Falco Resources (FPC) AI Stock Analysis

• Market Cap: C$71.47M
• Dividend Yield: N/A
• Average Volume (3M): 564.25K
• Price to Earnings (P/E): 470.0
• Beta (1Y): 1.73
• Revenue Growth: N/A
• EPS Growth: -9.60%
• Country: CA
• Employees: 502
• Sector: Basic Materials
• Sector Strength: 65
• Industry: Industrial Materials
• EPS (TTM): 0.00
• Shares Outstanding: 304,138,430
• 10 Day Avg. Volume: 374,903
• 30 Day Avg. Volume: 564,252
• PEG Ratio: -0.68
• Price to Book (P/B): 0.86
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.87
• 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

• Rating: 33 Underperform
• Price Target: ―

Falco Resources' stock score is significantly impacted by its poor financial performance, characterized by zero revenue and consistent net losses. Technical analysis shows bearish trends with no immediate positive indicators. The valuation is weak, with a negative P/E ratio and no dividend yield. Corporate events are mixed, with public support for a key project but also serious environmental compliance challenges. These factors collectively result in a low overall stock score.

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. There is a need for strategic initiatives to generate revenue and improve its cash flow position for 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	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00	0.00
	Gross Profit
-22.90K	-30.55K	-15.85K	-21.06K	-33.81K	-36.44K
	EBIT
-4.03M	-3.52M	-3.42M	-4.31M	-4.97M	-4.09M
	EBITDA
-6.06M	-3.28M	-3.02M	-4.02M	-3.59M	-3.98M
	Net Income Common Stockholders
-3.75M	-3.41M	-3.40M	-3.15M	-3.85M	-4.41M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.44M	3.68M	5.92M	12.02M	4.15M	3.63M
	Total Assets
159.10M	151.73M	142.93M	137.88M	112.60M	94.90M
	Total Debt
35.58M	36.19M	33.06M	30.20M	27.53M	15.90M
	Net Debt
31.13M	32.50M	27.14M	21.18M	23.38M	12.27M
	Total Liabilities
104.53M	101.11M	90.81M	82.80M	71.79M	51.13M
	Stockholders Equity
54.57M	50.63M	52.13M	55.08M	40.81M	43.77M
Cash Flow		Free Cash Flow
-7.30M	-5.12M	-5.98M	-8.41M	-9.33M	-7.28M
	Operating Cash Flow
-3.63M	-2.57M	-2.97M	5.49M	-3.59M	-3.19M
	Investing Cash Flow
-2.77M	-1.64M	-12.98K	-16.90M	-5.74M	687.74K
	Financing Cash Flow
7.57M	1.98M	-116.91K	16.28M	9.85M	5.02M

Falco Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.24
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• 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 0.24 is above the 20-day moving average (MA) of 0.21, above the 50-day MA of 0.21, and below the 200-day MA of 0.27, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 63.10 is Neutral, neither overbought nor oversold. The STOCH value of 60.00 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
CCCM	53 Neutral	C$61.93M	―	-3.76%	―	―	-192.50%
Sector *	50 Neutral	$2.00B	-1.13	-21.16%	3.71%	2.15%	-30.95%
LCE	40 Underperform	C$64.28M	―	-4.74%	―	―	30.08%
TSK	34 Underperform	C$56.82M	―	-795.16%	―	―	3.75%
FPC	33 Underperform	C$71.47M	470.00	0.37%	―	―	-9.60%
BMOOF		$38.89M	―	-2.40%	―	―	―
DLPRF		$35.90M	―	-271.21%	―	―	―

Falco Resources Corporate Events

Falco Resources Advances Horne 5 Project Amidst Strong Public Support

Falco Resources announced updates regarding the Horne 5 Project, receiving clarification from the Ministry of Environment on the project’s evaluation process. The Ministry’s correspondence confirmed that the list of additional questions is standard procedure, and no conclusions about the project’s acceptability have been drawn yet. Falco has submitted responses to these questions and continues discussions with the Ministry to secure necessary authorizations. An independent survey indicates strong public support for the project in Rouyn-Noranda and Abitibi-Témiscamingue, with 72% and 74% approval rates, respectively. Despite this support, Falco acknowledges the uncertainty of securing funding and government approvals.

Strong Public Support for Falco’s Horne 5 Project

Falco Resources announced the results of an independent survey showing strong public support for its Horne 5 underground mine project in Rouyn-Noranda and Abitibi-Témiscamingue. The survey revealed that approximately 74% of the local population supports the project, recognizing its potential for economic growth and job creation. Despite environmental concerns, a majority trust Falco to implement the project responsibly. The company continues to engage with the Québec government to gain project compliance recognition, highlighting the project’s significant economic contributions and its role in the energy transition.

Falco Resources Faces Environmental Compliance Challenges for Horne 5 Project

Falco Resources Ltd. has received feedback from the Ministry of the Environment regarding its Horne 5 Project, highlighting concerns about air quality in Rouyn-Noranda. The Ministry’s letter questions the project’s compliance with section 197 of the Clean Air Regulations, suggesting that the atmospheric dispersion modeling does not meet regulatory standards, potentially increasing contaminant levels. Falco argues that their modeling shows negligible contributions to air pollution, asserting compliance with environmental standards.

Falco Resources Faces Environmental Compliance Challenges for Horne 5 Project

Falco Resources Ltd. has received further comments and questions from the Ministry of the Environment regarding its Horne 5 Project, particularly concerning air quality standards in Rouyn-Noranda. The Ministry’s letter highlights that the project’s atmospheric dispersion modeling does not conform to section 197 of the Clean Air Regulations, as it suggests an increase in contaminant concentration. Despite this, Falco argues that their modeling, conducted by experts, shows negligible contributions to air pollution, asserting compliance with regulatory standards.