Canstar Resources (ROX) AI Stock Analysis

• Market Cap: C$8.68M
• Dividend Yield: N/A
• Average Volume (3M): 43.37K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.60
• Revenue Growth: N/A
• EPS Growth: 82.89%
• Country: CA
• Employees: N/A
• Sector: Energy
• Sector Strength: 48
• Industry: Industrial Materials
• EPS (TTM): >-0.01
• Shares Outstanding: 144,741,400
• 10 Day Avg. Volume: 76,341
• 30 Day Avg. Volume: 43,367
• PEG Ratio: 0.02
• Price to Book (P/B): 5.71
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.08
• 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

• Rating: 48 Neutral
• Price Target: ―

Canstar Resources faces significant financial challenges with no revenue and ongoing losses. However, positive technical momentum and strategic corporate events, such as the $11.5M investment, offer potential for future improvement. The negative valuation metrics, including an unattractive P/E ratio, weigh on the overall score.

Canstar Resources Business Overview & Revenue Model

Company Description

Canstar Resources Inc., a junior resource company, engages in the acquisition, exploration, and development of mineral properties in Canada. The company primarily explores for zinc, silver, lead, copper, and gold deposits. The company's flagship project is the Golden Baie project that comprises 62,275 hectares along the southeastern margin of the Dunnage tectonic zone, west of the Day Cove Thrust. It also owns the Buchans-Mary March project that comprises various contiguous properties totaling approximately 39,000 hectares of land located in Buchans Mine, central Newfoundland; and the Daniel's Harbour project, which consists of 360 claims covering an area of 9000 hectares located in coastal Western Newfoundland. The company is headquartered in Toronto, Canada.

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	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00	0.00
	Gross Profit
-3.03K	-3.12K	-3.92K	-813.00	-569.00	-518.00
	EBIT
-1.27M	-1.27M	-5.63M	-5.70M	-1.20M	-156.65K
	EBITDA
-1.23M	-1.27M	-5.55M	-5.65M	-1.42M	-143.84K
	Net Income Common Stockholders
-1.24M	-1.28M	-5.59M	-5.66M	-1.43M	-150.55K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
278.36K	494.38K	883.24K	4.99M	4.35M	137.65K
	Total Assets
332.01K	589.37K	1.05M	5.87M	15.03M	7.97M
	Total Debt
0.00	0.00	0.00	0.00	0.00	0.00
	Net Debt
-58.46K	-38.94K	-450.10K	-201.25K	-279.44K	-95.65K
	Total Liabilities
52.90K	117.61K	281.44K	205.03K	293.68K	109.09K
	Stockholders Equity
279.11K	471.76K	771.12K	5.67M	14.73M	7.86M
Cash Flow		Free Cash Flow
-1.32M	-1.21M	-4.09M	-4.90M	-1.57M	-410.71K
	Operating Cash Flow
-1.32M	-1.21M	-4.09M	-4.89M	-302.01K	-330.49K
	Investing Cash Flow
62.15K	-49.08K	4.34M	-730.46K	-5.27M	-30.23K
	Financing Cash Flow
1.25M	843.84K	0.00	5.54M	5.75M	210.00K

Canstar Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.06
• 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:ROX, the sentiment is Positive. The current price of 0.06 is above the 20-day moving average (MA) of 0.05, above the 50-day MA of 0.05, and above the 200-day MA of 0.05, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 57.68 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 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 *	58 Neutral	$7.37B	3.39	-4.49%	10.01%	0.82%	-49.15%
ROX	48 Neutral	C$8.68M	―	-392.20%	―	―	82.89%
MNO	45 Neutral	C$281.38M	―	-120.17%	―	―	-22.62%
VTT	39 Underperform	C$3.63M	―	-11.52%	―	―	40.00%
NRN	37 Underperform	C$11.58M	―	-86.91%	―	―	-200.00%
CDB	32 Underperform	C$72.52M	―	-213.92%	―	―	29.90%

Canstar Resources Corporate Events

Canstar Resources Announces Board Changes and Strategic Enhancements

Canstar Resources Inc. announced the approval of key resolutions at its recent Annual General and Special Meeting, including the election of a new board of directors and amendments to its stock option plan. The company also welcomed Nyla Beth Gawel, a seasoned executive with Fortune 500 experience, to its board, enhancing its strategic capabilities. Additionally, Robert Bruggeman transitioned to the advisory board, continuing his influence on the company’s strategic direction.

Spark’s Take on TSE:ROX Stock

According to Spark, TipRanks’ AI Analyst, TSE:ROX is a Neutral.

Canstar Resources faces substantial financial challenges with no revenue and ongoing losses, which is a major concern. However, positive technical momentum and strategic corporate events, such as the $11.5M investment, offer potential for future improvement. The negative valuation metrics, including an unattractive P/E ratio, weigh on the overall score.

To see Spark’s full report on TSE:ROX stock, click here.

Canstar Resources Secures $11.5M Investment to Boost Newfoundland Exploration

Canstar Resources Inc. has entered into a letter of intent with VMS Mining Corporation for an $11.5 million strategic investment to accelerate exploration at its Buchans and Mary March projects in Newfoundland. This joint venture aims to fast-track high-grade discoveries, leveraging VMSC’s expertise and funding while allowing Canstar to maintain a significant commercial interest. The investment will support exploration efforts adjacent to high-grade VMS deposits, enhancing Canstar’s industry positioning and offering potential benefits to stakeholders through increased project value and development opportunities.

Spark’s Take on TSE:ROX Stock

According to Spark, TipRanks’ AI Analyst, TSE:ROX is a Neutral.

Canstar Resources faces significant financial challenges, with ongoing losses and declining assets. However, technical indicators suggest positive momentum, and a new exploration program could potentially improve future prospects. The company’s negative P/E ratio and lack of dividend yield diminish its valuation attractiveness.

To see Spark’s full report on TSE:ROX stock, click here.

Canstar Resources Launches Geophysics Program in Historic Buchans District

Canstar Resources Inc. has initiated a geophysics program in the historic Buchans mining district to explore new high-grade metal deposits. Utilizing advanced technology from Abitibi Geophysics, the program aims to refine drilling targets by identifying stockwork zones and related mineralization, potentially leading to new discoveries akin to the historic Buchans VMS deposits. The initiative builds on previous exploration efforts and could significantly impact Canstar’s operations and positioning in the mining industry by unlocking new high-grade resources.