Arizona Sonoran Copper Co., Inc. (ASCU) AI Stock Analysis

• Market Cap: C$265.65M
• Dividend Yield: N/A
• Average Volume (3M): 151.16K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.06
• Revenue Growth: N/A
• EPS Growth: -15.45%
• Country: CA
• Employees: 22
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Mining
• EPS (TTM): -0.09
• Shares Outstanding: 148,409,100
• 10 Day Avg. Volume: 151,527
• 30 Day Avg. Volume: 151,157
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -14.00
• 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$4.00
• Price Target Upside: 111.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Arizona Sonoran Copper Co., Inc. is facing significant financial challenges with no revenue and sustained losses. However, its recent successful financing round with strategic partners provides a positive outlook for future projects, contributing to a moderate stock score. Technical indicators show a short-term upward trend, though valuation remains a concern due to negative earnings and lack of dividends.

Arizona Sonoran Copper Co., Inc. Business Overview & Revenue Model

Company Description

Arizona Sonoran Copper Co., Inc. (ASCU) is a mining company focused on the exploration, development, and production of copper resources in the state of Arizona, USA. The company operates within the mining and metals industry, primarily focusing on the extraction of copper, a key industrial metal. ASCU is committed to sustainable and efficient mining practices, contributing to the supply of copper for various applications, including electrical wiring, electronics, and renewable energy technologies.

How the Company Makes Money

Arizona Sonoran Copper Co., Inc. generates revenue through the extraction and sale of copper ore and concentrate. The company's primary revenue stream comes from selling extracted copper to industrial manufacturers and commodity markets. ASCU may engage in offtake agreements with major buyers to secure ongoing sales and stabilize income. Additionally, the company could partner with other mining firms or technology companies to optimize mining processes and enhance production efficiency, thereby increasing profitability. Factors such as copper market prices, production costs, and operational efficiency significantly impact the company's earnings.

Arizona Sonoran Copper Co., Inc. Financial Statement Overview

Summary

Arizona Sonoran Copper Co., Inc. faces significant financial challenges, primarily due to non-existent revenue and consistent losses affecting profitability and cash flows. While the balance sheet indicates low leverage, the company's persistent negative earnings and cash flows pose risks to financial stability.

Income Statement

The company has consistently reported zero revenue over the past periods, indicating no sales activities. The net income and EBIT margins are negative, reflecting ongoing losses. There is no revenue growth, as there has been no revenue to report.

Balance Sheet

The company maintains a relatively low debt-to-equity ratio, which indicates conservative leverage. However, the return on equity is negative due to ongoing losses, and the equity ratio is strong, indicating a solid equity base relative to assets.

Cash Flow

The company has negative free cash flow and operating cash flow, reflecting cash outflows that are not offset by earnings. The operating cash flow to net income ratio is not favorable, indicating inefficiency in cash generation from operations.

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
-65.00K	0.00	-84.00K	-75.00K	-17.00K	0.00
	EBIT
-6.50M	6.34M	-6.96M	-8.40M	-2.74M	-2.22M
	EBITDA
-5.50M	-6.34M	-7.00M	-8.38M	-2.73M	0.00
	Net Income Common Stockholders
-6.96M	-6.99M	-7.14M	-17.05M	-7.46M	-2.40M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
47.00K	10.49M	19.86M	27.31M	7.25M	47.00K
	Total Assets
0.00	114.08M	69.58M	54.42M	17.99M	12.12M
	Total Debt
0.00	67.00K	115.00K	6.88M	6.34M	0.00
	Net Debt
47.00K	-10.43M	-19.75M	-20.43M	-903.00K	-47.00K
	Total Liabilities
0.00	29.53M	3.60M	10.35M	11.00M	10.30M
	Stockholders Equity
1.82M	84.55M	65.98M	44.08M	6.99M	1.82M
Cash Flow		Free Cash Flow
-30.43M	-38.82M	-4.33M	-24.89M	-14.79M	―
	Operating Cash Flow
-10.57M	-11.52M	-3.55M	-6.29M	-1.48M	-732.00
	Investing Cash Flow
-19.86M	-27.30M	-29.80M	-18.60M	-8.30M	―
	Financing Cash Flow
26.99M	29.53M	26.09M	44.95M	16.97M	―

Arizona Sonoran Copper Co., Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.89
• 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:ASCU, the sentiment is Positive. The current price of 1.89 is below the 20-day moving average (MA) of 1.91, above the 50-day MA of 1.73, and above the 200-day MA of 1.53, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 53.27 is Neutral, neither overbought nor oversold. The STOCH value of 65.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ASCU.

Arizona Sonoran Copper Co., Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LUN	70 Outperform	$10.70B	25.63	0.24%	3.08%	-2.71%	-188.94%
TKO	68 Neutral	$875.74M	11.15	-2.74%	―	26.54%	476.94%
ECO	65 Neutral	C$248.75M	―	-3.37%	―	48.80%	50.70%
CS	56 Neutral	$5.32B	46.23	2.90%	―	12.21%	―
Sector *	46 Neutral	$2.64B	-3.90	-29.96%	3.33%	2.89%	-29.73%
ASCU	45 Neutral	C$265.65M	―	-8.28%	―	―	-15.45%

Arizona Sonoran Copper Co., Inc. Corporate Events

Arizona Sonoran Secures C$21.6 Million for Project Expansion

Arizona Sonoran Copper Company Inc. has successfully closed a C$21.6 million private placement with Hudbay Minerals Inc. and Nuton LLC. This funding secures the company’s financial runway for its 2025 work programs, including updating technical data on the Parks/Salyer deposit and producing a Pre-Feasibility Study. The involvement of Hudbay as a strategic investor provides Arizona Sonoran valuable expertise in mine development, further de-risking the Cactus Project and advancing towards construction.

Arizona Sonoran Secures C$19.9 Million Investment from Hudbay

Arizona Sonoran Copper Company Inc. has secured a strategic investment of C$19.9 million from Hudbay Minerals Inc. through a private placement, granting Hudbay a 9.99% stake in the company. The funds will be used for drilling, exploration, and advancing the Cactus copper project in Arizona, which is anticipated to bolster the company’s position in the copper market and support its expansion efforts.

Arizona Sonoran Reduces Royalty to Enhance Shareholder Value

Arizona Sonoran Copper Company Inc. has announced the buyback of 1% of the Bronco Creek Exploration net smelter royalty for $500,000, reducing the royalty from 1.5% to 0.5%. This strategic move is aimed at leveraging future copper production and enhancing shareholder value, reflecting potential upside as the company progresses with the Cactus Project.

Arizona Sonoran Copper’s Promising Leaching Results

Arizona Sonoran Copper Company has achieved impressive copper extraction rates of up to 87% from its testing at the Cactus Project in Arizona, showcasing the viability of its leaching process. The company is advancing its metallurgical program with a $3 million investment in preparation for a pref-feasibility study in 2025, aiming to enhance its copper recovery strategies.

Arizona Sonoran’s Cactus Project Gains Key Permit

Arizona Sonoran Copper Company has received an amended Industrial Air Permit, a significant step in advancing its Cactus Project, which has garnered 87% community support. The project is set to produce 116,000 short tons of copper annually, marking it as a promising venture in a favorable location with streamlined state-led permitting.

Arizona Sonoran Secures Investment from Rio Tinto’s Nuton

Arizona Sonoran Copper Co. has successfully closed a C$3.1 million private placement with Nuton LLC, a Rio Tinto Venture, which underscores the potential of its copper assets. The investment will support ongoing projects, including the expansion of primary sulphides at Cactus West and the metallurgical leaching program.