Forsys Metals (FSY) AI Stock Analysis

• Market Cap: C$90.55M
• Dividend Yield: N/A
• Average Volume (3M): 694.61K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.62
• Revenue Growth: N/A
• EPS Growth: 49.12%
• Country: CA
• Employees: 12
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): >-0.01
• Shares Outstanding: 244,725,460
• 10 Day Avg. Volume: 1,030,912
• 30 Day Avg. Volume: 694,613
• PEG Ratio: 0.90
• Price to Book (P/B): 6.09
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -12.89
• 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$0.30 ▼(-7.50% Downside)

The score is held down primarily by weak fundamentals: no revenue, ongoing losses, and persistent negative operating/free cash flow. A debt-free balance sheet and improved recent loss/cash-burn trends provide some support, while technicals remain weak with the stock below key moving averages. The recent C$18.9M financing is a constructive positive for liquidity and project execution but does not yet resolve the lack of operating cash generation.

Positive Factors

Positive Ore Sorting Results

The positive ore sorting results could enhance processing efficiency and reduce operating costs, potentially improving long-term profitability and competitiveness in the uranium market.

Promising Drilling Results

The promising drilling results indicate strong potential to expand and upgrade resources, enhancing the project's economic viability and extending its mine life, which is crucial for long-term growth.

Strong Equity Position

A strong equity position with no debt provides financial stability and flexibility, allowing the company to invest in project development and withstand market fluctuations.

Negative Factors

Zero Revenue Generation

The lack of revenue generation indicates operational challenges and an inability to monetize assets, which could hinder long-term financial sustainability and growth prospects.

Negative Cash Flow

Ongoing negative cash flow suggests persistent cash burn, which can strain resources and limit the company's ability to fund project development or respond to market opportunities.

Declining Total Assets

A decline in total assets could reflect challenges in asset management and may impact the company's ability to leverage its resources for growth and operational efficiency.

Forsys Metals Business Overview & Revenue Model

Company Description

Forsys Metals Corp., an exploration stage company, engages in the acquisition, exploration, and development of mineral properties in Namibia, Africa. The company explores for uranium and gold mineral properties. Its flagship project is Norasa Uranium Project, which includes the Valencia project covering an area of 735.6 hectares located in the south-west of the town of Usakos in central-west Namibia; and the Namibplaas project located in the northeast of Valencia. The company was formerly known as Forsys Technologies Inc. and changed its name to Forsys Metals Corp. in June 2005. Forsys Metals Corp. was incorporated in 1985 and is headquartered in Toronto, Canada.

How the Company Makes Money

Forsys Metals makes money through the exploration and development of its uranium assets, which are poised to supply the global nuclear power industry. The company's revenue model hinges on the successful advancement of its uranium projects to a stage where they can be mined and sold. Key revenue streams include potential sales of uranium extracted from its flagship Norasa Project once operational. Additionally, Forsys Metals may engage in partnerships or joint ventures with other mining companies or energy providers to fund and expedite project development. The company's earnings are influenced by uranium market prices, regulatory approvals, and its ability to manage exploration and operational costs efficiently.

Forsys Metals Financial Statement Overview

Summary

Forsys Metals presents a concerning financial picture with zero revenue generation and persistent losses. The strong equity position is a positive aspect, yet the ongoing cash burn and lack of revenue cast doubts on sustainability. The company needs to address its operational challenges to achieve financial stability.

Income Statement

The company has not generated any revenue over the past several years, indicating a lack of operational income. The net income is consistently negative, and the EBIT and EBITDA margins are not applicable due to the absence of revenue. This highlights the company's struggle to achieve profitability and growth.

Balance Sheet

The balance sheet shows a strong equity position with no debt, as indicated by the debt-to-equity ratio of zero. The equity ratio remains high, suggesting financial stability. However, the declining total assets over time may indicate potential issues in asset management.

Cash Flow

The company is experiencing negative operating cash flow, and its free cash flow is significantly negative, suggesting ongoing cash burn. Free cash flow has deteriorated considerably, and there is a lack of positive cash flow generation from operations.

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	0.00	0.00	0.00	0.00	0.00	0.00
EBITDA	-2.06M	-2.61M	383.40K	-9.77M	-3.85M	-766.57K
Net Income	-2.37M	-2.66M	-5.82M	1.96M	-3.86M	-764.22K
Balance Sheet
Total Assets	26.27M	21.62M	24.27M	27.32M	24.86M	14.20M
Cash, Cash Equivalents and Short-Term Investments	2.82M	3.33M	12.41M	16.92M	12.56M	876.97K
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	358.54K	342.73K	2.04M	2.15M	78.84K	142.81K
Stockholders Equity	25.91M	21.28M	22.24M	25.17M	24.78M	14.05M
Cash Flow
Free Cash Flow	-2.86M	-10.05M	-4.78M	-3.18M	-1.42M	-780.30K
Operating Cash Flow	-2.86M	-4.19M	-2.71M	-2.86M	-1.35M	-744.66K
Investing Cash Flow	-5.07M	-5.56M	-1.47M	6.87M	-69.93K	-34.26K
Financing Cash Flow	5.43M	629.00K	0.00	0.00	13.12M	991.61K

Forsys Metals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.32
• 50DMA: Positive
• 100DMA: Negative
• 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:FSY, the sentiment is Positive. The current price of 0.32 is above the 20-day moving average (MA) of 0.31, above the 50-day MA of 0.31, and below the 200-day MA of 0.49, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 69.74 is Neutral, neither overbought nor oversold. The STOCH value of 78.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:FSY.

Forsys Metals 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%
DEFN	52 Neutral	C$109.82M	-14.74	-11.39%	―	―	-42.86%
SAG	50 Neutral	C$76.03M	-4.39	-58.10%	―	―	-919.03%
FSY	47 Neutral	C$90.55M	-34.35	-9.83%	―	―	49.12%
CDB	47 Neutral	C$63.90M	-3.66	-309.54%	―	―	-8.78%
AOT.H	41 Neutral	C$29.45M	-0.12	-132.52%	―	-93.18%	-1212.96%

Forsys Metals Corporate Events

Forsys Metals Secures C$18.9 Million in Private Placement to Advance Norasa Project

Forsys Metals Corp. has successfully closed a ‘bought deal’ private placement, raising C$18.9 million to fund its Norasa Project in Namibia and for general corporate purposes. The offering, managed by Red Cloud Securities Inc., involved the sale of 33,796,000 units, with each unit comprising one common share and half a warrant. This strategic financial move is expected to bolster Forsys’s position in the uranium industry, aiding in the advancement of its key project and potentially enhancing shareholder value.