Solitario Exploration & Royalty (XPL) AI Stock Analysis

• Market Cap: $54.15M
• Dividend Yield: N/A
• Average Volume (3M): 102.73K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.83
• Revenue Growth: N/A
• EPS Growth: -19.10%
• Country: US
• Employees: 4
• Sector: Basic Materials
• Sector Strength: 68
• Industry: Industrial Materials
• EPS (TTM): -0.07
• Shares Outstanding: 82,666,916
• 10 Day Avg. Volume: 82,598
• 30 Day Avg. Volume: 102,727
• PEG Ratio: 8.81
• Price to Book (P/B): 2.46
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -11.77
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 7.46
• Enterprise Value/Gross Profit: 3.35K
• Enterprise Value/Ebitda: -2.52
• 1Y Price Target: $1.50
• Price Target Upside: 127.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 40 Underperform
• 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.

Gold Discovery Potential

Significant gold mineralization was found in four widely spaced areas, with several drill holes yielding promising gold grades.

Negative Factors

Market Valuation

The valuation accounts for investments in marketable securities and cash, contributing to a strong financial position.

Solitario Exploration & Royalty Business Overview & Revenue Model

Company Description

Solitario Exploration & Royalty (XPL) is a natural resources company engaged in the acquisition and exploration of mineral properties. The company operates in the mining sector with a primary focus on precious and base metals, particularly gold and zinc. Solitario's core business strategy involves identifying and developing high-quality mining projects, often through joint ventures and partnerships, while also maintaining a portfolio of royalty interests that can generate passive income.

How the Company Makes Money

Solitario 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

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

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

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	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	0.00	-66.00K	-2.31M	-1.23M	-438.00K
EBITDA	-5.30M	-4.09M	-3.64M	-2.15M	-1.46M
Net Income	-5.37M	-3.75M	-4.59M	-2.56M	-500.00K
Balance Sheet
Total Assets	23.04M	26.76M	22.03M	23.62M	23.80M
Cash, Cash Equivalents and Short-Term Investments	5.93M	9.67M	5.22M	6.86M	8.02M
Total Debt	50.00K	89.00K	35.00K	72.00K	17.00K
Total Liabilities	520.00K	807.00K	388.00K	436.00K	299.00K
Stockholders Equity	22.52M	25.95M	21.65M	23.18M	23.50M
Cash Flow
Free Cash Flow	-5.15M	-3.26M	-3.24M	-2.79M	-1.01M
Operating Cash Flow	-5.10M	-3.26M	-2.90M	-2.16M	-1.01M
Investing Cash Flow	3.94M	-4.41M	701.00K	90.00K	976.00K
Financing Cash Flow	1.27M	7.56M	2.05M	1.92M	65.00K

Solitario Exploration & Royalty Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.66
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 0.66 is above the 20-day moving average (MA) of 0.64, above the 50-day MA of 0.64, and above the 200-day MA of 0.64, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 53.11 is Neutral, neither overbought nor oversold. The STOCH value of 52.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for XPL.

Solitario Exploration & Royalty Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ABAT	50 Neutral	$222.06M	―	-88.49%	―	―	-42.39%
GRFXY	45 Neutral	$24.53M	―	-34.23%	―	-28.68%	-96.77%
Sector *	44 Neutral	AU$1.45B	-6.10	-40.74%	3.82%	-3.45%	-41.76%
XPL	40 Underperform	$54.15M	―	-21.64%	―	―	-19.10%
WWR	36 Underperform	$69.14M	―	-9.10%	―	―	-40.85%