Ares Strategic Mining (ARS) AI Stock Analysis

• Market Cap: C$92.27M
• Dividend Yield: N/A
• Average Volume (3M): 562.98K
• Price to Earnings (P/E): ―
• Beta (1Y): -1.46
• Revenue Growth: N/A
• EPS Growth: -24.16%
• Country: CA
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): N/A
• Shares Outstanding: 202,785,740
• 10 Day Avg. Volume: 240,895
• 30 Day Avg. Volume: 562,983
• PEG Ratio: 8.03
• Price to Book (P/B): 3.48
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.22
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: C$0.45 ▼(-18.18% Downside)

The score is primarily constrained by weak financial performance (no revenue, ongoing losses, negative free cash flow) and rising leverage, which heighten funding and execution risk. Technical indicators are neutral to mildly supportive, but valuation is not compelling given negative earnings and no dividend yield.

Positive Factors

Asset & Equity Growth

Rising assets and shareholders' equity provide a larger capital base to fund exploration and project development. This strengthens the company's capacity to advance permits and technical studies without immediate cash inflows, reducing near-term liquidation risk while projects are progressed.

Focused Fluorspar Strategy

A clear strategic focus on fluorspar concentrates management resources and capital allocation on a defined commodity. That specialization can accelerate technical progress, permitting, and off-take conversations, enhancing odds of moving from exploration to commercial production over the medium term.

Project Investment & Occasional OCF

Positive operating cash flow in 2024 and substantial capex indicate active project advancement rather than passive holdings. Continued investment can de-risk resource definition and permit timing, creating tangible project value that supports future cash generation once commercial production begins.

Negative Factors

No Revenue; Persistent Losses

The company remains pre-revenue with recurring operating losses, meaning core activities are not yet self-sustaining. Persistent negative profitability erodes retained capital and increases execution risk because the business cannot fund operations from internal earnings while moving projects toward production.

Weak & Deteriorating Cash Flow

Deeply negative free cash flow and a turn to negative operating cash flow in 2025 reflect heavy cash burn and inconsistent cash generation. This structural cash shortfall increases reliance on external financing for development and raises liquidity and execution risk if financing conditions tighten.

Rising Leverage & Funding Risk

Sharply higher debt and a rising debt/equity ratio reduce financial flexibility and elevate refinancing and covenant risk. For a pre-revenue explorer, increased leverage magnifies funding pressure and the likelihood of dilution or costly financing if project timelines extend or capital markets tighten.

Ares Strategic Mining Business Overview & Revenue Model

Company Description

Ares Strategic Mining Inc., a junior natural resource mining company, acquires and explores for fluorspar properties. It focuses on the exploitation, production, and supply of metspar and acidspar. The company holds 100% interest in the Lost Sheep Fluoride Mine that consists of 67 claims covering an area of approximately 1,447 acres located in western Utah, the United States; and the Liard Fluorspar property, which includes 14 claims located in British Columbia. It also holds interest in the Jackpot Lake property that comprises 140 mineral claims covering an area of 2,800 acres located in Clark County, Nevada; and a 20% interest in the Vanadium Ridge property, which consists of 20 mining claims covering an area of approximately 5,200 acres located in the Kamloops, British Columbia. In addition, the company holds interest in the Campbell-Croster fluorspar project in Kentucky. Ares Strategic Mining Inc. was incorporated in 2009 and is headquartered in Vancouver, Canada.

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

Weak fundamentals: no reported revenue across 2020–2025, persistently negative gross profit/EBITDA/EBIT, and worsening net loss in 2025 (-3.64M vs. -2.93M). Cash flow quality is poor with negative operating cash flow in 2025 (-1.93M) and deeply negative free cash flow (-11.50M). Balance sheet shows asset/equity growth, but sharply higher debt (35.80M) and elevated debt-to-equity (2.07x) increase funding risk.

Income Statement

Across 2020–2025 annual reports, the company reports no revenue and consistently negative gross profit, EBITDA, and EBIT, indicating it remains in a pre-commercial/early-stage operating profile. Net losses are persistent and sizable (2025: -3.64M vs. 2024: -2.93M), with operating losses worsening year over year in the latest period (2025 EBIT -3.29M vs. 2024 -1.18M). While losses improved versus 2022–2023 in some lines, the lack of revenue generation and ongoing negative profitability remain the core weakness.

Balance Sheet

The balance sheet shows meaningful asset growth (total assets rising to 53.87M in 2025 from 36.46M in 2024), and equity has also increased (17.26M in 2025 vs. 13.80M in 2024), which provides some cushion. However, leverage has risen sharply as total debt climbed to 35.80M in 2025 (from 20.09M in 2024), pushing debt relative to equity higher (2.07x in 2025 vs. 1.46x in 2024). Returns on equity remain negative across all periods, reflecting that shareholder capital is not yet producing profits and raising financial risk if losses persist.

Cash Flow

Cash generation is volatile and generally weak: operating cash flow was positive in 2024 (0.41M) but turned negative again in 2025 (-1.93M), suggesting inconsistent underlying cash support for operations. Free cash flow is deeply negative in every year shown and deteriorated in 2025 (-11.50M), consistent with heavy investment or spending ahead of revenue. The combination of negative free cash flow and rising leverage increases reliance on external financing and heightens liquidity/funding risk if capital markets tighten.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00	0.00
Gross Profit	-275.11K	-275.11K	-39.90K	-41.12K	-40.71K	-29.34K
EBITDA	-1.76M	-1.72M	-876.00K	-2.66M	-4.12M	-3.62M
Net Income	-4.66M	-3.64M	-2.93M	-4.44M	-4.96M	-3.65M
Balance Sheet
Total Assets	53.87M	53.87M	36.46M	17.48M	16.13M	13.41M
Cash, Cash Equivalents and Short-Term Investments	7.95M	7.95M	93.46K	637.93K	430.10K	1.05M
Total Debt	35.80M	35.80M	20.09M	6.60M	296.50K	2.20M
Total Liabilities	37.83M	37.83M	23.88M	7.26M	1.06M	2.65M
Stockholders Equity	17.26M	17.26M	13.80M	11.44M	16.30M	11.98M
Cash Flow
Free Cash Flow	-11.50M	-11.50M	-15.21M	-4.95M	-2.72M	-2.11M
Operating Cash Flow	-1.93M	-1.93M	405.46K	-1.73M	-1.81M	-1.87M
Investing Cash Flow	-9.98M	-9.98M	-16.03M	-3.55M	-3.12M	-2.31M
Financing Cash Flow	17.44M	17.44M	16.16M	6.76M	3.81M	5.07M

Ares Strategic Mining Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ARS, the sentiment is Negative. The current price of 0.55 is below the 20-day moving average (MA) of 0.59, above the 50-day MA of 0.52, and above the 200-day MA of 0.36, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 36.53 is Neutral, neither overbought nor oversold. The STOCH value of 1.79 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ARS.

Ares Strategic Mining Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SAM	63 Neutral	C$97.95M	29.63	1.79%	―	26.16%	-8.73%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
OCO	60 Neutral	C$217.56M	-53.66	-3.75%	―	―	29.51%
RUA	55 Neutral	C$101.35M	-2.26	-294.20%	―	―	-97.52%
NKG	50 Neutral	C$78.46M	-4.63	-74.18%	―	―	42.92%
ARS	48 Neutral	C$92.27M	-17.65	-22.39%	―	―	-24.16%
MSR	43 Neutral	C$103.48M	-75.61	-9.76%	―	―	-127.89%

Ares Strategic Mining Corporate Events

Ares Accelerates Fluorspar Production Plan After Securing Major U.S. Defense Contract

Ares Strategic Mining has accelerated its roadmap and production plan to fast-track acidspar output from its Spor Mountain operations in order to meet obligations under a U.S. Department of Defense contract with a ceiling value of up to USD $250 million over a five-year period. Backed by a recently closed CAD $10 million equity financing and increased institutional investment through three facilities with Sorbie Bornholm LP, Ares is expanding drilling, advancing mine development, and prioritizing construction of a flotation plant as it moves into the next phase of its production strategy, while also issuing stock options to consultants as part of its growth-focused capital structure.

The most recent analyst rating on (TSE:ARS) stock is a Hold with a C$0.48 price target. To see the full list of analyst forecasts on Ares Strategic Mining stock, see the TSE:ARS Stock Forecast page.

Ares Fast-Tracks Utah Acidspar Plant After Pentagon Contract and $10 Million Financing Launch

Ares Strategic Mining is accelerating construction of its acidspar flotation plant in Utah after securing an estimated US$168.9 million award under a U.S. Department of Defense IDIQ contract and launching a C$10 million non-brokered private placement. The expedited build is intended to enable initial deliveries of acid-grade fluorspar later this year under the Pentagon contract, reinforcing Ares’s emerging role as the sole domestic supplier of this critical mineral and a key player in rebuilding the American acidspar supply chain. Proceeds from the financing, structured as units with attached warrants, will support completion of the flotation plant, further development of the Lost Sheep fluorspar project, repayment of debt, and general working capital, while the company simultaneously advances plans to uplist to a senior stock exchange.

Ares Strategic Mining Wins Pentagon Deal, Becomes Sole U.S. Supplier of Critical Fluorspar

Ares Strategic Mining has secured a multi-year contract from the U.S. Department of Defense, awarded through the Defense Logistics Agency, with an initial value of approximately $169 million and a contract ceiling of up to $250 million over five years. The agreement designates Ares as the sole domestic supplier of acid-grade fluorspar to the U.S. government, marking a pivotal step in reducing America’s historical 100% import dependence on this critical mineral and reinforcing the strategic importance of the company’s Lost Sheep project in Utah. By underpinning the replenishment of U.S. strategic mineral stockpiles and supporting key industries including defense systems, metals production, and high-tech manufacturing, the contract significantly elevates Ares’ role in U.S. critical mineral supply chains and strengthens its positioning as a cornerstone of domestic mineral security and industrial resilience.

Ares Strategic Mining Wins Pentagon Deal to Become Sole U.S. Supplier of Critical Fluorspar

Ares Strategic Mining has secured a multi-year contract from the U.S. Department of Defense, initially valued at approximately $169 million under a five-year IDIQ framework with a ceiling of up to $250 million, to supply acid-grade fluorspar. The deal establishes Ares as the sole domestic supplier of acidspar to the U.S. government and underscores the strategic importance of its Utah-based Lost Sheep Project, marking a major step in reducing America’s historical 100% import dependence on fluorspar and reinforcing domestic critical mineral security for defense, industrial manufacturing, and advanced technology sectors.

Ares Strategic Mining Advances Fluorspar Project and Secures Funding

Ares Strategic Mining has made significant advancements in its Lost Sheep Fluorspar Project in Utah, achieving critical infrastructure milestones both underground and at its processing plant. These developments are crucial for commencing industrial-scale production, enhancing the company’s ability to supply high-purity fluorspar to U.S. industries. Additionally, Ares has secured a substantial non-dilutive funding boost from Sorbie Bornholm, which will accelerate the construction of its second processing facility, the Acidspar Flotation Plant, further strengthening its production capabilities.