Defiance Silver (DEF) AI Stock Analysis

• Market Cap: C$120.14M
• Dividend Yield: N/A
• Average Volume (3M): 1.32M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.35
• Revenue Growth: N/A
• EPS Growth: 43.20%
• Country: CA
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Other Precious Metals
• EPS (TTM): N/A
• Shares Outstanding: 364,052,900
• 10 Day Avg. Volume: 1,694,351
• 30 Day Avg. Volume: 1,317,126
• PEG Ratio: -1.70
• Price to Book (P/B): 1.06
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -26.79
• 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: 49 Neutral
• Price Target: C$0.33 ▲(36.67% Upside)

The score is primarily held back by weak financial performance (no revenue, ongoing losses, and negative free cash flow). Technicals provide some support with the price still above key longer-term moving averages and a positive MACD, but near-term weakness versus the 20DMA keeps momentum moderate. Valuation contributes negatively given the loss-making profile (negative P/E) and no dividend yield support.

Positive Factors

Debt-free balance sheet

A zero-debt capital structure materially reduces financial risk for an exploration company, lowering fixed obligations and interest exposure. This durability increases runway flexibility and preserves optionality to fund drilling or partner deals without near-term debt servicing constraints.

Material equity base growth

A meaningful increase in equity indicates successful access to capital markets and a larger capital base to fund exploration. Persistent ability to raise equity supports multi-stage drilling programs and project advancement without immediate operating income, reducing near-term liquidity shocks.

Focused precious‑metals strategy

A clear strategic focus on silver and gold projects in a single jurisdiction concentrates technical expertise and operational efforts. This specialization can improve exploration efficiency, allow repeatable workflows, and make the company an attractive partner for project-level transactions over the medium term.

Negative Factors

Pre-revenue and persistent losses

Operating without revenue and recurring net losses means the company cannot self-fund growth; value creation depends on exploration success or asset sales. Persistent losses pressure returns and require continuous external funding, which constrains long-term sustainability absent discovery or monetization events.

Negative and worsening cash flow

Sustained negative operating and free cash flow, with sharp year-over-year deterioration, erodes runway and increases dependency on financings. This structural cash burn raises execution risk for multi-year exploration programs and amplifies dilution or partner‑deal necessity if outcomes lag.

Reliance on external financings

A funding model centered on equity issuances and option/joint-venture deals exposes shareholders to dilution and transaction timing risk. Long-term project advancement hinges on market access and counterparties, creating structural funding and execution dependency until a producing asset is established.

Defiance Silver Business Overview & Revenue Model

Company Description

Defiance Silver Corp (DEF) is a Canada-based resource company primarily engaged in the acquisition, exploration, and development of mineral properties rich in silver and other precious metals. Operating within the mining sector, Defiance Silver focuses on advancing its projects located in Mexico, one of the world's most prolific mining regions. The company's core projects include the San Acacio Silver Deposit and the Tepal Gold/Copper Project, which are strategically positioned to leverage high-grade mineralization and existing mining infrastructure.

How the Company Makes Money

Defiance Silver Corp generates revenue primarily through the exploration and development of its mineral properties, with a focus on silver, gold, and copper. The company aims to advance its projects to the stage where they can be sold, partnered, or taken into production. Key revenue streams include the potential sale of mineral rights, joint ventures, or extraction of resources. Significant partnerships with other mining companies or investors can also contribute to earnings by providing the capital and expertise necessary to advance project development. The company's earnings are influenced by factors such as commodity prices, exploration success, and operational efficiency.

Defiance Silver Financial Statement Overview

Summary

Financials reflect a pre-revenue exploration profile: revenue is $0 (including TTM), with persistent net losses (~$2.2M TTM) and negative operating/free cash flow (~-$2.4M TTM). The main offsetting strength is a clean balance sheet with $0 debt and higher equity (~$62.7M TTM), which reduces solvency risk but does not resolve ongoing cash burn.

Income Statement

Results reflect an early-stage/mining-exploration profile with limited revenue (revenue is $0 in most years, including TTM (Trailing-Twelve-Months)). Losses are persistent: net loss is about $2.2M in TTM (Trailing-Twelve-Months) and was about $2.9M in FY2025, with operating losses also continuing. A positive is that the net loss in TTM (Trailing-Twelve-Months) is smaller than FY2025, but overall profitability remains weak and highly dependent on future project monetization rather than current operations.

Balance Sheet

The balance sheet is a relative strength: reported total debt is $0 across periods, which reduces financial risk and interest burden. Equity has grown materially versus prior years (about $62.7M in TTM (Trailing-Twelve-Months) vs. ~$41.4M in FY2024), suggesting successful funding and a larger capital base. The key weakness is ongoing negative returns on equity (about -4.1% in TTM (Trailing-Twelve-Months)), meaning shareholders are still seeing losses despite the stronger capitalization.

Cash Flow

Cash generation remains pressured, with operating cash flow negative in TTM (Trailing-Twelve-Months) (about -$2.4M) and free cash flow also negative (about -$2.4M). Free cash flow deterioration year-over-year is notable (TTM (Trailing-Twelve-Months) free cash flow growth around -90%), indicating higher cash burn versus the prior comparable period. A modest positive is that free cash flow broadly tracks the net loss (roughly one-to-one in recent periods), but the company still relies on external funding until operations materially improve.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	0.00	0.00	0.00	140.62K	0.00	0.00
Gross Profit	0.00	0.00	0.00	-141.00K	-139.60K	0.00
EBITDA	-2.19M	-2.92M	-1.64M	-3.79M	-4.11M	-2.95M
Net Income	-2.18M	-2.92M	-2.35M	-2.49M	-3.86M	-2.94M
Balance Sheet
Total Assets	63.38M	62.29M	42.27M	41.93M	41.56M	43.04M
Cash, Cash Equivalents and Short-Term Investments	12.89M	14.75M	265.83K	4.56M	11.78M	20.83M
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	720.25K	883.99K	865.71K	1.33M	1.44M	1.31M
Stockholders Equity	62.66M	61.41M	41.41M	40.60M	40.12M	41.73M
Cash Flow
Free Cash Flow	-2.40M	-2.42M	-1.46M	-9.07M	-9.46M	-7.79M
Operating Cash Flow	-2.39M	-2.42M	-1.46M	-2.46M	-2.87M	-2.96M
Investing Cash Flow	-4.75M	-5.28M	-5.38M	-6.62M	-6.59M	-4.86M
Financing Cash Flow	19.05M	22.19M	2.54M	1.86M	411.28K	28.08M

Defiance Silver Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.24
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DEF, the sentiment is Neutral. The current price of 0.24 is below the 20-day moving average (MA) of 0.35, below the 50-day MA of 0.28, and below the 200-day MA of 0.25, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 47.94 is Neutral, neither overbought nor oversold. The STOCH value of 22.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:DEF.

Defiance Silver 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%
CUAU	57 Neutral	C$107.99M	-30.36	-44.59%	―	―	-56.33%
NAU	51 Neutral	C$134.21M	-20.94	-20.26%	―	―	-38.35%
DEF	49 Neutral	C$120.14M	-46.48	-4.10%	―	―	43.20%
MMG	48 Neutral	C$77.67M	-16.44	-41.14%	―	―	42.42%
PGDC	47 Neutral	C$544.11M	-49.37	―	―	14.89%	-24.08%

Defiance Silver Corporate Events

Defiance Silver Corp. Secures Shareholder Approval at 2025 AGM

Defiance Silver Corp. announced the results of its 2025 Annual General and Special Meeting, where shareholders approved all proposed items, including the election of board members, appointment of auditors, and confirmation of the 2021 Omnibus Plan. The meeting saw participation from shareholders representing nearly 25% of the company’s issued shares. The approvals reflect strong shareholder support and are expected to facilitate the company’s strategic exploration and asset advancement efforts.

Defiance Silver Unveils High-Grade Trenching Results at San Acacio

Defiance Silver Corp. has reported promising results from its trench sampling campaign at the San Acacio property in Zacatecas, Mexico. The campaign revealed high-grade silver and gold mineralization across the Veta Grande vein system, with significant findings such as 5180 g/t Ag and 4.85 g/t Au. This development enhances the company’s understanding of the surface geology and supports the upcoming mineral resource estimate, indicating potential for near-surface tonnage and continuity between historical open pits, which is crucial for future exploration and development strategies.