Canstar Resources (ROX) AI Stock Analysis

• Market Cap: C$17.63M
• Dividend Yield: N/A
• Average Volume (3M): 77.26K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.06
• 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: 185,594,900
• 10 Day Avg. Volume: 176,413
• 30 Day Avg. Volume: 77,261
• PEG Ratio: -0.77
• Price to Book (P/B): -44.04
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -7.89
• 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: 47 Neutral
• Price Target: C$0.09 ▲(34.29% Upside)
• Action: Reiterated Date: 02/20/26
• Date: Action: Reiterated 02/20/26

The score is primarily held down by very weak financial performance (pre-revenue, widening losses, continued cash burn, and negative equity with rising debt). Technicals provide some support as the stock trades above key moving averages with moderately strong RSI, but mixed MACD and a loss-based valuation profile limit the overall score.

Positive Factors

Exploration-focused business model

Canstar’s explicit focus on acquiring and advancing exploration-stage precious metals projects creates a clear, repeatable business model. That concentration builds technical expertise, streamlines capital deployment into drilling programs and supports value creation via defined milestones or transactions over the medium term.

Improving trailing free cash flow trend

Reported improvement in trailing free cash flow suggests the company is beginning to moderate its cash consumption. While still negative, a durable improvement trajectory can extend financing runway, lower near-term dilution pressure and indicate modest operational progress in executing exploration plans.

Public listing supports capital access

Being listed on the TSX Venture Exchange provides ongoing access to junior-mining capital markets and investor pools. For exploration companies this is a structural advantage, enabling timely equity financings, JV/option partnerships and broader visibility that supports project funding over multiple financing cycles.

Negative Factors

Pre-revenue company with widening losses

Canstar remains pre-revenue and recorded a larger TTM net loss versus the latest annual period. Persistent losses limit internal funding capacity for exploration, increase reliance on external capital, and make progress contingent on successful financings or asset sales rather than operating cash generation.

Negative shareholders' equity and rising debt

Equity turning negative alongside newly elevated debt represents a fundamental solvency and leverage deterioration. This constrains financing flexibility, raises creditor and covenant risk, and can increase cost of capital or force dilutive financings that erode existing holder value over the medium term.

Consistent cash burn and negative operating cash flow

Sustained negative operating cash flow and ongoing cash burn indicate the business lacks self-sufficiency and depends on external funding to continue exploration. That elevates refinancing and execution risk, potentially delaying or downsizing drilling programs if capital access tightens.

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

Very weak fundamentals: no revenue reported, persistent and widening losses (TTM net loss about -$2.27M), ongoing cash burn (TTM operating cash flow about -$1.85M), and a deteriorating balance sheet with negative equity (TTM -$0.64M) alongside rising debt (~$0.43–$0.44M).

Income Statement

The company reports no revenue across the annual periods provided and in TTM (Trailing-Twelve-Months), while operating losses remain material (TTM net loss of about -$2.27M vs -$1.65M in the latest annual period). Profitability is consistently negative (gross profit is negative each period), and the TTM loss has widened versus the most recent annual report, indicating weaker operating momentum and limited visibility to self-funded growth.

Balance Sheet

Financial position has weakened meaningfully: shareholders’ equity turned negative in the latest annual period (-$0.25M) and further deteriorated in TTM (-$0.64M), which is a key solvency risk. Debt has increased from zero in prior years to roughly $0.43–$0.44M recently, and with negative equity the leverage profile is unfavorable. Total assets also declined versus prior years, reducing balance-sheet flexibility.

Cash Flow

Cash generation remains a clear pressure point, with operating cash flow and free cash flow negative in all periods (TTM operating cash flow about -$1.85M). While TTM free cash flow shows an improvement versus the latest annual period (positive growth rate), the business still consumes significant cash and has not demonstrated durable cash self-sufficiency; cash burn remains closely tied to ongoing losses.

Breakdown	Sep 2025	Sep 2023	Sep 2022	Sep 2020	Jun 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00
Gross Profit	-2.98K	-3.12K	-3.92K	-569.00	-518.00
EBITDA	-1.63M	-1.27M	-5.55M	-1.42M	-143.84K
Net Income	-1.65M	-1.28M	-5.59M	-1.43M	-150.55K
Balance Sheet
Total Assets	580.66K	589.37K	1.05M	15.03M	7.97M
Cash, Cash Equivalents and Short-Term Investments	418.29K	494.38K	883.24K	4.35M	137.65K
Total Debt	426.23K	0.00	0.00	0.00	0.00
Total Liabilities	831.80K	117.61K	281.44K	293.68K	109.09K
Stockholders Equity	-251.14K	471.76K	771.12K	14.73M	7.86M
Cash Flow
Free Cash Flow	-1.40M	-1.21M	-4.09M	-1.57M	-410.71K
Operating Cash Flow	-1.40M	-1.21M	-4.09M	-302.01K	-330.49K
Investing Cash Flow	239.80K	-49.08K	4.34M	-5.27M	-30.23K
Financing Cash Flow	1.32M	843.84K	0.00	5.75M	210.00K

Canstar Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.07
• 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 0.07 is below the 20-day moving average (MA) of 0.09, below the 50-day MA of 0.08, and above the 200-day MA of 0.07, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 51.66 is Neutral, neither overbought nor oversold. The STOCH value of 64.29 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%
MTT	51 Neutral	C$16.75M	-45.59	―	―	―	―
VZZ	50 Neutral	C$13.85M	-18.18	-10.48%	―	-5.09%	65.98%
ROX	47 Neutral	C$17.63M	-6.12	―	―	―	-51.55%
ZIGY	45 Neutral	C$14.08M	-20.85	-23.38%	―	―	-3416.67%
BRO	45 Neutral	C$28.04M	-5.47	-16.31%	―	―	29.32%
BAY	44 Neutral	C$15.18M	-28.95	-55.06%	―	―	90.73%

Canstar Resources Corporate Events

Canstar Consolidates Mary March Land Package With Strategic Eagleridge Option

Canstar Resources has secured an option to acquire a 100% interest in the Eagleridge mineral claims adjoining its Mary March Project in central Newfoundland, consolidating control over the projected eastern continuation of the Mary March–Nancy April VMS system. The move fills a key gap in its land package within the prolific Buchans-Roberts Arm Belt, eliminating a property boundary that previously split the geological model and reducing the risk of competitive encroachment.

The newly optioned Eagleridge claims are being integrated immediately into Canstar’s fully funded 2026 exploration program, which includes high-resolution drone magnetics, ground IP, and borehole EM surveys to refine drill targets ahead of a major drilling campaign. The company has also secured a land access agreement with a local landholder to support its winter geophysics work, further enabling seamless execution of exploration across the entire Mary March target corridor.

The most recent analyst rating on (TSE:ROX) stock is a Sell with a C$0.08 price target. To see the full list of analyst forecasts on Canstar Resources stock, see the TSE:ROX Stock Forecast page.

Canstar Secures Non-Dilutive JV Funding to Advance Mary March VMS Project

Canstar Resources has finalized a definitive joint venture agreement with VMS Mining Corporation to advance its Mary March VMS project in central Newfoundland. Under the deal, Canstar will receive an additional C$1 million non-dilutive cash payment to fund winter technical work and prepare the asset for a 2026 drill-ready program.

The JV structure contemplates a further C$4 million investment by VMSC, positioning Mary March for a potentially fully funded 2026 drill campaign while allowing Canstar to maintain strong leverage to exploration success. Exploration is being guided by leading VMS experts Dr. Harold Gibson and Dr. Rodney Allen, and backed by a VMSC leadership team with a track record of multibillion-dollar mining transactions and major gold discoveries, enhancing the project’s technical credibility and strategic profile within a world-class VMS district.

The most recent analyst rating on (TSE:ROX) stock is a Sell with a C$0.08 price target. To see the full list of analyst forecasts on Canstar Resources stock, see the TSE:ROX Stock Forecast page.

Canstar Sells Golden Baie Option to Churchill, Refocuses on Buchans VMS Exploration

Canstar Resources has signed a binding letter of intent granting Churchill Resources an option to earn 100% of the Golden Baie gold-antimony project, in exchange for up to a 9.99% equity stake in Churchill, a 0.5% royalty on the project, cash reimbursement and the elimination of significant 2026 holding costs. The deal also commits Churchill to at least $5 million in exploration work, including $2 million in the first year, providing Canstar with leveraged exposure to Golden Baie while shoring up its balance sheet and freeing capital and management focus to advance its VMS exploration strategy at the Mary March project in Newfoundland’s Buchans District.

The transaction is expected to deliver about $3.3 million in near-term value to Canstar, including roughly $800,000 in hard dollar benefits to its treasury and an initial share tranche in Churchill valued at approximately $2.2 million based on recent market prices. Management says this structure, combined with an existing non-dilutive joint venture commitment from VMS Mining Corporation and technical partnerships, positions Canstar to accelerate a robust drilling campaign and strengthen its role in the hunt for new high-grade polymetallic deposits in a proven mining camp.

The most recent analyst rating on (TSE:ROX) stock is a Sell with a C$0.08 price target. To see the full list of analyst forecasts on Canstar Resources stock, see the TSE:ROX Stock Forecast page.

Canstar Monetizes Golden Baie Project and Refocuses on High-Grade VMS Exploration in Newfoundland

Canstar Resources has entered into a binding letter of intent with Churchill Resources for an option allowing Churchill to earn a 100% interest in the Golden Baie gold-antimony project in Newfoundland, in exchange for up to a 9.99% equity stake in Churchill, cash reimbursement, a 0.5% perpetual royalty, and relief from 2026 holding costs. The deal includes at least $5 million in exploration work commitments, with $2 million to be spent in the first year, bolstering Canstar’s balance sheet and giving it leveraged exposure to Golden Baie while it redirects capital and technical resources toward accelerating high-grade VMS exploration and a major drilling campaign at its Mary March project in spring 2026.

Under the terms, Canstar will initially receive 15,834,097 Churchill shares, equal to about 5% of Churchill’s post-issuance share capital, with additional tranches bringing its stake up to 9.99% over 24 months, subject to TSXV caps on the number of shares issued per tranche. This structure ties the ultimate value of Canstar’s consideration to Churchill’s future market performance, positioning Canstar to benefit from successful advancement of Golden Baie while simplifying its asset portfolio and sharpening its strategic focus on Newfoundland’s Buchans District.

The most recent analyst rating on (TSE:ROX) stock is a Sell with a C$0.08 price target. To see the full list of analyst forecasts on Canstar Resources stock, see the TSE:ROX Stock Forecast page.

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.