Southern Empire Resources (SMP) AI Stock Analysis

• Market Cap: $1.36M
• Dividend Yield: N/A
• Average Volume (3M): 14.13K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.87
• Revenue Growth: N/A
• EPS Growth: -224.16%
• Country: CA
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 64
• Industry: Gold
• EPS (TTM): -0.17
• Shares Outstanding: 67,997,800
• 10 Day Avg. Volume: 33,895
• 30 Day Avg. Volume: 14,128
• PEG Ratio: N/A
• Price to Book (P/B): -2.52
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -207.22
• 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: 17 Underperform
• Price Target: ―

Southern Empire Resources faces significant financial distress due to zero revenue generation and consistent losses. The stock's technical indicators suggest a lack of momentum, and poor valuation metrics further weigh down its attractiveness. However, recent corporate events, such as the potential financial gain from project transfers and stakeholder alignment, provide some hope for improvement.

Southern Empire Resources Business Overview & Revenue Model

Company Description

Southern Empire Resources (SMP) is a Canadian-based mining exploration company primarily focused on the acquisition, exploration, and development of gold deposits in North America. Operating within the precious metals sector, the company's core projects include properties with high potential for gold mineralization, leveraging advanced geological techniques to identify and expand resource estimates.

How the Company Makes Money

Southern Empire Resources generates revenue primarily through the exploration and development of its mining properties, aiming to increase the value of these assets. The company seeks to make money by enhancing the resource estimates of its properties, which can lead to increased valuation and potential sale or partnership opportunities with larger mining companies. Additionally, Southern Empire Resources may also engage in joint ventures or strategic partnerships to fund exploration activities, sharing costs and future profits. Revenue can also be derived from the sale or optioning of mineral rights to other interested parties, as well as potential future production activities if the projects advance to that stage.

Southern Empire Resources Financial Statement Overview

Summary

Southern Empire Resources is facing significant financial challenges. The company has no revenue, substantial net losses, and negative equity, indicating a need for strategic changes. The absence of debt provides some leverage flexibility, but ongoing cash flow issues highlight liquidity concerns.

Income Statement

Southern Empire Resources has consistently reported zero total revenue across all periods, which is concerning. The company’s net losses have been significant and increasing, indicating poor profitability. The absence of revenue growth and negative profit margins highlight severe challenges in generating income.

Balance Sheet

The balance sheet shows a negative stockholders' equity in the latest TTM period, suggesting potential financial distress. Although the company has no debt, which reduces financial risk, the steady decline in total assets and equity ratio reflects an eroding asset base and equity position.

Cash Flow

Cash flow analysis reveals persistent negative free cash flow and operating cash flow, reflecting challenges in generating cash from operations. The company's cash reserves are depleting, and the inability to produce positive cash flow suggests liquidity issues.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00	0.00
	Gross Profit
-2.79K	0.00	-11.36K	-6.16K	-8.80K	-4.19K
	EBIT
-689.63K	-704.81K	-897.33K	-1.24M	-1.04M	-4.51M
	EBITDA
-675.45K	-704.81K	-897.33K	-703.14K	-1.27M	-2.14M
	Net Income Common Stockholders
-11.79M	-11.83M	-3.97M	-709.31K	-1.61M	156.65K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.66K	23.68K	244.21K	2.98M	4.05M	6.88M
	Total Assets
1.31M	1.26M	12.27M	15.62M	14.88M	15.88M
	Total Debt
0.00	0.00	0.00	0.00	0.00	0.00
	Net Debt
-4.33K	-17.59K	-48.55K	-43.60K	-29.32K	-3.67M
	Total Liabilities
1.84M	1.64M	850.03K	520.65K	576.28K	144.69K
	Stockholders Equity
-537.33K	-383.86K	11.42M	15.10M	14.31M	15.74M
Cash Flow		Free Cash Flow
-6.41K	-231.13K	-1.80M	-2.58M	-2.55M	-3.26M
	Operating Cash Flow
-217.07K	-172.08K	-519.82K	-842.67K	-785.37K	-1.53M
	Investing Cash Flow
206.58K	141.12K	524.77K	-384.23K	-2.85M	-1.83M
	Financing Cash Flow
0.00	0.00	0.00	1.24M	0.00	6.64M

Southern Empire Resources Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SMP, the sentiment is Negative. The current price of 0.02 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 0.03, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.43 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:SMP.

Southern Empire Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$2.02B	-1.14	-21.36%	3.64%	2.88%	-30.57%
PRB	47 Neutral	C$528.25M	―	-177.01%	―	―	10.27%
VZZ	44 Neutral	C$4.66M	―	-8.47%	―	22.12%	-466.04%
TK	43 Neutral	C$20.43M	―	-1.57%	―	―	35.14%
BEX	40 Underperform	C$15.42M	―	-34.41%	―	―	-1080.77%
NOB	36 Underperform	C$10.68M	―	-31.93%	―	―	-9.80%
SMP	17 Underperform	$1.36M	―	-214.89%	―	―	-224.16%

Southern Empire Resources Corporate Events

Southern Empire Resources Grants Stock Options to Align Stakeholder Interests

Southern Empire Resources Corp. has granted 1,680,000 stock options to its directors, officers, employees, and consultants, with each option exercisable at $0.05 per share for five years. This move could potentially align the interests of the company’s stakeholders with its growth objectives, as it continues to focus on its gold exploration projects in North America, including the Pedro Gold Project in Mexico and the Oro Cruz Property in California.

Spark’s Take on TSE:SMP Stock

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

Southern Empire Resources is struggling with financial distress due to no revenue generation and consistent losses. While a strategic project transfer offers potential financial gain, its execution remains uncertain. The stock’s technical indicators suggest a lack of momentum, and poor valuation metrics further weigh down its attractiveness.

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

Southern Empire Transfers Centauro Gold Project Option to Fortuna Mining

Southern Empire Resources Corp. has transferred its option for the Centauro Gold Project in Chihuahua, Mexico, to Fortuna Mining Corp. Through this agreement, Fortuna, via its subsidiary Monumental Minerals, can earn a 100% interest in the project by fulfilling certain financial and exploration commitments. This strategic move allows Southern Empire to benefit from potential payments totaling $975,000 and a 1% Net Smelter Return royalty if the project reaches commercial production. The transaction is subject to approval by the TSX Venture Exchange, and Southern Empire retains the right to reassume the option if Fortuna decides to drop it.