Western Copper (WRN) AI Stock Analysis

• Market Cap: C$324.00M
• Dividend Yield: N/A
• Average Volume (3M): 109.17K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.02
• Revenue Growth: N/A
• EPS Growth: -77.62%
• Country: CA
• Employees: 15
• Sector: Basic Materials
• Sector Strength: 61
• Industry: Industrial Materials
• EPS (TTM): -0.04
• Shares Outstanding: 200,000,260
• 10 Day Avg. Volume: 114,833
• 30 Day Avg. Volume: 109,165
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -74.10
• 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$4.54
• Price Target Upside: 185.43% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Western Copper's stock score is driven by its strong technical momentum and positive developments in its Casino Project, which offset the lack of current revenue generation and operational losses typical of mining exploration companies. The strong equity position and low debt provide financial stability, but ongoing cash burn and lack of immediate valuation appeal due to negative earnings limit its attractiveness. The company's future performance will heavily depend on its ability to advance its projects into revenue-generating stages.

Positive Factors

Financial Stability

Western Copper and Gold maintains a strong balance sheet with a substantial amount in cash and equivalents, supporting its strategic priorities.

Government Support

Government initiatives, including road funding, power developments, and port infrastructure, are progressing to support access to the Casino project area.

Metallurgical Performance

Western Copper and Gold reported higher molybdenum recoveries at about 90% from its Casino Copper-Gold Project, enhancing the project's economic viability.

Negative Factors

Development Capacity

The scale of the Casino project may exceed the development capacity and capability of Western Copper and Gold.

Valuation Concerns

Shares of Western Copper and Gold are trading at a lower valuation compared to peers within the BMO coverage universe, potentially indicating market skepticism.

Western Copper Business Overview & Revenue Model

Company Description

Western Copper and Gold Corporation, an exploration stage company, engages in the exploration and development of mineral properties in Canada. The company explores for gold, copper, silver, and molybdenum deposits. Its principal property is the Casino mineral property that comprise 1,136 full and partial quartz claims, and 55 placer claims located in Yukon, Canada. The company was formerly known as Western Copper Corporation and changed its name to Western Copper and Gold Corporation in October 2011. Western Copper and Gold Corporation was incorporated in 2006 and is headquartered in Vancouver, Canada.

How the Company Makes Money

Western Copper and Gold makes money primarily through the development and potential future extraction and sale of copper and gold from its Casino Project. The company generates revenue by advancing the project towards production, which includes conducting feasibility studies, securing permits, and establishing infrastructure. Additionally, Western Copper and Gold may engage in strategic partnerships, joint ventures, or sale of interests in the project to raise capital and share the financial burden of development. The company might also benefit from fluctuations in global copper and gold prices, as these impact the potential profitability of the project.

Western Copper Financial Statement Overview

Summary

Western Copper's financial performance reflects the typical challenges of an early-stage mining company with no revenue generation and ongoing operational losses. Despite a strong equity ratio and low debt levels, the lack of revenue and negative cash flows pose significant financial risks.

Income Statement

Western Copper's income statement reflects significant challenges, with no revenue generation over the analyzed periods. Negative EBIT and net income indicate persistent losses, and the absence of revenue growth further highlights operational difficulties. This is typical in early-stage mining companies focused on development rather than production.

Balance Sheet

The balance sheet is relatively strong, with a high equity ratio indicating solid backing by stockholders' equity. Low levels of debt compared to equity suggest prudent financial management. However, the lack of revenue and ongoing losses could pose risks to maintaining financial stability in the long term.

Cash Flow

Cash flow analysis shows negative operating and free cash flows, common in non-revenue generating mining companies. The company relies heavily on financing activities to support operations, which may not be sustainable without future revenue. The operating cash flow to net income ratio indicates significant cash outflows relative to losses.

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
-193.41K	-206.90K	-167.89K	-103.26K	0.00	0.00
	EBIT
-8.72M	-3.86M	-4.93M	-5.53M	-3.31M	-2.40M
	EBITDA
-8.30M	-3.13M	-4.76M	-4.02M	0.00	0.00
	Net Income Common Stockholders
-5.86M	-3.34M	-5.06M	-3.14M	-1.45M	-1.80M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.86M	32.07M	23.12M	47.87M	29.38M	1.80M
	Total Assets
46.09M	143.92M	114.38M	115.49M	83.81M	50.46M
	Total Debt
0.00	197.81K	417.98K	433.32K	0.00	0.00
	Net Debt
-2.13M	-25.77M	-923.29K	-30.25M	-28.65M	-1.64M
	Total Liabilities
375.60K	4.47M	4.64M	3.42M	1.18M	462.56K
	Stockholders Equity
45.71M	139.44M	109.74M	112.07M	82.63M	50.00M
Cash Flow		Free Cash Flow
-19.72M	-22.44M	-24.27M	-15.27M	-7.68M	-5.97M
	Operating Cash Flow
-4.12M	-2.54M	-3.34M	-3.87M	-2.37M	-2.04M
	Investing Cash Flow
-43.47M	-3.90M	-25.93M	-27.40M	-5.31M	-2.43M
	Financing Cash Flow
60.21M	31.07M	-75.90K	33.31M	34.69M	3.08M

Western Copper Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.59
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:WRN, the sentiment is Positive. The current price of 1.59 is above the 20-day moving average (MA) of 1.51, above the 50-day MA of 1.51, and above the 200-day MA of 1.57, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 58.21 is Neutral, neither overbought nor oversold. The STOCH value of 84.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:WRN.

Western Copper Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HBM	72 Outperform	$4.61B	41.84	3.30%	0.18%	42.67%	718.35%
LUN	70 Outperform	$10.84B	25.63	0.24%	3.01%	-2.71%	-188.94%
FM	67 Neutral	$18.54B	―	0.02%	―	-24.38%	99.06%
CS	56 Neutral	$6.53B	56.75	2.90%	―	12.21%	―
WRN	55 Neutral	C$324.00M	―	-4.25%	―	―	-77.62%
Sector *	47 Neutral	$2.66B	-3.61	-22.67%	3.28%	3.74%	-27.14%
CUU	43 Neutral	C$150.47M	―	-0.74%	―	―	42.11%

Western Copper Corporate Events

Western Copper and Gold Reports Positive Metallurgical Outcomes for Casino Project

Western Copper and Gold Corporation has announced positive results from its supplemental metallurgical program for the Casino Copper-Gold Project. The program demonstrated strong copper and gold recoveries, consistent with previous work, and significantly improved molybdenum recovery rates. The project is positioned to produce high-quality, low-impurity concentrates that are in demand in the market, potentially enhancing the project’s financial and operational viability.

Western Copper and Gold Completes Leadership Transition

Western Copper and Gold has successfully completed its leadership transition, with Sandeep Singh taking on the role of President in addition to his duties as CEO. This move is part of the company’s strategy to strengthen its management team and advance the Casino Project, a significant copper-gold mining initiative in Canada.