Geomega Resources (GMA) AI Stock Analysis

• Market Cap: C$12.91M
• Dividend Yield: N/A
• Average Volume (3M): 52.03K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.51
• Revenue Growth: -83.85%
• EPS Growth: -24.32%
• Country: CA
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): -0.01
• Shares Outstanding: 143,401,520
• 10 Day Avg. Volume: 53,047
• 30 Day Avg. Volume: 52,034
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 40.00
• Price to Cash Flow (P/CF): 5.10
• P/FCF Ratio: 11.10
• 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

Geomega Resources faces significant financial challenges with negative cash flow and profitability issues. However, recent financing efforts to support strategic initiatives in rare earth recycling provide a positive outlook. Technical indicators suggest a potential upward momentum. Valuation remains a concern due to negative earnings.

Geomega Resources Business Overview & Revenue Model

Company Description

Geomega Resources (GMA) is a Canadian-based company focused on the sustainable extraction, separation, and recycling of rare earth elements. Operating within the mining and materials sector, Geomega is pioneering environmentally-friendly technologies that aim to reduce the environmental impact of mining activities. The company is primarily engaged in the development of projects that leverage its proprietary ISR (Innord Separation of Rare Earths) technology to produce rare earth oxides, which are critical components used in various high-tech and clean energy applications.

How the Company Makes Money

Geomega Resources generates revenue through the production and sale of rare earth oxides, which are extracted and refined using its proprietary ISR technology. This technology allows the company to efficiently separate and purify rare earth elements, providing a competitive edge in the marketplace. Key revenue streams include selling these refined materials to manufacturers in industries such as electronics, renewable energy, and automotive, where rare earth elements are essential for the production of items like electric vehicles and wind turbines. Additionally, the company may form strategic partnerships with other firms to enhance its operational capabilities and increase sales channels. Cost reductions achieved through its environmentally sustainable processes also contribute to the company's profitability.

Geomega Resources Financial Statement Overview

Summary

Geomega Resources faces significant challenges in profitability and cash flow generation. Consistent net losses, declining revenue, and negative cash flow indicate operational inefficiencies. While the balance sheet shows some stability with a solid equity base, the overall financial outlook is strained.

Income Statement

Geomega Resources shows a challenging financial trajectory with consistent net losses. The TTM revenue has declined significantly compared to the previous annual period, indicating a negative growth trend. Negative gross profit and EBIT margins highlight operational inefficiencies and lack of profitability, which are concerning for potential investors.

Balance Sheet

The company's debt-to-equity ratio indicates moderate leverage, which is manageable but could become a risk if profitability doesn't improve. However, the equity ratio is relatively strong, suggesting a solid base of equity financing. The declining stockholder's equity over time is a point of concern, potentially indicating ongoing financial stress.

Cash Flow

Operating cash flow remains negative, which is a critical issue. The free cash flow demonstrates a negative growth trend, indicating limited capacity to generate surplus cash. The cash flow situation constrains the company's ability to fund operations or invest in growth without external financing.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
120.34K	464.19K	598.47K	131.87K	0.00	0.00
	Gross Profit
-221.97K	40.79K	504.17K	51.57K	-80.29K	-30.11K
	EBIT
-3.34M	-3.47M	-1.06M	-1.46M	-1.22M	-1.38M
	EBITDA
-1.51M	-1.28M	-1.01M	-1.04M	-1.14M	-904.33K
	Net Income Common Stockholders
-1.97M	-2.02M	-1.40M	-1.44M	-1.45M	-1.53M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.24M	2.15M	4.39M	5.08M	3.39M	485.78K
	Total Assets
3.61M	7.92M	9.36M	7.51M	5.75M	3.13M
	Total Debt
0.00	2.24M	2.44M	747.80K	811.42K	849.51K
	Net Debt
-438.94K	189.50K	-1.36M	-4.34M	-2.58M	363.73K
	Total Liabilities
317.58K	4.31M	4.09M	1.07M	1.03M	1.15M
	Stockholders Equity
3.29M	3.61M	5.28M	6.44M	4.72M	1.98M
Cash Flow		Free Cash Flow
-2.02M	-2.94M	-1.71M	-991.64K	-932.51K	-1.33M
	Operating Cash Flow
-33.07K	-1.22M	-437.61K	-886.64K	-915.35K	-1.31M
	Investing Cash Flow
-1.11M	-593.91K	-853.38K	-47.18K	32.84K	320.64K
	Financing Cash Flow
-25.47K	61.36K	5.19K	2.63M	3.79M	1.45M

Geomega Resources Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.09
• 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:GMA, the sentiment is Negative. The current price of 0.09 is below the 20-day moving average (MA) of 0.09, above the 50-day MA of 0.09, and below the 200-day MA of 0.09, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 55.64 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:GMA.

Geomega Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GMA	55 Neutral	C$12.91M	―	-58.91%	―	-83.85%	-24.32%
LGO	50 Neutral	$126.94M	―	-24.10%	―	-36.34%	-66.53%
Sector *	47 Neutral	$2.49B	-2.97	-22.79%	3.51%	4.13%	-28.98%
AVL	42 Neutral	$15.37M	―	-5.23%	―	―	-11500.00%
NOU	39 Underperform	C$330.41M	―	-70.44%	―	―	-13.44%
NAM	38 Underperform	$5.83M	―	-5.92%	―	―	-10.16%

Geomega Resources Corporate Events

Geomega Resources Secures $2M Financing to Advance Rare Earth Recycling

Geomega Resources Inc. has successfully closed a $2 million convertible debenture financing to support the construction of a rare earth magnet recycling demonstration plant and the development of new laboratories in its Saint-Hubert facility. This financing, led by prominent investors, is part of Geomega’s strategy to advance its sustainable technologies for waste valorization and the production of critical metals, positioning the company to better serve its stakeholders and the broader market.