Sparton Resources (SRI) AI Stock Analysis

• Market Cap: C$4.25M
• Dividend Yield: N/A
• Average Volume (3M): 109.81K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.34
• Revenue Growth: N/A
• EPS Growth: 95.92%
• Country: CA
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): 0.00
• Shares Outstanding: 169,941,540
• 10 Day Avg. Volume: 123,934
• 30 Day Avg. Volume: 109,810
• PEG Ratio: -0.08
• Price to Book (P/B): 5.04
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.15
• 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$0.03 ▲(0.00% Upside)

The score is primarily held down by weak financial performance (persistent losses and ongoing cash burn) and limited valuation support (negative P/E, no dividend data). Corporate updates around funded exploration provide some offset, while technical indicators are broadly neutral with negative MACD.

Positive Factors

Joint Venture Progress

The advancement in the joint venture for vanadium flow battery manufacturing strengthens Sparton's market position and aligns with renewable energy trends, potentially providing a stable revenue stream and enhancing its competitive edge in energy storage solutions.

Promising Drilling Results

The discovery of valuable critical metals and gold at the Pense Project could lead to future revenue opportunities and strategic partnerships, enhancing the company's asset portfolio and long-term growth potential in the mining sector.

Full Ownership of Pense Property

Securing full ownership of the Pense Property allows Sparton greater control over exploration and development activities, potentially accelerating project timelines and increasing the value of its mineral assets, which is crucial for long-term strategic growth.

Negative Factors

Revenue Decline

The complete drop in revenue highlights severe operational challenges and dependency on successful project development, which can strain financial resources and hinder sustainable growth if not addressed promptly.

Negative Cash Flow

Persistent negative cash flow indicates liquidity challenges and operational inefficiencies, limiting the company's ability to invest in new projects or weather economic downturns, thus impacting long-term financial health.

Negative Earnings

Consistently negative earnings reflect ongoing operational inefficiencies and inability to cover costs, which can erode investor confidence and limit access to capital for future growth initiatives.

Sparton Resources Business Overview & Revenue Model

Company Description

Sparton Resources Inc., an exploration and development stage company, engages in the exploration and evaluation of properties in Canada. It has an option agreement to acquire interest in the Bruell Gold Property comprises 20 claims located in Vauquelin Township, Quebec; and Sir Harry Oakes Gold Property, including 46 mining claims and 3 mining leases in the Matachewan Gold Area. The company also has interest in Chebucto natural gas field located in the Sable Island area of offshore Nova Scotia; and engages in the vanadium redox flow battery business. The company is headquartered in Toronto, Canada.

How the Company Makes Money

Sparton Resources generates revenue primarily through the exploration and development of mineral properties, particularly uranium. The company's revenue model is centered around the acquisition of promising mineral rights, exploration to assess resource potential, and ultimately the sale or development of these properties into commercially viable projects. Key revenue streams include the sale of mineral resources, joint ventures, and partnerships with other mining and energy companies. Additionally, the company may engage in strategic alliances or collaborations to leverage expertise, share financial risks, and enhance project value. However, due to the exploratory nature of its operations, revenue can be inconsistent and heavily dependent on the success of its exploration activities and favorable market conditions for its resources.

Sparton Resources Financial Statement Overview

Summary

Sparton Resources faces severe financial challenges, with a complete drop in revenue and persistent negative earnings. The balance sheet is moderately stable but does not compensate for poor cash flow and operational inefficiencies. Strategic interventions are urgently needed.

Income Statement

Sparton Resources has faced significant revenue volatility, with a complete drop to zero revenue in the TTM period. The company consistently reports negative EBIT and net income, indicating ongoing operational challenges. Margins are negative, reflecting the company's inability to cover its costs and generate profit.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio with some improvement in stockholders' equity over time. However, total assets have decreased, and equity ratio trends are not favorable. The financial position is somewhat stable but requires careful management to navigate potential liabilities.

Cash Flow

Cash flow analysis reveals persistent negative free cash flow, indicating that operational cash outflows are not covered by inflows. Despite some financing activities, operating cash flow remains deeply negative, which suggests liquidity challenges and a need to improve operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	954.10K	1.14M	470.77K	0.00
Gross Profit	-9.69K	0.00	45.69K	333.05K	56.18K	-5.50K
EBITDA	-342.75K	-869.91K	-280.67K	-328.31K	-340.60K	-681.33K
Net Income	-156.60K	-706.85K	-330.88K	-353.39K	-360.25K	-652.99K
Balance Sheet
Total Assets	1.82M	1.91M	2.24M	1.94M	1.92M	1.61M
Cash, Cash Equivalents and Short-Term Investments	163.15K	5.25K	411.41K	85.39K	246.10K	105.13K
Total Debt	279.01K	281.70K	227.16K	224.08K	241.00K	326.23K
Total Liabilities	470.43K	563.39K	565.35K	614.70K	553.07K	627.95K
Stockholders Equity	989.70K	992.75K	1.32M	977.75K	1.02M	640.11K
Cash Flow
Free Cash Flow	-271.51K	-813.15K	-140.05K	-223.89K	-344.95K	-465.97K
Operating Cash Flow	-271.51K	-813.15K	-138.85K	-155.13K	-296.30K	-465.97K
Investing Cash Flow	0.00	0.00	19.70K	-68.76K	-48.65K	0.00
Financing Cash Flow	110.00K	407.00K	450.00K	68.00K	478.56K	564.72K

Sparton Resources Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.03
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SRI, the sentiment is Negative. The current price of 0.03 is above the 20-day moving average (MA) of 0.03, above the 50-day MA of 0.03, and above the 200-day MA of 0.02, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 38.88 is Neutral, neither overbought nor oversold. The STOCH value of -100.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:SRI.

Sparton 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%
SCLT	54 Neutral	C$5.82M	-9.12	-62.20%	―	―	59.67%
ETR	50 Neutral	C$4.82M	-12.10	-8.29%	―	―	83.68%
SRI	47 Neutral	C$4.25M	-125.00	-4.30%	―	―	95.92%
SIEN	45 Neutral	C$6.03M	-3.11	-54.40%	―	―	51.40%
GOR	34 Underperform	C$4.35M	-10.34	―	―	―	-20.83%

Sparton Resources Corporate Events

Sparton Resources Reprices Stock Options and Advances Drilling at Quebec Pense Project

Sparton Resources has repriced and reissued 4,200,000 incentive stock options to its directors, officers and consultants, setting a new exercise price of $0.05 per share and a three-year term to December 12, 2028, while cancelling the previously announced options. The company also reported that drilling is underway at its Pense Project claims in Quebec, with results from a recent EM geophysical survey in previously untested areas expected shortly, developments that could influence the project’s future advancement and the company’s exploration portfolio.

Sparton Resources Completes Private Placement to Fund Ontario Exploration

Sparton Resources Inc. has successfully completed its non-brokered private placement offering, raising a total of C$410,000. The proceeds will be used for exploration activities in Ontario, particularly on the Pense polymetallic metals project, and for general corporate purposes. The company has also issued incentive options to its directors, officers, and consultants, and is progressing with drilling activities and geophysical surveys on its Quebec Pense Project claims.

Sparton Resources Announces Positive Assay Results and New Drilling Initiatives

Sparton Resources Inc. has reported promising assay results from surface samples at the Verrier-Gagne zone in Ontario, indicating significant values for copper, nickel, zinc, and anomalous cobalt content. These findings suggest potential mineral zoning across the property, prompting further geophysical surveys and drilling plans. Additionally, Sparton is set to begin a diamond core drilling program in Quebec to explore electromagnetic anomalies, potentially enhancing its resource base and strengthening its position in the critical minerals sector.

Sparton Resources Secures C$210,000 for Quebec Exploration

Sparton Resources Inc. has successfully closed the first tranche of a private placement offering, raising C$210,000 to fund its critical metals exploration projects in Quebec. The proceeds will be used for resource exploration expenses, including prospecting and drilling at the Pense-Montreuil project, which has shown potential for zinc-copper-nickel mineralization. This move is expected to enhance Sparton’s operational capabilities and strengthen its position in the critical metals exploration sector.

Sparton Resources Launches C$500,000 Private Placement for Exploration Expansion

Sparton Resources Inc. has announced a private placement offering to raise up to C$500,000 to fund its critical metals exploration projects in Ontario and Quebec. The funds will be used for expanding surveys and drilling activities, with the offering consisting of various share units and warrants. The initiative aims to bolster Sparton’s exploration capabilities, potentially enhancing its market position in the critical metals sector.