Falco Resources (FPC) AI Stock Analysis

• Market Cap: C$153.59M
• Dividend Yield: N/A
• Average Volume (3M): 493.76K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.77
• Revenue Growth: N/A
• EPS Growth: 54.00%
• Country: CA
• Employees: 502
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): N/A
• Shares Outstanding: 345,143,430
• 10 Day Avg. Volume: 533,940
• 30 Day Avg. Volume: 493,764
• PEG Ratio: 0.88
• Price to Book (P/B): 1.36
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -9.88
• 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: 52 Neutral
• Price Target: C$0.48 ▲(1.06% Upside)

The score is held back primarily by weak financial performance (pre-revenue losses and ongoing cash burn with financing dependence). This is partially offset by strong technical momentum (price above key moving averages with positive MACD). Valuation is constrained by unprofitability (negative P/E) and no dividend support.

Positive Factors

Public Support for Horne 5 Project

Strong public support can facilitate smoother project approvals and enhance community relations, crucial for long-term project success and potential economic benefits.

Strategic Location

Operating in a resource-rich area provides strategic advantages in mineral exploration and extraction, potentially leading to significant resource discoveries and long-term growth.

Potential Economic Contributions

The Horne 5 Project's potential to contribute economically and support energy transition aligns with global sustainability trends, enhancing long-term project viability and stakeholder value.

Negative Factors

Negative Cash Flow

Consistently negative cash flow indicates financial strain, requiring reliance on external financing, which is unsustainable and could hinder long-term growth and stability.

Environmental Compliance Challenges

Environmental compliance issues could delay project timelines and increase costs, impacting the company's ability to achieve operational milestones and financial targets.

Zero Revenue Generation

Lack of revenue generation poses a significant risk to financial sustainability, limiting the company's ability to fund operations and invest in growth opportunities.

Falco Resources Business Overview & Revenue Model

Company Description

Falco Resources Ltd. engages in the exploration, development, and evaluation of mineral properties in Canada. It explores for base and precious metals, such as gold, zinc, copper, and silver deposits. The company owns mining claims and contractual rights in relation to mining concessions covering approximately 70,000 hectares of land in the Rouyn-Noranda mining camp located in the Province of Québec. Its principal asset is the Horne 5 Project located in the former Horne mine. The company was formerly known as Falco Pacific Resource Group Inc. and changed its name to Falco Resources Ltd. in July 2014. Falco Resources Ltd. was incorporated in 2010 and is headquartered in Montreal, Canada.

How the Company Makes Money

The company makes money through the exploration and development of its mineral properties, primarily focusing on gold and other valuable metals. Falco Resources generates revenue by advancing its projects towards production, which involves various stages of exploration, feasibility studies, and eventual mining operations. The company's future revenue streams are expected to come from the sale of extracted minerals once commercial production begins. Additionally, Falco Resources may form strategic partnerships or joint ventures with other mining companies to leverage resources and expertise, potentially leading to additional revenue through shared project developments or royalty agreements.

Falco Resources Financial Statement Overview

Summary

Falco Resources is facing significant financial challenges, with zero revenue generation, consistent net losses, and reliance on debt and financing activities to maintain operations. The company needs to focus on strategic initiatives to generate revenue and improve its cash flow position to ensure long-term sustainability.

Income Statement

Falco Resources has reported zero revenue, indicating no sales activity. The company shows consistent losses with increasing net losses over time. Without revenue, metrics like gross profit margin and net profit margin are not applicable. The company needs to focus on generating revenue to improve its financial health.

Balance Sheet

The company exhibits a moderately high debt-to-equity ratio, with total debt consistently exceeding cash reserves. Stockholders' equity has decreased over recent periods, indicating potential financial stress. The equity ratio is relatively low, suggesting reliance on debt financing. Improvement in equity and reduction in debt are crucial.

Cash Flow

Operating cash flow is consistently negative, indicating that the company struggles to generate cash from its operations. Free cash flow is also negative, reflecting high capital expenditures and insufficient cash generation. The company relies on financing activities for liquidity, which is not sustainable long-term.

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	-28.65K	-29.49K	-30.55K	-15.85K	-21.06K	-33.81K
EBITDA	-2.92M	-1.94M	-3.28M	-3.23M	-2.96M	-3.59M
Net Income	-2.08M	-2.40M	-3.41M	-3.40M	-3.15M	-3.85M
Balance Sheet
Total Assets	165.86M	163.00M	151.73M	142.93M	137.88M	112.60M
Cash, Cash Equivalents and Short-Term Investments	897.26K	1.52M	3.68M	5.92M	12.02M	4.15M
Total Debt	39.94M	38.40M	36.19M	33.06M	30.20M	27.53M
Total Liabilities	112.79M	109.01M	101.11M	90.81M	82.80M	71.79M
Stockholders Equity	53.07M	53.99M	50.63M	52.13M	55.08M	40.81M
Cash Flow
Free Cash Flow	-4.91M	-7.41M	-5.12M	-5.98M	-8.41M	-9.33M
Operating Cash Flow	-2.86M	-3.90M	-2.57M	-2.97M	5.49M	-3.59M
Investing Cash Flow	-2.06M	-3.51M	-1.64M	-12.98K	-16.90M	-5.74M
Financing Cash Flow	5.60M	5.25M	1.98M	-116.91K	16.28M	9.85M

Falco Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.47
• 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:FPC, the sentiment is Positive. The current price of 0.47 is above the 20-day moving average (MA) of 0.43, above the 50-day MA of 0.39, and above the 200-day MA of 0.29, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 55.06 is Neutral, neither overbought nor oversold. The STOCH value of 63.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:FPC.

Falco Resources 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%
FPC	52 Neutral	C$153.59M	-64.49	-4.06%	―	―	54.00%
ANDC	50 Neutral	C$146.04M	-24.90	-9.75%	―	―	85.71%
CVV	49 Neutral	C$165.01M	-8.60	-68.08%	―	―	-69.65%
CCCM	48 Neutral	C$134.84M	-39.02	-4.33%	―	―	10.13%
LRA	48 Neutral	C$127.36M	-36.52	-50.05%	―	―	-1816.67%
ELBM	44 Neutral	C$120.60M	-0.69	-49.48%	―	―	62.30%

Falco Resources Corporate Events

Falco Resources Announces Leadership Changes and Debt Transaction Closures

Falco Resources Ltd. has announced significant changes in its leadership and financial arrangements. Alexander Dann has been appointed as the new Chair of the Board, succeeding Mario Caron, who will remain as lead director. The company also closed its senior debt transactions with OR Royalties and Glencore, which include amendments to existing loans and the issuance of new warrants. These developments are expected to strengthen Falco’s financial position and support its long-term strategic goals.

Falco Resources Updates Feasibility Study for Horne 5 Project

Falco Resources has initiated an update to its 2021 feasibility study for the Horne 5 Project in Rouyn-Noranda, Québec, anticipating completion by the second quarter of 2026. This update aims to incorporate current commodity prices, potentially enhancing the project’s economic returns. The Horne 5 Project is one of Canada’s largest gold projects, expected to produce over 220,000 ounces of gold annually over a 15-year lifespan. The project also positions Falco as a significant producer of copper and zinc in Québec. Recent major project acquisitions in Québec highlight the value of Falco’s project, and the company is working towards obtaining a ministerial decree to authorize the project.

Falco Resources Launches Major Exploration in Noranda Camp

Falco Resources Ltd. has announced a major exploration initiative in the Noranda Mining Camp, utilizing an Airborne Gravity Gradiometry survey to identify new Volcanogenic Massive Sulfide deposits. This initiative aims to leverage modern exploration technology and historical data to uncover new mineralization opportunities, potentially enhancing Falco’s industry positioning and offering significant implications for stakeholders. The results, expected in December 2025, will guide future exploration and drilling efforts.

Falco Resources Extends Senior Debts to Support Horne 5 Project

Falco Resources Ltd. has announced the extension of its senior debts with OR Royalties Inc. and Glencore Canada Corporation, moving the maturity dates from December 31, 2025, to December 31, 2026. These extensions provide Falco with greater flexibility to advance its Horne 5 Project, demonstrating strong support from its financial partners. The amendments include capitalizing accrued interest and issuing new warrants, with the transactions requiring minority shareholder approval and compliance with regulatory requirements.

Falco Resources Completes $13.1 Million Private Placement to Advance Horne 5 Project

Falco Resources Ltd. has successfully closed a bought deal private placement, raising $13,121,600 through the issuance of 41,005,000 units. The proceeds will be used for the advancement of the Horne 5 Project and general corporate purposes. The transaction involved related parties, including Osisko Development Corp., and is considered a ‘related party transaction’ under regulatory guidelines. The offering’s completion strengthens Falco’s financial position, enabling further development of its key project, potentially impacting its market standing positively.