Megado Gold Ltd. (MEG) AI Stock Analysis

• Market Cap: AU$6.30M
• Dividend Yield: N/A
• Average Volume (3M): 116.22K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.46
• Revenue Growth: N/A
• EPS Growth: 67.06%
• Country: AU
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 59
• Industry: Industrial Materials
• EPS (TTM): -0.01
• Shares Outstanding: 419,683,260
• 10 Day Avg. Volume: 57,779
• 30 Day Avg. Volume: 116,216
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): N/A
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Megado Gold Ltd.'s score is primarily impacted by its exploration phase status with no revenue generation, resulting in weak financial performance. While it has no debt, the negative cash flows and reliance on equity financing are critical risks. The technical analysis suggests potential short-term recovery, but challenges in valuation due to negative earnings limit attractiveness.

Megado Gold Ltd. Business Overview & Revenue Model

Company Description

Megado Minerals Limited operates as a mineral exploration company in North America. It explores for rare earth elements and lithium. The company holds 100% interest in North Fork Rare Earth Project comprising 499 mining lode claims covering approximately 42 square kilometers in the Salmon-Challis National Forest in Lemhi County, Idaho. It also holds interests in the Cyclone lithium project comprising 304 claims covering 130 square kilometers located near the James Bay region in Quebec, Canada. The company was formerly known as Megado Gold Limited and changed its name to Megado Minerals Limited in July 2022. Megado Minerals Limited was incorporated in 2019 and is based in Perth, Australia.

How the Company Makes Money

Megado Gold Ltd. generates revenue primarily through the exploration and potential development of gold resources. The company's revenue model is centered around discovering economically viable gold deposits that can be developed into operational mines. This process involves geological surveys, drilling, and other exploratory activities to define the resource. Once a significant deposit is identified, Megado Gold can either develop the mine itself or form strategic partnerships or joint ventures with larger mining companies to bring the project into production. Revenue can also be generated through the sale of exploration rights or assets to interested parties, providing an additional stream of income.

Megado Gold Ltd. Financial Statement Overview

Summary

Megado Gold Ltd. is in the exploration phase, reflected by its zero revenue and reliance on equity financing. While the balance sheet is strong with no debt, the continuous operating losses and negative cash flows pose risks that must be managed as the company progresses towards production.

Income Statement

Megado Gold Ltd. reported zero revenue consistently over the years, indicating a lack of commercial production. The company has been operating at a net loss with negative EBIT and EBITDA margins, reflecting the pre-revenue stage typical for mining exploration companies.

Balance Sheet

The balance sheet shows strong equity levels with no debt, resulting in a favorable debt-to-equity ratio of zero. The equity ratio is high, indicating financial stability, which is a positive sign for a company in the exploration phase. However, the lack of revenue generation poses long-term sustainability risks.

Cash Flow

The company exhibits negative operating and free cash flows, typical for a mining exploration entity. Financing activities, mainly through equity, have been sustaining its cash position. The lack of free cash flow growth highlights reliance on external financing.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00	0.00
	Gross Profit
0.00	0.00	0.00	0.00	0.00	0.00
	EBIT
―	-962.18K	-7.77M	-1.02M	-1.20M	-1.39M
	EBITDA
-308.40K	25.50K	0.00	0.00	0.00	0.00
	Net Income Common Stockholders
―	-1.37M	-7.76M	-1.02M	-1.22M	-1.39M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
700.83K	1.14M	853.12K	1.24M	5.02M	241.60K
	Total Assets
8.66M	9.00M	4.92M	7.33M	8.98M	554.55K
	Total Debt
0.00	0.00	0.00	0.00	0.00	0.00
	Net Debt
-700.83K	-1.14M	-853.12K	-1.24M	-5.02M	-241.60K
	Total Liabilities
17.24K	47.37K	244.33K	164.62K	358.63K	448.62K
	Stockholders Equity
8.64M	8.95M	4.67M	6.73M	8.07M	105.93K
Cash Flow		Free Cash Flow
―	-2.36M	-2.69M	-3.77M	-1.56M	-803.98K
	Operating Cash Flow
―	-874.49K	-968.31K	-1.00M	-1.10M	-340.72K
	Investing Cash Flow
―	-1.48M	-1.68M	-2.77M	-463.96K	-463.26K
	Financing Cash Flow
0.00	2.65M	2.26M	0.00	6.36M	1.05M

Megado Gold Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.02
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:MEG, the sentiment is Positive. The current price of 0.02 is above the 20-day moving average (MA) of 0.01, above the 50-day MA of 0.01, and above the 200-day MA of 0.01, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 56.84 is Neutral, neither overbought nor oversold. The STOCH value of 266.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:MEG.

Megado Gold Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	47 Neutral	$2.65B	-3.07	-22.25%	3.27%	3.70%	-29.53%
MEG	41 Neutral	AU$6.30M	―	-52.89%	―	―	67.06%