NextSource Materials Inc (TSE:NEXT)
TSX:NEXT
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NextSource Materials Inc
(TSX:NEXT)
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Rating:43Neutral
Price Target:
C$0.27
▼(-5.36% Downside)
Action:UpgradedDate:02/26/26
The score is primarily held down by weak financial performance (large losses, ongoing cash burn, and sharply higher leverage). Technical signals also skew bearish with the stock trading below major moving averages and a negative MACD. Valuation provides limited support because the company is loss-making (negative P/E) and no dividend yield is available in the data.
Positive Factors
Battery-materials market exposure
NextSource’s Molo graphite project is positioned to supply graphite for lithium-ion battery anodes, aligning the company with structural EV and energy-storage demand. Owning production capability in this segment supports durable demand prospects and potential long-term offtake agreements.
Negative Factors
Large recurring losses
A ~-$28.6M net loss TTM shows the business is not yet profitable and is eroding equity. Persistent significant losses undermine retained capital, hamper reinvestment in operations, and lengthen the time required to reach sustainable margins absent material operational improvements.
Read all positive and negative factors
Positive Factors
Negative Factors
Battery-materials market exposure
NextSource’s Molo graphite project is positioned to supply graphite for lithium-ion battery anodes, aligning the company with structural EV and energy-storage demand. Owning production capability in this segment supports durable demand prospects and potential long-term offtake agreements.
Read all positive factors
NextSource Materials Inc (NEXT) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$51.04M
Dividend YieldN/A
Average Volume (3M)56.43K
Price to Earnings (P/E)―
Beta (1Y)0.93
Revenue GrowthN/A
EPS Growth-156.65%
CountryCA
Employees118
SectorBasic Materials
Sector Strength58
IndustryIndustrial Materials
Share Statistics
EPS (TTM)-0.07
Shares Outstanding185,583,070
10 Day Avg. Volume53,058
30 Day Avg. Volume56,426
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.55
Price to Sales (P/S)42.66
P/FCF Ratio-0.99
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$0.80Price Target Upside185.71% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-0.06
Revenue Forecast (FY)C$781.37K
NextSource Materials Inc Business Overview & Revenue Model
Company Description
NextSource Materials Inc. acquires, explores for, and develops mineral properties in Madagascar and Canada. The company primarily explores for graphite and vanadium deposits. Its principal mineral property is the Molo graphite mine that includes 2...
How the Company Makes Money
NextSource Materials makes money primarily by selling graphite products produced from its Molo graphite project. Its core revenue model is commodity-based: it extracts and processes graphite into saleable products (e.g., graphite concentrates and/...
NextSource Materials Inc Earnings Call Summary
Earnings Call Date:Feb 14, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:May 08, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted significant progress in strategic partnerships, financial strengthening, and management expansion. However, market challenges due to graphite oversupply, delayed commercial production, and environmental assessment delays present notable concerns.Positive Updates
Strategic Partnerships and Offtake Agreements
Securing long-term Battery Anode Facility (BAF) offtake agreements and strategic OEM partnerships are underway, aiming to enable the construction of the first Battery Anode Facility.
Negative Updates
Market Challenges and Graphite Oversupply
Natural graphite prices declined in 2024 due to weaker than expected EV demand and market flooding by China, with a current graphite market in oversupply.
Read all updates
Q2-2025 Updates
Positive
Negative
Strategic Partnerships and Offtake Agreements
Securing long-term Battery Anode Facility (BAF) offtake agreements and strategic OEM partnerships are underway, aiming to enable the construction of the first Battery Anode Facility.
Read all positive updates
Company Guidance
During the NextSource Materials, Inc. Second Quarter 2025 Investor Call, the company provided key guidance metrics, emphasizing their strategic focus amidst challenging market conditions. They aim to ramp up the Molo plant to a production capacity between 15,000 to 17,000 tonnes per year, while balancing quality and sales growth. The company also highlighted their liquidity position, with $3.3 million cash as of December 31, 2024, and an additional $20 million credit facility. They are keen on securing long-term Battery Anode Facility offtake agreements and strategic partnerships to bolster their expansion plans. Also noted was the importance of producing SuperFlake graphite with over 95% fixed carbon content, which supports their strategy as a non-Chinese high-quality graphite producer. The company is preparing for potential growth, with equipment received for the Battery Anode Facility and feasibility studies underway for expansion beyond the initial 17,000 tonnes, potentially up to 150,000 tonnes annually, contingent on securing necessary offtakes.NextSource Materials Inc Financial Statement Overview
Summary
Income Statement
9
Very Negative
Balance Sheet
28
Negative
Cash Flow
12
Very Negative
| Breakdown | TTM | Jun 2025 | Sep 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.22M | 714.84K | 0.00 | 0.00 | 0.00 | 0.00 |
| Gross Profit | -8.67M | -4.28M | -239.00 | 0.00 | -100.00K | -6.59K |
| EBITDA | -32.70M | -27.15M | -7.37M | -4.58M | -2.56M | -5.52M |
| Net Income | -28.64M | -32.44M | -9.00M | -11.68M | 16.12M | -41.96M |
Balance Sheet | ||||||
| Total Assets | 81.07M | 84.20M | 92.85M | 52.98M | 29.30M | 26.92M |
| Cash, Cash Equivalents and Short-Term Investments | 2.98M | 4.48M | 10.77M | 6.89M | 9.79M | 22.44M |
| Total Debt | 56.65M | 24.27M | 21.20M | 11.50M | 349.82K | 11.10K |
| Total Liabilities | 58.04M | 43.21M | 40.55M | 27.77M | 32.36M | 53.07M |
| Stockholders Equity | 23.03M | 55.93M | 52.30M | 25.20M | -3.06M | -26.15M |
Cash Flow | ||||||
| Free Cash Flow | -26.63M | -30.90M | -21.05M | -20.56M | -14.60M | -5.75M |
| Operating Cash Flow | -24.06M | -29.64M | -8.89M | -7.05M | -1.63M | -1.43M |
| Investing Cash Flow | -2.72M | -13.46M | -20.93M | -14.05M | -13.14M | -4.33M |
| Financing Cash Flow | 27.78M | 32.56M | 33.70M | 18.61M | 2.05M | 27.83M |
NextSource Materials Inc Technical Analysis
Negative
0.28
Price Trends
0.40
Negative
0.40
Negative
0.39
Negative
Market Momentum
-0.03
Negative
38.35
Neutral
57.14
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:NEXT, the sentiment is Negative. The current price of 0.28 is below the 20-day moving average (MA) of 0.29, below the 50-day MA of 0.40, and below the 200-day MA of 0.39, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 38.35 is Neutral, neither overbought nor oversold. The STOCH value of 57.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:NEXT.
NextSource Materials Inc Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
50 Neutral | C$13.54M | -0.32 | 22.72% | ― | ― | 158.45% | |
48 Neutral | C$100.32M | -6.66 | -188.17% | ― | ― | -38.68% | |
45 Neutral | C$29.05M | -0.48 | 115.07% | ― | 2.76% | -1.06% | |
44 Neutral | C$15.18M | -1.48 | ― | ― | ― | ― | |
43 Neutral | C$51.04M | -1.19 | -92.19% | ― | ― | -156.65% | |
42 Neutral | C$36.81M | -15.55 | -16.33% | ― | ― | -64.76% |
* Basic Materials Sector Average
TSE:NEXT
NextSource Materials Inc
0.28
-0.13
-32.10%
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NextSource Materials Inc Corporate Events
Business Operations and StrategyPrivate Placements and Financing
NextSource Extends Mitsubishi Offtake Timeline to Advance UAE Anode Facility
Positive
Mar 3, 2026
NextSource Materials has extended the timetable of its binding multi-year offtake agreement with Mitsubishi Chemical Corporation for 9,000 tonnes per year of anode active material, while keeping all core commercial terms, volumes and pricing frame...
Business Operations and Strategy
NextSource Secures Syrah Graphite Supply to Support Abu Dhabi Anode Plant Expansion Plans
Positive
Mar 2, 2026
NextSource Materials has signed a binding agreement with Syrah Resources to secure between about 34,000 and 68,000 tonnes of natural graphite fines over seven years for its planned battery anode facility in Abu Dhabi, subject to conditions includi...
Business Operations and StrategyExecutive/Board Changes
NextSource Materials’ CFO Resigns as Battery Materials Growth Plan Advances
Neutral
Mar 2, 2026
NextSource Materials announced the resignation of Chief Financial Officer Jaco Crouse, who will stay on for up to four months to ensure an orderly transition after accepting a senior role elsewhere. The board, supported by external advisors, has b...
Business Operations and StrategyPrivate Placements and Financing
NextSource Raises C$25 Million to Advance UAE Battery Anode Facility
Positive
Feb 24, 2026
NextSource Materials has closed an oversubscribed C$24.999 million brokered private placement under the listed issuer financing exemption, issuing 58,823,500 units at C$0.425 each, with no statutory hold period and subject to final TSX approval. V...
Business Operations and Strategy
NextSource Ties Up New Japanese Buyer for Abu Dhabi EV Anode Output
Positive
Feb 5, 2026
NextSource Materials has signed a non-binding letter of intent with a major Japanese anode material producer to potentially supply multiple grades of anode active materials for electric vehicle batteries from its planned Battery Anode Facility in ...
Business Operations and StrategyPrivate Placements and Financing
NextSource Secures Japanese Backing for US$30 Million UAE Battery Anode Project
Positive
Feb 3, 2026
NextSource Materials has signed a non-binding letter of intent with Japanese trading house Hanwa Co. and government agency JOGMEC for a potential project-level equity investment of up to US$30 million in Phase 1 of its planned Battery Anode Facili...
Business Operations and StrategyPrivate Placements and Financing
NextSource Secures Strategic Investor Term Sheets for UAE Battery Anode Plant
Positive
Jan 12, 2026
NextSource Materials has signed multiple non-binding term sheets with strategic investors, including UAE sovereign-linked entities and a Japanese consortium, to fund Phase 1 of its proposed Battery Anode Facility in Abu Dhabi, under a structure th...
Business Operations and Strategy
NextSource Advances UAE Battery Anode Facility With First Equipment Arrival and FEED Progress
Positive
Jan 7, 2026
NextSource Materials has achieved a key development milestone with the arrival of the first shipment of long-lead anode processing equipment in Abu Dhabi for its inaugural Battery Anode Facility, underscoring its downstream expansion strategy in t...
Business Operations and StrategyShareholder Meetings
NextSource Shareholders Back Board and Auditor as Battery Materials Strategy Advances
Positive
Dec 31, 2025
NextSource Materials reported that shareholders strongly endorsed the company’s leadership and governance at its 2025 annual meeting, re-electing all director nominees with support levels near 99.5% or higher and backing the appointment of P...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.