Harfang Exploration (HAR) AI Stock Analysis

• Market Cap: C$6.16M
• Dividend Yield: N/A
• Average Volume (3M): 238.40K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.78
• Revenue Growth: N/A
• EPS Growth: 7.28%
• Country: CA
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): >-0.01
• Shares Outstanding: 87,935,790
• 10 Day Avg. Volume: 401,740
• 30 Day Avg. Volume: 238,402
• PEG Ratio: 22.41
• Price to Book (P/B): 0.31
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.18
• 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$0.09 ▲(6.25% Upside)

The score is primarily constrained by weak financial performance driven by sustained losses and meaningful cash burn, despite low leverage. Technicals are neutral-to-weak with the stock below key longer-term moving averages and a negative MACD. Offsetting these risks somewhat are constructive corporate developments (discoveries, financing, and partnerships), while valuation remains hard to frame due to negative earnings.

Positive Factors

Low leverage / balance sheet cushion

Very low debt provides durable financial flexibility for an exploration company: it reduces refinancing and insolvency risk, lets management prioritize exploration spending or partnerships, and preserves optionality to pursue earn-ins or M&A over the next 2–6 months.

Partner-funded earn-in / option agreement

A partner-funded earn-in structurally de-risks project advancement by shifting capital burden to a counterparty, enabling continued exploration without large cash outlays or dilution. This accelerates project testing and preserves the company's runway for other prospects.

Completed flow-through financing

The $1.125M flow-through raise is a durable funding event targeted to exploration, extending operational runway and enabling planned drilling programs. Tax-advantaged flow-through capital is well aligned with exploration timetables and reduces near-term dilution pressure.

Negative Factors

Persistent negative cash flow

Sustained negative operating and free cash flow forces dependence on external financing to fund drilling and G&A, creating recurring dilution risk and constraining the firm's ability to self-fund resource definition or advancement over the coming months without partner deals or new raises.

Negative gross profit and losses

Negative gross profit and persistent net losses indicate the company has not demonstrated scalable operations or operating leverage. Until exploration converts to monetizable resources or material asset sales/royalties, profitability remains structurally unattainable on existing operations.

Reliance on equity financing

Dependence on equity raises is a structural vulnerability: access to capital is tied to markets, causing potential dilution and timing risk. This limits long-term planning and increases sensitivity to external conditions for funding exploration over the next 2–6 months.

Harfang Exploration Business Overview & Revenue Model

Company Description

Harfang Exploration Inc., an exploration and evaluation stage company, primarily acquires and explores for mineral properties in Canada. The company explores for gold, copper, silver, nickel, chromium, platinum, palladium, and other metals. It focuses on the exploration and evaluation of its mineral properties in the James Bay area in the Province of Québec for precious metals. The company is headquartered in Montreal, Canada.

How the Company Makes Money

Harfang Exploration makes money through the discovery and development of mineral resources, primarily gold and silver. The company generates revenue by identifying promising mineral properties, conducting exploration activities, and advancing these projects to increase their value. Once a mineral deposit is sufficiently explored and its potential is established, Harfang may sell the property, enter into joint ventures, or develop it into a mining operation, generating income through the sale of mineral rights, royalties, or direct mining revenue. The company's earnings are significantly influenced by commodity prices, exploration success, and strategic partnerships with other mining or exploration companies.

Harfang Exploration Financial Statement Overview

Summary

Despite a low-debt balance sheet (debt-to-equity ~0.7%), financial results are dominated by persistent, very large losses (TTM net income -2.58M) and negative cash generation (TTM operating cash flow -2.99M; free cash flow -3.08M). The TTM revenue rebound is a positive signal, but negative gross profit and weak margins indicate the operating model is not yet sustainable.

Income Statement

TTM (Trailing-Twelve-Months) revenue rebounded to 26,134 (up ~448%), but profitability remains very weak: gross profit is negative (-13,744) and the company is deeply unprofitable with net income of -2.58M and highly negative operating margins. Prior annual periods show very low/near-zero revenue with recurring large losses, indicating the business has not yet demonstrated a stable revenue base or operating leverage.

Balance Sheet

Leverage is low with debt-to-equity around ~0.7% in TTM (Trailing-Twelve-Months) (total debt ~90.8k vs. equity ~13.34M), which provides financial flexibility. However, returns are negative (TTM return on equity ~-18%), reflecting ongoing losses and weak capital productivity despite a relatively strong equity cushion.

Cash Flow

Cash generation is a key weakness: TTM (Trailing-Twelve-Months) operating cash flow is -2.99M and free cash flow is -3.08M, consistent with a cash-burning profile. While free cash flow has improved versus some prior periods (positive growth rates shown), cash flow remains meaningfully negative and reliant on funding capacity rather than self-sustaining operations.

Breakdown	TTM	Dec 2024	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	26.13K	0.00	0.00	3.28K	8.16K	76.00
Gross Profit	-13.74K	-29.91K	-39.88K	3.28K	8.16K	-507.00
EBITDA	-2.80M	-2.89M	-2.70K	-3.94M	-4.53M	-2.30M
Net Income	-2.58M	-2.19M	-2.13K	-3.53M	-3.41M	-1.66M
Balance Sheet
Total Assets	13.62M	16.59M	15.86M	17.19M	8.92M	10.02M
Cash, Cash Equivalents and Short-Term Investments	1.30M	6.43M	3.92M	7.41M	7.26M	8.68M
Total Debt	90.77K	134.40K	110.42K	0.00	0.00	0.00
Total Liabilities	281.96K	721.64K	340.34K	198.69K	931.35K	1.30M
Stockholders Equity	13.34M	15.87M	15.52M	16.99M	7.99M	8.72M
Cash Flow
Free Cash Flow	-3.08M	-2.97M	-2.19M	-4.50M	-4.13M	-2.20M
Operating Cash Flow	-2.99M	-2.78M	-2.03M	-4.14M	-4.09M	-1.96M
Investing Cash Flow	-252.80K	-64.98K	-1.00M	252.27K	-356.18K	-231.28K
Financing Cash Flow	509.85K	1.86M	520.32K	4.04M	3.03M	7.92M

Harfang Exploration Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:HAR, the sentiment is Negative. The current price of 0.08 is above the 20-day moving average (MA) of 0.08, above the 50-day MA of 0.08, and below the 200-day MA of 0.09, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 41.38 is Neutral, neither overbought nor oversold. The STOCH value of 16.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:HAR.

Harfang Exploration 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%
XTM	60 Neutral	C$7.37M	2.62	67.36%	―	―	―
GLM	52 Neutral	C$11.98M	-21.82	-5.30%	―	―	―
VERT	50 Neutral	C$6.12M	-13.79	-8.37%	―	―	38.78%
HAR	49 Neutral	C$6.16M	-2.39	-19.36%	―	―	7.28%
PRR	47 Neutral	C$10.11M	-3.21	-44.07%	―	―	44.75%

Harfang Exploration Corporate Events

Harfang and SOQUEM Uncover High-Grade Gold at Menarik West

Harfang Exploration Inc. and SOQUEM Inc. have reported significant high-grade gold findings from their joint exploration program at the Menarik West Property in Québec. The latest results reveal an expanded mineralized footprint, particularly at the Cox Zone, which shows promising new styles of mineralization. This development enhances the property’s potential and positions Harfang for further strategic exploration in 2026, with SOQUEM’s continued support.

Harfang Exploration Unveils Promising Polymetallic Discoveries at Menarik East

Harfang Exploration Inc. has announced significant polymetallic discoveries at its Menarik East project in Quebec, highlighting the presence of a large critical and strategic minerals domain. The summer exploration program revealed high copper equivalent grades and confirmed the potential of two prospective domains, analogous to Ontario’s Ring of Fire, indicating a promising future for the project. These findings suggest Menarik East could become an emerging polymetallic camp, enhancing Harfang’s position within the critical-minerals corridor and offering substantial opportunities for stakeholders.

Harfang Exploration Completes $1.125 Million Flow-Through Financing

Harfang Exploration Inc. has successfully completed a non-brokered private placement, raising $1,125,000 through the issuance of 11,441,104 flow-through common shares. The funds will be used to advance exploration projects in Québec and Ontario, further strengthening Harfang’s position in the mineral exploration industry. The completion of this financing reflects the company’s strategic focus on expanding its exploration activities and consolidating its assets in key regions.

Harfang Exploration Partners with Fancamp to Advance Egan Project

Harfang Exploration Inc. has entered into a Definitive Option Agreement with Fancamp Exploration Ltd. to advance the Egan Project in Ontario’s Abitibi Greenstone Belt. This partnership allows Fancamp to earn up to an 80% interest in the project by funding exploration expenditures and making payments to Harfang. The collaboration aims to enhance exploration efforts and potentially lead to significant gold discoveries, with Fancamp acting as the operator. This agreement reflects Harfang’s strategy of leveraging partnerships to increase exploration momentum and shareholder value.