Star Royalties (STRR) AI Stock Analysis

• Market Cap: C$32.24M
• Dividend Yield: N/A
• Average Volume (3M): 104.04K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.14
• Revenue Growth: -47.93%
• EPS Growth: -538.46%
• Country: CA
• Employees: 8
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Other Precious Metals
• EPS (TTM): 0.00
• Shares Outstanding: 78,637,280
• 10 Day Avg. Volume: 77,421
• 30 Day Avg. Volume: 104,040
• PEG Ratio: <0.01
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 18.24
• P/FCF Ratio: -10.03
• 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: 52 Neutral
• Price Target: C$0.46 ▲(27.78% Upside)

The score is held back primarily by weak financial performance (small and declining revenue, substantial operating losses, and persistent cash burn), partially mitigated by a debt-free balance sheet. Technicals are comparatively stronger with an uptrend and positive momentum, though overbought signals add near-term risk. Valuation is constrained by negative earnings and no dividend yield data.

Positive Factors

Royalties/Streaming Business Model

A royalties/streaming model provides durable downside protection versus operators by avoiding mining capex, operating overhead and operational tail risks. Over 2-6 months this structure supports scalable, low-capex cash flow upside once counterparty mines produce, preserving capital for deal origination.

Conservative Balance Sheet (Zero Debt)

Zero leverage and sizable equity (~$26.6M) provide a lasting solvency cushion, reducing refinancing and interest-rate vulnerability. This durable financial flexibility supports continued deal-making or weathering of cash burn without immediate liquidity stress, preserving strategic optionality.

Structural Portfolio Catalysts

Converting royalties into equity and visible restart/permitting timelines are structural developments that can unlock long-term value and accelerate production-linked cash flow. These changes materially alter future revenue optionality and resilience beyond short-term market moves.

Negative Factors

Consistent Cash Burn

Persistent negative operating and free cash flow implies the company must access external capital to fund operations or acquisitions. Over months this raises dilution and financing risk, constraining ability to originate royalties and undermining long-term self-sufficiency unless cash generation reverses.

Small, Volatile and Declining Revenue Base

A very small and falling revenue base limits margin absorption and scale benefits; revenue timing depends on counterparties reaching production. This structural revenue fragility makes it difficult to build predictable, sustainable earnings over the medium term without material new asset contributions.

Persistent Operating Losses and Negative Returns

Ongoing negative EBIT/EBITDA and strongly negative ROE show the company is not earning a return on deployed capital. Structurally, this undermines investor confidence and makes capital raising harder or more dilutive, limiting the firm's ability to scale royalty investments profitably.

Star Royalties Business Overview & Revenue Model

Company Description

Star Royalties Ltd. operates as a precious metals royalty and streaming investment company. It focuses on providing wealth creation through accretive transaction structuring and asset life extension with alignment to both counterparties and shareholders. The company also focuses on investing in a pipeline of additional green investments; and offers financing solutions. Star Royalties Ltd. was incorporated in 2018 and is based in Toronto, Canada.

How the Company Makes Money

Star Royalties makes money by acquiring and managing royalty and streaming agreements. The company invests in resource assets by providing upfront capital to mining and resource companies. In return, Star Royalties receives a percentage of the revenue generated from the sale of these resources or a fixed amount of the production over the life of the asset. This model allows the company to generate consistent cash flows while minimizing operational risks. Key revenue streams include royalties from precious metal mining operations and green resource projects. Partnerships with resource companies and effective portfolio management are significant factors contributing to Star Royalties' earnings.

Star Royalties Financial Statement Overview

Summary

Revenue is modest (~$0.44M TTM) and declining (~-16% YoY), with deeply negative EBIT/EBITDA and sharply negative net income in TTM/2024. Operating and free cash flow are consistently negative (TTM OCF about -$1.29M), raising sustainability concerns. Offsetting this, the balance sheet has zero debt and sizable equity (~$26.6M TTM), providing solvency cushion despite poor returns on equity.

Income Statement

TTM (Trailing-Twelve-Months) revenue is modest at ~$0.44M and down ~16% versus the prior year, continuing a multi-year pattern of revenue volatility. Gross margin remains respectable (~45% TTM; ~51% in 2024), but the business is not covering its cost structure: EBIT and EBITDA are deeply negative, and net income is sharply negative in TTM and 2024. While 2022–2023 showed positive net income, the underlying operating losses persisted, suggesting earnings were likely driven by non-core or one-time factors rather than sustainable operating profitability.

Balance Sheet

The balance sheet is conservatively structured with zero debt across all periods, which materially lowers financial risk. Equity remains sizable (~$26.6M TTM) relative to assets (~$26.8M TTM), supporting solvency. The main weakness is consistently poor shareholder returns recently: return on equity is strongly negative in TTM and 2024, reflecting sizeable losses and indicating that the company’s capital base is not currently generating sustainable profits.

Cash Flow

Cash generation is weak: operating cash flow is negative in every period shown, including TTM (~-$1.29M) and 2024 (~-$1.47M), and free cash flow is also negative (roughly matching operating cash flow in recent periods). While TTM free cash flow improved versus 2024 (positive growth), the company is still burning cash and will likely depend on funding sources if this persists. Cash flow results also do not align with the positive net income reported in 2022–2023, reinforcing concerns about earnings quality and sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	441.33K	811.24K	940.50K	1.42M	691.62K	9.80K
Gross Profit	197.41K	412.86K	501.35K	713.75K	988.03K	4.34K
EBITDA	-905.52K	-2.25M	-1.90M	-1.67M	-1.91M	-523.45K
Net Income	-23.68M	-24.09M	5.64M	17.33M	-2.67M	-799.89K
Balance Sheet
Total Assets	26.83M	27.02M	54.60M	46.62M	31.22M	12.62M
Cash, Cash Equivalents and Short-Term Investments	4.55M	2.20M	3.66M	2.48M	4.16M	1.99M
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	325.33K	308.23K	783.82K	714.96K	435.72K	134.84K
Stockholders Equity	26.59M	26.72M	53.82M	45.90M	30.78M	12.48M
Cash Flow
Free Cash Flow	-1.29M	-1.47M	-725.61K	-767.68K	-17.43M	-10.40M
Operating Cash Flow	-1.29M	-1.47M	-725.61K	-767.68K	-1.10M	-578.54K
Investing Cash Flow	636.82K	0.00	1.15M	-901.45K	-16.32M	-9.82M
Financing Cash Flow	0.00	0.00	0.00	0.00	19.53M	12.05M

Star Royalties Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.36
• 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:STRR, the sentiment is Positive. The current price of 0.36 is below the 20-day moving average (MA) of 0.40, above the 50-day MA of 0.36, and above the 200-day MA of 0.27, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 54.40 is Neutral, neither overbought nor oversold. The STOCH value of 40.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:STRR.

Star Royalties Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TFPM	78 Outperform	C$9.48B	32.57	11.27%	0.66%	43.27%	―
VOXR	67 Neutral	C$492.90M	-167.52	-2.13%	0.97%	11.95%	-44.15%
EMPR	67 Neutral	C$137.79M	27.95	17.02%	―	112.93%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
STRR	52 Neutral	C$32.24M	-0.96	-64.35%	―	-47.93%	-538.46%
PGLD	46 Neutral	C$198.43M	112.33	36.70%	―	―	-66.51%

Star Royalties Corporate Events

Star Royalties Converts Elk Gold Royalty to Equity Stake

Star Royalties Ltd. announced a binding agreement with Nhwelmen Construction Limited Partnership for the conversion of its 2% net smelter return royalty on the Elk Gold Mine into a 5% equity stake in Gold Mountain Mining Corp. This strategic move aligns Star Royalties with new ownership, including the Nlaka’pamux Nation Tribal Council, and positions the company to benefit from Elk Gold’s exploration and production potential. The restructuring is expected to unlock significant value, with the new equity stake potentially surpassing the original royalty’s value. The development of Elk Gold by a reputable operator and the support from NCLP are anticipated to enhance the project’s success and contribute to Star Royalties’ broader mining expansion strategy in British Columbia.

Star Royalties Reports Q3 2025 Financial Results Amid Strategic Developments

Star Royalties Ltd. reported its Q3 2025 financial results, highlighting a decrease in quarterly revenues due to an operational slowdown at the Keysbrook Mine, which is awaiting approval for a Life-of-Mine extension. The company anticipates improved production tonnage in the coming quarters. The Copperstone Gold Project is progressing towards a late 2026 startup, with Minera Alamos providing positive updates on its development and exploration potential. The ongoing sale process of Elk Gold is expected to conclude soon, potentially enhancing the valuation of Star Royalties’ mining royalty interest. The company remains financially stable, with assets largely unchanged and a focus on deploying capital into cleantech and decarbonization opportunities.

Star Royalties Reports Q3 2025 Financial Results Amid Strategic Developments

Star Royalties Ltd. reported its Q3 2025 financial results, highlighting a decrease in quarterly revenues due to an operational slowdown at the Keysbrook Mine, which is awaiting approval for a Life-of-Mine extension. The company is optimistic about its portfolio, with developments at the Copperstone Gold Project and the Elk Gold Mine potentially enhancing value. The recent increase in gold prices and the anticipated startup of Copperstone in late 2026 are expected to improve the company’s financial outlook. Additionally, Star Royalties is focused on cleantech and decarbonization opportunities through its Green Star Royalties division.

Star Royalties Advances Copperstone Gold Mine Development

Star Royalties Ltd. has highlighted significant progress in the development of the Copperstone Gold Mine, operated by Minera Alamos. The project is on track for a 2026 restart, with anticipated approvals for final amendments to its Mine Plan of Operations expected by the end of 2025. The Copperstone project is expected to generate robust economic returns, with a projected after-tax net cash flow of over $297 million and an after-tax IRR of 171%. The company is also focusing on optimizing mine design and exploring further resource expansion opportunities. Star Royalties anticipates that these developments, along with its equity ownership in Minera Alamos, could lead to significant value creation and positive re-rating of its shares.