Geomega Resources (GMA) AI Stock Analysis

• Market Cap: C$23.66M
• Dividend Yield: N/A
• Average Volume (3M): 98.01K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.84
• Revenue Growth: -89.84%
• EPS Growth: -16.41%
• Country: CA
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Industrial Materials
• EPS (TTM): -0.01
• Shares Outstanding: 143,401,520
• 10 Day Avg. Volume: 127,160
• 30 Day Avg. Volume: 98,010
• PEG Ratio: 1.22
• Price to Book (P/B): 11.22
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -19.89
• 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

• Rating: 59 Neutral
• Price Target: C$0.00 ▼(-100.00%Downside)

Geomega Resources' overall stock score is primarily influenced by its financial struggles and valuation concerns. However, the strong technical performance and promising corporate events provide a counterbalance, suggesting potential for future improvement if financial health can be addressed.

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

Geomega Resources faces significant financial challenges with declining revenues, substantial leverage, and cash flow constraints. The income statement, balance sheet, and cash flow analysis all indicate negative trends, with negative profit margins, high debt levels, and liquidity issues.

Income Statement

Geomega Resources' income statement reveals ongoing challenges with profitability. The company has experienced a revenue decline, with TTM revenue significantly lower than previous periods. Net profit margin and EBIT margin are notably negative, indicating substantial losses. This is coupled with negative gross profit, which is concerning for the company's operational efficiency.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio, indicating potential leverage risks. Stockholders' equity has decreased over time, reflecting potential financial instability. The equity ratio remains moderate, suggesting some level of asset backing, but the declining trend in equity warrants caution.

Cash Flow

Cash flow analysis highlights negative operating cash flow and free cash flow, which indicates liquidity issues. The company's ability to generate cash from its operations is impaired, as seen in the negative free cash flow growth. The operating cash flow to net income ratio is also negative, suggesting inefficiencies in converting revenue into cash.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
62.87K	464.19K	598.47K	131.87K	0.00	0.00
	Gross Profit
-299.62K	40.79K	504.17K	51.57K	-80.29K	-30.11K
	EBIT
-3.10M	-2.11M	-1.66M	-1.46M	-1.22M	-1.38M
	EBITDA
-1.44M	-1.28M	-1.20M	-1.28M	-1.27M	-1.79M
	Net Income Common Stockholders
-2.14M	-2.02M	-1.40M	-1.44M	-1.45M	-1.53M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
243.99K	2.15M	4.39M	5.08M	3.39M	485.78K
	Total Assets
8.31M	7.92M	9.36M	7.51M	5.75M	3.13M
	Total Debt
2.23M	2.24M	2.44M	747.80K	811.42K	849.51K
	Net Debt
2.01M	189.50K	-1.36M	-4.34M	-2.58M	363.73K
	Total Liabilities
5.88M	4.31M	4.09M	1.07M	1.03M	1.15M
	Stockholders Equity
2.43M	3.61M	5.28M	6.44M	4.72M	1.98M
Cash Flow		Free Cash Flow
-3.63M	-2.94M	-1.71M	-991.64K	-932.51K	-1.33M
	Operating Cash Flow
-867.45K	-1.22M	-437.61K	-886.64K	-915.35K	-1.31M
	Investing Cash Flow
-1.80M	-593.91K	-853.38K	-47.18K	32.84K	320.64K
	Financing Cash Flow
-15.24K	61.36K	5.19K	2.63M	3.79M	1.45M

Geomega Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.16
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 0.16 is above the 20-day moving average (MA) of 0.15, above the 50-day MA of 0.14, and above the 200-day MA of 0.10, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 65.41 is Neutral, neither overbought nor oversold. The STOCH value of 63.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:GMA.

Geomega Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PLAN	70 Outperform	C$20.31M	20.97	7.85%	―	-1.12%	―
GMA	59 Neutral	C$23.66M	―	-65.04%	―	-89.84%	-16.41%
Sector *	51 Neutral	$1.99B	-1.26	-21.11%	5.30%	2.92%	-30.46%
TUK	46 Neutral	C$19.92M	―	-42.29%	―	243.57%	-251.80%
SME	40 Underperform	C$15.40M	2.80	24.42%	―	―	―
ABR	39 Underperform	C$17.75M	512.50	0.98%	―	―	85.65%

Geomega Resources Corporate Events

Geomega Advances Montviel Rare Earth Project with Enhanced Hydrometallurgical Process

Geomega Resources Inc. announced significant advancements in the hydrometallurgical process for the Montviel rare earth deposit, which aim to enhance project economics and reduce environmental impact. Key improvements include the elimination of the flotation circuit, valorization of other metals, and the recovery of various valuable products, such as high-purity iron and critical minerals concentrates. These developments are expected to make the project economically viable and environmentally sustainable, even amidst fluctuating rare earth prices, thereby strengthening Geomega’s position in the critical and strategic mineral industry.

Geomega Advances Rare Earth Magnet Recycling Plant Construction

Geomega Resources Inc. has made significant progress on its rare earth magnet recycling demonstration plant in Saint-Hubert, Quebec, with key equipment installations and electrical work nearing completion. The plant is expected to be fully constructed by the end of 2025, pending environmental permitting, and aims to start testwork soon after. This development positions Geomega as a key player in the rare earth recycling industry, potentially enhancing its market presence and offering sustainable solutions for critical metal extraction.

Geomega and Rio Tinto Advance Bauxite Residue Valorization Pilot

Geomega Resources, in collaboration with Rio Tinto, has advanced its bauxite residue valorization pilot project, which began in March 2022. The project involves three circuits aimed at reducing waste and extracting valuable materials, with Circuits 1 and 2 already showing promising results in waste reduction and material recovery. The extension of their collaboration agreement signifies continued development, particularly for Circuit 3, which focuses on extracting high-value metals. This technology not only addresses environmental concerns in the aluminum industry but also provides a sustainable supply of critical metals, potentially offering long-term financial returns for Geomega.

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.