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Falco Resources (TSE:FPC)
:FPC

Falco Resources (FPC) AI Stock Analysis

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Falco Resources

(FPC)

Rating:33Underperform
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 (FPC) vs. iShares MSCI Canada ETF (EWC)

Falco Resources Business Overview & Revenue Model

Company DescriptionFalco 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 MoneyThe 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
10
Very Negative
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
30
Negative
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
20
Very Negative
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
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
0.000.000.000.000.000.00
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 SheetCash, Cash Equivalents and Short-Term Investments
4.44M3.68M5.92M12.02M4.15M3.63M
Total Assets
159.10M151.73M142.93M137.88M112.60M94.90M
Total Debt
35.58M36.19M33.06M30.20M27.53M15.90M
Net Debt
31.13M32.50M27.14M21.18M23.38M12.27M
Total Liabilities
104.53M101.11M90.81M82.80M71.79M51.13M
Stockholders Equity
54.57M50.63M52.13M55.08M40.81M43.77M
Cash FlowFree Cash Flow
-7.30M-5.12M-5.98M-8.41M-9.33M-7.28M
Operating Cash Flow
-3.63M-2.57M-2.97M5.49M-3.59M-3.19M
Investing Cash Flow
-2.77M-1.64M-12.98K-16.90M-5.74M687.74K
Financing Cash Flow
7.57M1.98M-116.91K16.28M9.85M5.02M

Falco Resources Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.24
Price Trends
50DMA
0.21
Positive
100DMA
0.21
Positive
200DMA
0.27
Negative
Market Momentum
MACD
0.01
Negative
RSI
63.10
Neutral
STOCH
60.00
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

Overall Rating
UnderperformOutperform
Sector (50)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
53
Neutral
C$61.93M-3.76%-192.50%
50
Neutral
$2.00B-1.13-21.16%3.71%2.15%-30.95%
TSLCE
40
Underperform
C$64.28M-4.74%30.08%
TSTSK
34
Underperform
C$56.82M-795.16%3.75%
TSFPC
33
Underperform
C$71.47M470.000.37%-9.60%
$38.89M-2.40%
$35.90M-271.21%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:FPC
Falco Resources
0.25
-0.03
-10.71%
TSE:CCCM
C3 Metals
0.62
0.23
58.97%
TSE:LCE
Century Lithium
0.45
0.08
21.62%
TSE:TSK
Talisker Resources
0.50
-0.05
-9.09%
BMOOF
Blue Moon Metals
2.26
2.03
882.61%
DLPRF
DLP Resources
0.28
-0.03
-9.68%

Falco Resources Corporate Events

Business Operations and StrategyRegulatory Filings and Compliance
Falco Resources Advances Horne 5 Project Amidst Strong Public Support
Neutral
Mar 26, 2025

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.

Business Operations and StrategyRegulatory Filings and Compliance
Strong Public Support for Falco’s Horne 5 Project
Positive
Mar 18, 2025

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.

Regulatory Filings and Compliance
Falco Resources Faces Environmental Compliance Challenges for Horne 5 Project
Negative
Mar 3, 2025

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.

Regulatory Filings and Compliance
Falco Resources Faces Environmental Compliance Challenges for Horne 5 Project
Negative
Mar 3, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.