Geomega Resources (GMA) AI Stock Analysis

• Market Cap: C$49.83M
• Dividend Yield: N/A
• Average Volume (3M): 352.32K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.88
• 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: 148,756,200
• 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: 42 Neutral
• Price Target: C$0.33 ▼(-12.89% Downside)

The score is primarily held back by weak financial performance—persistent losses, negative returns, and significant cash burn—despite improving revenue and strong gross margins. Technical indicators add some near-term caution (weak momentum and trading below short-term averages), while valuation is also constrained by a negative P/E and no dividend support.

Positive Factors

High Gross Margin

An ~81% gross margin indicates the company earns high value per unit sold, reflecting pricing power or advantaged processing economics. Sustained high gross margins support long-term profitability potential once fixed costs and cash burn are controlled.

Proprietary ISR Technology

Owning a proprietary rare-earth separation process (ISR) provides a durable competitive advantage in a concentrated supply chain, enabling licensing, processing partnerships, or capture of downstream margins if commercialized at scale.

Strong Revenue Growth Trend

Very strong revenue growth off a low base demonstrates improving commercial traction and market acceptance of offerings. If sustained, this trend can support scale economics and justify further investment into production or tech commercialization.

Negative Factors

Negative Cash Generation

Persistent negative operating and free cash flow signifies ongoing cash burn and reliance on external financing. Over months, this limits the company’s ability to fund development, scale operations, or commercialize ISR without dilutive or costly capital.

Multi-year Losses / Weak Returns

A multi-year pattern of losses and negative ROE indicates the company has not converted revenue gains into sustainable profitability. This undermines balance-sheet resilience and delays investor returns until operations consistently deliver positive operating income.

Uncertain Recurring Revenue Model

Lack of confirmed recurring revenue or long-term offtakes for mining/processing and no disclosed licensing income increases execution risk. Structural reliance on future project development or technology commercialization creates revenue visibility challenges over the medium term.

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 and gross margin is strong (~81%), but the business remains unprofitable (negative net income and EBIT) with meaningfully negative ROE. Cash flow is a major weakness, with negative operating cash flow (~-2.5M) and deeply negative free cash flow (~-6.7M), indicating ongoing cash burn despite somewhat improved leverage.

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

Geomega Resources Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.38
• 50DMA: Negative
• 100DMA: Positive
• 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 Neutral. The current price of 0.38 is below the 20-day moving average (MA) of 0.38, above the 50-day MA of 0.35, and above the 200-day MA of 0.27, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 43.75 is Neutral, neither overbought nor oversold. The STOCH value of 19.82 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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$58.42M	-8.33	-4.00%	―	―	-760.00%
LCE	52 Neutral	C$95.87M	-35.80	-4.48%	―	―	27.68%
NMI	51 Neutral	C$56.60M	-61.36	-3.86%	―	―	―
WHY	48 Neutral	C$52.79M	-11.64	―	―	―	8.06%
AMY	45 Neutral	C$29.78M	-30.30	-2.06%	―	―	93.75%
GMA	42 Neutral	C$49.83M	-120.69	-102.86%	―	-100.00%	-33.58%

Geomega Resources Corporate Events

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.

Geomega Resources Advances Sustainable Processing with $2.7M Funding and Bauxite Residue Innovations

Geomega Resources has raised $2.7 million through the exercise of financial instruments, reflecting strong shareholder support and confidence in its mission to develop sustainable processing technologies. At recent industry conferences, Geomega showcased its innovative multi-step processing technology for bauxite residue, which significantly reduces waste and enhances economic viability by recovering valuable metals and producing marketable by-products. The company’s progress in the Bauxite Residue to Resources Project highlights its potential to address industry challenges and underscores its strategic positioning in the market.