Search Minerals (SMY) AI Stock Analysis

• Market Cap: C$21.86M
• Dividend Yield: N/A
• Average Volume (3M): 34.51K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.02
• Revenue Growth: N/A
• EPS Growth: -205.83%
• Country: CA
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): -0.01
• Shares Outstanding: 44,611,217
• 10 Day Avg. Volume: 27,879
• 30 Day Avg. Volume: 34,512
• PEG Ratio: 2.73
• Price to Book (P/B): 4.15
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -158.84
• 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: 45 Neutral
• Price Target: C$0.37 ▼(-24.29% Downside)

The score is held down primarily by weak financial performance (pre-revenue status, ongoing losses, and negative free cash flow). Technicals are also soft with the stock below key shorter-term moving averages and negative MACD. Offsetting these, recent financing and balance-sheet actions modestly improve near-term funding flexibility, while valuation lacks support given negative earnings and no stated dividend.

Positive Factors

Regulatory Compliance

The revocation of the cease trade order indicates improved regulatory compliance, potentially enhancing market presence and operational potential.

Balance Sheet Stability

A stable balance sheet with low leverage provides financial flexibility and reduces risk, supporting long-term operational sustainability.

Strategic Partnerships Potential

Potential for strategic partnerships or joint ventures could enhance revenue generation and market reach, leveraging industry demand for REEs.

Negative Factors

Lack of Revenue

The absence of revenue generation is a significant concern, indicating challenges in monetizing projects and achieving financial sustainability.

Negative Cash Flow

Negative cash flow trends highlight cash management issues, which could hinder operational sustainability without external financing.

Profitability Challenges

Ongoing operational and profitability challenges due to persistent losses can impact long-term business viability and investor confidence.

Search Minerals Business Overview & Revenue Model

Company Description

Search 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 Money

Search 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

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

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

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.

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	-107.41K	-121.38K	0.00	-166.00K	-60.63K	-85.37K
EBITDA	-884.06K	-399.00K	-1.29M	-1.41M	-1.97M	-1.07M
Net Income	-1.30M	-643.00K	-1.54M	-1.57M	-2.08M	-1.55M
Balance Sheet
Total Assets	31.27M	30.37M	29.47M	29.29M	21.65M	13.90M
Cash, Cash Equivalents and Short-Term Investments	755.13K	456.30K	7.29K	457.54K	1.62M	100.80K
Total Debt	3.41M	1.57M	386.18K	80.00K	80.00K	686.70K
Total Liabilities	6.88M	5.21M	3.80M	2.35M	802.98K	2.30M
Stockholders Equity	24.38M	25.16M	25.67M	26.94M	20.84M	11.60M
Cash Flow
Free Cash Flow	-1.78M	-657.04K	212.29K	-2.11M	-5.38M	-1.19M
Operating Cash Flow	-668.89K	-436.56K	221.58K	-1.75M	-1.84M	-433.09K
Investing Cash Flow	-1.28M	-389.42K	-1.11M	-7.03M	-3.54M	-758.54K
Financing Cash Flow	2.71M	1.27M	435.06K	7.62M	6.90M	1.06M

Search Minerals 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%
LIT	53 Neutral	C$30.95M	-2.51	-24.07%	―	―	76.16%
LLG	50 Neutral	C$16.93M	0.84	45.75%	―	―	158.45%
ULTH	46 Neutral	C$16.31M	-5.13	-22.36%	―	―	-4.68%
SMY	45 Neutral	C$21.86M	-13.49	-6.20%	―	―	-205.83%
MTS	45 Neutral	C$14.55M	-8.54	-92.01%	―	―	―
WLF	45 Neutral	C$18.27M	-95.83	-32.86%	―	―	86.96%

Search Minerals Corporate Events

Search Minerals Strengthens Balance Sheet with Shares-for-Debt Transaction

Search Minerals has announced a shares-for-debt transaction with LeadFX Inc., settling $404,053.73 of outstanding debt by issuing 808,107 common shares at a price of $0.50 per share. This move is aimed at preserving cash and strengthening the company’s balance sheet. The transaction, which involves a related party, is subject to TSXV approval and will not result in the creation of a new control person. The issuance of shares is part of Search Minerals’ strategy to improve its financial position and maintain focus on its core operations in the CREE industry.

Search Minerals Secures $3 Million Convertible Loan for Mining Projects

Search Minerals has finalized a convertible loan agreement with Petra Holdings Company Inc., securing a $3 million unsecured convertible revolving loan to fund the development of its Foxtrot and Deep Fox mining projects. The initial drawdown of $750,000 will be used for equipment acquisition, site operations, and regulatory compliance, with the remaining funds available for future drawdowns. This financial arrangement positions Search Minerals to advance its mining operations, potentially impacting its market standing and offering strategic benefits to stakeholders.

Search Minerals Secures $843,847 in Private Placement Financing

Search Minerals has successfully closed its non-brokered private placement financings, raising $843,847 in gross proceeds. The funds will be allocated towards Canadian exploration expenses for the company’s Foxtrot and Deep Fox projects, with the aim of qualifying for the Critical Mineral Exploration Tax Credit. This financing move is expected to bolster the company’s working capital and support its exploration initiatives, potentially enhancing its position in the rare earth elements market.

Search Minerals Appoints New CFO to Bolster Financial Strategy

Search Minerals has appointed Jason Macintosh as its new Chief Financial Officer. With over 25 years of finance experience, Macintosh aims to support the company’s financial strategy and drive long-term shareholder value as it advances its critical rare earth elements projects, Deep Fox and Foxtrot, in Canada. This appointment is expected to strengthen the company’s leadership and reinforce its fiscal discipline, benefiting shareholders and community partners.

Search Minerals Amends Private Placement Terms to Raise $993,847

Search Minerals has amended the terms of its non-brokered private placement financings, increasing the share price for its hard-dollar private placement from $0.25 to $0.33 per share, aiming for gross proceeds of up to $993,847. The funds from these financings will be used for Canadian exploration expenses related to the company’s Foxtrot and Deep Fox projects and for general corporate purposes, subject to regulatory approvals.