Star Royalties (STRR) AI Stock Analysis

• Market Cap: C$27.92M
• Dividend Yield: N/A
• Average Volume (3M): 104.04K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.31
• 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: 50 Neutral
• Price Target: C$0.34 ▼(-1.47% Downside)

The score is held back primarily by weak financial performance (declining small revenue base, sizable losses, and ongoing cash burn). Technicals are moderately supportive with price above major moving averages and neutral-to-positive momentum, while valuation remains challenged due to negative earnings. Positive corporate developments provide incremental upside but do not yet offset the current profitability and cash-flow weaknesses.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage enhances financial stability, providing resilience against market volatility and operational challenges.

Effective Cost Control

Effective cost control, as evidenced by a solid gross profit margin, helps maintain profitability even amid declining revenues, supporting long-term sustainability.

Positive Investing Cash Flows

Positive investing cash flows suggest strategic asset investments, potentially enhancing future revenue streams and long-term growth prospects.

Negative Factors

Declining Revenues

Declining revenues indicate challenges in maintaining market position and demand, which could impact long-term growth and profitability.

Negative Cash Flows

Negative cash flows from operations suggest liquidity pressures, potentially limiting the company's ability to invest in growth and meet financial obligations.

Operational Challenges

Operational challenges, as indicated by negative margins, highlight inefficiencies that could hinder profitability and require strategic improvements for recovery.

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

Star Royalties faces operational challenges with declining revenues and negative cash flows, raising concerns about profitability and liquidity. The strong equity position and lack of debt, however, provide a cushion against financial volatility. Focusing on improving operational efficiency and revenue growth will be crucial for future stability.

Income Statement

Star Royalties has shown declining revenue with a decrease from $1,415,498 in 2022 to $876,621 in the TTM period. The gross profit margin stands at 51.8%, indicating effective cost control relative to revenue. However, the negative EBIT and EBITDA margins, along with a declining net profit margin due to reduced revenue, reflect ongoing operational challenges.

Balance Sheet

The company's balance sheet shows a strong equity position with an equity ratio of 98.4%, indicating low leverage and strong asset backing by equity. The absence of debt reduces financial risk. Despite a decrease in stockholders' equity over the past year, the overall financial stability remains robust.

Cash Flow

Cash flows are a concern, with negative operating and free cash flows indicating cash outflows from core operations. The free cash flow has further deteriorated from the previous year, suggesting liquidity pressures. However, the company has managed to maintain positive investing cash flows, likely supporting its asset base.

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: 0.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 0.34 is above the 20-day moving average (MA) of 0.33, above the 50-day MA of 0.33, and above the 200-day MA of 0.26, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 61.62 is Neutral, neither overbought nor oversold. The STOCH value of 109.52 is Negative, 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
EMPR	67 Neutral	C$127.43M	26.67	17.02%	―	112.93%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
VOXR	61 Neutral	C$447.16M	-159.16	-2.13%	0.97%	11.95%	-44.15%
AGMR	55 Neutral	C$234.63M	-6.30	-9.95%	―	―	-285.42%
STRR	50 Neutral	C$27.92M	-0.83	-64.35%	―	-47.93%	-538.46%
FTEL	44 Neutral	C$26.10M	-6.55	―	―	―	32.85%

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.