Defiance Silver (DEF) AI Stock Analysis

• Market Cap: C$63.96M
• Dividend Yield: N/A
• Average Volume (3M): 451.02K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.12
• Revenue Growth: N/A
• EPS Growth: -21.74%
• Country: CA
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Other Precious Metals
• EPS (TTM): -0.01
• Shares Outstanding: 290,708,280
• 10 Day Avg. Volume: 564,194
• 30 Day Avg. Volume: 451,023
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -53.60
• 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

Defiance Silver's overall stock score reflects its significant financial challenges, including a lack of revenue and consistent losses, offset partially by a strong equity position and no debt. While technical analysis shows some positive momentum, valuation metrics are unfavorable due to the lack of profitability. Recent corporate events provide a more positive outlook by strengthening its financial position and market engagement.

Defiance Silver Business Overview & Revenue Model

Company Description

Defiance Silver Corp (DEF) is a Canadian-based exploration and development company primarily engaged in the acquisition, exploration, and development of mineral properties in Mexico. The company focuses on silver, gold, and other precious metals, leveraging its expertise and strategically positioned assets to advance its projects from exploration to production. Defiance Silver aims to enhance shareholder value through disciplined exploration and acquisition strategies within prolific mining districts.

How the Company Makes Money

Defiance Silver makes money through the exploration and development of its mineral properties, primarily focusing on silver and other precious metals. The company's revenue model is based on the successful identification and development of mineral reserves, which can lead to the sale of extracted metals or the sale of developed projects to larger mining entities. Additionally, Defiance Silver may form joint ventures or strategic partnerships with other mining companies to share the financial and operational responsibilities of advancing its projects. Revenue is generated once these projects reach the production phase and the extracted metals are sold in the market.

Defiance Silver Financial Statement Overview

Summary

Defiance Silver faces significant challenges with no revenue and sustained losses impacting its financial health. Despite a strong balance sheet with no debt, continuous cash deficits and reliance on external financing represent critical risks. The company needs to achieve operational profitability to ensure long-term viability.

Income Statement

Defiance Silver's income statement reveals persistent financial challenges, characterized by zero revenue generation and consistent operating losses over the periods analyzed. There are no signs of revenue growth, and the company has been unable to generate any gross or net profit margins, indicating significant operational inefficiencies and a lack of market penetration.

Balance Sheet

The balance sheet of Defiance Silver is relatively strong, with no total debt, resulting in a debt-to-equity ratio of zero, which is a favorable indicator of financial stability. The company maintains a high equity ratio, reflecting solid capitalization. Despite these strengths, the lack of revenue and consistent net losses pose a risk to long-term sustainability.

Cash Flow

The cash flow statement indicates negative free cash flow and operating cash flow, suggesting cash burn issues. The company's free cash flow to net income ratio is negative, highlighting an inability to convert net income into cash flow due to persistent losses. While financing activities have provided some liquidity, reliance on external funding is a potential concern.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00	0.00
	Gross Profit
0.00	0.00	―	―	0.00	0.00
	EBIT
-1.59M	-2.11M	-3.79M	-4.11M	-2.95M	-1.11M
	EBITDA
-1.44M	-2.35M	0.00	0.00	0.00	0.00
	Net Income Common Stockholders
-3.09M	-2.35M	-2.49M	-3.86M	-2.94M	-1.25M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
78.86K	265.83K	4.56M	11.78M	20.83M	569.03K
	Total Assets
12.63M	42.27M	41.93M	41.56M	43.04M	16.13M
	Total Debt
1.21M	0.00	0.00	0.00	0.00	1.22M
	Net Debt
1.13M	-265.83K	-4.56M	-11.78M	-20.83M	649.42K
	Total Liabilities
3.09M	865.71K	1.33M	1.44M	1.31M	2.12M
	Stockholders Equity
9.54M	41.41M	40.60M	40.12M	41.73M	14.01M
Cash Flow		Free Cash Flow
-1.33M	-1.46M	-9.07M	-9.46M	-7.79M	-2.94M
	Operating Cash Flow
-2.02M	-1.46M	-2.46M	-2.87M	-2.96M	-1.32M
	Investing Cash Flow
-5.70M	-5.38M	-6.62M	-6.59M	-4.86M	-1.63M
	Financing Cash Flow
5.72M	2.54M	1.86M	411.28K	28.08M	3.38M

Defiance Silver Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.22
• 50DMA: Negative
• 100DMA: Negative
• 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:DEF, the sentiment is Negative. The current price of 0.22 is below the 20-day moving average (MA) of 0.27, below the 50-day MA of 0.25, and below the 200-day MA of 0.24, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.77 is Neutral, neither overbought nor oversold. The STOCH value of 6.65 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:DEF.

Defiance Silver Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FVI	80 Outperform	C$2.34B	13.39	9.74%	―	28.18%	―
SVM	77 Outperform	C$1.02B	9.46	11.68%	0.77%	31.23%	110.49%
MAG	61 Neutral	C$1.97B	18.47	14.17%	―	―	61.66%
EDR	58 Neutral	$1.17B	―	-7.23%	―	6.18%	-515.57%
DEF	48 Neutral	C$63.96M	―	-6.96%	―	―	-21.74%
Sector *	47 Neutral	$2.36B	-2.99	-21.59%	3.58%	4.21%	-28.30%

Defiance Silver Corporate Events

Defiance Silver Enhances Investor Relations and Announces Stock Incentives

Defiance Silver Corp. has entered into an agreement with Capital Analytica for investor relations and communication services, which will enhance its market engagement and visibility. Additionally, the company has announced the grant of various stock-based incentives to employees, directors, and consultants, which could align interests and potentially improve performance.

Defiance Silver Completes Upsized Private Placement, Strengthening Exploration Efforts

Defiance Silver Corp. has successfully closed the third and final tranche of its upsized private placement, raising a total of C$3,267,800. The funds will be used for exploration and general working capital, with the offering still awaiting final approval from the TSX Venture Exchange. This strategic move supports Defiance’s ongoing exploration projects and bolsters its financial position for future development.

Defiance Silver Finalizes Upsized Private Placement with C$3.27M Raised

Defiance Silver Corp. has successfully closed the third and final tranche of its upsized non-brokered private placement, raising a total of C$3,267,800. The funds from this offering will be allocated towards exploration activities and general working capital, with the issuance of units comprising common shares and warrants, subject to a four-month hold period.

Defiance Silver Progresses with Private Placement to Fund Exploration

Defiance Silver Corp. has successfully closed the second tranche of its non-brokered private placement, raising C$1,560,600, adding to the C$732,200 from the first tranche, with plans to conclude a third tranche for a total of C$3,300,000. The funds will support exploration and general working capital, and the offering remains subject to TSX Venture Exchange approval, marking a pivotal step in the company’s strategic growth within the mining sector.

Defiance Silver Updates Technical Report for Tepal Project

Defiance Silver Corp. has filed an amended technical report for the Tepal Gold-Copper Project, following a previous mineral resource estimate. The amendments involve changes to certain columns and notes in the Mineral Resource Estimate table, but the actual resource estimates remain unchanged. This technical update reflects Defiance’s efforts to refine and clarify its resource assessments, potentially enhancing its strategic positioning and operational planning.

Defiance Silver Closes Initial Tranche of Private Placement

Defiance Silver Corp. has successfully closed the initial tranche of a non-brokered private placement, raising gross proceeds of $732,200 through the issuance of 3,661,000 units. The funds will be used for exploration and general working capital. The offering includes common shares and purchase warrants, with a four-month hold period as per TSX Venture Exchange regulations. The company also clarified its July 2024 private placement, confirming cash commissions paid.