Fortune Minerals (FT) AI Stock Analysis

• Market Cap: C$31.69M
• Dividend Yield: N/A
• Average Volume (3M): 492.50K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.03
• Revenue Growth: N/A
• EPS Growth: -20.34%
• Country: CA
• Employees: 3
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Industrial Materials
• EPS (TTM): N/A
• Shares Outstanding: 528,136,840
• 10 Day Avg. Volume: 411,188
• 30 Day Avg. Volume: 492,501
• PEG Ratio: 0.30
• Price to Book (P/B): -2.44
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -17.19
• 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: C$0.42
• Price Target Upside: 600.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 36 Underperform
• Price Target: ―

Fortune Minerals' overall stock score is adversely affected by its weak financial performance, characterized by significant losses, negative equity, and cash flow difficulties. Despite some positive technical momentum and recent corporate developments in the NICO Project, these factors are overshadowed by the company's precarious financial position and negative valuation metrics.

Fortune Minerals Business Overview & Revenue Model

Company Description

Fortune Minerals Limited is a North American mining company focused on the exploration and development of mineral properties. The company primarily operates in the mining sector, with a core emphasis on producing high-quality cobalt, gold, bismuth, and copper concentrates. Fortune Minerals is engaged in the development of the NICO cobalt-gold-bismuth-copper project, a vertically integrated operation that aims to provide ethically sourced materials essential for various industries, including renewable energy, automotive, and electronics sectors.

How the Company Makes Money

Fortune Minerals makes money through the exploration, development, and eventual sale of mineral resources extracted from its mining projects. The company's primary revenue streams are anticipated from the sale of cobalt, gold, bismuth, and copper concentrates. These minerals are sold to various industries, including technology, automotive, and renewable energy sectors, where they are used in manufacturing batteries, electronics, and other high-demand products. Additionally, Fortune Minerals may enter into strategic partnerships or off-take agreements with other companies to secure long-term revenue commitments and optimize its supply chain. The company’s earnings are influenced by global commodity prices, operational efficiency, and the successful advancement of its mining projects.

Fortune Minerals Financial Statement Overview

Summary

Fortune Minerals is facing significant financial challenges across all key financial metrics. The company struggles with revenue generation and profitability, as evidenced by persistent losses and negative margins. The balance sheet is weakened by high debt levels and negative equity, raising concerns about financial sustainability. Cash flow issues further exacerbate the situation, pointing to potential liquidity risks. Overall, Fortune Minerals is in a precarious financial position with urgent need for strategic intervention.

Income Statement

Fortune Minerals has struggled with revenue generation, reporting minimal to zero revenue over multiple years. The TTM data shows a slight revenue generation but a significant negative gross profit, indicating cost issues. Net profit margins are deeply negative, reflecting consistent losses. The company has been unable to generate positive EBIT and EBITDA margins, indicating operational inefficiencies.

Balance Sheet

The balance sheet reveals a concerning financial structure with negative equity in the latest TTM period, indicating insolvency risk. The debt-to-equity ratio is irrelevant with negative equity, but total debt is significantly high relative to assets. The consistent decline in stockholders' equity over the periods further highlights financial instability.

Cash Flow

Cash flow analysis shows negative operating and free cash flows, indicating challenges in generating cash from operations. The company relies heavily on financing activities to manage its cash needs, suggesting potential liquidity issues. The negative free cash flow to net income ratio reaffirms the cash flow difficulties.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
20.51K	0.00	0.00	0.00	0.00	0.00
	Gross Profit
-46.02K	-69.86K	-58.14K	-60.89K	-26.42K	-20.49K
	EBIT
-2.58M	-1.69M	-2.13M	-950.86K	-904.14K	-1.49M
	EBITDA
-2.43M	-1.48M	-359.87K	-783.53K	-347.22K	-1.49M
	Net Income Common Stockholders
-3.61M	-2.85M	-61.70M	-4.26M	-3.15M	-3.88M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.59M	673.63K	78.65K	1.80M	1.08M	2.10M
	Total Assets
4.82M	1.56M	46.45M	78.61M	76.34M	76.81M
	Total Debt
12.73M	9.50M	8.31M	13.08M	10.34M	8.63M
	Net Debt
11.14M	8.82M	8.23M	11.28M	9.26M	6.52M
	Total Liabilities
16.22M	10.02M	8.57M	14.75M	12.16M	11.05M
	Stockholders Equity
-11.40M	-8.46M	37.87M	63.86M	64.18M	65.77M
Cash Flow		Free Cash Flow
-1.69M	-1.38M	-1.54M	-908.04K	-614.56K	-2.58M
	Operating Cash Flow
-86.52K	-1.21M	-1.20M	-814.59K	-568.22K	-1.92M
	Investing Cash Flow
-1.60M	-185.59K	-726.33K	-1.37M	-646.80K	-1.07M
	Financing Cash Flow
2.61M	1.99M	204.32K	2.91M	189.00K	1.48M

Fortune Minerals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.06
• 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:FT, the sentiment is Positive. The current price of 0.06 is below the 20-day moving average (MA) of 0.06, above the 50-day MA of 0.06, and above the 200-day MA of 0.05, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 49.41 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:FT.

Fortune Minerals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PGE	53 Neutral	C$61.72M	―	-79.38%	―	―	34.27%
Sector *	50 Neutral	$1.98B	-1.07	-21.34%	3.71%	2.03%	-30.65%
PGZ	48 Neutral	C$34.96M	―	-69.28%	―	―	49.63%
AGX	46 Neutral	C$35.60M	―	-17.86%	―	45.07%	75.60%
ZNG	40 Underperform	$64.51M	―	-43.09%	―	―	-16.90%
FT	36 Underperform	C$31.69M	―	-20.64%	―	―	-20.34%
NICO	18 Underperform	$31.27M	―		―	―	8.44%

Fortune Minerals Corporate Events

Fortune Minerals Updates on NICO Project Amid Rising Commodity Prices

Fortune Minerals Limited has announced significant developments in the commodity prices of metals involved in its NICO Project. The recent surge in bismuth prices, reaching a 17-year high, and gold trading at historic highs, highlight the project’s potential to enhance domestic supply chains for critical minerals. The geopolitical climate and trade disputes have increased demand for safe-haven assets like gold, while China’s export restrictions on bismuth underscore the importance of Fortune’s North American production in mitigating supply chain vulnerabilities.