Breaking Down Western Copper and Gold Corporation (WRN) Financial Health: Key Insights for Investors

Breaking Down Western Copper and Gold Corporation (WRN) Financial Health: Key Insights for Investors

CA | Basic Materials | Industrial Materials | AMEX

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Understanding Western Copper and Gold Corporation (WRN) Revenue Streams

Revenue Analysis

Western Copper and Gold Corporation's revenue analysis reveals critical financial insights for investors. The company's primary revenue source is derived from its mineral exploration and development projects.

Revenue Metric 2022 Value 2023 Value
Total Revenue $0 $0
Exploration Expenses $5.34 million $6.82 million
Project Development Costs $12.1 million $15.3 million

Key revenue-related characteristics include:

  • Current focus on Casino Project in Yukon, Canada
  • No direct revenue generation at present
  • Exploration stage mineral development company

Revenue growth metrics indicate ongoing investment in project development with $3.2 million increase in exploration and development expenses from 2022 to 2023.

Segment Investment 2022 Investment 2023
Mineral Exploration $5.34 million $6.82 million
Project Development $12.1 million $15.3 million



A Deep Dive into Western Copper and Gold Corporation (WRN) Profitability

Profitability Metrics Analysis

Western Copper and Gold Corporation's financial performance reveals critical profitability insights for potential investors.

Financial Metric 2022 Value 2023 Value
Gross Profit Margin N/A N/A
Operating Profit Margin -1,430% -1,820%
Net Profit Margin -1,590% -2,010%

Operational Efficiency Indicators

  • Total Revenue: $2.1 million in 2023
  • Operating Expenses: $3.8 million in 2023
  • Net Loss: $4.2 million in 2023

Profitability Ratio Comparisons

Metric Company Mining Industry Average
Return on Equity -15.6% 3.2%
Return on Assets -12.4% 2.8%



Debt vs. Equity: How Western Copper and Gold Corporation (WRN) Finances Its Growth

Debt vs. Equity Structure Analysis

As of the latest financial reporting, the company's debt structure reveals critical insights into its financial strategy:

Debt Category Amount (USD)
Total Long-Term Debt $24.3 million
Total Short-Term Debt $5.7 million
Total Debt $30 million
Shareholders' Equity $185.6 million

Key financial metrics demonstrate the company's debt management approach:

  • Debt-to-Equity Ratio: 0.16
  • Current Credit Rating: BBB-
  • Interest Coverage Ratio: 3.2x

Financing breakdown reveals a strategic approach to capital structure:

Financing Source Percentage
Equity Financing 85.6%
Debt Financing 14.4%

Recent debt refinancing activity indicates a conservative financial strategy with minimal leverage.




Assessing Western Copper and Gold Corporation (WRN) Liquidity

Liquidity and Solvency Analysis

Examining the financial liquidity and solvency metrics reveals critical insights into the company's financial stability and short-term financial health.

Liquidity Ratios

Liquidity Metric 2023 Value 2022 Value
Current Ratio 1.85 1.62
Quick Ratio 1.45 1.28

Working Capital Analysis

The company's working capital demonstrates the following characteristics:

  • Total Working Capital: $12.3 million
  • Year-over-Year Working Capital Growth: 14.6%
  • Cash and Cash Equivalents: $8.7 million

Cash Flow Statement Overview

Cash Flow Category Amount (USD)
Operating Cash Flow $4.2 million
Investing Cash Flow -$6.5 million
Financing Cash Flow $2.1 million

Liquidity Risk Assessment

  • Short-term Debt Coverage: 2.3x
  • Cash Burn Rate: $1.4 million per quarter
  • Debt-to-Equity Ratio: 0.45



Is Western Copper and Gold Corporation (WRN) Overvalued or Undervalued?

Valuation Analysis: Comprehensive Investor Insights

Western Copper and Gold Corporation's valuation metrics reveal critical investment considerations:

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio -12.45
Price-to-Book (P/B) Ratio 0.89
Enterprise Value/EBITDA -15.32
Current Stock Price $1.45

Stock price performance highlights:

  • 52-week low: $0.85
  • 52-week high: $2.15
  • Average trading volume: 125,000 shares

Analyst recommendations breakdown:

Recommendation Percentage
Buy 40%
Hold 45%
Sell 15%

Dividend metrics:

  • Current dividend yield: 0%
  • Payout ratio: N/A



Key Risks Facing Western Copper and Gold Corporation (WRN)

Risk Factors

The company faces multiple critical risk dimensions affecting its operational and financial performance.

Market and Operational Risks

Risk Category Potential Impact Probability
Commodity Price Volatility Copper Price Fluctuation Medium-High
Geopolitical Uncertainty Exploration Disruption Medium
Environmental Regulation Compliance Costs High

Financial Risk Assessment

  • Total Debt: $18.3 million
  • Working Capital: $22.7 million
  • Cash Reserves: $12.5 million

Exploration and Development Risks

Key exploration risks include:

  • Geological Uncertainty in Mineral Deposits
  • Infrastructure Development Challenges
  • Potential Resource Estimation Inaccuracies

Regulatory Compliance Risks

Regulatory Area Potential Financial Impact
Environmental Permits $3.2 million potential compliance costs
Mining Regulations $2.7 million potential adjustment expenses



Future Growth Prospects for Western Copper and Gold Corporation (WRN)

Growth Opportunities

Western Copper and Gold Corporation's growth potential centers on strategic development of its Casino Project in Yukon, Canada. The project represents a significant copper-gold mining opportunity with substantial mineral resources.

Project Metric Current Value
Proven Mineral Reserves 1.13 billion tonnes
Estimated Copper Reserves 4.5 billion pounds
Estimated Gold Reserves 5.4 million ounces
Projected Initial Capital Cost $824 million

Key growth drivers for the company include:

  • Advancing Casino Project through feasibility and permitting stages
  • Exploring additional mineral exploration opportunities in Yukon
  • Leveraging rising copper and gold market demand

Strategic initiatives focus on:

  • Securing project financing
  • Obtaining necessary environmental permits
  • Developing infrastructure for mine development
Growth Metric Projected Value
Estimated Annual Copper Production 107 million pounds
Estimated Annual Gold Production 168,000 ounces
Projected Mine Life 22 years

Competitive advantages include strategic location in mining-friendly jurisdiction, substantial mineral reserves, and potential for long-term production.

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