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Solaris Resources (TSE:SLS)
TSX:SLS

Solaris Resources (SLS) AI Stock Analysis

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Solaris Resources

(TSX:SLS)

48Neutral
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 (SLS) vs. S&P 500 (SPY)

Solaris Resources Business Overview & Revenue Model

Company DescriptionSolaris 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 MoneySolaris 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
20
Very Negative
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
40
Negative
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
30
Negative
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
TTMDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
0.000.000.000.000.000.00
Gross Profit
0.000.000.000.000.000.00
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-32.54M3.28M
Balance SheetCash, Cash Equivalents and Short-Term Investments
241.00K38.87M14.77M33.90M73.59M6.09M
Total Assets
22.21M61.82M38.53M57.65M94.92M32.35M
Total Debt
0.0029.45M235.00K324.00K135.00K97.00K
Net Debt
-241.00K-9.41M-14.54M-33.57M-73.46M-6.00M
Total Liabilities
1.43M36.39M10.30M14.53M8.36M2.03M
Stockholders Equity
12.90M17.52M20.32M35.21M78.64M22.50M
Cash FlowFree 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
92.90M62.27M41.25M7.21M81.17M10.43M

Solaris Resources Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4.74
Price Trends
50DMA
4.97
Negative
100DMA
4.43
Positive
200DMA
4.00
Positive
Market Momentum
MACD
-0.12
Positive
RSI
46.25
Neutral
STOCH
47.47
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

Overall Rating
UnderperformOutperform
Sector (47)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSLUN
70
Outperform
$10.90B25.630.24%3.01%-2.71%-188.94%
TSFM
61
Neutral
$14.39B0.02%-24.38%99.06%
59
Neutral
$27.97B88.171.26%0.95%-10.03%-86.30%
TSCS
56
Neutral
$5.76B51.722.90%12.21%
TSIVN
50
Neutral
$18.38B58.815.25%-33.54%
TSSLS
48
Neutral
$735.91M-522.06%-18.30%
47
Neutral
$2.64B-3.82-29.05%3.32%2.72%-29.50%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:SLS
Solaris Resources
4.74
0.37
8.47%
TSE:CS
Capstone Copper
7.81
-0.19
-2.38%
TSE:TECK.B
Teck Resources
57.55
-2.18
-3.64%
TSE:FM
First Quantum Minerals
17.78
3.72
26.46%
TSE:IVN
Ivanhoe Mines
13.75
-2.05
-12.97%
TSE:LUN
Lundin Mining
12.32
-0.31
-2.42%

Solaris Resources Corporate Events

Solaris Resources Strengthens Leadership Amid Key Project Advancements
Jan 8, 2025

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
Nov 12, 2024

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.

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.