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Commerce Resources Corp (TSE:CCE)
:CCE

Commerce Resources (CCE) AI Stock Analysis

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Commerce Resources

(CCE)

37Underperform
Commerce Resources Corp. faces severe financial challenges, with no revenue generation and persistent losses impacting its financial stability. The technical analysis indicates a bearish trend, though potential for a rebound exists due to oversold indicators. The valuation is weak, given the negative P/E ratio and lack of dividends. However, the recent funding for infrastructure development is a positive step towards future growth. Overall, the stock is rated at the lowest end of the spectrum, reflecting significant risks and challenges.

Commerce Resources (CCE) vs. S&P 500 (SPY)

Commerce Resources Business Overview & Revenue Model

Company DescriptionCommerce Resources Corp. (CCE) is a Canadian-based mineral exploration and development company focused on rare earth elements (REE) and rare metals in Canada. The company primarily operates through its key projects: the Ashram Rare Earth Element/Fluorspar Deposit located in Quebec and the Blue River Tantalum-Niobium Project in British Columbia. Commerce Resources aims to advance these projects towards production to meet the growing demand for rare earth elements used in various high-tech and green energy applications.
How the Company Makes MoneyCommerce Resources Corp. generates revenue primarily through the exploration and development of its mineral projects. The company seeks to enhance the value of its properties through activities such as drilling, geological surveys, and feasibility studies, which can attract investment or acquisition interest from larger mining companies. Revenue is also generated through partnerships or joint ventures with other mining entities, which can provide funding in exchange for a stake in project developments. Additionally, Commerce Resources may earn income by selling off stakes in its projects or through royalties from future production agreements.

Commerce Resources Financial Statement Overview

Summary
Commerce Resources faces significant financial challenges, primarily due to its inability to generate revenue and persistent losses. While its balance sheet reflects a strong equity position with minimal debt, the lack of positive cash flow from operations and reliance on financing raises concerns about future financial stability. The company needs to address its revenue generation and operational efficiency to improve its financial outlook.
Income Statement
10
Very Negative
Commerce Resources has consistently reported zero revenue over the years, indicating a lack of income generation from its core operations. The company also exhibits negative EBIT and EBITDA margins, highlighting operational inefficiencies and high expenses relative to nonexistent revenue. The net income has been persistently negative, showing ongoing losses without signs of improvement.
Balance Sheet
45
Neutral
The company maintains a strong equity position with a high equity ratio, indicating a solid capital structure. The debt-to-equity ratio is low, reflecting minimal leverage and reduced financial risk. However, the consistent decline in total assets and equity over recent periods suggests potential challenges in maintaining asset growth and shareholder value.
Cash Flow
30
Negative
Commerce Resources has been reporting negative operating and free cash flows, indicating struggles in generating cash from operations. Although there is an influx of financing cash flow, it primarily serves to cover operational deficits rather than fuel growth. The company's inability to generate positive free cash flow poses a risk to long-term financial sustainability.
Breakdown
TTMDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
0.000.000.000.000.000.00
Gross Profit
-24.52K-32.69K-19.07K0.000.000.00
EBIT
-1.12M-1.60M-680.54K-1.42M-823.41K-1.05M
EBITDA
-28.63M-1.60M-688.89K-807.64K-823.41K-1.05M
Net Income Common Stockholders
-28.70M-1.70M-723.56K-451.11K-827.41K-1.14M
Balance SheetCash, Cash Equivalents and Short-Term Investments
2.81M3.98M545.78K3.31M1.09M693.15K
Total Assets
54.74M77.29M73.19M71.20M63.83M62.97M
Total Debt
91.14K121.81K149.02K0.000.000.00
Net Debt
-2.40M-3.83M-364.77K-3.26M-1.05M-242.66K
Total Liabilities
1.64M571.03K1.60M982.53K1.10M1.08M
Stockholders Equity
53.10M76.72M71.59M70.22M62.73M61.89M
Cash FlowFree Cash Flow
-3.23M-2.99M-5.08M-5.67M-1.25M-2.16M
Operating Cash Flow
-2.32M-509.69K-774.14K-2.36M-828.10K-1.59M
Investing Cash Flow
-5.87M-2.48M-4.31M-3.31M-8.52K-965.10K
Financing Cash Flow
6.72M6.43M2.34M7.88M1.65M2.74M

Commerce Resources Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.07
Price Trends
50DMA
0.08
Negative
100DMA
0.09
Negative
200DMA
0.11
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
44.31
Neutral
STOCH
33.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CCE, the sentiment is Negative. The current price of 0.07 is below the 20-day moving average (MA) of 0.08, below the 50-day MA of 0.08, and below the 200-day MA of 0.11, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 44.31 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CCE.

Commerce Resources Peers Comparison

Overall Rating
UnderperformOutperform
Sector (47)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSMND
79
Outperform
C$450.76M6.7122.34%37.39%516.99%
47
Neutral
$2.64B-3.82-29.05%3.32%2.72%-29.50%
TSLGO
46
Neutral
$157.71M-21.82%-27.73%-44.62%
TSNGC
44
Neutral
$13.77M-329.25%31.19%-46.99%
TSAVL
43
Neutral
C$18.25M-5.00%-1118.18%
TSCCE
37
Underperform
C$15.48M-44.22%-1009.03%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:CCE
Commerce Resources
0.07
-0.07
-50.00%
TSE:NGC
Northern Graphite
0.10
-0.07
-42.86%
TSE:AVL
Avalon Advanced Materials
0.03
-0.06
-67.06%
TSE:LGO
Largo Resources
2.47
>-0.01
-0.40%
TSE:MND
Mandalay Resources
4.73
3.17
203.21%

Commerce Resources Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
Commerce Resources Secures $2.6M for Ashram Deposit Access Road
Positive
Feb 7, 2025

Commerce Resources Corp. has received conditional approval for $2.6 million CAD from Canada’s Critical Minerals Infrastructure Fund to develop an access road to its Ashram REE/Fluorspar Deposit in Quebec. This funding is crucial for advancing various studies and enhancing access to the Nunavik region, supporting multiple projects and indigenous groups, and aligning with Canada’s strategy to expand sustainable critical minerals production, thereby strengthening supply chains and fostering economic growth.

Commerce Resources Corp. Grants Performance Share Units to CEO
Jan 6, 2025

Commerce Resources Corp. has granted 9,000,000 performance share units to CEO Ross Carroll under its Equity Incentive Plan. These units will vest based on specific performance criteria met over the next year. This development reflects the company’s strategic efforts to incentivize leadership aligned with its growth objectives, potentially impacting its market position and operational efficiency.

Commerce Resources Announces Board Change and Focus
Dec 23, 2024

Commerce Resources Corp. announces the resignation of Jody Dahrouge from its Board of Directors, marking the end of his influential role in the company. Dahrouge’s leadership was crucial in the discovery and development of significant projects like the Ashram Rare Earth and Fluorspar Deposit in Quebec. The company remains focused on becoming a leading low-cost producer in the rare earth market.

Commerce Resources Unveils Major Niobium Discovery
Dec 16, 2024

Commerce Resources Corp. has confirmed significant niobium discoveries at its Eldor Property in Quebec, enhancing the prospects of the Ashram Rare Earth and Fluorspar Deposit. The company has expanded the niobium mineralized footprint with new high-grade zones at the Northwest and Moira prospects, demonstrating the potential for large-scale niobium extraction. These discoveries could position Commerce Resources as a key player in the niobium market, which is crucial for various industrial applications.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.