Geomega Resources (GMA) AI Stock Analysis

• Market Cap: C$52.07M
• Dividend Yield: N/A
• Average Volume (3M): 352.32K
• Price to Earnings (P/E): 7.3
• Beta (1Y): 1.78
• Revenue Growth: -100.00%
• EPS Growth: -33.58%
• Country: CA
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): 0.01
• Shares Outstanding: 165,299,300
• 10 Day Avg. Volume: 608,423
• 30 Day Avg. Volume: 352,324
• PEG Ratio: -0.30
• Price to Book (P/B): 12.14
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.66
• 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$0.31 ▼(-18.42% Downside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

The score is held down primarily by weak financial performance—persistent losses and material negative operating/free cash flow—despite improved revenue and strong gross margins. Technicals are relatively supportive with price above major moving averages, but mixed momentum (slightly negative MACD) and limited valuation support due to negative earnings keep the overall score below average.

Positive Factors

High gross margin & revenue uptick

TTM revenue rising to ~$1.78M alongside an ~81% gross margin suggests the company captures favorable pricing or product mix in REE activities. Sustained high gross margins provide durable capacity to fund R&D and scale operations as fixed costs are absorbed, aiding the path to profitability.

Proprietary separation technology

Ownership of the Innord ISR separation process plus the Montviel rare‑earth project gives Geomega differentiated technology and asset optionality. If the ISR scales and is licensed, it can generate recurring licensing/processing revenues and create a lasting competitive moat in REE processing.

Improved leverage and equity base

Leverage falling to roughly 1.0 debt/equity from ~2.3 and rebuilt equity strengthens the capital base and reduces insolvency risk. A healthier balance sheet increases flexibility to fund project milestones or enter partnerships without immediate distress financing, supporting multi-stage development.

Negative Factors

Negative operating and free cash flow

Material negative operating cash flow (~-2.5M TTM) and deeply negative free cash flow (~-6.7M TTM) indicate ongoing cash burn that is structural until commercial revenues ramp. Continued negative cash generation forces reliance on external funding, raising dilution and execution risk for projects.

Persistent unprofitability and negative returns

A multi-year pattern of losses, negative EBIT and net income, and negative ROE show the business has not converted revenue gains into profitable operations. Structural unprofitability limits internal reinvestment, increases financing needs, and elevates long‑term risk if operating leverage is not achieved.

Unproven recurring revenue model

Public disclosures lack confirmed offtake contracts, licensing or steady production sales, leaving the revenue model unproven. This structural uncertainty heightens execution risk: until commercial contracts materialize, cash flow predictability and the value of ISR commercialization remain uncertain.

Geomega Resources Business Overview & Revenue Model

Company Description

Geomega Resources Inc. engages in the acquisition, evaluation, and exploration of mining properties in Canada. The company primarily explores for rare earth elements and niobium deposits. It owns a 100% interest in the Montviel property comprising 149 mining claims covering an area of approximately 8,275 hectares located at the Northern Quebec. The company was incorporated in 2008 and is based in Boucherville, Canada.

How the Company Makes Money

Geomega Resources generates revenue primarily through the commercialization of its ISR technology, which is designed to separate and recover rare earth elements from mining and industrial waste streams. The company's revenue streams include licensing agreements, where third-party companies pay for the right to use its proprietary technology, and direct sales of rare earth oxides and metals. Geomega also engages in strategic partnerships and joint ventures to expand its market reach and enhance its technological capabilities. These collaborations often include revenue-sharing arrangements and funding contributions from partners, contributing to the company's earnings.

Geomega Resources Financial Statement Overview

Summary

Revenue has improved TTM (~1.78M) with strong gross margin (~81%), but the company remains unprofitable (negative net income and EBIT) with negative ROE and significant cash burn (TTM operating cash flow ~-2.5M; free cash flow ~-6.7M). Balance-sheet leverage has improved (debt-to-equity ~1.0), but overall financial health is still constrained by losses and negative cash flow.

Income Statement

TTM (Trailing-Twelve-Months) revenue improved to ~1.78M versus very low/zero levels in prior years, and gross margin is strong (~81%), suggesting better pricing or mix. However, profitability remains weak: net income is still negative (about -0.32M TTM) and operating results are inconsistent (EBIT negative TTM). The company has a multi-year pattern of losses, indicating the business has not yet translated revenue gains into sustained bottom-line profitability.

Balance Sheet

Leverage is moderate in TTM (Trailing-Twelve-Months) with debt roughly in line with equity (debt-to-equity ~1.0), an improvement versus the most recent annual period where leverage was elevated (~2.3). Equity has rebuilt versus that annual snapshot, supporting the capital base. The key weakness is returns: return on equity remains meaningfully negative, reflecting ongoing losses and limiting balance-sheet quality despite the improved leverage profile.

Cash Flow

Cash generation remains a clear pressure point. TTM (Trailing-Twelve-Months) operating cash flow is negative (~-2.5M) and free cash flow is deeply negative (~-6.7M), indicating continued cash burn. While free cash flow growth is shown as positive TTM, the absolute level is still materially negative, implying the company likely relies on external funding or balance-sheet capacity to sustain operations and investment.

Breakdown	TTM	May 2025	May 2024	May 2023	Aug 2022	Aug 2021
Income Statement
Total Revenue	1.78M	0.00	40.79K	598.47K	131.87K	0.00
Gross Profit	1.43M	-345.53K	40.79K	504.17K	51.57K	-80.29K
EBITDA	365.15K	-1.97M	-3.35M	-1.20M	-1.28M	-1.08M
Net Income	-318.41K	-2.58M	-2.02M	-1.40M	-1.44M	-1.45M
Balance Sheet
Total Assets	11.72M	7.68M	7.92M	9.36M	7.51M	5.75M
Cash, Cash Equivalents and Short-Term Investments	3.94M	1.02M	2.15M	4.39M	5.08M	3.39M
Total Debt	6.19M	3.90M	2.24M	2.44M	747.80K	811.42K
Total Liabilities	5.30M	5.97M	4.31M	4.09M	1.07M	1.03M
Stockholders Equity	6.42M	1.71M	3.61M	5.28M	6.44M	4.72M
Cash Flow
Free Cash Flow	-6.71M	-5.68M	-2.94M	-1.71M	-991.64K	-932.51K
Operating Cash Flow	-2.52M	-2.19M	-1.22M	-437.61K	-886.64K	-915.35K
Investing Cash Flow	-1.11M	-840.89K	-593.91K	-853.38K	-47.18K	32.84K
Financing Cash Flow	5.43M	1.98M	61.36K	5.19K	2.63M	3.79M

Geomega Resources Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.38
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 0.38 is above the 20-day moving average (MA) of 0.34, above the 50-day MA of 0.36, and above the 200-day MA of 0.29, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.77 is Neutral, neither overbought nor oversold. The STOCH value of 19.79 is Positive, 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
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
AVL	52 Neutral	C$50.08M	-5.48	-4.26%	―	―	-760.00%
LCE	52 Neutral	C$80.16M	-13.48	-4.48%	―	―	27.68%
NMI	51 Neutral	C$58.15M	-10.29	-3.86%	―	―	―
WHY	48 Neutral	C$44.37M	-12.73	―	―	―	8.06%
GMA	47 Neutral	C$52.07M	7.33	-102.86%	―	-100.00%	-33.58%
AMY	45 Neutral	C$25.90M	-15.13	-5.19%	―	―	93.75%

Geomega Resources Corporate Events

Geomega Advances Quebec Rare Earth Magnet Recycling Plant and Extends Warrants

Geomega Resources reported further progress on the construction of its rare earth magnet recycling demonstration plant in Saint-Hubert, Quebec, with all long-lead process equipment delivered and largely installed, conveyors now on site, and a piping contract awarded as mechanical, electrical and control system work advances alongside ongoing environmental permitting. The company said the facility, designed to process end-of-life NdFeB magnets into key rare earth oxides, is expected to be Quebec’s first rare earth magnet recycling demonstration plant and a key industrial-scale showcase for Geomega’s proprietary technology, which could underpin future commercial deployments and support a more sustainable and secure rare earth supply chain, while it also seeks TSX Venture Exchange approval to extend the expiry of 704,028 warrants by one year and clarifies that its amended Omnibus Incentive Plan now reserves up to 10% of outstanding shares for all equity-based awards under a single rolling plan.

The most recent analyst rating on (TSE:GMA) stock is a Hold with a C$0.34 price target. To see the full list of analyst forecasts on Geomega Resources stock, see the TSE:GMA Stock Forecast page.

Geomega Resources Expands with New R&D Facility to Boost Critical Metal Technologies

Geomega Resources announced the establishment of a new integrated R&D and piloting facility in Saint-Hubert, supported by a $750,000 federal contribution under the Regional Economic Growth through Innovation (REGI) program. This facility will consolidate the company’s operations, significantly expand R&D and commercial piloting capacities, and accelerate technology development and commercialization. The project highlights Geomega’s strategic efforts to strengthen Canada’s critical metals ecosystem, enhance efficiency and collaboration, and support growing market demands, particularly in industries like rare earth recycling and bauxite residue valorization.