Entree Gold (ETG) AI Stock Analysis

• Market Cap: $410.65M
• Dividend Yield: N/A
• Average Volume (3M): 90.83K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.64
• Revenue Growth: N/A
• EPS Growth: -49.38%
• Country: CA
• Employees: 4
• Sector: Basic Materials
• Sector Strength: 59
• Industry: Industrial Materials
• EPS (TTM): -0.10
• Shares Outstanding: 207,400,940
• 10 Day Avg. Volume: 101,751
• 30 Day Avg. Volume: 90,827
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -77.90
• 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: $2.00
• Price Target Upside: -3.54% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

Entree Gold's overall stock score is predominantly impacted by its weak financial performance, characterized by negative income and cash flows, and a high-risk balance sheet. Despite positive corporate events, including a favorable arbitration outcome and promising exploration results, the company's financial instability and unattractive valuation metrics significantly weigh on the stock's attractiveness.

Entree Gold Business Overview & Revenue Model

Company Description

Entrée Resources Ltd., an exploration stage company, engages in the development and exploration of mineral property interests located in Mongolia, Peru, Australia, and Canada. Its principal asset is the Entrée/Oyu Tolgoi joint venture property comprising Hugo North Extension copper-gold porphyry deposit and the Heruga copper-gold-molybdenum porphyry deposit located in Mongolia. The company was formerly known as Entrée Gold Inc. and changed its name to Entrée Resources Ltd. in May 2017. Entrée Resources Ltd. was incorporated in 1995 and is headquartered in Vancouver, Canada.

How the Company Makes Money

Entrée Resources Ltd. generates revenue primarily through its interest in the Oyu Tolgoi project. The company holds a carried joint venture interest, meaning it shares in the profits derived from the mine's production without having to contribute to the operating costs. This arrangement allows Entrée to benefit from the copper and gold sales carried out by the operators of the Oyu Tolgoi mine. Additionally, Entrée invests in exploration activities to discover new mineral reserves, which can lead to increased asset value and potential future revenue streams. The company also engages in partnerships and agreements with other mining companies to explore and develop its other properties, which can result in additional income from joint ventures or asset sales.

Entree Gold Financial Statement Overview

Summary

Entree Gold's financial statements reflect significant operational and financial difficulties, with no revenue generation and escalating losses. The highly leveraged balance sheet and negative cash flows point to sustainability challenges. Immediate attention to revenue generation and capital structure is essential to improve financial health.

Income Statement

The company has consistently reported zero revenue over the years, highlighting a lack of commercial operations. Increasing losses are observed, with net income deteriorating further, indicating significant operational challenges.

Balance Sheet

The company's balance sheet shows negative stockholders' equity, suggesting financial instability. High debt levels relative to equity pose significant leverage risks. The equity ratio is negative due to the negative equity, further emphasizing balance sheet concerns.

Cash Flow

Operating cash flows are consistently negative, reflecting continued cash burn. The company has managed to secure financing, but free cash flow remains negative, indicating a need for further capital to sustain 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
-60.00K	0.00	-124.00K	-118.00K	-98.00K	-105.00K
	EBIT
-2.69M	-4.55K	-3.55M	-2.96M	-2.28M	-2.11M
	EBITDA
-5.42M	-4.54K	-8.04M	-7.10M	-5.76M	-5.42M
	Net Income Common Stockholders
-7.14M	-9.58K	-9.59M	-7.68M	-6.15M	-5.57M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
39.33M	6.09M	6.41M	7.09M	7.26M	5.38M
	Total Assets
45.26M	7.21M	7.49M	7.78M	7.96M	6.10M
	Total Debt
716.92K	12.76M	11.69M	10.36M	9.82M	9.34M
	Net Debt
-38.61M	6.67M	5.28M	3.27M	2.56M	3.96M
	Total Liabilities
1.36M	71.83M	65.03M	62.88M	58.17M	53.08M
	Stockholders Equity
43.90M	-64.62M	-57.53M	-55.10M	-50.21M	-46.98M
Cash Flow		Free Cash Flow
-3.63M	-3.10M	-2.31M	-2.19M	-1.50M	-1.82M
	Operating Cash Flow
-3.63M	-3.10M	-2.31M	-2.15M	-1.50M	-1.82M
	Investing Cash Flow
0.00	0.00	0.00	-33.00K	0.00	1.03M
	Financing Cash Flow
1.75M	2.70M	1.86M	1.99M	3.23M	-34.00K

Entree Gold Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.07
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ETG, the sentiment is Negative. The current price of 2.07 is below the 20-day moving average (MA) of 2.07, below the 50-day MA of 2.27, and above the 200-day MA of 2.05, indicating a bearish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 41.69 is Neutral, neither overbought nor oversold. The STOCH value of 61.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ETG.

Entree Gold Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	48 Neutral	$1.91B	-1.65	-22.29%	3.86%	0.68%	-27.46%
RIO	43 Neutral	C$382.07M	―	0.21%	―	―	83.41%
ETG	29 Underperform	$410.65M	―	0.01%	―	―	-49.38%

Entree Gold Corporate Events

Entrée Resources Secures Arbitration Win and Amends Joint Venture Agreement

Entrée Resources Ltd. has announced its fiscal year 2024 results, highlighting a significant arbitration victory against its joint venture partner Oyu Tolgoi LLC and Turquoise Hill Resources Ltd. The arbitration tribunal ruled in favor of Entrée on all issues, leading to the formal execution of the Entrée/Oyu Tolgoi Joint Venture Agreement. This agreement, which dates back to 2008, has been amended to include the Shivee West Property, previously wholly owned by Entrée, now assigned to Oyu Tolgoi LLC with an 80% or 70% beneficial interest. This development marks a crucial step in the company’s operations and strengthens its position within the joint venture, impacting its strategic interests and obligations in the Mongolian mining sector.

Entrée Resources Reveals Promising Drilling Results at Mongolian Deposits

Entrée Resources Ltd. announced the results of its drilling programs conducted between 2022 and 2024 at the Hugo North Extension and Heruga deposits in Mongolia. The results revealed promising copper equivalent grades, with some of the best outcomes since drilling resumed in 2022. The findings, particularly from the Heruga deposit, suggest further exploration is needed to fully understand its potential, impacting the company’s strategic positioning and stakeholder interests.

Entrée Resources Formalizes Joint Venture with Oyu Tolgoi LLC

Entrée Resources Ltd. has formalized its longstanding Joint Venture Agreement with Oyu Tolgoi LLC, which dates back to 2008. This execution is a critical step in implementing a recent arbitration award, allowing for the transfer of mining licenses necessary for underground development at Hugo North Extension. This formalization marks a progression towards potential restructuring of the agreement to better meet Mongolian legal requirements and enhance economic value for stakeholders.

Entrée Resources Secures C$5.7 Million in Private Placement to Advance Oyu Tolgoi Venture

Entrée Resources Ltd. has completed a non-brokered private placement raising C$5.7 million, issuing 2,577,700 units. The proceeds will fund corporate purposes, including implementing an arbitration award related to its joint venture with Oyu Tolgoi LLC and supporting ongoing discussions with project stakeholders. Horizon Copper Corp., a major shareholder, participated significantly in the financing.

Entrée Resources Announces C$5.7M Private Placement to Support Strategic Objectives

Entrée Resources Ltd. announced a non-brokered private placement of up to 2,577,700 units at C$2.21 per unit, aiming to raise up to C$5,696,717. The proceeds will support general corporate purposes, including implementing a partial final arbitration award related to a dispute with its joint venture partner Oyu Tolgoi LLC and continuing discussions with project stakeholders. The private placement is expected to close in the first quarter of 2025, pending regulatory approvals, with Horizon Copper Corp., a significant shareholder, participating to maintain its stake.