Western Copper (WRN) AI Stock Analysis

• Market Cap: $304.00M
• Dividend Yield: N/A
• Average Volume (3M): 90.03K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.25
• Revenue Growth: N/A
• EPS Growth: -77.62%
• Country: CA
• Employees: 15
• Sector: Basic Materials
• Sector Strength: 64
• Industry: Industrial Materials
• EPS (TTM): -0.04
• Shares Outstanding: 200,000,530
• 10 Day Avg. Volume: 102,156
• 30 Day Avg. Volume: 90,034
• 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: $5.86
• Price Target Upside: 285.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

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

Financial Position

Western Copper and Gold is well-funded to execute on its near-term strategic priorities, with ~$74.9 million in cash and equivalents on the balance sheet.

Funding

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

Strategic Partnerships

Strategic shareholders, including Rio Tinto and Mitsubishi Materials, hold an ~14% economic interest in the company.

Negative Factors

Valuation Concerns

Shares of Western Copper and Gold are trading at 0.2x our diluted P/NAV10%, below other developer and explorer peers within the BMO coverage universe at 0.5x.

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 reflects the typical challenges of an early-stage mining company with no revenue generation and ongoing operational losses. Despite a strong equity ratio and low debt levels, the lack of revenue and negative cash flows pose significant financial risks.

Income Statement

Western Copper's income statement reflects significant challenges, with no revenue generation over the analyzed periods. Negative EBIT and net income indicate persistent losses, and the absence of revenue growth further highlights operational difficulties. This is typical in early-stage mining companies focused on development rather than production.

Balance Sheet

The balance sheet is relatively strong, with a high equity ratio indicating solid backing by stockholders' equity. Low levels of debt compared to equity suggest prudent financial management. However, the lack of revenue and ongoing losses could pose risks to maintaining financial stability in the long term.

Cash Flow

Cash flow analysis shows negative operating and free cash flows, common in non-revenue generating mining companies. The company relies heavily on financing activities to support operations, which may not be sustainable without future revenue. The operating cash flow to net income ratio indicates significant cash outflows relative to losses.

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
-206.90K	-167.89K	-103.26K	0.00	0.00
	EBIT
-3.86M	-4.93M	-5.53M	-3.31M	-2.40M
	EBITDA
-3.13M	-4.76M	-4.02M	0.00	0.00
	Net Income Common Stockholders
-3.34M	-5.06M	-3.14M	-1.45M	-1.80M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
32.07M	23.12M	47.87M	29.38M	1.80M
	Total Assets
143.92M	114.38M	115.49M	83.81M	50.46M
	Total Debt
197.81K	417.98K	433.32K	0.00	0.00
	Net Debt
-25.77M	-923.29K	-30.25M	-28.65M	-1.64M
	Total Liabilities
4.47M	4.64M	3.42M	1.18M	462.56K
	Stockholders Equity
139.44M	109.74M	112.07M	82.63M	50.00M
Cash Flow		Free Cash Flow
-22.44M	-24.27M	-15.27M	-7.68M	-5.97M
	Operating Cash Flow
-2.54M	-3.34M	-3.87M	-2.37M	-2.04M
	Investing Cash Flow
-3.90M	-25.93M	-27.40M	-5.31M	-2.43M
	Financing Cash Flow
31.07M	-75.90K	33.31M	34.69M	3.08M

Western Copper Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.52
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:WRN, the sentiment is Negative. The current price of 1.52 is above the 20-day moving average (MA) of 1.52, below the 50-day MA of 1.53, and below the 200-day MA of 1.56, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 47.72 is Neutral, neither overbought nor oversold. The STOCH value of 11.19 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:WRN.

Western Copper Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	49 Neutral	$1.93B	-1.47	-21.02%	3.74%	0.80%	-29.57%
WRN	46 Neutral	$304.00M	―	-4.25%	―	―	-77.62%
CUU	39 Underperform	C$140.91M	―	-0.74%	―	―	42.11%

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.