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$0.30
▼(-0.33% Downside)
Action:Reiterated
Date:05/14/26
The score is primarily weighed down by very weak financial performance, driven by deep losses, sustained cash burn, and rising leverage. Technicals are mixed with short-term strength but stretched momentum and weaker longer-term trend, while valuation is limited by negative earnings and no dividend support.
Positive Factors
Asset base and positive equity
Sizable reported assets and positive equity provide a tangible cushion for project development and potential collateral for financing. This balance-sheet strength supports continued capital investment into the Molo project and tempers dilution risk while the company pursues production over the medium term.
Negative Factors
Sustained operating cash burn
Large, persistent negative operating and free cash flows rapidly draw down liquidity and increase reliance on external financing. Over a multi-month horizon this heightens refinancing and execution risk if production or commercial revenues do not scale to cover operating needs.
Read all positive and negative factors
Positive Factors
Negative Factors
Asset base and positive equity
Sizable reported assets and positive equity provide a tangible cushion for project development and potential collateral for financing. This balance-sheet strength supports continued capital investment into the Molo project and tempers dilution risk while the company pursues production over the medium term.
Read all positive factors
NextSource Materials Inc (NEXT) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$90.83M
Dividend YieldN/A
Average Volume (3M)56.43K
Price to Earnings (P/E)―
Beta (1Y)0.98
Revenue Growth329.00%
EPS Growth-152.23%
CountryCA
Employees118
SectorBasic Materials
Sector Strength58
IndustryIndustrial Materials
Share Statistics
EPS (TTM)-0.20
Shares Outstanding245,489,780
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$0.88Price Target Upside191.67% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-0.11
Revenue Forecast (FY)C$1.01M
NextSource Materials Inc Business Overview & Revenue Model
Company Description
NextSource Materials Inc. is actively engaged in identifying, assessing, and developing mineral resources across its sites in Madagascar and Canada. The company's core exploration efforts are directed towards uncovering deposits of graphite and va...
How the Company Makes Money
NextSource Materials’ primary intended source of revenue is the sale of graphite products produced from its mineral operations (i.e., extracting ore, processing it into graphite concentrate and/or value-added graphite products, and selling those p...
NextSource Materials Inc Earnings Call Summary
Earnings Call Date:Feb 14, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Sep 30, 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
12
Very Negative
Balance Sheet
34
Negative
Cash Flow
18
Very Negative
| Breakdown | TTM | Jun 2025 | Sep 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.15M | 714.84K | 0.00 | 0.00 | 0.00 | 0.00 |
| Gross Profit | -10.68M | -4.28M | -239.00 | -393.86K | -100.00K | -6.59K |
| EBITDA | -37.40M | -27.15M | -7.37M | -4.58M | -2.56M | -5.52M |
| Net Income | -31.75M | -32.44M | -9.00M | -11.68M | 16.12M | -41.96M |
Balance Sheet | ||||||
| Total Assets | 100.70M | 84.20M | 92.85M | 52.98M | 29.30M | 26.92M |
| Cash, Cash Equivalents and Short-Term Investments | 16.45M | 4.48M | 10.77M | 6.89M | 9.79M | 22.44M |
| Total Debt | 51.91M | 24.27M | 21.20M | 11.50M | 349.82K | 11.10K |
| Total Liabilities | 62.73M | 43.21M | 40.55M | 27.77M | 32.36M | 53.07M |
| Stockholders Equity | 37.96M | 55.93M | 52.30M | 25.20M | -3.06M | -26.15M |
Cash Flow | ||||||
| Free Cash Flow | -25.59M | -30.90M | -21.05M | -20.56M | -14.60M | -5.75M |
| Operating Cash Flow | -26.58M | -29.64M | -8.89M | -7.05M | -1.63M | -1.43M |
| Investing Cash Flow | 842.05K | -13.46M | -20.93M | -14.05M | -13.14M | -4.33M |
| Financing Cash Flow | 42.02M | 32.56M | 33.70M | 18.61M | 2.05M | 27.83M |
NextSource Materials Inc Technical Analysis
Positive
0.30
Price Trends
0.34
Positive
0.35
Positive
0.39
Negative
Market Momentum
<0.01
Positive
50.52
Neutral
56.93
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:NEXT, the sentiment is Positive. The current price of 0.3 is below the 20-day moving average (MA) of 0.37, below the 50-day MA of 0.34, and below the 200-day MA of 0.39, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 50.52 is Neutral, neither overbought nor oversold. The STOCH value of 56.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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% | |
51 Neutral | C$21.05M | -5.03 | ― | ― | ― | ― | |
48 Neutral | C$51.70M | -8.44 | -188.17% | ― | ― | -10.82% | |
46 Neutral | C$48.17M | -11.17 | -16.33% | ― | ― | -29.85% | |
43 Neutral | C$90.83M | -1.14 | -109.76% | ― | 329.00% | -152.23% | |
41 Neutral | C$23.24M | -0.83 | 115.07% | ― | -28.47% | 33.59% |
* Basic Materials Sector Average
TSE:NEXT
NextSource Materials Inc
0.36
0.13
53.19%
TSE:NBM
NEO Battery Materials Ltd
0.35
-0.07
-16.67%
TSE:FMS
Focus Graphite
0.44
0.30
203.45%
TSE:NGC
Northern Graphite
0.14
0.04
35.00%
TSE:STS
South Star Battery Metals
0.17
-0.12
-42.11%
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.