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Solitario Exploration & Royalty Corp (XPL)
:XPL

Solitario Exploration & Royalty (XPL) AI Stock Analysis

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Solitario Exploration & Royalty

(NYSE MKT:XPL)

Rating:40Underperform
Price Target:
Solitario Exploration & Royalty's overall stock score is low due to significant financial challenges, including continuous operational losses and negative cash flows. While the company has a strong equity position and low leverage, the lack of revenue growth and profitability is a major concern. Technical indicators are neutral, and the negative P/E ratio and lack of a dividend yield further weigh down the stock's attractiveness.
Positive Factors
Exploration Success
Successful drilling program at the Golden Crest Project showed substantive success, supporting the view that the firm's land position may mirror the historic Homestake-Wharf gold system.
Future Drilling Plans
Future drilling plans include exploring additional high-priority targets, indicating potential for further discovery of high-grade gold.
Gold Discovery
Significant gold mineralization was found in four widely spaced areas, with several drill holes yielding promising gold grades.
Negative Factors
Risks
Risks to the company include metal price risk, operating and technical risk, financing risk, and political risk.

Solitario Exploration & Royalty (XPL) vs. SPDR S&P 500 ETF (SPY)

Solitario Exploration & Royalty Business Overview & Revenue Model

Company DescriptionSolitario Zinc Corp., an exploration stage company, engages in the acquisition and exploration of zinc and other base metal properties in North and South America. The company holds a 50% operating interest in the Lik zinc-lead-silver property located in Northwest Alaska; 39% interest in the Florida Canyon zinc project located in northern Peru; and 85% interest in the Chambara exploration project located in Peru. It also holds interest in the Golden Crest project located in western South Dakota, Lawrence County. The company was formerly known as Solitario Exploration & Royalty Corp. and changed its name to Solitario Zinc Corp. in July 2017. Solitario Zinc Corp. was incorporated in 1984 and is based in Wheat Ridge, Colorado.
How the Company Makes MoneySolitario Exploration & Royalty makes money through a combination of exploration and royalty interests. The company invests in mineral exploration projects to discover viable mining opportunities, which can then be developed into producing mines or sold to other mining companies at a profit. Additionally, Solitario holds royalty interests in certain mining properties, where it earns a percentage of the revenue generated from the production of minerals without having to bear the operational costs of mining. These royalty agreements provide a steady revenue stream that supports the company's financial stability. Key partnerships with other mining companies often enhance exploration and development activities, contributing significantly to Solitario's earnings.

Solitario Exploration & Royalty Financial Statement Overview

Summary
Solitario Exploration & Royalty faces significant financial challenges with consistent operational losses and negative cash flows, despite having a stable equity position. The high equity ratio and low leverage provide some financial stability, but the lack of revenue growth and negative profitability metrics indicate the need for strategic improvements.
Income Statement
20
Very Negative
Solitario Exploration & Royalty has faced significant challenges in generating revenue, with only $60,000 in TTM (Trailing-Twelve-Months) revenue after several years of no revenue. The company has consistently reported negative net income and EBITDA, indicating ongoing operational losses. The gross profit margin is low at 26.67%, and the net profit margin is significantly negative, reflecting substantial operational inefficiencies and high costs relative to revenues.
Balance Sheet
40
Negative
The balance sheet shows a strong equity position, with a high equity ratio of 97.06% in the TTM, indicating financial stability and low leverage. However, the persistent negative net income and lack of revenue growth are concerning for long-term sustainability. The debt-to-equity ratio is very low at 0.18%, which is a positive sign of low financial risk from debt.
Cash Flow
30
Negative
Cash flows are under pressure, with negative operating and free cash flows in the TTM, indicating potential liquidity challenges. The operating cash flow to net income ratio and free cash flow to net income ratio are negative, reflecting inefficiencies in converting income into cash. The company has been relying on financing activities to sustain cash levels, which may not be sustainable long term.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
60.00K0.000.000.000.000.00
Gross Profit
16.00K0.00-66.00K-2.31M-1.23M-438.00K
EBIT
-5.22M0.00-4.09M-3.27M-1.86M-1.79M
EBITDA
-5.17M-5.30M-4.09M-3.64M-2.15M-1.46M
Net Income Common Stockholders
-5.15M-5.37M-3.75M-4.59M-2.56M-500.00K
Balance SheetCash, Cash Equivalents and Short-Term Investments
4.16M5.93M9.67M5.22M6.86M8.02M
Total Assets
22.97M23.04M26.76M22.03M23.62M23.80M
Total Debt
40.00K50.00K89.00K35.00K72.00K17.00K
Net Debt
-149.00K-31.00K-111.00K-281.00K-390.00K-588.00K
Total Liabilities
145.00K520.00K807.00K388.00K436.00K299.00K
Stockholders Equity
22.29M22.52M25.95M21.65M23.18M23.50M
Cash FlowFree Cash Flow
-4.71M-5.15M-3.26M-3.24M-2.79M-1.01M
Operating Cash Flow
-4.71M-5.10M-3.26M-2.90M-2.16M-1.01M
Investing Cash Flow
3.57M3.94M-4.41M701.00K90.00K976.00K
Financing Cash Flow
1.41M1.27M7.56M2.05M1.92M65.00K

Solitario Exploration & Royalty Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.68
Price Trends
50DMA
0.62
Positive
100DMA
0.64
Positive
200DMA
0.66
Positive
Market Momentum
MACD
0.01
Negative
RSI
64.19
Neutral
STOCH
91.75
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For XPL, the sentiment is Positive. The current price of 0.68 is above the 20-day moving average (MA) of 0.62, above the 50-day MA of 0.62, and above the 200-day MA of 0.66, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 64.19 is Neutral, neither overbought nor oversold. The STOCH value of 91.75 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for XPL.

Solitario Exploration & Royalty Risk Analysis

Solitario Exploration & Royalty disclosed 23 risk factors in its most recent earnings report. Solitario Exploration & Royalty reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Solitario Exploration & Royalty Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
51
Neutral
$2.02B-1.14-21.36%3.64%2.88%-30.57%
50
Neutral
$134.15M-88.49%-42.39%
45
Neutral
$27.65M-34.23%-28.68%-96.77%
XPXPL
40
Underperform
$56.15M-21.64%-19.10%
WWWWR
36
Underperform
$40.10M-9.10%-40.85%
$28.40M
GTGTI
$11.93M7.43
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
XPL
Solitario Exploration & Royalty
0.68
-0.19
-21.84%
WWR
Westwater Resources
0.52
0.00
0.00%
ABAT
American Battery Technology
1.46
0.20
15.87%
LITM
Snow Lake Resources
3.63
-6.63
-64.62%
GTI
Graphjet Technology
0.08
-5.50
-98.57%
GRFXY
Graphex Group ADR
0.65
-1.20
-64.86%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.