Solaris Resources (SLS) AI Stock Analysis

• Market Cap: $735.91M
• Dividend Yield: N/A
• Average Volume (3M): 285.64K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.75
• Revenue Growth: N/A
• EPS Growth: -18.30%
• Country: CA
• Employees: 60
• Sector: Basic Materials
• Sector Strength: 62
• Industry: Mining
• EPS (TTM): -0.54
• Shares Outstanding: 162,453,320
• 10 Day Avg. Volume: 264,863
• 30 Day Avg. Volume: 285,642
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -7.70
• 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: C$14.37
• Price Target Upside: 203.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Solaris Resources has substantial financial challenges, with no revenue and persistent losses impacting its financial performance. While technical analysis shows some positive momentum, the company's valuation is hindered by negative earnings and no dividend yield. The lack of earnings call and corporate events data did not influence the score. The overall score reflects the financial instability and valuation concerns, with some technical strength providing a slight offset.

Positive Factors

Leadership

New CEO, Matthew Rowlinson, with a strong background in copper mining, is expected to provide leadership strength and advance the Warintza project.

Regulatory Alignment

The company's move to Switzerland is anticipated to align better with Ecuadorian regulators, aiding the permitting process for Warintza.

Negative Factors

Financial Performance

Solaris reported more expenses than expected in 3Q24, leading to higher costs due to increased drilling efforts.

Market Sentiment

Copper prices have declined 10.7% quarter-to-date, putting pressure on the overall copper market sentiment.

Solaris Resources Business Overview & Revenue Model

Company Description

Solaris Resources Inc. (SLS) is a Canadian mineral exploration company focused on advancing its copper and gold projects. The company primarily operates in the mining sector, with its flagship project being the Warintza Project located in Ecuador. Solaris Resources aims to develop and explore mineral resources to create value for its shareholders through the discovery and growth of large-scale mineral deposits.

How the Company Makes Money

Solaris Resources makes money through the exploration and development of mineral resources, primarily copper and gold. The company generates revenue by advancing its mining projects towards production, which may involve selling or partnering with larger mining companies for project development. Additionally, Solaris Resources may raise funds through equity financing or joint ventures to support its exploration activities. The company's earnings are influenced by factors such as commodity prices, exploration success, and strategic partnerships that can enhance the value of its mineral assets.

Solaris Resources Financial Statement Overview

Summary

Solaris Resources faces significant financial challenges with no revenue generation and persistent losses impacting its income statement. The balance sheet shows increasing leverage and diminishing equity, while cash flow statements highlight negative cash flows and reliance on external financing. The company needs to improve operational efficiency and explore revenue-generating opportunities to achieve financial stability.

Income Statement

Solaris Resources has reported zero revenue across all periods, indicating no sales or production activity. The company has consistently reported negative EBIT and net income, reflecting ongoing operational losses. The lack of revenue growth and persistent negative margins highlight significant challenges in achieving profitability.

Balance Sheet

The company's debt-to-equity ratio has increased over time, indicating rising leverage. However, the equity ratio remains positive, showing that a portion of assets is financed by equity. The shrinking stockholders' equity suggests potential financial strain, yet the low level of total debt compared to assets provides some stability.

Cash Flow

Solaris Resources has experienced negative operating and free cash flows over all periods, indicating insufficient cash generation from operations. The company relies heavily on financing activities to cover its cash outflows, which could pose a risk if financing becomes less accessible. The inability to generate positive cash flow from operations is a critical concern.

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
0.00	0.00	0.00	0.00	0.00	0.00
	EBIT
-34.64M	-41.17M	-60.31M	-59.35M	-19.34M	-5.43M
	EBITDA
-56.47M	-40.42M	-59.70M	-59.05M	-19.31M	-9.61M
	Net Income Common Stockholders
-61.19M	-41.01M	-55.69M	-54.87M	-32.54M	3.28M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
241.00K	38.87M	14.77M	33.90M	73.59M	6.09M
	Total Assets
22.21M	61.82M	38.53M	57.65M	94.92M	32.35M
	Total Debt
0.00	29.45M	235.00K	324.00K	135.00K	97.00K
	Net Debt
-241.00K	-9.41M	-14.54M	-33.57M	-73.46M	-6.00M
	Total Liabilities
1.43M	36.39M	10.30M	14.53M	8.36M	2.03M
	Stockholders Equity
12.90M	17.52M	20.32M	35.21M	78.64M	22.50M
Cash Flow		Free Cash Flow
-47.36M	-38.40M	-59.51M	-48.34M	-14.80M	-4.56M
	Operating Cash Flow
-46.01M	-38.31M	-58.39M	-46.66M	-14.11M	-4.55M
	Investing Cash Flow
-1.60M	-347.00K	-1.35M	-1.09M	-684.00K	-77.00K
	Financing Cash Flow
92.90M	62.27M	41.25M	7.21M	81.17M	10.43M

Solaris Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.74
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SLS, the sentiment is Positive. The current price of 4.74 is below the 20-day moving average (MA) of 5.00, below the 50-day MA of 4.97, and above the 200-day MA of 4.00, indicating a neutral trend. The MACD of -0.12 indicates Positive momentum. The RSI at 46.25 is Neutral, neither overbought nor oversold. The STOCH value of 47.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:SLS.

Solaris Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LUN	70 Outperform	$10.90B	25.63	0.24%	3.01%	-2.71%	-188.94%
FM	61 Neutral	$14.39B	―	0.02%	―	-24.38%	99.06%
TECK.B	59 Neutral	$27.97B	88.17	1.26%	0.95%	-10.03%	-86.30%
CS	56 Neutral	$5.76B	51.72	2.90%	―	12.21%	―
IVN	50 Neutral	$18.38B	58.81	5.25%	―	―	-33.54%
SLS	48 Neutral	$735.91M	―	-522.06%	―	―	-18.30%
Sector *	47 Neutral	$2.64B	-3.82	-29.05%	3.32%	2.72%	-29.50%

Solaris Resources Corporate Events

Solaris Resources Strengthens Leadership Amid Key Project Advancements

Solaris Resources Inc. has expanded its leadership team with key appointments to strengthen its finance and investor relations capabilities, signaling a strategic push to enhance operational efficiency and stakeholder engagement. These appointments come at a pivotal time as the company progresses with its Warintza project, aiming to maximize returns and de-risk activities, which could significantly bolster its market position in the copper industry.

Solaris Resources Advances Warintza Project in Ecuador

Solaris Resources is advancing its Warintza Project in Ecuador, with plans to exceed 75,000 meters of drilling by the end of 2024 and significant progress in infrastructure development. The company has improved road access and is constructing additional roads to support future mining operations, while technical and metallurgical studies continue to enhance project efficiency.