Sparton Resources (SRI) AI Stock Analysis

• Market Cap: C$5.45M
• Dividend Yield: N/A
• Average Volume (3M): 109.81K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.94
• 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: 181,727,250
• 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: 44 Neutral
• Price Target: C$0.03 ▼(-3.33% Downside)
• Action: Reiterated Date: 01/24/26
• Date: Action: Reiterated 01/24/26

The score is held down primarily by persistent losses and ongoing negative operating/free cash flow, including a worsening cash burn in 2024. Technicals are mixed with negative momentum, while the balance sheet’s moderate leverage is the main stabilizing factor. Valuation metrics are also weak due to the negative P/E and lack of dividend yield data.

Positive Factors

Moderate leverage

A moderate and improving leverage profile reduces solvency risk and preserves financial flexibility over the next several months. Lower debt burden limits fixed interest costs and increases the company's ability to access capital or restructure operations while it addresses persistent cash burn.

Improving capital structure

Progress in lowering debt-to-equity indicates management has been able to improve the capital structure, which durably reduces refinancing risk. An improving balance sheet supports longer runway, better creditor terms, and gives time to restore operations or execute strategic fixes.

Occasional stronger gross profit

A year with relatively stronger gross profit suggests the business can achieve better unit economics under certain conditions. If revenue stabilizes or cost discipline is maintained, this operating leverage offers a path to margin recovery over coming quarters.

Negative Factors

Persistent losses

Sustained negative operating profit erodes equity and limits retained capital for reinvestment. Without a structural turnaround in revenue or margins, ongoing losses will prolong dependence on external financing and constrain the company's ability to rebuild durable profitability.

Consistent negative cash flow

Negative operating and free cash flow across all reported years indicates the business consumes cash rather than generates it, increasing funding risk. Worsening cash burn in 2024 heightens the likelihood of equity dilution or debt financing needs in the medium term.

Revenue instability

Highly inconsistent or intermittent revenue undermines predictability and scale economics. Periods of minimal revenue make fixed-cost coverage and margin recovery difficult, impeding the company's ability to convert occasional gross-profit strength into sustained operating profitability.

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

Financial performance is weak: the company shows persistent net losses and negative operating profit (2019–2024) with inconsistent revenue (including minimal/zero-revenue periods). Cash flow is a major concern with negative operating cash flow and free cash flow every year and a worsening cash burn in 2024. The main offset is a comparatively moderate leverage profile with debt-to-equity improving in recent years.

Income Statement

Results show persistent losses with negative operating profit and net income every year provided (2019–2024). Revenue is highly inconsistent, including periods of minimal/zero revenue (notably 2020 and 2024) and a decline in 2023 versus 2022, which limits confidence in the earnings base. While 2022 showed a stronger gross profit profile than other years, the company has not converted that into sustainable profitability, and margins remain structurally weak overall.

Balance Sheet

Leverage appears moderate, with debt-to-equity generally in a reasonable range and improving from higher levels in 2019–2020 to lower levels in 2023–2024, which helps reduce financial risk. However, shareholder returns are materially negative (negative return on equity across all periods), reflecting ongoing losses that pressure the capital base. Overall, the balance sheet is not heavily levered, but profitability weakness is the key constraint.

Cash Flow

Cash generation is a clear weakness: operating cash flow and free cash flow are negative in every year shown (2019–2024), indicating the business is consuming cash rather than self-funding. The cash burn materially worsened in 2024 versus 2023, increasing funding risk. While free cash flow growth is positive in some years, it is occurring from a negative base and has not translated into sustained positive cash flow.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Neutral
• Last Price: 0.03
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 0.03 is below the 20-day moving average (MA) of 0.03, above the 50-day MA of 0.03, and above the 200-day MA of 0.03, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 49.63 is Neutral, neither overbought nor oversold. The STOCH value of >-0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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%
NEV	54 Neutral	C$5.68M	-1.72	-4.44%	―	―	―
GOR	49 Neutral	C$4.90M	-11.88	―	―	―	-20.83%
ETR	49 Neutral	C$6.11M	-16.58	-8.50%	―	―	83.68%
SCLT	46 Neutral	C$4.66M	-11.90	-62.20%	―	―	59.67%
SIEN	45 Neutral	C$4.53M	-3.00	-54.40%	―	―	51.40%
SRI	44 Neutral	C$5.45M	-13.39	-4.20%	―	―	95.92%

Sparton Resources Corporate Events

Sparton Resources Secures Final Approval for C$410,000 Private Placement to Advance Critical Metals Exploration

Sparton Resources Inc. has received final regulatory approval, including from the TSX Venture Exchange, for its non-brokered private placement, raising total gross proceeds of C$410,000 through the issuance of Critical Metals flow-through share units and non-flow-through units, accompanied by warrants and finder’s fees. The funds will be used exclusively for qualifying Canadian exploration expenditures on the company’s critical metals projects in Ontario and Quebec—particularly the Pense polymetallic project and the Oakes project—where drilling is already under way in Quebec and new geophysical surveys have been completed, signaling an escalation of exploration activity that could advance the company’s project pipeline and potential resource definition after more than two decades of limited work in these areas.

The most recent analyst rating on (TSE:SRI) stock is a Sell with a C$0.02 price target. To see the full list of analyst forecasts on Sparton Resources stock, see the TSE:SRI Stock Forecast page.

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.