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Canstar Resources (TSE:ROX)
:ROX

Canstar Resources (ROX) AI Stock Analysis

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Canstar Resources

(ROX)

Rating:48Neutral
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 (ROX) vs. iShares MSCI Canada ETF (EWC)

Canstar Resources Business Overview & Revenue Model

Company DescriptionCanstar 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 MoneyCanstar 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 faces significant financial difficulties, with no revenue generation and consistent operating losses. The balance sheet is free of debt, but declining assets and equity are concerning. Cash flow challenges necessitate reliance on external financing, indicating potential future sustainability risks if revenue streams aren't established.
Income Statement
20
Very Negative
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
45
Neutral
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
30
Negative
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
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
0.000.000.000.000.000.00
Gross Profit
-3.03K-3.12K-3.92K-813.00-569.00-518.00
EBIT
-1.27M-1.27M-5.54M-1.12M-1.25M-184.36K
EBITDA
-1.23M-1.27M-5.53M-5.70M-1.42M-143.84K
Net Income Common Stockholders
-1.24M-1.28M-5.59M-8.86M-1.43M-150.55K
Balance SheetCash, Cash Equivalents and Short-Term Investments
775.99K494.38K883.24K4.99M4.35M137.65K
Total Assets
860.03K589.37K1.05M13.25M15.03M7.97M
Total Debt
0.000.000.000.000.000.00
Net Debt
-147.75K-38.94K-450.10K-201.25K-279.44K-95.65K
Total Liabilities
171.15K117.61K281.44K205.03K293.68K109.09K
Stockholders Equity
688.87K471.76K771.12K13.04M14.73M7.86M
Cash FlowFree Cash Flow
-1.32M-1.21M-4.09M-4.90M-1.57M-410.71K
Operating Cash Flow
-1.32M-1.21M-4.09M-1.54M-302.01K-330.49K
Investing Cash Flow
62.15K-49.08K4.34M-4.08M-5.27M-30.23K
Financing Cash Flow
843.84K843.84K0.005.54M5.75M210.00K

Canstar Resources Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.06
Price Trends
50DMA
0.05
Positive
100DMA
0.05
Positive
200DMA
0.05
Positive
Market Momentum
MACD
<0.01
Negative
RSI
57.68
Neutral
STOCH
72.22
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 72.22 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

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
57
Neutral
$7.22B3.15-4.49%5.63%0.82%-49.15%
TSROX
48
Neutral
C$8.68M-392.20%82.89%
TSMNO
45
Neutral
C$274.35M-120.17%-22.62%
TSVTT
39
Underperform
C$3.63M-11.52%40.00%
TSNRN
37
Underperform
C$10.52M-86.91%-200.00%
TSCDB
32
Underperform
C$66.17M-213.92%29.90%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:ROX
Canstar Resources
0.06
0.02
50.00%
TSE:MNO
Meridian Mining SE
0.80
0.29
56.86%
TSE:CDB
Cordoba Minerals
0.75
0.30
66.67%
TSE:NRN
Northern Shield Resources
0.11
0.06
120.00%
TSE:VTT
Vendetta Mining
0.01
-0.01
-50.00%

Canstar Resources Corporate Events

Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Canstar Resources Announces Board Changes and Strategic Enhancements
Positive
Apr 24, 2025

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.

Private Placements and FinancingBusiness Operations and Strategy
Canstar Resources Secures $11.5M Investment to Boost Newfoundland Exploration
Positive
Apr 22, 2025

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.

Product-Related AnnouncementsBusiness Operations and Strategy
Canstar Resources Launches Geophysics Program in Historic Buchans District
Positive
Mar 3, 2025

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.

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.