Star Diamond (DIAM) AI Stock Analysis

• Market Cap: C$30.92M
• Dividend Yield: N/A
• Average Volume (3M): 236.88K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.36
• Revenue Growth: N/A
• EPS Growth: 2.25%
• Country: CA
• Employees: 6
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Other Precious Metals
• EPS (TTM): >-0.01
• Shares Outstanding: 772,889,100
• 10 Day Avg. Volume: 183,653
• 30 Day Avg. Volume: 236,883
• PEG Ratio: -0.03
• Price to Book (P/B): 2.79
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.03
• 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: 47 Neutral
• Price Target: C$0.04 ▼(-2.50% Downside)

The score is primarily held back by weak financial performance (no revenue, persistent losses, and negative cash flow), partially offset by very low leverage and improved equity position. Technicals are mixed/neutral with the stock below longer-term moving averages, and valuation provides limited support due to negative earnings and no dividend.

Positive Factors

Low Leverage & Improved Capitalization

Very low debt and materially improved equity vs 2023 meaningfully reduce financial insolvency risk for the company. This durability in capitalization increases flexibility to pursue project development, obtain financing on better terms, and absorb exploration volatility over the next several months.

Improving Cash Burn Trajectory

A materially smaller free cash flow deficit relative to the prior year indicates better cost control and operational discipline. A demonstrable downward trend in cash burn extends runway, lowers near-term financing pressure, and makes the firm's path toward positive cash generation more plausible over a multi-month horizon.

High-Potential Core Asset

Ownership of an advanced diamond asset (Fort à la Corne kimberlite deposits) provides structural optionality: successful resource delineation or development could convert exploration value into long-term cash-generating operations. The asset focus aligns with industry consolidation and long lead-time project economics.

Negative Factors

No Revenue and Persistent Losses

The company remains pre-revenue with sustained operating losses, indicating it has not yet converted its asset base into sales. Persistent negative profitability undermines self-sufficiency, increases financing dependency, and raises execution risk until commercial production or other revenue sources are established.

Negative Operating Cash Generation

Ongoing negative OCF and FCF mean operations consume cash rather than finance themselves. Even with improvement, sustained negative cash generation requires external capital, which can dilute shareholders or increase leverage, constraining the company’s ability to advance the project without repeated funding rounds.

Early-Stage, Limited Operating Scale

The business is early-stage with limited operating scale and resource bandwidth, heightening execution risk. Limited internal capacity increases reliance on external contractors, partnerships, and capital markets to execute exploration and development, making progress dependent on successful fundraising and strategic alliances.

Star Diamond Business Overview & Revenue Model

Company Description

Star Diamond Corporation engages in the exploration, development, and production of diamonds in Canada. The company's principal mineral properties include the Star Kimberlite property and the Orion South Kimberlite property located in Fort à la Corne area of Saskatchewan, Canada. It also holds 50% interest in the Buffalo Hills project located in north central Alberta, Canada. The company was formerly known as Shore Gold Inc. and changed its name to Star Diamond Corporation in February 2018. Star Diamond Corporation was incorporated in 1985 and is headquartered in Saskatoon, Canada.

How the Company Makes Money

Star Diamond generates revenue primarily through the exploration and potential sale of diamond resources extracted from its mining projects. The company's key revenue streams include the sale of rough diamonds to global markets, partnerships with major mining companies for joint exploration and development ventures, and potential royalties or profit-sharing agreements from its projects. Significant contributions to its earnings are expected from its flagship project, the Star-Orion South Diamond Project, which is anticipated to yield a substantial quantity of high-quality diamonds, enhancing the company's profitability through both direct sales and strategic collaborations.

Star Diamond Financial Statement Overview

Summary

Income statement and cash flow are the key drag: no revenue, persistent losses (TTM net income -$5.5M; EBIT -$4.0M) and negative operating/free cash flow (TTM OCF -$3.3M; FCF -$1.8M). The main offset is a relatively stable balance sheet with very low debt (~$83K; debt-to-equity ~0.01) and improved equity versus 2023, but overall fundamentals remain high-risk until revenues and positive cash flow emerge.

Income Statement

The company reports no revenue across the period provided, while losses remain persistent. TTM (Trailing-Twelve-Months) net income is -$5.5M (vs. -$6.0M in 2024), showing a modest improvement, but profitability is still deeply negative with continued operating losses (TTM EBIT -$4.0M). Gross profit is also consistently negative, indicating the business is still in a pre-revenue/early-stage cost absorption phase.

Balance Sheet

Leverage is very low, with TTM total debt of ~$83K and a conservative debt-to-equity ratio (~0.01), which reduces financial risk. Equity has improved materially versus 2023 (when equity was very low and leverage was elevated), supporting better balance-sheet stability. The key weakness is returns: profitability remains negative, driving a weak return on equity in TTM despite the stronger capitalization.

Cash Flow

Cash generation remains a clear constraint: TTM operating cash flow is -$3.3M and free cash flow is -$1.8M, meaning the business is still consuming cash. The burn rate has improved versus 2024 (free cash flow -$3.6M), and TTM free cash flow shows strong positive growth off a weaker prior year base, but cash flow is still negative and likely requires continued funding support until revenues materialize.

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	-952.00K	-899.00K	-91.00K	-102.00K	-100.00K	-107.00K
EBITDA	-4.24M	-5.10M	-2.79M	-68.68M	-7.58M	-6.01M
Net Income	-5.51M	-6.02M	-2.82M	-68.79M	-7.69M	-6.13M
Balance Sheet
Total Assets	15.03M	14.39M	1.16M	3.07M	69.37M	72.63M
Cash, Cash Equivalents and Short-Term Investments	1.25M	164.00K	553.00K	2.61M	1.26M	4.77M
Total Debt	83.00K	122.00K	193.00K	39.00K	117.00K	192.00K
Total Liabilities	8.78M	9.18M	980.00K	717.00K	4.16M	2.23M
Stockholders Equity	6.25M	5.21M	181.00K	2.35M	65.21M	70.40M
Cash Flow
Free Cash Flow	-1.82M	-3.60M	-2.27M	-4.96M	-5.36M	-4.79M
Operating Cash Flow	-3.27M	-3.59M	-2.27M	-4.95M	-5.36M	-4.79M
Investing Cash Flow	145.00K	2.57M	0.00	610.00K	-5.00K	12.00K
Financing Cash Flow	3.63M	633.00K	212.00K	5.68M	1.85M	1.60M

Star Diamond Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.04
• 50DMA: Positive
• 100DMA: Positive
• 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:DIAM, the sentiment is Positive. The current price of 0.04 is above the 20-day moving average (MA) of 0.04, above the 50-day MA of 0.03, and below the 200-day MA of 0.04, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 57.73 is Neutral, neither overbought nor oversold. The STOCH value of 83.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:DIAM.

Star Diamond Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LUC	76 Outperform	C$113.05M	1.42	21.15%	―	28.12%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
NAR	50 Neutral	C$8.86M	-4.86	-9.59%	―	―	-284.96%
DIAM	47 Neutral	C$30.92M	-4.60	-79.06%	―	―	2.25%
MPVD	47 Neutral	C$13.80M	-0.07	-74.45%	―	-45.17%	-100.74%
KNOX	46 Neutral	C$3.08M	-5.03	―	―	―	78.10%
DMI	29 Underperform	C$1.69M	―	―	―	―	―

Star Diamond Corporate Events

Star Diamond Corporation Announces New Leadership Team

Star Diamond Corporation has announced significant changes to its leadership team, appointing Wayne Malouf as Chairman, Krisztian Toth and Leslie Markow as Directors, Lester Kemp as Interim CEO, and Mark Shimell as COO. These appointments are expected to leverage the team’s extensive mining experience to enhance the company’s strategic direction and value creation opportunities in the diamond industry.

Star Diamond Corporation Announces Board Member Resignations

Star Diamond Corporation announced the resignation of two board members, Lisa Riley and Larry Phillips, effective November 20, 2025. The company expressed gratitude for their service and plans to announce their replacements soon. This change in board composition may impact the company’s strategic direction and governance, potentially influencing its position in the diamond industry and affecting stakeholder interests.