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Zacatecas Silver Corp. (TSE:ZAC)
:ZAC

Zacatecas Silver (ZAC) AI Stock Analysis

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Zacatecas Silver

(ZAC)

Rating:40Underperform
Price Target:
Zacatecas Silver's stock is currently facing significant financial headwinds, primarily due to a lack of revenue generation. The company's strong equity position and zero debt provide some stability, but the reliance on financing activities to sustain operations highlights potential risks. The technical indicators suggest stability, but with caution advised due to potential overbought conditions. Valuation remains challenging due to negative earnings, making this a speculative investment with potential upside from recent exploration activities.

Zacatecas Silver (ZAC) vs. iShares MSCI Canada ETF (EWC)

Zacatecas Silver Business Overview & Revenue Model

Company DescriptionZacatecas Silver Corp. engages in the acquisition, exploration, and evaluation of mineral properties in Mexico. The company explores for silver and gold resources. It owns 100% interests in the Zacatecas project, which covers as area of 7,826 hectares located in the Zacatecas State, Mexico; and the Esperanza project that consists of 8 mining concessions covering an area of 14,338 hectares located in the Morelos State, Mexico. The company incorporated in 2020 and is headquartered in Vancouver, Canada.
How the Company Makes MoneyZacatecas Silver makes money primarily through the extraction and sale of silver. The company generates revenue by exploring and developing mineral-rich properties, extracting silver, and selling it on the global market. Key revenue streams include the sale of raw silver, and potentially silver by-products, to various industries such as electronics, jewelry, and investment sectors. Strategic partnerships with other mining companies and investors may also contribute to its earnings by providing capital and shared resources for large-scale mining operations.

Zacatecas Silver Financial Statement Overview

Summary
Zacatecas Silver is facing significant financial challenges due to the absence of revenue, resulting in negative profit margins and cash flows. Despite a strong equity base with zero debt, the reliance on financing activities to maintain cash reserves highlights a potential risk to financial stability. The improvement in net income is a positive sign; however, without sustainable revenue, it remains uncertain if this is a long-term trend.
Income Statement
15
Very Negative
Zacatecas Silver's income statement reveals a lack of revenue generation, with consistent negative gross profits and EBIT over the years. The company has shown a significant improvement in net income in the TTM, but without revenue, the sustainability of these earnings is questionable.
Balance Sheet
40
Negative
The balance sheet indicates a strong equity position with zero debt, suggesting low financial leverage and risk. However, the company has seen a decline in cash reserves over time. The equity ratio is relatively high, indicating reliance on shareholder equity for financing.
Cash Flow
25
Negative
Cash flow analysis shows persistent negative free cash flows, indicating operational cash drain. The operating cash flow to net income ratio suggests that net income improvements are not translating into cash flow. Financing activities have been a significant source of cash.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue0.000.000.000.000.00
Gross Profit-34.98K-60.44K-58.30K-18.81K0.00
EBITDA-3.52M7.95M-12.73M-6.89M-1.13M
Net Income-3.56M7.89M-11.49M-6.91M-1.13M
Balance Sheet
Total Assets47.22M47.51M48.52M5.66M12.08M
Cash, Cash Equivalents and Short-Term Investments6.72K12.97K1.11M2.58M796.57K
Total Debt0.000.000.000.000.00
Total Liabilities10.89M9.80M22.62M340.59K10.52M
Stockholders Equity36.33M37.71M25.91M5.32M1.56M
Cash Flow
Free Cash Flow-2.41M-4.80M-19.53M-6.95M-1.08M
Operating Cash Flow-2.41M-4.80M-12.09M-4.96M-804.41K
Investing Cash Flow0.000.00-7.22M-2.19M-278.08K
Financing Cash Flow2.41M3.43M17.89M363.65K10.39M

Zacatecas Silver Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.06
Price Trends
50DMA
0.07
Negative
100DMA
0.07
Negative
200DMA
0.07
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
42.07
Neutral
STOCH
100.00
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ZAC, the sentiment is Negative. The current price of 0.06 is below the 20-day moving average (MA) of 0.07, below the 50-day MA of 0.07, and below the 200-day MA of 0.07, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.07 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ZAC.

Zacatecas Silver Peers Comparison

Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
59
Neutral
kr34.36B-7.400.97%18.02%12.43%17.85%
TSCSS
43
Neutral
C$1.05M-379.82%-23.66%
TSZAC
40
Underperform
C$8.03M1.13-9.06%-136.65%
TSMSV
39
Underperform
C$14.04M5.206.17%49.01%
TSKS
37
Underperform
C$6.72M-4.95%43.18%
$34.57M-28.58%
$25.10M-60.22%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:ZAC
Zacatecas Silver
0.06
-0.04
-40.00%
TSE:KS
Klondike Silver
0.02
0.00
0.00%
TSE:MSV
Minco Silver
0.26
0.06
30.00%
KUYAF
Kuya Silver
0.28
0.00
0.00%
RSNVF
Reyna Silver
0.09
-0.01
-10.00%
TSE:CSS
Cascada Silver Corp.
0.01
-0.02
-66.67%

Zacatecas Silver Corporate Events

Product-Related AnnouncementsBusiness Operations and Strategy
Zacatecas Silver Announces New Drill Program to Expand Resource Base
Positive
Feb 12, 2025

Zacatecas Silver Corp. has announced a new drill program to expand its current resource base at its silver projects in Zacatecas, Mexico. The program targets high-grade silver intercepts identified at the Panuco Deposit and El Cristo Vein System, with additional high-priority exploration targets identified at San Gill Breccia Zone and Muleros Zone. This initiative aims to enhance the company’s exploration footprint and industry positioning by unlocking further mineral potential at its key sites.

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: May 02, 2025