Ascot Resources (AOT) AI Stock Analysis

• Market Cap: C$98.40M
• Dividend Yield: N/A
• Average Volume (3M): 1.80M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.17
• Revenue Growth: N/A
• EPS Growth: 47.40%
• Country: CA
• Employees: 141
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Mining
• EPS (TTM): -0.02
• Shares Outstanding: 984,020,700
• 10 Day Avg. Volume: 1,705,796
• 30 Day Avg. Volume: 1,797,683
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 5.15
• Price to Cash Flow (P/CF): -18.20
• 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: C$0.50
• Price Target Upside: 400.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Ascot Resources' overall stock score is low due to challenges in achieving profitability and managing negative cash flows, despite early revenue generation. The technical analysis provides mixed signals, while a negative P/E ratio and lack of dividends indicate valuation concerns. The absence of earnings call insights and notable corporate events limits additional context for evaluation.

Ascot Resources Business Overview & Revenue Model

Company Description

Ascot Resources Ltd. (AOT) is a Canadian-based exploration and development company focused on re-starting the past producing Premier gold mine, located in British Columbia's prolific Golden Triangle. The company is engaged primarily in the mining sector, with a focus on the exploration, development, and production of gold and silver resources. Ascot Resources aims to create value through advancing its portfolio of high-grade, past-producing mines, and by expanding its resource base through strategic exploration initiatives.

How the Company Makes Money

Ascot Resources generates revenue primarily through the exploration, development, and eventual production of gold and silver from its mining assets. The company's key revenue streams include the sale of precious metals extracted from its mining operations and potential future production from the Premier and Red Mountain projects. Revenue is largely influenced by the market prices of gold and silver, and the company's ability to efficiently extract and process these resources. Ascot Resources may also engage in strategic partnerships and joint ventures to enhance its operational capabilities and financial standing. Additionally, funding for exploration and development activities may be raised through equity financing or other financial instruments, although this does not directly constitute revenue.

Ascot Resources Financial Statement Overview

Summary

Ascot Resources is in the initial stages of revenue generation with $14.4 million in TTM revenue. However, it faces significant challenges with negative net income of -$12.8 million and negative EBIT and EBITDA margins, indicating operational inefficiencies. The balance sheet shows moderate leverage with a debt-to-equity ratio of 0.067 and a stable equity base at 51% equity ratio. Yet, high liabilities and negative cash flows (-$192.4 million free cash flow) highlight financial risks. Focus is needed on enhancing operational efficiency and cash flow stabilization.

Income Statement

The company's income statement indicates a challenging financial position. The TTM (Trailing-Twelve-Months) revenue of $14.4 million marks the first revenue generation, however, the net income remains negative at -$12.8 million, leading to a negative net profit margin. The EBIT and EBITDA margins are also negative, suggesting operational inefficiencies. The revenue growth is noticeable, but profitability is yet to be achieved.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio of 0.067, indicating moderate leverage. Stockholders' equity has improved to $404.7 million, but return on equity is negative due to net losses. The equity ratio stands at 51%, providing a stable asset base. However, the high liabilities suggest potential financial risks.

Cash Flow

The cash flow statement highlights significant challenges, with a negative free cash flow of -$192.4 million. Operating cash flow is also negative, exceeding net income losses, indicating cash flow difficulties. The free cash flow to net income and operating cash flow to net income ratios are unfavorable, suggesting liquidity issues.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
14.40M	0.00	0.00	0.00	0.00	0.00
	Gross Profit
185.00K	-1.55M	-693.00K	-859.00K	-997.00K	-1.35M
	EBIT
-6.79M	-9.07M	-12.27M	-6.10M	-7.57M	-5.95M
	EBITDA
4.86M	-4.57M	-3.16M	-1.57M	-8.03M	-6.18M
	Net Income Common Stockholders
-12.79M	-10.43M	-10.81M	-2.95M	-8.43M	-7.78M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.53M	26.97M	7.47M	59.13M	43.63M	4.92M
	Total Assets
124.86M	630.39M	379.10M	339.05M	249.98M	183.33M
	Total Debt
0.00	27.27M	45.22M	42.11M	43.87M	13.15M
	Net Debt
-6.53M	295.00K	37.74M	-17.02M	1.79M	8.73M
	Total Liabilities
16.89M	279.63M	70.16M	81.84M	72.33M	35.16M
	Stockholders Equity
107.97M	350.76M	308.94M	257.20M	177.65M	148.17M
Cash Flow		Free Cash Flow
-192.39M	-141.60M	-110.93M	-65.06M	-18.72M	-25.45M
	Operating Cash Flow
-4.48M	-13.25M	-5.04M	-7.64M	-5.11M	-6.86M
	Investing Cash Flow
-149.66M	-129.40M	-105.95M	-55.04M	-12.63M	-22.78M
	Financing Cash Flow
84.78M	162.13M	59.33M	79.72M	55.52M	27.53M

Ascot Resources Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:AOT, the sentiment is Negative. The current price of 0.1 is below the 20-day moving average (MA) of 0.12, below the 50-day MA of 0.16, and below the 200-day MA of 0.31, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 30.15 is Neutral, neither overbought nor oversold. The STOCH value of 11.76 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:AOT.

Ascot Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WDO	79 Outperform	C$2.24B	27.55	17.33%	―	56.15%	―
MUX	69 Neutral	$369.94M	3.35	24.18%	―	47.02%	―
NGD	66 Neutral	$3.43B	24.62	11.14%	―	18.32%	―
BTO	54 Neutral	$4.96B	―	-18.54%	6.17%	-4.17%	-318.18%
Sector *	46 Neutral	$2.64B	-3.89	-29.36%	3.33%	2.89%	-29.66%
AOT	38 Underperform	C$98.40M	―	-3.40%	―	―	47.40%
SEA	38 Underperform	$1.59B	―	-1.59%	―	―	63.45%

Ascot Resources Corporate Events

Ascot Resources Delays Conference Call for CEO’s Strategic Review

Ascot Resources Ltd. has announced that its newly appointed CEO, Jim Currie, is undertaking a detailed review of the company’s mining operations and business strategy. This comprehensive evaluation has led to the postponement of a previously scheduled conference call. Ascot emphasizes the importance of transparency and thoroughness in its assessment and is committed to keeping stakeholders informed. The company expects to reschedule the call once the review is complete, reflecting its commitment to maintaining open communication with its shareholders and the broader investment community.

Ascot Resources Announces Leadership Changes Amid Premier Project Development

Ascot Resources Ltd. has announced a leadership transition with Derek White stepping down as President & CEO, and James A. Currie taking over as CEO and Director. Currie brings over 40 years of experience in the mining industry, having held senior roles at various TSX and NYSE listed companies. The company also welcomes Coille Van Alphen to its Board of Directors, enhancing its strategic insights in mine development. These changes mark a pivotal moment for Ascot as it moves forward with the Premier Project’s development into commercial production, aiming to create value for shareholders.

Ascot Resources Advances Premier Mine Development

Ascot Resources Ltd. has successfully commenced the first phase of underground development at the Premier Northern Lights mine, ahead of schedule. The company aims to prepare the initial ore zones by April 2025, with plans to resume operations at the Big Missouri mine in May 2025. This progress marks a significant step for Ascot in its mining ventures, promising potential growth and increased production capacity.

Ascot Resources Secures Funding for Mine Restart

Ascot Resources has secured significant funding, including US$7.5 million and C$42 million, to restart operations at its Premier Gold Project. The funds will be used to develop the Premier Northern Lights mine and restart the mill and Big Missouri mine, aiming for sustainable operations by 2025. The financing was supported by key partners like Sprott Streaming and Nebari, alongside major shareholders.

Ascot Resources Seeks TSX Exemption for Major Financing

Ascot Resources is seeking financial hardship exemption from the Toronto Stock Exchange to facilitate a significant financing initiative worth approximately C$52 million. The funds raised will be used to advance the development of the Premier Northern Lights and Big Missouri mines, marking a pivotal step in their operational revival.

Ascot Resources Reports Q3 2024 Financial Results

Ascot Resources Ltd. has reported its third-quarter results for 2024, detailing a reduction in its senior debt financing needs and an increase in its equity financing goals. The company is focused on raising funds to advance development projects and restart operations at its sites, despite earlier suspensions due to mine development delays. Ascot also highlights strong operational performance prior to suspension, with significant ore processing achieved.