Ares Strategic Mining (ARS) AI Stock Analysis

• Market Cap: $61.31M
• Dividend Yield: N/A
• Average Volume (3M): 115.37K
• Price to Earnings (P/E): ―
• Beta (1Y): <0.01
• Revenue Growth: N/A
• EPS Growth: 13.43%
• Country: CA
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 69
• Industry: Industrial Materials
• EPS (TTM): >-0.01
• Shares Outstanding: 186,159,840
• 10 Day Avg. Volume: 186,690
• 30 Day Avg. Volume: 115,374
• PEG Ratio: 0.85
• Price to Book (P/B): 2.34
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.06
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 35 Underperform
• Price Target: ―

Ares Strategic Mining's overall stock score reflects substantial financial risks due to no revenue and high debt. Despite positive corporate developments and some technical momentum, the current financial instability poses significant challenges. Valuation metrics further underscore these risks, suggesting a cautious approach.

Ares Strategic Mining Business Overview & Revenue Model

Company Description

Ares Strategic Mining (ARS) is a mining company focused on the extraction and production of fluorspar, a critical mineral used in various industrial applications. The company operates primarily in the mining sector, aiming to become a leading supplier of fluorspar to meet growing global demand. Ares Strategic Mining is committed to sustainable practices and optimizing its mining operations to ensure efficient and responsible resource extraction.

How the Company Makes Money

Ares Strategic Mining generates revenue primarily through the extraction, processing, and sale of fluorspar. The company operates mining projects where it extracts fluorspar ore, which is then processed and sold to industries that use it in manufacturing products such as aluminum, steel, and hydrofluoric acid. Key revenue streams include direct sales of fluorspar to industrial clients and potentially entering into off-take agreements, which secure long-term purchase commitments from customers. Ares Strategic Mining's earnings are influenced by the market demand for fluorspar, prevailing commodity prices, and its operational efficiency in mining and processing activities.

Ares Strategic Mining Financial Statement Overview

Summary

Ares Strategic Mining faces significant financial challenges, with no revenue, escalating debt, and negative cash flows. The inability to generate income and reliance on financing pose substantial risks to financial stability.

Income Statement

Ares Strategic Mining has consistently reported no revenue across all periods, resulting in negative profit margins. The latest TTM data shows a net loss with a deteriorating EBIT and EBITDA, indicating ongoing operational challenges. The absence of revenue growth presents a substantial risk to the company's financial health.

Balance Sheet

The company's balance sheet reveals high leverage with a rising debt-to-equity ratio, increasing from earlier periods. Stockholders' equity has been declining, and the equity ratio has worsened. The total assets have increased, but largely due to debt, which poses financial stability concerns.

Cash Flow

The cash flow analysis indicates negative free cash flow growth, with a high capital expenditure that exceeds operating cash flow. While there have been inflows from financing activities, these have not been sufficient to cover operational losses, highlighting liquidity risks.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00	0.00
	Gross Profit
-38.84K	-39.90K	-41.12K	-40.71K	-29.34K	-11.62K
	EBIT
-670.04K	-1.18M	-2.66M	-4.23M	-3.60M	-1.55M
	EBITDA
-448.98K	-875.51K	-2.66M	-4.12M	-3.43M	-2.21M
	Net Income Common Stockholders
-2.79M	-2.93M	-4.44M	-5.64M	-3.66M	-2.23M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
27.53K	93.46K	637.93K	430.10K	1.05M	219.77K
	Total Assets
38.87M	36.46M	17.48M	16.13M	13.41M	5.25M
	Total Debt
22.25M	20.09M	6.60M	296.50K	2.20M	63.35K
	Net Debt
22.23M	19.99M	6.13M	252.36K	1.15M	-156.41K
	Total Liabilities
26.66M	23.88M	7.26M	1.06M	2.65M	681.05K
	Stockholders Equity
13.44M	13.80M	11.44M	16.30M	11.98M	5.79M
Cash Flow		Free Cash Flow
-15.79M	-15.21M	-4.95M	-2.72M	-2.11M	-1.51M
	Operating Cash Flow
1.26M	405.46K	-1.73M	-1.81M	-1.87M	-1.35M
	Investing Cash Flow
-17.48M	-16.03M	-3.55M	-3.12M	-2.31M	-1.25M
	Financing Cash Flow
3.71M	16.16M	6.76M	3.81M	5.07M	2.85M

Ares Strategic Mining Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.33
• 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:ARS, the sentiment is Positive. The current price of 0.33 is above the 20-day moving average (MA) of 0.24, above the 50-day MA of 0.21, and above the 200-day MA of 0.18, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 64.47 is Neutral, neither overbought nor oversold. The STOCH value of 84.59 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ARS.

Ares Strategic Mining Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SCZ	72 Outperform	C$334.50M	1.74	223.51%	―	―	―
GMA	55 Neutral	C$20.08M	―	-65.04%	―	-89.84%	-16.41%
Sector *	51 Neutral	$2.01B	-1.11	-21.16%	3.67%	2.69%	-30.65%
SRL	43 Neutral	C$34.84M	―	-20.39%	―	―	29.22%
RCK	36 Underperform	C$102.69M	―	-37.93%	―	―	48.98%
ARS	35 Underperform	$61.31M	―	-26.21%	―	―	13.43%

Ares Strategic Mining Corporate Events

Ares Strategic Mining Accelerates Utah Operations with Share Settlement

Ares Strategic Mining Inc. has announced a share settlement to accelerate the development of its Utah operations by issuing common stock to settle outstanding debts for lobbying services. This move, subject to approval by the Canadian Securities Exchange, reflects the company’s strategic efforts to ramp up its operations and strengthen its market position in the North American fluorspar industry.

Spark’s Take on TSE:ARS Stock

According to Spark, TipRanks’ AI Analyst, TSE:ARS is a Underperform.

Ares Strategic Mining’s stock score reflects substantial financial risks due to no revenue and high debt, balanced by positive short-term technical momentum and encouraging corporate events. While recent investments and strategic moves offer future growth potential, the current financial instability poses significant risks.

To see Spark’s full report on TSE:ARS stock, click here.

Ares Strategic Mining Secures Increased Institutional Investment

Ares Strategic Mining has announced a significant increase in institutional investment from UK-based Sorbie Bornholm LP, signaling strong support for Ares’ strategic transformation and growth plans. This financial boost is expected to accelerate site development and manufacturing capabilities, positioning Ares as a key player in the global fluorspar market, especially as it transitions from construction to production at its Utah operations.

Ares Strategic Mining Secures Equipment for Utah Operations Ramp-Up

Ares Strategic Mining Inc. has acquired key underground mining equipment to prepare for an anticipated ramp-up of operations at its Utah site. This strategic move is part of the company’s broader initiative to accelerate site development and position itself for sustained production growth. The acquisition is expected to enhance operational efficiency and support Ares’ commitment to bringing the Utah project to full production swiftly. Additionally, the classification of fluorspar as a Critical Mineral by the U.S. government facilitates a faster permitting process, which could benefit Ares’ operations.

Ares Strategic Mining Prepares for Utah Operations Ramp-Up with Stock Issuance

Ares Strategic Mining Inc. has announced the issuance of common stock to settle debts as part of its preparation for an anticipated ramp-up in its Utah operations. This move is part of broader efforts to accelerate development, supported by institutional investment facilitated by Craven Capital, which will receive a fee and warrants as compensation for its role in the capital raise.