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Search Minerals Inc (TSE:SMY)
:SMY
Canadian Market

Search Minerals (SMY) AI Stock Analysis

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Search Minerals

(SMY)

Rating:41Neutral
Price Target:
Search Minerals presents a challenging financial outlook with significant weaknesses in income generation and cash flow management. The technical analysis indicates a lack of momentum, while valuation metrics are unattractive due to continued losses. However, recent regulatory improvements provide a slight positive outlook, preventing a lower overall score.

Search Minerals (SMY) vs. iShares MSCI Canada ETF (EWC)

Search Minerals Business Overview & Revenue Model

Company DescriptionSearch Minerals Inc. engages in the acquisition, evaluation, and exploration of mineral resource properties in Canada. It explores for rare earth elements. The company's flagship project is the Foxtrot project located in the St Lewis. Search Minerals Inc. was incorporated in 2006 and is headquartered in North Vancouver, Canada.
How the Company Makes MoneySearch Minerals generates revenue through the exploration and potential sale or partnership development of its rare earth element resources. The company's primary revenue streams include securing strategic partnerships or joint ventures with larger mining companies or technology firms interested in sourcing REEs. Additionally, Search Minerals may generate income by selling its mineral rights or entering into off-take agreements with companies that require a steady supply of rare earth elements for their manufacturing processes. The company's ability to make money is significantly influenced by global demand for REEs, market prices, and its success in advancing its projects towards production.

Search Minerals Financial Statement Overview

Summary
Search Minerals faces significant financial challenges. The absence of revenue and consistent losses highlight a weak income statement. While the balance sheet shows stability with low leverage, the lack of profitability and negative cash flow trends pose sustainability concerns. The company needs to improve its revenue generation and cash flow management to enhance financial health.
Income Statement
10
Very Negative
Search Minerals has not generated any revenue over the past years, which is a significant concern. The company consistently reports negative EBIT and net income, indicating ongoing operational and profitability challenges. The lack of revenue growth and persistent losses result in a very low score for the income statement.
Balance Sheet
45
Neutral
The balance sheet shows a relatively stable equity position with stockholders' equity making up a significant portion of total assets, but the company has moderate levels of debt. The debt-to-equity ratio is low, suggesting manageable debt levels, yet the continuous negative net income affects return on equity negatively. Overall, the balance sheet demonstrates stability, but the lack of profitability is a concern.
Cash Flow
20
Very Negative
The company's cash flow statement shows irregular and negative free cash flow trends, with significant cash outflows from operations and investments. There is no consistent generation of free cash flow, which is critical for sustaining operations without relying on external financing. The lack of free cash flow growth and low operating cash flow to net income ratio highlight cash flow management issues.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue0.000.000.000.000.000.00
Gross Profit-116.73K0.000.00-166.00K-60.63K-85.37K
EBITDA-664.88K-399.00K-1.29M-1.41M-1.97M-1.07M
Net Income-985.22K-643.00K-1.54M-1.57M-2.08M-1.55M
Balance Sheet
Total Assets30.24M30.37M29.47M29.29M21.65M13.90M
Cash, Cash Equivalents and Short-Term Investments39.53K456.30K7.29K457.54K1.62M100.80K
Total Debt1.04M1.57M386.18K80.00K80.00K686.70K
Total Liabilities5.49M5.21M3.80M2.35M802.98K2.30M
Stockholders Equity24.75M25.16M25.67M26.94M20.84M11.60M
Cash Flow
Free Cash Flow-791.78K-657.04K212.29K-2.11M-5.38M-1.19M
Operating Cash Flow-571.30K-436.56K221.58K-1.75M-1.84M-433.09K
Investing Cash Flow-1.01M-389.42K-1.11M-7.03M-3.54M-758.54K
Financing Cash Flow1.63M1.27M435.06K7.62M6.90M1.06M

Search Minerals Peers Comparison

Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSILI
53
Neutral
C$6.81M15.00-0.37%
44
Neutral
C$979.74M-6.70-13.35%2.68%17.20%-32.62%
TSSMY
41
Neutral
C$14.63M-3.92%-9.09%
TSAVE
40
Underperform
C$22.28M-34.48%59.67%
TSNRM
37
Underperform
C$8.05M-50.39%72.76%
32
Underperform
C$15.04M-24.75%9.29%
$4.94M-1.16%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:SMY
Search Minerals
0.35
0.15
75.00%
TSE:SUPR
Supernova Metals
0.48
0.38
380.00%
TSE:ILI
Imagine Lithium Inc
0.02
-0.02
-50.00%
TSE:NRM
Noram Lithium Corp
0.09
-0.17
-65.38%
PEMIF
Pure Energy Minerals
0.14
-0.09
-39.13%
TSE:AVE
Vital Battery Metals, Inc.
0.32
0.19
146.15%

Search Minerals Corporate Events

Delistings and Listing ChangesRegulatory Filings and Compliance
Search Minerals Announces Revocation of Cease Trade Order
Positive
Mar 28, 2025

Search Minerals Inc. announced the revocation of a cease trade order by the British Columbia Securities Commission, which had been in place due to the company’s failure to file required financial documents on time. The company has since updated its filings and is working with the TSX Venture Exchange to reinstate trading, which could positively impact its operations and market presence.

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.Date of analysis: Apr 06, 2025