Awale Resources Limited (ARIC) AI Stock Analysis

• Market Cap: C$39.62M
• Dividend Yield: N/A
• Average Volume (3M): 103.73K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.06
• Revenue Growth: N/A
• EPS Growth: 87.40%
• Country: CA
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Gold
• EPS (TTM): -0.04
• Shares Outstanding: 87,072,500
• 10 Day Avg. Volume: 116,614
• 30 Day Avg. Volume: 103,731
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 680.78
• Price to Cash Flow (P/CF): -11.80
• 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

Awale Resources Limited's overall stock score is driven by significant financial challenges, marked by persistent losses and negative cash flows. However, strong technical indicators and the recent expansion of exploration activities at the Odienné Project offer potential upside. The negative P/E ratio and lack of dividends detract from the stock's valuation, making it less appealing to risk-averse investors. The score reflects a cautious outlook due to financial performance, tempered by positive technical and corporate developments.

Awale Resources Limited Business Overview & Revenue Model

Company Description

Awale Resources Limited (ARIC) is a junior mineral exploration company focused on the discovery and development of high-potential gold and copper deposits in West Africa. The company is actively engaged in exploration activities, aiming to identify economically viable mineral resources through strategic project acquisition and advanced geological studies.

How the Company Makes Money

Awale Resources Limited primarily generates revenue through the exploration and development of mineral properties. The company aims to enhance shareholder value by discovering new mineral deposits that can be sold or developed into producing mines. Revenue is generated by selling discovered resources, partnering with larger mining companies, or through joint ventures that provide funding in exchange for a stake in the projects. Additionally, the company may raise capital through the issuance of equity or debt to fund ongoing exploration activities and project development.

Awale Resources Limited Financial Statement Overview

Summary

Awale Resources Limited faces significant financial challenges, primarily driven by its inability to generate revenue, leading to persistent losses and negative cash flows. Despite a strong equity position and no debt, the company's ongoing operational inefficiencies and reliance on financing for cash needs highlight potential sustainability concerns. Stability in equity is a positive, but overall financial health requires improvement.

Income Statement

Awale Resources Limited's income statement shows significant weaknesses. The company has not generated any revenue in the TTM (Trailing-Twelve-Months), and it has consistently recorded negative net income. The gross profit margin is negative, indicating costs exceed revenues. EBIT and EBITDA margins are also deeply negative, suggesting operational inefficiencies.

Balance Sheet

The balance sheet reveals a relatively stable financial position with no debt, resulting in a debt-to-equity ratio of zero. The equity ratio is strong at approximately 93.37%, indicating a high proportion of equity financing. However, declining stockholders' equity and total assets over recent periods hint at potential balance sheet weaknesses.

Cash Flow

The cash flow statement highlights some challenges, with negative free cash flow and operating cash flow in the TTM. The company has been reliant on financing activities to manage cash needs. There is a lack of positive cash flow generation from operations, posing sustainability risks in the long term.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
0.00	11.70K	0.00	0.00	0.00	0.00
	Gross Profit
-9.48K	11.70K	-16.09K	-28.46K	-36.27K	-36.20K
	EBIT
-1.18M	-943.93K	6.52M	-713.90K	-795.44K	-660.51K
	EBITDA
-2.53M	-937.93K	6.54M	-685.44K	-721.30K	-579.28K
	Net Income Common Stockholders
-2.57M	-1.05M	-8.48M	-1.70M	-792.13K	-667.26K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
856.43K	999.60K	255.28K	57.00K	646.37K	1.35M
	Total Assets
6.77M	6.92M	5.82M	12.38M	11.19M	8.45M
	Total Debt
0.00	0.00	29.52K	31.66K	35.70K	18.64K
	Net Debt
-856.43K	-999.60K	-225.76K	-25.34K	-610.67K	-1.33M
	Total Liabilities
972.88K	1.39M	2.26M	1.17M	1.36M	880.28K
	Stockholders Equity
5.80M	5.54M	3.56M	11.21M	9.83M	7.57M
Cash Flow		Free Cash Flow
-2.03M	-1.29M	-625.70K	-375.75K	-466.82K	-704.24K
	Operating Cash Flow
-1.62M	-1.26M	-615.70K	-345.89K	-424.02K	-695.67K
	Investing Cash Flow
204.59K	72.78K	-179.36K	-3.08M	-2.66M	-1.53M
	Financing Cash Flow
9.10M	1.91M	999.96K	2.77M	2.45M	3.20M

Awale Resources Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.46
• 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 TSE:ARIC, the sentiment is Positive. The current price of 0.46 is below the 20-day moving average (MA) of 0.49, below the 50-day MA of 0.48, and below the 200-day MA of 0.49, indicating a bullish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 43.77 is Neutral, neither overbought nor oversold. The STOCH value of 20.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ARIC.

Awale Resources Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KNT	79 Outperform	C$2.92B	18.59	26.82%	―	77.93%	236.93%
ORV	76 Outperform	C$53.28M	11.76	7.12%	―	-2.98%	―
Sector *	47 Neutral	$2.64B	-3.21	-21.68%	3.30%	4.19%	-30.23%
ARIC	47 Neutral	C$39.62M	―	-28.40%	―	―	87.40%
ERD	47 Neutral	C$275.70M	―	-13.62%	―	―	-1666.67%
CDB	32 Underperform	C$49.89M	―	-110.18%	―	―	29.90%
RFR	21 Underperform	C$5.45M	―	-638.22%	―	―	5.36%

Awale Resources Limited Corporate Events

Awalé Resources Reports Significant Gold Drilling Results, Expands Exploration at Odienné Project

Awalé Resources Limited announced significant drilling results at the BBM zone of the Odienné Project, including a notable 34 meters at 2.5 grams per tonne gold equivalent. These results have led to an expansion of the drill program from 3000 meters to 7000 meters, with additional drilling set to continue at the Charger and Empire targets. The company’s efforts to increase exploration activities, including IP geophysics and RC drilling, are expected to provide consistent updates to stakeholders, reinforcing Awalé’s strategic positioning in the gold exploration sector.

Awalé Resources Sets Ambitious Plans Following Transformative 2024

Awalé Resources Limited has reported a transformative year in 2024, marked by significant achievements such as high-grade intercepts at the Charger Zone and expansion at the BBM Zone and Trend, showcasing district-scale potential. The company is financially robust with nearly $10 million available for exploration and a strong partnership with Newmont, positioning it well for ambitious exploration plans in 2025 aimed at unlocking the full potential of its Odienné project and delivering sustained shareholder value.

Awalé Resources Begins New Drilling Phase in Côte d’Ivoire

Awalé Resources Limited has initiated a 4000-meter diamond drilling program at the BBM and Charger Zones in Côte d’Ivoire, fully funded by Newmont. This marks the final phase of their 2024 exploration, with promising prior results indicating significant gold and copper potential. The company anticipates further discoveries in 2025, enhancing their exploration prospects.

Awalé Resources Reports Promising Gold Results

Awalé Resources Limited has announced promising drilling results at the BBM Zone of the Odienné Project in Côte d’Ivoire, with significant gold mineralization found at depths exceeding 330 meters. The company is embarking on a substantial 4000-meter diamond drill program, fully funded by Newmont, to further explore the site’s potential.

Awalé Resources Reports Significant Gold Discovery

Awalé Resources Limited has reported exceptional gold drilling results from the Charger Zone at the Odienné Project, with a significant intercept of 14.7 grams per tonne over 59 meters. This discovery highlights the strong resource potential and continuity of high-grade mineralization within a 200-meter corridor, bolstering confidence in further exploration efforts.