GFG Resources (GFG) AI Stock Analysis

• Market Cap: C$44.64M
• Dividend Yield: N/A
• Average Volume (3M): 138.64K
• Price to Earnings (P/E): 23.6
• Beta (1Y): 0.51
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: CA
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 68
• Industry: Gold
• EPS (TTM): >-0.01
• Shares Outstanding: 282,528,170
• 10 Day Avg. Volume: 85,845
• 30 Day Avg. Volume: 138,637
• PEG Ratio: 0.27
• Price to Book (P/B): 0.59
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.50
• 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: 57 Neutral
• Price Target: ―

GFG Resources' stock score is influenced by its exploration phase, resulting in no revenue and reliance on external financing. The strong balance sheet and recent successful financings enhance stability and growth prospects. Technical indicators show positive momentum, but the high P/E ratio and lack of earnings present valuation risks.

GFG Resources Business Overview & Revenue Model

Company Description

GFG Resources Inc., an exploration company, engages in the acquisition and exploration of mineral properties in Canada and the United States. The company primarily explores for gold deposits. It holds 100% interests in the Goldarm Property, Pen gold, and Dore gold projects located in Ontario; and the Rattlesnake Hills gold project situated in Natrona County, Wyoming. The company is headquartered in Saskatoon, Canada.

How the Company Makes Money

GFG Resources makes money primarily through the exploration and potential development of gold resources. The company's revenue model involves identifying and acquiring prospective gold properties, conducting exploration activities to assess the viability of these sites, and then either developing these sites into productive mines or selling/partnering with larger mining companies for further development. Revenue can be generated through the sale of gold produced from developed mines, joint ventures, or the sale of interests in its projects. GFG Resources may also receive funding through equity financing from investors interested in its exploration activities and future potential earnings from its projects.

GFG Resources Financial Statement Overview

Summary

GFG Resources is in the exploration phase with no revenue, impacting its income statement score. The balance sheet is strong due to minimal debt, but the lack of revenue generation poses future risks. The company relies on external financing to manage negative cash flows.

Income Statement

The company has not generated any revenue, which is common in the mining industry during exploration phases. Despite improvements in net income from the previous year, the lack of gross and net profits highlights ongoing operational challenges.

Balance Sheet

The balance sheet shows a strong equity position with minimal debt, resulting in a very low debt-to-equity ratio. However, the lack of revenue generation presents a risk if financing becomes difficult in the future.

Cash Flow

The cash flow statement indicates negative operating and free cash flow, typical for exploration companies. However, the company has managed to secure financing, which helps sustain operations despite the cash burn.

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
-35.52K	-34.90K	-34.77K	-35.85K	-40.98K	-43.17K
	EBIT
-1.50M	-1.22M	-1.04M	-1.06M	-1.07M	-1.17M
	EBITDA
2.08M	-1.03M	-11.74M	-816.00K	-339.00K	-748.00K
	Net Income Common Stockholders
1.78M	-1.25M	-11.85M	-860.00K	-391.00K	-807.00K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.84M	2.13M	3.47M	1.21M	1.57M	7.01M
	Total Assets
40.90M	35.16M	33.43M	39.03M	35.74M	37.27M
	Total Debt
33.88K	51.40K	121.94K	148.25K	88.13K	116.61K
	Net Debt
-5.30M	-2.08M	-3.35M	-1.06M	-1.49M	-6.89M
	Total Liabilities
922.69K	1.45M	1.29M	873.22K	1.04M	2.43M
	Stockholders Equity
39.98M	33.71M	32.14M	38.15M	34.71M	34.84M
Cash Flow		Free Cash Flow
-3.32M	-3.88M	-4.20M	-3.10M	-5.21M	-3.51M
	Operating Cash Flow
-1.44M	-1.51M	-1.35M	-1.32M	-1.33M	-1.22M
	Investing Cash Flow
-254.23K	-2.15M	-2.49M	-2.08M	-4.06M	-2.26M
	Financing Cash Flow
6.06M	2.32M	6.10M	3.03M	-34.07K	8.95M

GFG Resources Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.16
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:GFG, the sentiment is Negative. The current price of 0.16 is below the 20-day moving average (MA) of 0.17, below the 50-day MA of 0.18, and below the 200-day MA of 0.17, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.37 is Neutral, neither overbought nor oversold. The STOCH value of 58.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:GFG.

GFG Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GFG	57 Neutral	C$44.64M	23.58	4.81%	―	―	―
Sector *	51 Neutral	$2.04B	-1.21	-21.10%	3.95%	2.90%	-30.45%
CGC		C$58.96M	―	-520.40%	―	―	―
MGG	39 Underperform	C$103.15M	―	-52.45%	―	―	-31.18%
EFRGF		$46.14M	―		―	―	―
USGDF		$39.38M	29.03	4.57%	―	―	―
BLAGF		$50.51M	―	-18.21%	―	―	―

GFG Resources Corporate Events

GFG Resources Secures C$3 Million in Oversubscribed Financing

GFG Resources Inc. has successfully closed an oversubscribed private placement financing, raising C$3,000,000. Alamos Gold Inc. has increased its stake in GFG to 10.8% as part of the offering. The funds will bolster GFG’s exploration efforts, particularly in advancing the Aljo Gold Project and other targets in the Timmins Gold District. The company anticipates publishing results from recent drill programs, which are expected to provide valuable insights into their exploration strategy and asset potential.

Spark’s Take on TSE:GFG Stock

According to Spark, TipRanks’ AI Analyst, TSE:GFG is a Neutral.

GFG Resources’ overall score is driven by its exploration phase status, with no revenue yet, which limits its financial performance rating. However, strategic corporate events and stable technical indicators provide a more optimistic outlook. The high P/E ratio suggests future growth expectations, but it also poses valuation risks.

To see Spark’s full report on TSE:GFG stock, click here.

GFG Resources Expands Timmins Gold District Holdings with WWCC Property Acquisition

GFG Resources Inc. has issued 1,334,757 common shares to International Explorers and Prospectors Inc. as part of an option agreement to acquire a 100% interest in the WWCC Property, located near Timmins, Ontario. This strategic move enhances GFG’s presence in the Timmins Gold District, potentially strengthening its position in the gold exploration industry and offering growth opportunities for stakeholders.

Spark’s Take on TSE:GFG Stock

According to Spark, TipRanks’ AI Analyst, TSE:GFG is a Neutral.

GFG Resources faces challenges with no revenue and dependence on external financing, which is offset by strategic financial moves and positive momentum in technical indicators. The high P/E ratio suggests caution, but recent corporate events support exploration growth potential.

To see Spark’s full report on TSE:GFG stock, click here.

GFG Resources Upsizes Private Placement to Boost Exploration Efforts

GFG Resources Inc. has increased its previously announced private placement to C$3.0 million, amending the sale of premium flow-through units to include one common share and one share purchase warrant per unit. This strategic move aims to enhance the company’s financial position and support its exploration activities in the Timmins gold district, potentially impacting its market positioning and offering new opportunities for stakeholders.

Spark’s Take on TSE:GFG Stock

According to Spark, TipRanks’ AI Analyst, TSE:GFG is a Neutral.

GFG Resources shows strong potential with recent financing and exploration successes. However, the lack of revenue and reliance on external funding pose risks. Technical indicators suggest positive momentum, but valuation concerns may deter investors. The company’s strategic actions and high-grade gold findings are significant positives, contributing to the overall score.

To see Spark’s full report on TSE:GFG stock, click here.

GFG Resources Secures C$2.5 Million for Exploration Expansion

GFG Resources Inc. announced a C$2.5 million flow-through private placement to bolster its exploration initiatives. Alamos Gold Inc. will participate in the offering to maintain its 10.8% stake, reflecting confidence in GFG’s strategic direction. The financing positions GFG strongly to capitalize on opportunities, potentially impacting its market position positively. The offering is subject to regulatory approvals and is expected to close by May 2, 2025.

GFG Resources Expands Pen Gold Project and Updates Corporate Strategy

GFG Resources Inc. has acquired strategic claims within its Pen Gold Project, located west of Timmins, Ontario, for a total purchase price of C$4,500, securing 100% ownership. Additionally, the company has granted stock options to its directors and officers, allowing them to purchase up to 3,812,000 common shares, and plans to issue 111,111 common shares to the Apitipi Anicinapek Nation as part of a recent exploration agreement, pending TSX Venture Exchange approval. These strategic moves are expected to bolster GFG’s exploration capabilities and strengthen its position in the gold mining industry.

GFG Resources Expands High-Grade Gold Zones at Aljo Mine Target

GFG Resources Inc. has reported promising assay results from its ongoing drilling programs at the Aljo Mine Target, part of its Goldarm Property in Ontario’s Timmins Gold District. The drilling has confirmed high-grade gold intersections and expanded the mineralized zones, particularly in the Hangingwall and Footwall Zones. The company plans to initiate an aggressive follow-up drilling program in the second half of 2025 to further explore these promising zones. Additionally, GFG is advancing its exploration efforts at the Muskego target area, where it aims to make a new greenfield discovery, supported by sonic till sampling and an Induced Polarization survey.