Commerce Resources (CCE) AI Stock Analysis

• Market Cap: C$14.84M
• Dividend Yield: N/A
• Average Volume (3M): 147.36K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.48
• Revenue Growth: N/A
• EPS Growth: -1014.38%
• Country: CA
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Industrial Materials
• EPS (TTM): -0.16
• Shares Outstanding: 212,021,560
• 10 Day Avg. Volume: 212,906
• 30 Day Avg. Volume: 147,358
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -16.70
• 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

Commerce Resources faces significant financial challenges with consistent losses and no revenue growth, heavily impacting its score. Despite a strong equity position and positive corporate events, the poor technical indicators and valuation highlight substantial risks. The strategic initiatives could foster long-term growth, but near-term financial performance remains a critical concern.

Commerce Resources Business Overview & Revenue Model

Company Description

Commerce 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 Money

Commerce 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

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

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

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
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
-24.52K	-32.69K	-19.07K	0.00	0.00	0.00
	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 Sheet		Cash, Cash Equivalents and Short-Term Investments
2.81M	3.98M	545.78K	3.31M	1.09M	693.15K
	Total Assets
54.74M	77.29M	73.19M	71.20M	63.83M	62.97M
	Total Debt
91.14K	121.81K	149.02K	0.00	0.00	0.00
	Net Debt
-2.40M	-3.83M	-364.77K	-3.26M	-1.05M	-242.66K
	Total Liabilities
1.64M	571.03K	1.60M	982.53K	1.10M	1.08M
	Stockholders Equity
53.10M	76.72M	71.59M	70.22M	62.73M	61.89M
Cash Flow		Free 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
6.72M	6.43M	2.34M	7.88M	1.65M	2.74M

Commerce Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.07
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CCE, the sentiment is Positive. The current price of 0.07 is below the 20-day moving average (MA) of 0.07, below the 50-day MA of 0.07, and below the 200-day MA of 0.10, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 36.39 is Neutral, neither overbought nor oversold. The STOCH value of -22.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:CCE.

Commerce Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MND	82 Outperform	C$464.79M	7.32	22.34%	―	37.39%	516.99%
CNC	53 Neutral	$179.06M	―	-0.58%	―	―	91.44%
LGO	50 Neutral	$126.94M	―	-24.10%	―	-36.34%	-66.53%
Sector *	47 Neutral	$2.43B	-3.06	-22.76%	3.59%	4.02%	-29.07%
NGC	44 Neutral	$12.45M	―	-329.25%	―	31.19%	-46.99%
AVL	42 Neutral	$15.37M	―	-5.23%	―	―	-11500.00%
CCE	39 Underperform	C$14.84M	―	-45.75%	―	―	-1014.38%

Commerce Resources Corporate Events

Commerce Resources and Mont Royal Resources Announce Merger to Form Critical Minerals Developer

Commerce Resources Corp. has entered into a definitive arrangement agreement with Mont Royal Resources Limited to merge their businesses, creating a Canadian-focused critical minerals development company. This merger will combine Commerce’s Ashram and Eldor projects with Mont Royal’s Northern Lights Lithium Project, resulting in a dual listing on the TSX Venture Exchange and the Australian Securities Exchange. The transaction aims to enhance liquidity and funding opportunities, with Commerce shareholders owning a majority stake in the new entity. The merger is expected to advance key projects and attract a broader range of investors.

Spark’s Take on TSE:CCE Stock

According to Spark, TipRanks’ AI Analyst, TSE:CCE is a Neutral.

Commerce Resources Corp. faces significant financial challenges, marked by zero revenue and consistent losses, heavily impacting its overall score. Although its equity position and recent positive corporate events offer some stability and growth potential, the poor technical indicators and valuation highlight substantial risks. The strategic initiatives could foster long-term growth, but near-term financial performance remains a critical concern.

To see Spark’s full report on TSE:CCE stock, click here.

Commerce Resources Grants Stock Options Amid Strategic Expansion

Commerce Resources Corp. has announced the grant of 2,500,000 stock options to certain officers and consultants under its Equity Incentive Plan, which are exercisable at $0.12 per share until March 2028. This move is part of the company’s strategy to retain key personnel as it plans a dual listing on the Australian Securities Exchange and advances the Ashram Project, a significant rare earth and fluorspar deposit, to its next development stage.

Commerce Resources Announces Leadership Change Amid Strategic Developments

Commerce Resources Corp. has announced a change in its management, with Mr. Ross Carroll stepping down as President and CEO. Mr. Jeremy Robinson, a non-executive Director, will take over as interim President and CEO to oversee the company’s dual listing on the Australian Securities Exchange and the next phase of the Ashram Rare Earths Project development. This transition marks a significant period for the company as it advances its strategic goals and positions itself in the global market.

Commerce Resources Secures $2.6M for Ashram Deposit Access Road

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.