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Renforth Resources (TSE:RFR)
:RFR

Renforth Resources (RFR) AI Stock Analysis

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Renforth Resources

(RFR)

21Underperform
Renforth Resources faces critical financial distress with zero revenue, significant net losses, and negative cash flows. The technical analysis indicates weak momentum and potential overbought conditions, while valuation metrics reflect unattractive prospects with a negative P/E ratio. These factors collectively suggest a high-risk investment profile requiring strategic intervention.

Renforth Resources (RFR) vs. S&P 500 (SPY)

Renforth Resources Business Overview & Revenue Model

Company DescriptionRenforth Resources Inc. (RFR) is a Canadian-based exploration company focused on the discovery and development of mineral resources, primarily in the province of Quebec. The company is engaged in the acquisition, exploration, and development of mineral properties, with a particular emphasis on gold and battery metals such as nickel. Renforth Resources aims to advance its projects through exploration and strategic partnerships, enhancing shareholder value through resource discovery and development.
How the Company Makes MoneyRenforth Resources makes money primarily through the acquisition and exploration of mineral properties, leading to the discovery and development of valuable mineral resources. The company's revenue model is centered around increasing the value of its mineral assets through exploration success, which can attract partnerships or investments from larger mining companies. Additionally, Renforth Resources may generate revenue by selling or optioning its mineral properties to other companies or through joint ventures. The company also benefits from any potential increases in the market value of the minerals it discovers, which can enhance the overall valuation of its projects and provide opportunities for monetization through asset sales or stock offerings.

Renforth Resources Financial Statement Overview

Summary
Renforth Resources faces severe financial challenges with zero revenue generation, persistent net losses, and negative cash flows, suggesting operational and financial distress. The balance sheet reveals potential solvency issues with negative equity, despite no debt burden. The company's financial position is precarious, requiring strategic shifts to improve sustainability.
Income Statement
5
Very Negative
Renforth Resources has consistently reported zero revenue, indicating an absence of income generation activities. The company shows persistent negative net income, with notably worsening net losses over the years, reaching -1.82 million CAD in the TTM. The EBIT and EBITDA margins are negative, reflecting significant operational challenges and lack of profitability.
Balance Sheet
10
Very Negative
The balance sheet reflects a negative stockholders' equity as of the TTM, highlighting potential insolvency risks. The absence of debt is a positive aspect, but extremely low asset levels and negative equity suggest financial instability. The equity ratio is negative, further emphasizing the company's financial distress.
Cash Flow
15
Very Negative
The company exhibits negative free cash flow and operating cash flow, indicating cash burn without revenue support. While there is some financing cash flow, it primarily covers operating losses. The lack of revenue and persistent negative cash flow ratios highlight liquidity challenges.
Breakdown
TTMDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
0.000.000.000.000.000.00
Gross Profit
-50.00K0.000.000.000.000.00
EBIT
-1.66M-2.35M-1.71M-2.98M-1.06M-489.32K
EBITDA
-1.88M209.43K-842.46K649.46K4.85M9.61K
Net Income Common Stockholders
-1.82M-2.14M-5.62M-4.51M-217.35K-479.71K
Balance SheetCash, Cash Equivalents and Short-Term Investments
647.54K356.58K2.26M4.46M6.71M885.76K
Total Assets
6.41M660.20K2.67M4.65M12.79M8.33M
Total Debt
0.000.000.000.000.000.00
Net Debt
-647.54K-356.58K-558.07K-1.59M-2.63M-885.76K
Total Liabilities
168.18K582.75K763.37K757.97K2.29M576.35K
Stockholders Equity
6.24M77.44K1.91M3.90M10.50M7.76M
Cash FlowFree Cash Flow
-1.74M-2.30M-2.52M-3.03M-3.14M-1.68M
Operating Cash Flow
-1.74M-2.30M-2.52M-3.03M-998.40K-183.91K
Investing Cash Flow
0.001.70M12.83K0.00-1.37M-1.44M
Financing Cash Flow
567.10K401.60K1.47M1.99M4.12M1.87M

Renforth Resources Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.01
Price Trends
50DMA
0.02
Positive
100DMA
0.02
Positive
200DMA
0.02
Positive
Market Momentum
MACD
<0.01
Negative
RSI
53.64
Neutral
STOCH
200.00
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:RFR, the sentiment is Positive. The current price of 0.01 is below the 20-day moving average (MA) of 0.02, below the 50-day MA of 0.02, and below the 200-day MA of 0.02, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 53.64 is Neutral, neither overbought nor oversold. The STOCH value of 200.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:RFR.

Renforth 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
TSKNT
75
Outperform
C$2.43B23.2720.56%64.92%185.22%
47
Neutral
$2.64B-3.82-29.05%3.32%2.72%-29.50%
TSGMA
44
Neutral
C$12.91M-58.91%-83.85%-24.32%
TSBTR
31
Underperform
C$36.72M-91.29%7.15%
TSRFR
21
Underperform
C$5.45M-638.22%5.36%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:RFR
Renforth Resources
0.01
-0.01
-50.00%
TSE:KNT
K92 Mining
10.31
3.76
57.40%
TSE:GMA
Geomega Resources
0.08
-0.07
-46.67%
TSE:BTR
BonTerra Resources
0.22
-0.02
-8.33%

Renforth Resources Corporate Events

Renforth Resources Advances Parbec Gold Deposit Update
Jan 13, 2025

Renforth Resources Inc. has commenced an update to the NI43-101 Mineral Resource Estimate for its Parbec gold deposit, incorporating new drill data to improve its deposit model. This update aims to enhance the company’s efforts to generate cash flow from the gold resource, which could be used to further develop their nearby large-scale nickel sulphide polymetallic system. The company is also exploring the potential of using advanced ‘surgical drilling’ technology to minimize environmental impact. Additionally, Renforth is testing TOMRA’s sorting technology to optimize processing by removing waste rock, which could lower costs and improve ore grade. The company has also discovered mineralized ultramafic material at the Victoria nickel sulfide polymetallic structure, potentially expanding the amount of mineralized material and raising questions about the relationship with the nearby Lalonde structure.

Renforth Resources Updates Parbec Gold Deposit Plans
Nov 29, 2024

Renforth Resources Inc. has announced a series of developments at their Parbec Gold Deposit in Quebec, aiming to enhance their understanding of the deposit and move towards potential production. These initiatives include updating the resource estimate, permitting for dewatering underground access, and testing technology to optimize gold recovery. With these efforts, Renforth seeks to increase the value of their assets amid a favorable gold price environment.

Renforth Resources Announces Private Placement and Webinar
Nov 5, 2024

Renforth Resources Inc. is raising $250,000 through a non-brokered private placement to fund exploration on its Malartic Metals Package property in Quebec, known for its diverse mineral occurrences, including battery minerals and precious metals. The company is also hosting a virtual Town Hall to discuss 2024 developments and future exploration plans, inviting shareholders and interested parties to participate.

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.