experiences negative operating and free cash flows, reflecting ongoing cash burn typical of companies in development phases without revenue. Although free cash flow showed improvement in the latest TTM period, it remains negative. Positive financing cash flows indicate reliance on external funding to support operations, highlighting a dependency on capital markets for liquidity.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00
Gross Profit	-157.06K	-206.90K	-167.89K	-103.26K	0.00
EBITDA	-6.76M	-3.13M	-4.76M	-4.02M	0.00
Net Income	-6.92M	-3.34M	-5.06M	-3.14M	-1.45M
Balance Sheet
Total Assets	192.79M	143.92M	114.38M	115.49M	83.81M
Cash, Cash Equivalents and Short-Term Investments	69.05M	32.07M	23.12M	47.87M	29.38M
Total Debt	60.64K	197.81K	417.98K	433.32K	0.00
Total Liabilities	3.18M	4.47M	4.64M	3.42M	1.18M
Stockholders Equity	189.61M	139.44M	109.74M	112.07M	82.63M
Cash Flow
Free Cash Flow	-18.55M	-22.44M	-24.27M	-15.27M	-7.68M
Operating Cash Flow	-4.73M	-2.54M	-3.34M	-3.87M	-2.37M
Investing Cash Flow	-61.32M	-3.90M	-25.93M	-27.40M	-5.31M
Financing Cash Flow	54.29M	31.07M	-75.90K	33.31M	34.69M

Western Copper Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.81
• 50DMA: Positive
• 100DMA: Positive
• 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:WRN, the sentiment is Positive. The current price of 1.81 is above the 20-day moving average (MA) of 1.74, above the 50-day MA of 1.67, and above the 200-day MA of 1.59, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 58.56 is Neutral, neither overbought nor oversold. The STOCH value of 75.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:WRN.

Western Copper Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LUCA	63 Neutral	C$402.37M	37.31	-18.51%	―	100.84%	17.40%
Sector *	62 Neutral	$10.36B	10.09	0.09%	2.81%	2.25%	-33.44%
TMQ	52 Neutral	C$382.68M	―	-6.82%	―	―	36.46%
PNPN	48 Neutral	C$263.70M	―	-450.39%	―	―	-14.92%
WRN	46 Neutral	C$362.01M	―	-3.62%	―	―	-77.62%
REG	37 Underperform	C$299.18M	―	-5.29%	―	―	-43.69%
SFR	18 Underperform	C$312.12M	―	75.60%	―	―	-73.03%

Western Copper Corporate Events

Western Copper and Gold Enhances Partnership with Mitsubishi Materials

Western Copper and Gold Corporation has strengthened its strategic partnership with Mitsubishi Materials Corporation by amending and extending their investor rights agreement until May 2026. This extension is contingent upon Mitsubishi Materials acquiring 2 million common shares through open market purchases, which will not dilute existing shareholders. This move is seen as a vote of confidence in Western’s team and the Casino Project, one of Canada’s most significant critical minerals projects, enhancing the company’s industry positioning and stakeholder relations.

Spark’s Take on TSE:WRN Stock

According to Spark, TipRanks’ AI Analyst, TSE:WRN is a Neutral.

Western Copper’s stock reflects its strong equity position and recent positive corporate developments in its Casino Project. However, the absence of revenue, ongoing operational losses, and negative earnings heavily weigh down the stock’s attractiveness. Future performance will depend on successful project advancement and achieving profitability.

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

Western Copper and Gold Advances Infrastructure for Casino Project

Western Copper and Gold Corporation has provided an update on infrastructure developments for its Casino Copper-Gold Project. Key initiatives include the B.C.-Yukon Grid Connect Project, with $40 million in funding from Natural Resources Canada, and the Yukon Resource Gateway Project, which has redirected some funding to Arctic security and regional connectivity. Additionally, a transportation study for shipping concentrate to the Port of Skagway has identified cost-effective alternatives. These developments underscore the Casino Project’s resilience and its potential to enhance Yukon’s infrastructure and economy.

Spark’s Take on TSE:WRN Stock

According to Spark, TipRanks’ AI Analyst, TSE:WRN is a Neutral.

Western Copper’s stock score is driven by its strong technical momentum and positive developments in its Casino Project, which offset the lack of current revenue generation and operational losses typical of mining exploration companies. The strong equity position and low debt provide financial stability, but ongoing cash burn and lack of immediate valuation appeal due to negative earnings limit its attractiveness. The company’s future performance will heavily depend on its ability to advance its projects into revenue-generating stages.

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

Western Copper and Gold Reports Positive Metallurgical Outcomes for Casino Project

Western Copper and Gold Corporation has announced positive results from its supplemental metallurgical program for the Casino Copper-Gold Project. The program demonstrated strong copper and gold recoveries, consistent with previous work, and significantly improved molybdenum recovery rates. The project is positioned to produce high-quality, low-impurity concentrates that are in demand in the market, potentially enhancing the project’s financial and operational viability.