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Wealth Minerals Ltd (TSE:WML)
:WML
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Wealth Minerals (WML) AI Stock Analysis

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TSE:WML

Wealth Minerals

(OTC:WML)

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Underperform 36 (OpenAI - 4o)
Rating:36Underperform
Price Target:
Wealth Minerals exhibits considerable financial and operational weaknesses, including substantial losses and liquidity issues, which significantly lower its stock score. Although technical indicators suggest bearish momentum, strategic corporate actions in the lithium industry provide a glimmer of potential future growth. However, current financial instability and valuation concerns heavily weigh down the overall stock score.

Wealth Minerals (WML) vs. iShares MSCI Canada ETF (EWC)

Wealth Minerals Business Overview & Revenue Model

Company DescriptionWealth Minerals Ltd. is a Canadian-based mineral exploration company primarily focused on the acquisition, exploration, and development of lithium projects in South America. The company targets the lithium sector, which is crucial for the growing electric vehicle and renewable energy markets. Wealth Minerals' core projects are located in Chile, a country known for its rich lithium brine resources, positioning the company to capitalize on the increasing global demand for lithium.
How the Company Makes MoneyWealth Minerals makes money through the exploration and development of lithium properties, primarily in Chile. The company's revenue model is based on acquiring and advancing lithium-rich assets to a stage where they can either be sold to or partnered with larger mining companies for further development and production. Wealth Minerals may also enter into joint ventures or strategic partnerships with other firms to share the costs and risks associated with exploration while benefiting from shared expertise and resources. Additionally, as their projects progress and add value through exploration success, the company might raise capital through equity financing to further develop its assets or monetize its interests through outright sales or royalties.

Wealth Minerals Financial Statement Overview

Summary
Wealth Minerals is experiencing severe financial challenges with negative EBIT and EBITDA margins, no revenue growth, declining equity, and persistent negative free cash flow, indicating liquidity constraints and operational inefficiencies.
Income Statement
5
Very Negative
The income statement reveals a company struggling with profitability as indicated by negative EBIT and EBITDA margins. With no revenue reported over several periods, the company faces challenges in achieving profitability. There is no revenue growth, which significantly impacts the financial health of the company.
Balance Sheet
30
Negative
The balance sheet shows a company with relatively low leverage as indicated by the absence of debt in the most recent TTM period. However, the consistent negative equity growth and declining total assets highlight potential financial instability. The equity ratio has decreased over time, reflecting reduced financial stability.
Cash Flow
15
Very Negative
Cash flow analysis indicates persistent negative free cash flow, emphasizing liquidity challenges. The operating cash flow to net income ratio is negative, reflecting operational inefficiencies. Despite some financing activities, the negative free cash flow growth rate points to ongoing cash management issues.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue0.000.000.000.000.000.00
Gross Profit0.000.00-6.52K-1.82K-2.35K-3.05K
EBITDA-5.30M-51.93M-10.31M-11.06M-7.85M-5.09M
Net Income-51.70M-52.22M-10.42M6.35M-8.20M-5.60M
Balance Sheet
Total Assets4.46M6.20M55.33M55.41M51.36M37.62M
Cash, Cash Equivalents and Short-Term Investments1.77M3.39M5.07M5.27M4.26M87.89K
Total Debt0.000.0040.00K40.00K443.37K3.42M
Total Liabilities478.81K443.89K863.56K2.05M7.80M5.02M
Stockholders Equity3.98M5.76M54.47M53.36M43.56M32.60M
Cash Flow
Free Cash Flow-4.69M-5.24M-7.68M-7.24M-5.55M-2.53M
Operating Cash Flow-4.69M-5.23M-7.51M-7.06M-3.48M-1.79M
Investing Cash Flow-10.00K-10.00K-665.00K148.07K-6.31M-709.58K
Financing Cash Flow1.99M1.96M7.60M7.92M13.97M2.21M

Wealth Minerals Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.12
Price Trends
50DMA
0.06
Positive
100DMA
0.05
Positive
200DMA
0.06
Positive
Market Momentum
MACD
0.01
Negative
RSI
69.20
Neutral
STOCH
69.93
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:WML, the sentiment is Positive. The current price of 0.12 is above the 20-day moving average (MA) of 0.07, above the 50-day MA of 0.06, and above the 200-day MA of 0.06, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 69.20 is Neutral, neither overbought nor oversold. The STOCH value of 69.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:WML.

Wealth Minerals Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
49
Neutral
1.09B-13.510.00%0.00%0.00%
41
Neutral
22.32M-3.43-0.50%0.00%-10100.00%
41
Neutral
91.50M-75.000.00%0.00%-152.83%
37
Underperform
126.35M-7.040.00%0.00%57.83%
36
Underperform
$41.03M-172.85%-292.33%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:WML
Wealth Minerals
0.12
0.02
26.32%
TSE:ORNG
Supernova Metals
0.20
-0.06
-23.08%
TSE:LIT
Argentina Lithium & Energy
0.08
-0.04
-33.33%
TSE:NRM
Noram Lithium Corp
0.08
-0.06
-42.86%
TSE:EMM
Giyani Gold
0.08
0.00
0.00%
TSE:AVE
Vital Battery Metals, Inc.
0.29
0.15
107.14%

Wealth Minerals Corporate Events

Business Operations and StrategyRegulatory Filings and Compliance
Wealth Minerals Faces Setback in Kuska Project Permitting
Negative
Apr 23, 2025

Wealth Minerals Ltd. announced that its application for a special lithium operation contract (CEOL) for the Kuska lithium project in Chile was declined under the Fast-Track permitting policy. Despite being the largest holder of mining concessions in the Ollagüe area, Wealth was unable to meet the requirement of having mining concessions for at least 80% of the designated area. The company is considering appealing the decision or applying through regular permitting channels. Wealth remains committed to advancing the Kuska project, emphasizing its potential economic and social value to stakeholders, including the local Quechua Indigenous Community.

Spark’s Take on TSE:WML Stock

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

Wealth Minerals’ overall stock score is significantly impacted by its weak financial performance, characterized by substantial losses and liquidity issues. However, positive corporate events and strategic acquisitions in the lithium industry provide potential for future growth. The technical indicators suggest a bearish trend, and valuation metrics highlight profitability challenges, contributing to the stock’s low score.

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

M&A TransactionsBusiness Operations and Strategy
Wealth Minerals Clarifies Pabellón Lithium Project Acquisition
Positive
Mar 18, 2025

Wealth Minerals Ltd. has issued a clarification regarding its acquisition of the Pabellón Lithium Project, initially announced in February 2025. The acquisition involves a binding Letter of Intent to purchase 100% of Minera Josefina SpA, which holds 26 mineral exploration licenses in northern Chile. This transaction is expected to enhance Wealth’s position in the lithium market, as the company seeks to benefit from the anticipated growth in demand for battery metals.

Private Placements and FinancingBusiness Operations and Strategy
Wealth Minerals Launches $2 Million Private Placement to Boost Lithium Projects
Positive
Feb 26, 2025

Wealth Minerals Ltd. announced a non-brokered private placement offering of up to 25,000,000 units at $0.08 per unit, aiming to raise up to $2,000,000. The proceeds are intended for exploration, claim fees, and general working capital, with the offering subject to TSX Venture Exchange approval. This move positions Wealth Minerals to strengthen its operations and leverage its strategic focus on lithium and battery metals amidst rising market demand.

M&A TransactionsBusiness Operations and Strategy
Wealth Minerals Acquires Pabellón Lithium Project, Expanding Lithium Ventures in Chile
Positive
Feb 6, 2025

Wealth Minerals Ltd. has announced its intent to acquire the Pabellón Lithium Project in northern Chile, securing a 100% royalty-free interest in the exploration concession. The project, which is strategically located near the Chile-Bolivia border, includes 26 mineral exploration licenses covering 7,600 hectares. This acquisition is significant for Wealth Minerals as it plans to install a lithium extraction unit using Direct Lithium Extraction technology adjacent to the Cerro Pabellón geothermal power plant, operated by ENEL. This move aims to enhance the value of Wealth’s Kuska Project by providing an additional source of mineral material and positioning the company advantageously in securing power for future development. The initiative reflects Wealth’s commitment to environmentally friendly mineral extraction and involves collaboration with various stakeholders, including the Indigenous Quechua Community and strategic investors.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: May 03, 2025