Sterling Metals (SAG) AI Stock Analysis

• Market Cap: C$13.14M
• Dividend Yield: N/A
• Average Volume (3M): 66.58K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.25
• Revenue Growth: N/A
• EPS Growth: -164.55%
• Country: CA
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 71
• Industry: Industrial Materials
• EPS (TTM): -0.03
• Shares Outstanding: 30,920,778
• 10 Day Avg. Volume: 42,188
• 30 Day Avg. Volume: 66,583
• PEG Ratio: 0.66
• Price to Book (P/B): 1.28
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.26
• 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: 45 Neutral
• Price Target: ―

Sterling Metals faces significant financial hurdles due to its pre-revenue status and negative cash flows. However, a strong equity position and positive corporate activities, such as the drilling program and funding successes, provide a foundation for future growth. Technical indicators suggest current market weakness, but potential for recovery exists. Valuation remains challenging with a negative P/E ratio, typical of early-stage mining companies.

Sterling Metals Business Overview & Revenue Model

Company Description

Sterling Metals (SAG) is a mining company focused on the exploration and development of precious metal properties. The company primarily operates in the mining sector, with a particular emphasis on silver and gold extraction. Through strategic exploration and development of mineral-rich sites, Sterling Metals aims to contribute to the supply chain of these valuable resources.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00
Gross Profit	-41.55K	0.00	-16.23K	-11.29K	0.00
EBITDA	-10.68M	-90.43K	-1.52M	-1.36M	-1.78M
Net Income	-10.72M	-1.56M	-1.54M	-1.38M	-2.06M
Balance Sheet
Total Assets	14.54M	17.89M	12.44M	9.13M	6.75M
Cash, Cash Equivalents and Short-Term Investments	1.42M	3.81M	3.26M	2.43M	2.76M
Total Debt	0.00	0.00	0.00	0.00	0.00
Total Liabilities	429.07K	634.35K	342.06K	272.83K	384.22K
Stockholders Equity	14.11M	17.26M	12.10M	8.85M	6.36M
Cash Flow
Free Cash Flow	-687.71K	-5.40M	-3.64M	-3.81M	-2.42M
Operating Cash Flow	-666.86K	-1.27M	-875.92K	-955.00K	-2.31M
Investing Cash Flow	-2.68M	-4.13M	-2.76M	-2.85M	-102.50K
Financing Cash Flow	948.66K	5.95M	4.47M	―	4.74M

Sterling Metals Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.42
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 0.42 is below the 20-day moving average (MA) of 0.47, above the 50-day MA of 0.38, and above the 200-day MA of 0.39, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 47.49 is Neutral, neither overbought nor oversold. The STOCH value of 67.82 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
RUG	46 Neutral	C$14.60M	―	-549.91%	―	―	41.76%
SAG	45 Neutral	C$13.14M	―	-69.27%	―	―	-164.55%
Sector *	44 Neutral	C$992.05M	-6.72	-13.73%	2.53%	17.45%	-32.50%
ELEF	39 Underperform	C$9.36M	―	-133.66%	―	―	-701.60%
TIG	33 Underperform	C$15.71M	―	-23.11%	―	―	41.95%

Sterling Metals Corporate Events

Sterling Metals Launches Drilling at Copper Road Project in Ontario

Sterling Metals has commenced its inaugural drilling program at the Copper Road Project in Ontario, aiming to explore significant copper mineralization. The fully funded 2,000-meter diamond drill program targets high-priority zones to test near-surface mineralization and its connection to a larger porphyry center at depth. This initiative is part of Sterling’s strategy to capitalize on Canada’s underutilized natural resources and could potentially position the company as a key player in the copper mining sector, given the project’s accessibility and promising geological features.

Sterling Metals Completes $1.52M Private Placement to Fuel Exploration

Sterling Metals Corp. has successfully closed a non-brokered private placement, raising $1,520,500 through the issuance of 6,082,000 units. The proceeds will be used for general working capital purposes, and the offering involved related party transactions, with insiders subscribing for a portion of the units. This move underscores Sterling’s strategic efforts to bolster its financial position and continue its exploration initiatives in Canada.

Sterling Metals Upsizes Private Placement to Bolster Exploration Efforts

Sterling Metals Corp. has announced an increase in its non-brokered private placement to 6,400,000 units, aiming to raise up to $1,600,000. The proceeds will be used for general working capital, and the offering is subject to regulatory approvals, highlighting Sterling’s strategic financial maneuvers to strengthen its operational capabilities.

Sterling Metals Upsizes Private Placement to Boost Copper Road Project

Sterling Metals has announced an increase in its non-brokered private placement, now offering up to 5,200,000 units at $0.25 per unit, aiming to raise $1,300,000. This move, driven by strong shareholder demand, supports the company’s Copper Road Project as it prepares for its inaugural drilling program, indicating confidence in its potential and strategic positioning in the mineral exploration industry.

Sterling Metals Announces $1 Million Private Placement to Boost Exploration Efforts

Sterling Metals has announced a non-brokered private placement of up to 4,000,000 units at $0.25 per unit, aiming to raise up to $1,000,000. The proceeds will be used for general working capital purposes. Each unit consists of one common share and one-half of a common share purchase warrant, with warrants exercisable at $0.40 per share for two years. The offering is subject to regulatory approvals, including from the TSX Venture Exchange, and all securities will be under a four-month hold period. This move is expected to support Sterling’s ongoing exploration projects in Canada, potentially enhancing its market position in the mineral exploration industry.

Sterling Metals Announces Share Consolidation and Drilling Plans

Sterling Metals Corp. has announced the consolidation of its common shares, reducing the number of shares by exchanging ten pre-consolidation shares for one post-consolidation share, effective around February 24, 2025. This move, approved by shareholders, aims to streamline the company’s share structure and improve marketability. Concurrently, the company is advancing its Copper Road Project by preparing to drill 2,000 meters in search of copper porphyry potential, following promising fieldwork and survey results. This strategic update is expected to enhance Sterling’s operational focus and shareholder value.