Nicola Mining (NIM) AI Stock Analysis

• Market Cap: C$52.35M
• Dividend Yield: N/A
• Average Volume (3M): 44.16K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.40
• Revenue Growth: N/A
• EPS Growth: -348.98%
• Country: CA
• Employees: 110
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Mining
• EPS (TTM): -0.04
• Shares Outstanding: 171,635,130
• 10 Day Avg. Volume: 54,650
• 30 Day Avg. Volume: 44,157
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -13.20
• 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$0.60
• Price Target Upside: 100.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Nicola Mining's overall stock score is hindered by substantial financial challenges, including zero revenue, high leverage, and negative cash flows. These are partially offset by mixed technical signals which indicate some potential for short-term price movement. However, the valuation remains unattractive due to a negative P/E ratio and no dividend yield, reflecting the company's ongoing financial difficulties.

Positive Factors

Exploration Success

The 2024 program was successful in discovering significant copper findings in the MARB / CAS Zones, which haven’t seen copper exploration since the 1960s.

Project Development

Nicola Mining owns a 75% economic interest in the high-grade gold and silver project.

Revenue Generation

The Company has two sources of revenue which minimizes dilution to shareholders – its Merritt Milling business and its Sand/Gravel Pit and Rock Quarry business.

Negative Factors

Nicola Mining Business Overview & Revenue Model

Company Description

Nicola Mining Inc. (NIM) is a diversified junior mining company based in Canada. The company is focused on developing and operating its assets in safe and prolific mining jurisdictions. Nicola Mining is primarily engaged in the exploration and development of mineral properties, with a focus on copper, gold, and silver. The company's core assets include the New Craigmont Copper Project, the Merritt Mill and Tailings Facility, and the Treasure Mountain Silver Project. These projects position Nicola Mining to play a significant role in the production of base and precious metals.

How the Company Makes Money

Nicola Mining generates revenue primarily through the exploration and development of its mineral properties, particularly through the extraction and sale of copper, gold, and silver. The company operates the Merritt Mill, a processing facility that allows it to process ore from its own projects as well as offer toll milling services to other mining companies, providing an additional revenue stream. Nicola Mining's revenue model is bolstered by strategic partnerships and joint ventures with other mining entities, which help to optimize resource development and share operational costs. Additionally, the company may engage in the sale or optioning of its non-core assets to generate further income.

Nicola Mining Financial Statement Overview

Summary

Nicola Mining's financial health is weak, characterized by no revenue generation, persistent losses, high leverage, and negative cash flows. The company faces significant operational and financial challenges, with little evidence of improvement in financial performance over recent periods.

Income Statement

The company has zero total revenue over multiple periods, indicating a lack of operational income generation. The net profit margin is consistently negative, reflecting continuous net losses. EBIT and EBITDA margins are significantly negative, highlighting substantial operational inefficiencies.

Balance Sheet

The debt-to-equity ratio is high, suggesting significant leverage and financial risk. The return on equity is negative, indicating poor profitability for equity holders. However, there has been some increase in stockholders' equity over the years, showing potential for financial restructuring.

Cash Flow

The company has negative operating cash flow and free cash flow, indicating challenges in generating cash from operations. The free cash flow to net income ratio is negative due to persistent net losses, and free cash flow growth is also negative, reflecting operational cash constraints.

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
-2.61M	-2.48M	-974.76K	-1.48M	-1.04M	-581.98K
	EBIT
-7.24M	-6.20M	-2.95M	-3.63M	-2.56M	-2.89M
	EBITDA
-4.11M	-5.57M	1.53M	-1.77M	-1.34M	2.63M
	Net Income Common Stockholders
-5.91M	601.30K	-52.83K	-3.41M	-2.89M	1.52M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.36M	4.76M	895.77K	916.29K	824.71K	500.80K
	Total Assets
12.02M	25.72M	18.58M	12.36M	11.35M	11.06M
	Total Debt
6.67M	4.25M	5.73M	7.04M	6.55M	5.64M
	Net Debt
5.31M	-502.92K	4.83M	6.12M	5.73M	5.14M
	Total Liabilities
15.40M	19.44M	16.51M	11.52M	11.15M	10.12M
	Stockholders Equity
-3.38M	6.28M	2.08M	841.42K	198.84K	945.21K
Cash Flow		Free Cash Flow
-2.67M	3.82M	1.67M	-2.74M	-1.13M	-1.66M
	Operating Cash Flow
-2.66M	3.87M	1.73M	-2.22M	-1.12M	-1.66M
	Investing Cash Flow
-1.03M	-88.70K	-75.65K	-336.87K	-11.50K	-224.33K
	Financing Cash Flow
-202.86K	78.24K	-1.68M	2.65M	1.46M	1.02M

Nicola Mining Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.30
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:NIM, the sentiment is Negative. The current price of 0.3 is below the 20-day moving average (MA) of 0.32, below the 50-day MA of 0.31, and below the 200-day MA of 0.31, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 40.21 is Neutral, neither overbought nor oversold. The STOCH value of 34.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:NIM.

Nicola Mining Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SCZ	72 Outperform	C$158.36M	0.77	223.51%	―	―	―
Sector *	46 Neutral	$2.64B	-3.89	-29.36%	3.33%	2.89%	-29.66%
SKE	41 Neutral	C$1.55B	―	-156.19%	―	―	-66.33%
NIM	37 Underperform	C$52.35M	―	-122.83%	―	―	-348.98%
RKR	29 Underperform	C$3.26M	―	-355.18%	―	―	-202.88%
GNG	28 Underperform	C$1.65M	―	-147.05%	―	―	-399.62%

Nicola Mining Corporate Events

Nicola Mining Completes Debt Settlement with Share Issuance

Nicola Mining Inc. has completed a debt settlement by issuing 1,469,935 common shares to cover $411,583.10 in interest owed on convertible debentures. This move, approved by the TSX Venture Exchange, highlights Nicola’s strategic financial management and may enhance its operational stability, benefiting stakeholders by potentially strengthening its market position.

Nicola Mining Enhances Growth with Stock Options

Nicola Mining has granted stock options and restricted share units to select members of their team, emphasizing their commitment to growth and development. With substantial assets like the New Craigmont Project and Treasure Mountain Property, Nicola Mining is poised to leverage its resources for greater profitability.

Nicola Mining Announces Debt Settlement via Share Issuance

Nicola Mining plans to settle its outstanding interest on secured convertible debentures by issuing common shares, totaling 1,469,935 shares at $0.28 each, to debenture holders. This debt settlement involves a related party transaction, exempt from certain valuation and approval requirements, and is pending TSX Venture Exchange approval.

Nicola Mining Highlights Achievements and Future Plans

Nicola Mining Inc. made significant strides in 2024, showcasing strong financial stability and strategic expansions. The company prepaid over $1 million in principal debt and appointed key executives to strengthen its leadership team. Additionally, Nicola advanced its exploration projects and initiated gold and silver production, along with constructing a nearly completed cement plant with contracts secured for 2025.

Nicola Mining Updates on Exploration and Operations

Nicola Mining Inc. has completed a significant drilling exploration program at its New Craigmont Copper Project, focusing on previously unexplored zones to assess mineralization potential. Additionally, the company has made a strategic deposit for its Dominion Creek Gold/Silver Project, aiming to advance its permit process for future operations.