Gensource Potash (GSP) AI Stock Analysis

• Market Cap: C$33.81M
• Dividend Yield: N/A
• Average Volume (3M): 216.71K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.22
• Revenue Growth: N/A
• EPS Growth: 35.92%
• Country: CA
• Employees: 4
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): >-0.01
• Shares Outstanding: 450,748,170
• 10 Day Avg. Volume: 433,745
• 30 Day Avg. Volume: 216,710
• PEG Ratio: 0.18
• Price to Book (P/B): 2.70
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -41.39
• 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: 49 Neutral
• Price Target: C$0.08 ▲(7.14% Upside)

The score is held down primarily by very weak financial fundamentals (no revenue, persistent losses, and ongoing cash burn with declining equity). Technicals provide some offset with improving short- to mid-term momentum, but valuation remains hard to justify given negative earnings and no dividend support.

Positive Factors

Strategic Asset Location

Operating in Saskatchewan gives Gensource exposure to one of the world’s core potash jurisdictions. That location supports long-term access to established mining infrastructure, skilled services and regional fertilizer markets, enhancing project viability if development continues.

Balance Sheet Cushion

A meaningful equity base and moderate leverage provide durable financial cushion while the company advances development. This structural capital position improves ability to finance near-term project milestones or negotiate strategic partnerships without immediate insolvency risk.

Improving Cash Outflows

Year-over-year reduction in losses and cash outflows indicates management progress in reducing burn or optimizing spending. Sustained improvement can lengthen runway, lower near-term financing needs, and increase the probability of reaching development milestones over coming months.

Negative Factors

No Revenue / Persistent Losses

Lack of operating revenue means the company has yet to demonstrate a commercial business model. Persistent, sizable losses erode investor value and make cash runway wholly dependent on external financing, raising medium-term execution and viability risk.

Negative Operating and Free Cash Flow

Consistent negative operating and free cash flow is a structural weakness that forces repeated reliance on equity or debt. Over months this increases dilution or leverage risk, constraining flexibility to fund construction or secure partner offtake without costly financing terms.

Eroding Equity and Rising Debt

Declining equity together with rising debt reflects value erosion and growing leverage. Structurally this reduces financial resilience, raises refinancing risk, and can impair the company's ability to secure favorable project financing or strategic partners over the medium term.

Gensource Potash Business Overview & Revenue Model

Company Description

Gensource Potash Corporation, together with its subsidiaries, operates as a fertilizer development company in Canada. The company focuses on potash development activities. It holds interests in the Tugaske Project located in Saskatchewan; and Vanguard Area, as well as the Lazlo projects located in central Saskatchewan. Gensource Potash Corporation is headquartered in Saskatoon, Canada.

How the Company Makes Money

Gensource Potash makes money by developing potash mining projects and selling the extracted potash to the agricultural industry. Its revenue model involves the production and sale of potash, which is used as a fertilizer by farmers to enhance crop yields. The company's innovative mining techniques, such as selective solution mining, aim to reduce environmental impact and increase efficiency, potentially lowering production costs. Key revenue streams include the sale of potash to agricultural businesses and partnerships with other companies in the fertilizer industry to ensure a stable distribution network. The success of their projects and the global demand for potash as an essential agricultural input are significant factors contributing to their earnings.

Gensource Potash Financial Statement Overview

Summary

Gensource Potash is facing significant financial challenges with no revenue, persistent losses, and negative cash flows. The balance sheet reveals increasing liabilities and decreasing equity, indicating potential financial instability.

Income Statement

Gensource Potash has reported no revenue over multiple periods, indicating operational challenges or a developmental stage. The company struggles with negative EBIT and net income, reflecting operational inefficiencies and high costs. The consistent lack of revenue growth and profitability margins poses a risk to financial sustainability.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, suggesting a balanced approach to financing. However, the decline in stockholders' equity over time and increasing liabilities are concerning. The equity ratio is decreasing, which could indicate rising financial risk if this trend continues.

Cash Flow

Cash flow analysis reveals negative free cash flow and operating cash flow, which are significant concerns. The company is heavily reliant on external financing to manage its cash requirements, as seen in the volatile cash flow from financing activities. This reliance on external financing could present liquidity risks.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00	0.00
Gross Profit	-13.86K	-37.12K	-50.15K	-52.79K	-55.14K	-59.32K
EBITDA	-2.49M	-2.44M	-4.01M	-2.10M	-4.77M	-922.98K
Net Income	-2.94M	-2.90M	-6.58M	-2.49M	-4.88M	-1.00M
Balance Sheet
Total Assets	24.01M	23.63M	23.67M	24.95M	19.74M	14.52M
Cash, Cash Equivalents and Short-Term Investments	85.13K	65.83K	412.45K	346.05K	1.72M	755.25K
Total Debt	6.85M	5.49M	5.51M	5.26M	3.08M	56.63K
Total Liabilities	14.25M	12.79M	10.48M	9.50M	3.36M	537.48K
Stockholders Equity	9.76M	10.84M	13.19M	15.45M	16.38M	13.98M
Cash Flow
Free Cash Flow	-787.73K	-706.26K	-2.57M	-4.69M	-6.99M	-6.48M
Operating Cash Flow	-466.46K	-530.82K	-1.88M	-1.42M	-3.78M	-2.18M
Investing Cash Flow	-337.34K	-364.63K	-692.59K	-3.27M	-3.21M	-4.30M
Financing Cash Flow	818.16K	549.31K	2.64M	3.32M	7.95M	-259.66K

Gensource Potash Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.07
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:GSP, the sentiment is Positive. The current price of 0.07 is above the 20-day moving average (MA) of 0.07, above the 50-day MA of 0.07, and below the 200-day MA of 0.08, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 63.17 is Neutral, neither overbought nor oversold. The STOCH value of 116.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:GSP.

Gensource Potash 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%
LCE	53 Neutral	C$77.68M	-35.80	-4.48%	―	―	27.68%
VUL	51 Neutral	C$28.45M	115.00	0.62%	―	―	―
GSP	49 Neutral	C$33.81M	-11.36	-28.86%	―	―	35.92%
DAN	48 Neutral	C$41.67M	-3.22	-51.05%	―	―	-119.53%
ULTH	46 Neutral	C$16.63M	-4.94	-22.36%	―	―	-4.68%
FOX	43 Neutral	C$51.82M	―	―	―	―	―

Gensource Potash Corporate Events

Gensource Potash Advances Tugaske Project Amidst Favorable Market Conditions

Gensource Potash Corporation has announced significant progress on its Tugaske Project in Saskatchewan, having secured land purchase options and completed due diligence with a major Southeast Asian conglomerate. These developments align with favorable trade agreements between Canada and ASEAN countries, enhancing Gensource’s international initiatives. The company is strategically advancing its operational and funding strategies to capitalize on robust potash market fundamentals, including strong pricing and supply constraints, which highlight the importance of new production sources like Gensource’s efficient model.