Sterling Metals (SAG) AI Stock Analysis

• Market Cap: C$76.80M
• Dividend Yield: N/A
• Average Volume (3M): 384.87K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.04
• Revenue Growth: N/A
• EPS Growth: -919.03%
• Country: CA
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): >-0.01
• Shares Outstanding: 38,017,433
• 10 Day Avg. Volume: 386,545
• 30 Day Avg. Volume: 384,874
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.41
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.34
• 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: 50 Neutral
• Price Target: C$2.00 ▲(6.38% Upside)

Score is held down primarily by weak financial performance (no revenue, widening losses, and ongoing cash burn). Support comes from strong price trend/momentum and positive project/financing events that extend runway, but valuation remains constrained by loss-making results and no dividend.

Positive Factors

Strong Equity Position

A strong equity position with no debt provides Sterling Metals with financial stability and flexibility to pursue growth opportunities without the burden of interest payments.

Strategic Drilling Program

The drilling program at Copper Road Project represents a strategic move to explore significant copper mineralization, potentially enhancing Sterling's resource base and market position in the mining sector.

Successful Funding Initiatives

The successful funding initiatives bolster Sterling Metals' financial position, enabling continued exploration and development efforts, which are crucial for long-term growth in the mining industry.

Negative Factors

Negative Cash Flows

Negative cash flows indicate reliance on external financing, which can strain financial resources and limit operational flexibility, posing challenges to long-term sustainability.

Pre-Revenue Status

Operating without revenue highlights the company's early-stage status, which can be risky as it depends on successful exploration outcomes to transition to revenue generation.

High Operational Costs

High operational costs without offsetting revenue result in persistent losses, challenging Sterling Metals' ability to achieve profitability and necessitating efficient cost management.

Sterling Metals Business Overview & Revenue Model

Company Description

Sterling Metals Corp. engages in the discovery, acquisition, exploration, and development of mineral properties in Canada. It holds an option agreement to acquire a 100% interest in the Sail Pond silver-copper-lead-zinc project located on the Great Northern Peninsula of Newfoundland. The company was formerly known as Latin American Minerals Inc. and changed its name to Sterling Metals Corp. in November 2020. Sterling Metals Corp. was incorporated in 2003 and is headquartered in Toronto, Canada.

How the Company Makes Money

Sterling Metals makes money through the exploration, extraction, and sale of precious metals, primarily silver and gold. The company generates revenue by developing mining sites, extracting raw metal ores, and selling these materials to refineries and other industrial buyers. Key revenue streams include the direct sale of mined metals and potential partnerships or joint ventures with other mining companies or investors interested in commodity markets. Additionally, the company may engage in strategic partnerships to enhance operational efficiency and access to advanced mining technology, which can contribute to its earnings.

Sterling Metals Financial Statement Overview

Summary

Sterling Metals is in a development stage with no revenue and ongoing operational losses, typical in the mining industry. While the balance sheet shows a strong equity position without debt, negative cash flows present sustainability challenges.

Income Statement

Sterling Metals has consistently reported zero revenue, indicating a pre-revenue stage typical in certain mining operations. The company incurs persistent losses with negative EBIT and EBITDA margins, reflecting high operational costs without offsetting revenue. The net profit margin is negative, showing no profitability at this stage.

Balance Sheet

The balance sheet shows no debt, which is a strength, and the equity ratio is high due to substantial stockholders' equity compared to total assets, indicating a solid capital structure. However, the company's assets are not generating income, which is a concern for long-term sustainability.

Cash Flow

Cash flow analysis reveals negative operating and free cash flows, indicating reliance on external financing to fund operations. The free cash flow growth rate is negative, with free cash flow consistently declining, demonstrating a need for improved cash management or additional capital to sustain operations.

Breakdown	TTM	Dec 2024	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	-41.57K	-41.55K	0.00	-16.23K	-11.29K	0.00
EBITDA	-1.29M	-10.68M	-90.43K	-1.52M	-1.36M	-1.78M
Net Income	-11.41M	-10.72M	-1.56M	-1.54M	-1.38M	-2.06M
Balance Sheet
Total Assets	17.89M	14.54M	17.89M	12.44M	9.13M	6.75M
Cash, Cash Equivalents and Short-Term Investments	2.05M	1.42M	3.81M	3.26M	2.43M	2.76M
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	310.10K	429.07K	634.35K	342.06K	272.83K	384.22K
Stockholders Equity	17.58M	14.11M	17.26M	12.10M	8.85M	6.36M
Cash Flow
Free Cash Flow	-3.29M	-687.71K	-5.40M	-3.64M	-3.81M	-2.42M
Operating Cash Flow	-1.12M	-666.86K	-1.27M	-875.92K	-955.00K	-2.31M
Investing Cash Flow	-3.01M	-2.68M	-4.13M	-2.76M	-2.85M	-102.50K
Financing Cash Flow	4.86M	948.66K	5.95M	4.47M	―	4.74M

Sterling Metals Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.88
• 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:SAG, the sentiment is Neutral. The current price of 1.88 is below the 20-day moving average (MA) of 1.89, above the 50-day MA of 1.84, and above the 200-day MA of 0.92, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 47.65 is Neutral, neither overbought nor oversold. The STOCH value of 55.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:SAG.

Sterling Metals 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%
NBM	53 Neutral	C$99.29M	-17.34	-450.88%	―	―	-38.68%
SAG	50 Neutral	C$76.80M	-4.02	-58.10%	―	―	-919.03%
FSY	50 Neutral	C$96.67M	-33.04	-9.83%	―	―	49.12%
NEXT	49 Neutral	C$83.21M	-2.16	-67.77%	―	―	-156.65%
SALT	47 Neutral	C$77.88M	-26.22	-13.22%	―	―	33.25%
LEM	40 Underperform	$62.49M	-20.83	-12.25%	―	―	17.24%

Sterling Metals Corporate Events

Sterling Metals Streamlines Structure with Subsidiary Amalgamation

Sterling Metals Corp. has completed a vertical short form amalgamation with its wholly owned subsidiary, 17434006 Canada Inc., effective December 31, 2025, in a move aimed at simplifying its corporate structure and reducing administrative costs. The transaction involves no issuance of new securities, leaves the company’s share capital unchanged, cancels the subsidiary’s shares, and transfers all of its assets, liabilities and obligations to Sterling, with no significant impact expected on the company’s day-to-day operations or its continued listing on the TSX Venture Exchange.

The most recent analyst rating on (TSE:SAG) stock is a Hold with a C$2.00 price target. To see the full list of analyst forecasts on Sterling Metals stock, see the TSE:SAG Stock Forecast page.

Sterling Metals Flags Transformational Year Ahead as Soo Copper Project Gathers Momentum

Sterling Metals has significantly advanced its Soo Copper Project over the past year, completing roughly 11 kilometres of drilling and identifying widespread copper mineralization across broad intervals, including a high-grade bornite zone with strong copper and localized high-grade gold values. The company has mapped a six-kilometre trend of bornite and chalcopyrite mineralization, underscoring the district-scale potential of the project, and bolstered its technical bench by appointing veteran geologist Dr. Neil O’Brien as Chief Geologist. Looking ahead to what it calls the most consequential year in its history, Sterling plans to release a comprehensive set of drill assays in early 2026, conduct at least 20 kilometres of additional drilling focused on delineation and step-outs, expand geophysical work and surface exploration, and showcase the project at major industry conferences, positioning itself to benefit from a tightening global copper market and Canada’s strategic emphasis on domestic copper supply.

Sterling Metals Secures $14M to Propel Soo Copper Project

Sterling Metals Corp. has successfully closed a non-brokered private placement, raising approximately $14 million to accelerate the development of its Soo Copper Project. The funds will primarily support drilling activities, with the company benefiting from cost advantages due to excellent access and infrastructure. This financial boost positions Sterling Metals to rapidly advance its project, potentially impacting its industry standing and offering significant opportunities for stakeholders.

Sterling Metals Upsizes Private Placement to Boost Canadian Exploration

Sterling Metals Corp. has announced an increase in its non-brokered private placement, aiming to raise up to $14 million through the issuance of units and charity flow-through units. The proceeds will be used for general working capital and to fund Canadian exploration expenses, enhancing the company’s exploration activities in Canada. The offering is subject to regulatory approvals and is expected to involve participation from company insiders.

Sterling Metals Launches $10 Million Private Placement to Fund Exploration

Sterling Metals Corp. has announced a non-brokered private placement offering of up to 3,088,888 units and 2,333,334 charity flow-through units, aiming to raise up to $10 million. The proceeds will be used for general working capital and to fund Canadian exploration expenses, with the offering subject to regulatory approvals. This strategic move is expected to bolster Sterling’s financial position and support its ongoing exploration projects in Canada, potentially enhancing its market standing and delivering value to stakeholders.

Sterling Metals Unveils Major Copper Discovery and Appoints New Chief Geologist

Sterling Metals Corp. has announced a significant discovery of bornite in outcrop across a 6km corridor at its Soo Copper Project, marking a major advancement in delineating the broader copper system. This discovery, along with the appointment of Dr. Neil O’Brien as Chief Geologist, is expected to enhance the company’s exploration capabilities and accelerate the understanding of the project’s potential. The new findings, including extensive chalcopyrite and bornite mineralization, suggest the presence of high-grade copper zones at shallow depths, reinforcing the project’s status as a compelling copper exploration opportunity in Canada.