Arctic Star Exploration (ADD) AI Stock Analysis

• Market Cap: C$2.39M
• Dividend Yield: N/A
• Average Volume (3M): 0.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.14
• Revenue Growth: N/A
• EPS Growth: 5.88%
• Country: CA
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Other Precious Metals
• EPS (TTM): 0.00
• Shares Outstanding: 238,710,370
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: 0.05
• Price to Book (P/B): 0.29
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.51
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: C$0.01 ▲(0.00% Upside)

The score is primarily held back by pre-revenue operations with ongoing losses and negative free cash flow, despite an improving loss trend. A low-debt, equity-supported balance sheet provides some stability, while technicals are mostly neutral but still below the 200-day average and valuation is constrained by negative earnings and no dividend support.

Positive Factors

Debt-Free Balance Sheet

A debt-free balance sheet provides Arctic Star with financial flexibility, reducing interest obligations and allowing focus on exploration activities without the burden of debt repayment.

Strategic Financing

The successful private placement provides necessary capital for Arctic Star to continue exploration activities, potentially leading to new discoveries and enhancing shareholder value.

Equity Reliance

Relying on equity rather than debt reduces financial risk and positions Arctic Star to potentially attract more investors interested in its exploration potential.

Negative Factors

No Revenue Generation

The lack of revenue generation is a critical issue, as it limits Arctic Star's ability to fund operations internally and increases reliance on external financing, posing a risk to long-term sustainability.

Negative Cash Flows

Consistently negative cash flows indicate operational inefficiencies and the inability to cover expenses, which could hinder Arctic Star's ability to sustain exploration activities without additional financing.

Persistent Losses

Ongoing losses erode shareholder equity and signal operational challenges, highlighting the need for Arctic Star to improve cost management and find viable revenue streams to achieve financial stability.

Arctic Star Exploration Business Overview & Revenue Model

Company Description

Arctic Star Exploration Corp., a junior natural resource company, acquires, explores for, and develops mineral properties in Canada and Finland. The company primarily explores for diamond and niobium/rare earth deposits. Its flagship project is the Diagras property that consists of 58 contiguous claims with an area of 48,346 hectares located in the north-eastern part of the prolific Lac de Gras kimberlite field. The company also owns 1000% interest in the Timantti diamond project consisting of two exploration permits, which includes the 243 hectares exploration Solavaara Permit and the 882 hectares Vaimouso permit; and 193,700 hectares exploration reservation located in Finland. In addition, it owns 100% interest in the Stein property that consists of four 4 contiguous prospecting permits covering an area of 105,637 hectares located 85 km north-west of Taloyoak. The company was formerly known as Arctic Star Diamond Corp. and changed its name to Arctic Star Exploration Corp. in July 2011. Arctic Star Exploration Corp. was incorporated in 2001 and is headquartered in Vancouver, Canada.

How the Company Makes Money

Arctic Star Exploration makes money primarily through the exploration and potential development of mineral properties, particularly diamond-bearing kimberlites. Its revenue model is centered around the discovery and eventual sale or joint venture of its mineral assets to larger mining companies interested in developing the deposits. Additional revenue can be generated through the appreciation of its exploration properties as they advance through stages of exploration and demonstrate economic viability. The company may also engage in strategic partnerships or secure funding from investors to support its exploration activities, which could include equity financing or collaborative agreements with other entities in the mining sector.

Arctic Star Exploration Financial Statement Overview

Summary

Overall financials reflect a pre-revenue exploration company: no revenue, ongoing net losses and negative operating/free cash flow. The main offset is a conservatively levered balance sheet with low debt and a meaningful equity base, but continued cash burn raises dilution/funding risk.

Income Statement

TTM (Trailing-Twelve-Months) results show no revenue and continued operating losses (EBIT of -603k; net loss of -760k). While losses have narrowed versus 2024 (net loss of -825k) and are materially better than 2022–2023, the business is still pre-revenue with no demonstrated margin structure, making earnings quality and scalability unproven.

Balance Sheet

The balance sheet is conservatively levered with low debt (TTM debt-to-equity ~0.01) and a sizeable equity base (~7.2M) relative to total assets (~8.7M). The key weakness is persistent negative returns on equity (TTM ROE about -10%), and equity has drifted down from prior years, reflecting ongoing losses and dilution/asset value erosion risk if cash burn continues.

Cash Flow

Cash generation remains weak: TTM operating cash flow and free cash flow are both negative (about -534k), indicating continued cash burn. A positive point is that free cash outflow has improved versus several prior years (notably 2022), but cash flows still do not cover the net loss and funding needs are likely ongoing until revenue begins or spending materially declines.

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	0.00	0.00	-542.00	-444.00	-807.00	-3.52K
EBITDA	-599.68K	-825.41K	-1.15M	-2.35M	-1.92M	-1.39M
Net Income	-759.52K	-825.41K	-1.61M	-2.35M	-1.98M	-1.42M
Balance Sheet
Total Assets	8.74M	8.76M	8.91M	9.99M	8.11M	4.72M
Cash, Cash Equivalents and Short-Term Investments	25.50K	542.00	28.42K	2.58K	242.79K	30.45K
Total Debt	103.86K	0.00	279.00	88.00	437.00	0.00
Total Liabilities	1.56M	1.15M	713.01K	383.75K	1.13M	655.38K
Stockholders Equity	7.18M	7.61M	8.20M	9.61M	6.98M	3.84M
Cash Flow
Free Cash Flow	-534.14K	-344.19K	-557.93K	-4.86M	-3.46M	-1.05M
Operating Cash Flow	-534.14K	-344.19K	-557.93K	-2.77M	-981.61K	-1.01M
Investing Cash Flow	-116.02K	-67.11K	206.23K	-2.09M	-2.60M	-44.45K
Financing Cash Flow	672.74K	383.42K	377.56K	4.62M	3.80M	1.06M

Arctic Star Exploration Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ADD, the sentiment is Negative. The current price of 0.01 is below the 20-day moving average (MA) of 0.01, below the 50-day MA of 0.01, and below the 200-day MA of 0.01, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 45.04 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ADD.

Arctic Star Exploration Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ADZ	47 Neutral	C$3.24M	-0.88	-46.57%	―	―	-58.05%
ADD	45 Neutral	C$2.39M	-3.13	-10.20%	―	―	5.88%
TAI	43 Neutral	C$1.44M	-3.26	-193.26%	―	―	-187.50%
DMI	29 Underperform	C$1.69M	―	―	―	―	―