Metal Energy Corp (MERG) AI Stock Analysis

• Market Cap: C$27.29M
• Dividend Yield: N/A
• Average Volume (3M): 302.21K
• Price to Earnings (P/E): ―
• Beta (1Y): 3.14
• Revenue Growth: N/A
• EPS Growth: -204.22%
• Country: CA
• Employees: N/A
• Sector: Energy
• Sector Strength: 52
• Industry: Industrial Materials
• EPS (TTM): <0.01
• Shares Outstanding: 27,848,843
• 10 Day Avg. Volume: 591,935
• 30 Day Avg. Volume: 302,212
• PEG Ratio: >-0.01
• Price to Book (P/B): -1.14
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.56
• 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: 48 Neutral
• Price Target: C$1.00 ▲(28.21% Upside)

The score is held down primarily by weak financial performance (no revenue, ongoing cash burn, and equity turning negative), which increases funding and dilution risk. Technicals are supportive with a strong uptrend and positive MACD, but overbought readings temper the benefit. Valuation is constrained by negative earnings and no dividend support.

Positive Factors

Very low leverage / minimal debt

Near-zero reported debt materially reduces near-term insolvency and interest-service pressure. Over a multi-month horizon this preserves operational optionality, allowing management to prioritize development or strategic initiatives without immediate debt maturities forcing distressed decisions.

Improving cash-burn trend

Although still negative, operating and free cash flow improved in the latest year, signaling progress on cost control or operational efficiencies. That trend, if sustained, materially reduces the cadence and size of future financing needs over the next several months.

Low debt-servicing risk supports strategic flexibility

Minimal debt lowers fixed financing obligations, giving the company flexibility to pursue equity-based funding, partnerships, or staged project spending without high interest burdens. This structural flexibility supports longer runway to reach commercialization if capital access is available.

Negative Factors

No revenue across 2021–2024

Absence of revenue is a fundamental weakness: it means the business hasn't validated product-market fit or generated operating inflows. Over a 2–6 month horizon this sustains dependence on external funding and delays any path to self-sustaining cash generation.

Worsening net losses and negative profitability

Growing annual losses increase cumulative cash requirements and accelerate erosion of capital. Without revenue upside or meaningful margin improvement, sustained losses raise the probability of repeated capital raises and shareholder dilution over the medium term.

Negative shareholders' equity

Negative equity is a structural capital weakness that increases financing risk: it can limit borrowing, deter strategic counterparties, and signal impairments. Over months this condition raises the likelihood of dilutive equity issuances or restrictive financing terms.

Metal Energy Corp Business Overview & Revenue Model

Company Description

Metal Energy Corp. engages in the acquisition, mining, and exploration of mineral properties in Canada. The company explores for nickel and copper deposits, and platinum group elements. Its flagship project is the Manibridge project located in Manitoba on the Thompson Belt. The company is headquartered in Toronto, Canada.

How the Company Makes Money

Metal Energy Corp generates revenue primarily through the extraction and sale of metals and energy resources. The company's key revenue streams include the sale of raw and processed metals to industrial manufacturers and technology companies, as well as energy production and distribution. Significant partnerships with manufacturing and technology firms help secure long-term contracts and stable revenue. Additionally, Metal Energy Corp invests in sustainable mining practices and renewable energy projects, contributing to its earnings by tapping into the growing demand for environmentally responsible resources.

Metal Energy Corp Financial Statement Overview

Summary

Financial profile is weak: no revenue across 2021–2024, persistent and worsening net losses (e.g., -$6.2M in 2024), and negative operating/free cash flow each year despite slight improvement in 2024. While debt is minimal, equity turned negative in 2024, raising financing and dilution risk.

Income Statement

The company reports no revenue across all provided annual periods (2021–2024), indicating it is not yet operating at a commercial scale. Losses are persistent and sizable, with net income negative every year (e.g., -$6.2M in 2024 vs. -$1.7M in 2023), showing worsening profitability in the latest year. With no gross profit and continued operating losses, the income statement profile reflects a high-dependence on external funding until revenues materialize.

Balance Sheet

Leverage is very low in absolute terms (debt is near-zero in most years, and only $496 in 2024), which reduces near-term debt-servicing risk. However, the key weakness is a sharp deterioration in equity: stockholders’ equity moved from +$1.76M (2023) to -$3.15M (2024), implying accumulated losses and/or write-downs have eroded the capital base. Total assets also declined versus prior years, and negative equity meaningfully increases financing and dilution risk going forward.

Cash Flow

Cash generation remains negative, with operating cash flow and free cash flow below zero in every year shown (e.g., -$1.4M in 2024 and -$1.6M in 2023), indicating ongoing cash burn. A positive point is that cash burn improved in 2024 versus 2023, but the business still does not self-fund and will likely require continued capital raises. Overall, cash flow stability is weak because spending is not supported by operating inflows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00
Gross Profit	0.00	0.00	0.00	0.00	0.00
EBITDA	-5.86M	-6.16M	-136.20K	-4.77M	-3.02M
Net Income	-5.79M	-6.16M	-1.67M	-4.77M	-3.02M
Balance Sheet
Total Assets	731.03K	1.38M	1.84M	3.16M	7.07M
Cash, Cash Equivalents and Short-Term Investments	657.60K	1.30M	1.74M	2.78M	7.01M
Total Debt	0.00	496.00	0.00	26.01K	0.00
Total Liabilities	4.45M	4.52M	84.17K	754.18K	723.49K
Stockholders Equity	-3.72M	-3.15M	1.76M	2.41M	6.34M
Cash Flow
Free Cash Flow	-1.19M	-1.40M	-1.61M	-4.24M	-510.74K
Operating Cash Flow	-1.19M	-1.40M	-1.61M	-4.24M	-510.74K
Investing Cash Flow	0.00	0.00	0.00	0.00	177.39K
Financing Cash Flow	961.40K	964.65K	568.25K	26.01K	7.35M

Metal Energy Corp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.78
• 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:MERG, the sentiment is Positive. The current price of 0.78 is below the 20-day moving average (MA) of 0.83, above the 50-day MA of 0.73, and above the 200-day MA of 0.31, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 63.47 is Neutral, neither overbought nor oversold. The STOCH value of 70.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:MERG.

Metal Energy Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
ULTH	49 Neutral	C$26.98M	-8.02	-22.36%	―	―	-4.68%
MERG	48 Neutral	C$27.29M	-5.03	-128.71%	―	―	-204.22%
LIT	45 Neutral	C$20.63M	-1.67	-24.07%	―	―	76.16%
STS	44 Neutral	C$14.09M	-0.88	―	―	―	―
NICO	43 Neutral	C$20.23M	-11.34	―	―	―	37.82%
LBNK	42 Neutral	C$29.50M	-3.05	-122.87%	―	―	-692.49%

Metal Energy Corp Corporate Events

Metal Energy Secures $9.25 Million Financing for Exploration Expansion

Metal Energy Corp has completed a C$9.25 million financing backed by Centerra Gold and Teck Resources, establishing both companies as strategic shareholders holding 9.9% each. The funds will be directed toward the 2026 maiden drill program at the company’s NIV copper-gold-molybdenum project, strengthening Metal Energy’s exploration potential and its positioning in the critical metals sector.

Metal Energy Secures Strategic Agreement for NIV Copper-Gold Project

Metal Energy Corp. has completed a right of first refusal agreement to potentially acquire the remaining 20% interest in the NIV and West NIV properties in British Columbia’s Toodoggone District. This agreement enhances the company’s ability to consolidate ownership of a promising copper-gold porphyry target, aligning with its strategy to strengthen its asset base and exploration potential in the region.

Metal Energy Secures Strategic Agreement for NIV Project in British Columbia

Metal Energy Corp. has finalized a right of first refusal agreement for the remaining 20% interest in the NIV and West NIV properties in British Columbia’s Toodoggone District. This agreement enhances the company’s ability to consolidate ownership of a promising copper-gold porphyry target, aligning with its strategy to potentially achieve full control of the NIV project. The issuance of 600,000 common shares as part of this agreement is subject to TSX Venture Exchange approval, reflecting Metal Energy’s commitment to advancing its exploration and ownership goals.

Metal Energy Gains Strategic Investment from Teck Resources

Metal Energy Corp. announced that Teck Resources Limited has acquired a 9.9% equity interest in the company, joining Centerra Gold Inc. as a strategic investor with the same stake. This investment aims to fund exploration on Metal Energy’s NIV property in British Columbia, highlighting the potential of the undrilled asset. The involvement of two major mining companies is seen as a validation of the project’s quality and is expected to attract further interest from the broader mining investment community.

Metal Energy Secures $9.3 Million Financing with Centerra Gold as Strategic Investor

Metal Energy Corp. has announced a financing initiative to raise C$9.3 million, aimed at funding its 2026 maiden drill program at the NIV copper-gold-molybdenum project in British Columbia. This financing includes a strategic investment by Centerra Gold Inc., which will acquire a 9.9% stake in Metal Energy, enhancing the company’s technical capabilities and positioning it for potential discoveries in the region.

Metal Energy Advances NIV Project with Phase 1 Completion

Metal Energy Corp. has completed the first phase of its option agreement for the NIV and West NIV exploration properties in British Columbia, moving closer to drilling in the Toodoggone District. This development allows Metal Energy to earn an 80% interest in these properties, enhancing its portfolio with a fully permitted, drill-ready copper-gold-molybdenum project, potentially impacting its market positioning and stakeholder interests.

Metal Energy Secures Right of First Refusal for Full Ownership of NIV Project

Metal Energy Corp. has entered into a right of first refusal agreement to potentially acquire the remaining 20% interest in the NIV and West NIV properties, enhancing its path to full ownership of this promising copper-gold porphyry target in British Columbia’s Toodoggone District. This agreement allows Metal Energy to match any third-party offers, thereby consolidating its control over the property, which is fully permitted and drill-ready, strengthening its strategic position in the region.