Canstar Resources (ROX) AI Stock Analysis

• Market Cap: C$18.52M
• Dividend Yield: N/A
• Average Volume (3M): 77.26K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.13
• Revenue Growth: N/A
• EPS Growth: -51.55%
• Country: CA
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): N/A
• Shares Outstanding: 185,244,890
• 10 Day Avg. Volume: 176,413
• 30 Day Avg. Volume: 77,261
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 44 Neutral
• Price Target: C$0.10 ▲(38.57% Upside)

The score is primarily weighed down by weak financial performance (no revenue, persistent losses, negative equity, and ongoing cash burn with rising debt). Technicals are supportive due to strong price momentum above moving averages, but the extremely overbought RSI raises near-term risk. Valuation is also constrained by negative earnings and the absence of a dividend yield.

Positive Factors

Strategic Investment

The $11.5M investment from VMS Mining Corporation enhances Canstar's exploration capabilities, potentially leading to high-grade discoveries and strengthening its market position.

Board Enhancements

The addition of Nyla Beth Gawel to the board brings Fortune 500 experience, likely improving strategic decision-making and corporate governance.

Geophysics Program

The new geophysics program aims to identify high-grade metal deposits, potentially leading to significant resource discoveries and enhancing long-term project value.

Negative Factors

Financial Challenges

Ongoing financial struggles with no revenue and operating losses indicate sustainability issues, requiring external financing to maintain operations.

Declining Assets

Declining assets and equity suggest potential financial deterioration, impacting the company's ability to invest in growth and exploration activities.

Negative Cash Flow

Negative cash flow highlights liquidity issues, increasing reliance on external funding and posing risks to operational sustainability without new revenue streams.

Canstar Resources Business Overview & Revenue Model

Company Description

Canstar Resources (ROX) is a Canadian mineral exploration company primarily focused on the discovery and development of gold and base metal projects in Newfoundland, Canada. The company engages in the acquisition, exploration, and development of precious metal properties, with a particular emphasis on leveraging its extensive geological expertise to identify and develop high-potential mining projects.

How the Company Makes Money

Canstar Resources generates revenue through the exploration and development of mineral properties, specifically by identifying commercially viable mining sites that can yield gold and other base metals. The company invests in geological surveys, drilling programs, and feasibility studies to enhance the value of its properties. Revenue is primarily generated by selling stakes in its projects to larger mining companies or through joint ventures where Canstar retains a share of the profits from mined resources. Additionally, the company may earn income from option agreements, where other entities pay for the right to explore Canstar’s properties for a specified period.

Canstar Resources Financial Statement Overview

Summary

Canstar Resources is struggling financially with no revenue generation and ongoing operating losses. The balance sheet reveals no debt, but declining assets and equity, raising sustainability concerns without new revenue streams. Cash flow issues further highlight the reliance on external financing.

Income Statement

Canstar Resources reports no revenue, leading to negative gross and net income. The company consistently incurs significant operating losses, reflected in negative EBIT and EBITDA margins. Overall, the income statement reveals financial challenges with no revenue growth.

Balance Sheet

The balance sheet shows a strong equity position with zero debt, resulting in a favorable debt-to-equity ratio. However, the decreasing trend in stockholders' equity and total assets over time indicates potential financial deterioration.

Cash Flow

Cash flow analysis indicates negative free cash flow and operating cash flow, suggesting liquidity issues. The company relies heavily on financing to maintain operations, raising concerns about sustainability without revenue generation.

Breakdown	TTM	Dec 2025	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	-2.98K	-2.98K	-3.12K	-3.92K	-813.00	-569.00
EBITDA	-2.24M	-1.63M	-1.27M	-5.55M	-5.65M	-1.42M
Net Income	-2.27M	-1.65M	-1.28M	-5.59M	-5.66M	-1.43M
Balance Sheet
Total Assets	301.95K	580.66K	589.37K	1.05M	5.87M	15.03M
Cash, Cash Equivalents and Short-Term Investments	196.38K	418.29K	494.38K	883.24K	4.99M	4.35M
Total Debt	439.25K	426.23K	0.00	0.00	0.00	0.00
Total Liabilities	938.58K	831.80K	117.61K	281.44K	205.03K	293.68K
Stockholders Equity	-636.63K	-251.14K	471.76K	771.12K	5.67M	14.73M
Cash Flow
Free Cash Flow	-1.85M	-1.40M	-1.21M	-4.09M	-4.90M	-1.57M
Operating Cash Flow	-1.85M	-1.40M	-1.21M	-4.09M	-4.89M	-302.01K
Investing Cash Flow	111.22K	239.80K	-49.08K	4.34M	-730.46K	-5.27M
Financing Cash Flow	1.83M	1.32M	843.84K	0.00	5.54M	5.75M

Canstar Resources Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ROX, the sentiment is Positive. The current price of 0.07 is below the 20-day moving average (MA) of 0.08, above the 50-day MA of 0.07, and above the 200-day MA of 0.06, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 74.59 is Negative, neither overbought nor oversold. The STOCH value of 59.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ROX.

Canstar Resources 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%
VZZ	54 Neutral	C$11.72M	-16.67	-10.48%	―	-5.09%	65.98%
BRO	48 Neutral	C$13.99M	-3.38	-16.31%	―	―	29.32%
BAY	46 Neutral	C$16.44M	-34.21	-55.06%	―	―	90.73%
ZIGY	45 Neutral	C$12.12M	-15.58	-23.38%	―	―	-3416.67%
ROX	44 Neutral	C$18.52M	-6.80	―	―	―	-51.55%
MTT	42 Neutral	C$15.64M	-127.27	―	―	―	―

Canstar Resources Corporate Events

Canstar Wraps 2025 Field Season, Secures JV Funding and Technical Upgrades Ahead of 2026 Drilling

Canstar Resources has concluded its 2025 field season in Newfoundland and has begun its Winter 2025/2026 technical program aimed at refining drill targets and commencing exploration drilling in 2026. Over the past year, the company advanced district-scale deep IP geophysics and 3D modelling at Buchans, executed an $11.5 million phased exploration joint venture with VMS Mining Corporation that provides non-dilutive, asset-level funding, and received an initial $500,000 payment to accelerate work. Technical leadership for the JV is being led by noted VMS expert Dr. Harold Gibson, while an LOI with TerraAI brings machine-learning tools to integrate geophysical, geochemical, and geological datasets for drill optimization. At Mary March, trenching, mapping, LiDAR, and relogging generated new targets, including a previously untested 1.2 km chargeability corridor and elevated copper and zinc readings in float and bedrock, and the company expanded its land position through options and acquisitions to create a more contiguous project footprint. Governance and technical oversight were further strengthened with the appointment of VMS and Newfoundland specialist Dr. Stephen J. Piercey to the Technical & Advisory Board and the addition of Fortune 500-experienced executive Nyla Beth Gawel to the board of directors, underscoring an ongoing effort to position Canstar for a more robust 2026 drilling campaign and enhanced strategic execution.

Canstar Resources Expands Land and Advances AI Collaboration for Enhanced Exploration

Canstar Resources has expanded its land holdings and is advancing its collaboration with Terra AI to enhance exploration at the Mary March project in Newfoundland. The partnership aims to leverage Terra AI’s machine learning technology to refine exploration targets, potentially accelerating the discovery process. Canstar has also completed land option agreements to consolidate its exploration rights, positioning itself for a more comprehensive exploration program in 2026.

Canstar Resources Strengthens Financial Position with Successful Financing

Canstar Resources Inc. has successfully closed an oversubscribed non-brokered private placement, raising $1.169 million in hard-dollar financing, primarily from institutional investors. This financing strengthens Canstar’s balance sheet as it prepares for its 2026 exploration program, with proceeds allocated for exploration and corporate development activities. The company’s strategic focus and partnerships position it well for future financing opportunities and ongoing exploration initiatives.

Canstar Resources Uncovers High-Grade Mineralization at Mary March Project

Canstar Resources Inc. has announced significant findings from its 2025 trenching program at the Mary March project in Newfoundland’s Buchans Mining District. The program revealed high-grade base metal mineralization, with samples showing up to 5% copper and over 30% zinc, indicating the potential for high-grade VMS deposits. These findings, along with newly mapped geophysical anomalies, enhance the project’s prospects and align with Canstar’s data-driven exploration approach. The results will guide future drilling plans set to begin in 2026, potentially impacting the company’s exploration strategy and stakeholder interests.