Argo Gold (ARQ) AI Stock Analysis

• Market Cap: C$5.86M
• Dividend Yield: N/A
• Average Volume (3M): 35.51K
• Price to Earnings (P/E): 14.8
• Beta (1Y): 0.50
• Revenue Growth: 324.44%
• EPS Growth: N/A
• Country: CA
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Mining
• EPS (TTM): <0.01
• Shares Outstanding: 73,297,030
• 10 Day Avg. Volume: 17,475
• 30 Day Avg. Volume: 35,507
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.71
• Price to Cash Flow (P/CF): 7.10
• P/FCF Ratio: 77.00
• 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

Argo Gold's overall stock score indicates moderate potential. The company's financial performance shows improvement but is tempered by historical volatility and cash flow challenges. Technical analysis points to positive momentum, though caution is warranted due to approaching overbought signals. Valuation is reasonable, and the recent expansion in the Rottenstone Belt provides a strategic advantage. Investors should weigh the growth prospects against the financial risks.

Argo Gold Business Overview & Revenue Model

Company Description

Argo Gold (ARQ) is a Canadian-based mineral exploration and development company focused on the acquisition, exploration, and development of high-value mineral properties. The company's primary focus is on gold exploration projects located in Northwestern Ontario, Canada, where it seeks to discover and develop economically viable mineral deposits. Argo Gold is committed to advancing its portfolio of projects through strategic exploration and development activities.

How the Company Makes Money

Argo Gold makes money primarily through the exploration and potential development of its mineral properties, with a focus on gold deposits. The company generates revenue by increasing the value of its properties through successful exploration and development, which can lead to the sale or joint venture of these projects with larger mining companies. Additionally, Argo Gold may raise funds through equity financing to support its exploration activities and operations. The company's ability to generate income is closely tied to its success in discovering economically viable mineral deposits and the overall market demand and price for gold.

Argo Gold Financial Statement Overview

Summary

Argo Gold is showing signs of growth with improved revenue and profitability in the recent period, but past financial instability and cash flow challenges remain concerns. The balance sheet reflects a moderate leverage position, which should be managed carefully to mitigate risks. The company should focus on improving cash flow generation to support sustainable growth.

Income Statement

Argo Gold shows a significant improvement in revenue and profitability over the TTM period. With a gross profit margin of 70.92% and a net profit margin of 18.33%, the company demonstrates strong operational performance. Revenue growth is substantial, reflecting the company's expansion efforts. However, historical volatility in net income and negative figures from previous years indicate a potential risk in maintaining consistent profitability.

Balance Sheet

The company's debt-to-equity ratio of 0.70 reflects moderate leverage, which is manageable. The return on equity stands at 25.23%, indicating decent profitability for shareholders. However, the equity ratio of 49.17% suggests reliance on liabilities for funding, which may pose risks in periods of financial instability.

Cash Flow

Argo Gold's cash flow dynamics are challenging, with a negative free cash flow despite positive operating cash flow trends. The operating cash flow to net income ratio is negative, highlighting issues in cash generation relative to accounting profits. The free cash flow to net income ratio is also negative, suggesting potential liquidity pressures.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
2.17M	952.69K	0.00	0.00	0.00	0.00
	Gross Profit
1.54M	531.22K	-3.36K	-2.14K	-1.14K	-5.25K
	EBIT
903.94K	166.27K	-1.24M	-1.40M	-3.34M	-1.60M
	EBITDA
829.12K	-25.43K	-1.05M	-1.40M	-1.61M	-1.49M
	Net Income Common Stockholders
397.64K	-280.00K	-1.45M	-2.68M	1.36M	-1.19M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
127.70K	74.89K	85.37K	1.15M	3.31M	276.51K
	Total Assets
2.80M	2.78M	1.09M	2.14M	4.30M	1.13M
	Total Debt
1.11M	1.11M	0.00	0.00	0.00	0.00
	Net Debt
981.98K	1.03M	-7.10K	-821.72K	-1.81M	-123.58K
	Total Liabilities
1.81M	1.83M	478.43K	79.16K	345.10K	274.91K
	Stockholders Equity
994.38K	949.13K	613.73K	2.06M	3.96M	852.75K
Cash Flow		Free Cash Flow
-1.17M	-1.67M	-815.06K	-1.98M	-1.52M	-1.14M
	Operating Cash Flow
-284.20K	122.01K	-807.70K	-1.98M	-1.39M	-1.14M
	Investing Cash Flow
-882.18K	-1.73M	-6.92K	673.68K	311.89K	22.31K
	Financing Cash Flow
1.14M	1.68M	0.00	322.00K	2.76M	986.63K

Argo Gold Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ARQ, the sentiment is Negative. The current price of 0.08 is below the 20-day moving average (MA) of 0.09, below the 50-day MA of 0.09, and above the 200-day MA of 0.08, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.64 is Neutral, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ARQ.

Argo Gold Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AEM	80 Outperform	$72.92B	26.99	9.42%	1.59%	26.99%	-6.63%
KNT	75 Outperform	C$2.43B	23.27	20.56%	―	64.92%	185.22%
IAG	66 Neutral	C$11.39B	13.01	13.26%	2.78%	-17.69%	29.19%
ARQ	63 Neutral	C$5.86M	14.81	31.05%	―	324.44%	―
FVL	47 Neutral	C$378.17M	―	-1.16%	―	―	66.67%
Sector *	46 Neutral	$2.64B	-3.89	-29.36%	3.33%	2.89%	-29.66%
SEA	38 Underperform	$1.59B	―	-1.59%	―	―	63.45%

Argo Gold Corporate Events

Argo Gold Expands Stake in Promising Rottenstone Belt, Saskatchewan

Argo Gold Inc. has expanded its mineral claim in the Rottenstone Belt, Saskatchewan, acquiring an additional 4608 hectares, bringing its total to 26,600 hectares. This strategic move aligns with the recent interest in the region due to promising exploration results and the area’s historical production of high-grade metals. Argo’s new claims cover areas with significant exploration potential, including those with anomalous metals in sediments and other geological features of interest. The company’s positioning in a mining-friendly jurisdiction like Saskatchewan, ranked third globally for mining investment attractiveness, enhances its prospects for successful exploration and development.

Argo Gold Reports November 2024 Oil Production and Operational Challenges

In November 2024, Argo Gold reported an oil production of 3,597 barrels, averaging 120 barrels per day, with total revenue of $258,042 and a net operating cash flow of $153,014. The company’s operations faced challenges with the Lloyd 2 well, which saw a significant drop in production due to a collapsed horizontal well bore, affecting December production numbers.

Argo Gold Reports Steady Oil Production Amid Challenges

Argo Gold’s oil production in October 2024 reached 3,651 barrels, generating a revenue of $258,369 and a net operating cash flow of $170,041. Despite operational challenges with the Lloyd 2 well, which led to a drop in production, Argo maintained steady output into November. The company plans to address the well issues with a partial re-drill in early 2025.

Argo Gold Expands Uranium Claims in Saskatchewan

Argo Gold has expanded its mineral claims in Saskatchewan by acquiring the Parker Lake, Thunderbolt, and ZigZag claims, totaling 15,962 hectares, which are considered promising for uranium. The acquisitions include a mix of cash, stock, and royalty payments, positioning Argo to capitalize on the region’s rich mineral potential. With Saskatchewan ranked highly for mining, Argo looks set to advance exploration in this resource-rich area.