South Star Battery Metals (STS) AI Stock Analysis

• Market Cap: C$14.09M
• Dividend Yield: N/A
• Average Volume (3M): 90.27K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.17
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: CA
• Employees: 12
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): -0.02
• Shares Outstanding: 108,400,950
• 10 Day Avg. Volume: 123,436
• 30 Day Avg. Volume: 90,268
• PEG Ratio: -0.51
• Price to Book (P/B): 6.66
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.01
• 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$0.13 ▼(-10.00% Downside)

The score is primarily held down by weak financial performance—minimal revenue, heavy losses, and ongoing cash burn—despite a comparatively conservative balance sheet. Technicals also detract, with the stock trading below major moving averages and negative momentum indicators. Valuation is not a major offset because the negative P/E is not meaningful and no dividend yield data is provided.

Positive Factors

Conservative balance sheet

Low debt relative to equity provides structural financial flexibility for a development-stage battery-metals company. This conservatism reduces near-term refinancing risk, supports funding of technical studies or permitting, and preserves optionality to raise project capital without immediate solvency pressure.

Strategic exposure to battery anode supply chain

Natural graphite for lithium-ion battery anodes addresses a durable secular trend tied to EVs and grid storage. Structural demand growth in battery supply chains supports long-term market opportunity for a developer that advances assets toward commercial supply and potential downstream partnerships.

Lean operating footprint

A small headcount helps limit fixed operating expenses and conserves cash during the development phase. For an exploration/development company, a lean structure can extend runway, enable focused allocation to technical work, and reduce the magnitude of required financing rounds.

Negative Factors

Very limited revenue and deep losses

Minimal revenue and sustained large losses mean the business is not yet monetizing assets at scale. This undermines ability to self-fund development, delays path to positive margins, and forces reliance on external capital to progress projects and cover operating needs over the medium term.

Negative operating and free cash flow

Persistent negative operating and free cash flow increases liquidity pressure and raises the probability of dilutive financings. Deterioration versus prior year means management must secure external funding or cut activity, potentially slowing project timelines and value-creating milestones.

Funding and dilution risk despite low leverage

Even with low debt, strongly negative returns and equity volatility imply future capital raises will likely be equity-based. Repeated dilution can erode shareholder value and limit ability to secure favorable partner terms, making long-term project funding and execution more uncertain.

South Star Battery Metals Business Overview & Revenue Model

Company Description

South Star Battery Metals Corp. engages in the exploration and development of mineral properties in Brazil. It is developing the Santa-Cruz Graphite project that consists of 13 licenses covering an area of approximately 13,316 hectares located in Bahia State, Brazil. The company was formerly known as South Star Mining Corp. and changed its name to South Star Battery Metals Corp. in May 2021. South Star Battery Metals Corp. was incorporated in 1984 and is headquartered in Vancouver, Canada.

How the Company Makes Money

South Star Battery Metals generates revenue primarily through the exploration, development, and eventual production of graphite resources. The company's primary revenue streams are expected to come from the sale of high-purity graphite concentrates to industries involved in battery production, electric vehicles, and energy storage. Additionally, South Star may form strategic partnerships or joint ventures with other companies in the battery supply chain to enhance its market reach and improve its financial performance. The company's earnings are significantly influenced by global demand for battery metals and the price of graphite in international markets.

South Star Battery Metals Financial Statement Overview

Summary

Income statement quality is very weak (loss-making with minimal TTM revenue and deeply negative margins) and cash flow is poor (negative operating and free cash flow, indicating ongoing burn). The balance sheet is a relative positive with low leverage and a sizable equity base, but returns are strongly negative and ongoing losses increase funding/dilution risk.

Income Statement

The business remains in a loss-making phase. TTM (Trailing-Twelve-Months) revenue is very small (about $31K) and profitability is deeply negative, with large operating and net losses and sharply negative margins. While revenue is now non-zero versus prior years (which reported no revenue), the current scale is insufficient to absorb fixed costs, and losses remain elevated.

Balance Sheet

The balance sheet looks relatively conservative on leverage, with low debt compared with equity in TTM (Trailing-Twelve-Months) and a sizable equity base. However, returns on shareholder capital are strongly negative, reflecting ongoing losses, and equity has been volatile over time—highlighting funding and dilution risk if losses persist.

Cash Flow

Cash generation is weak, with negative operating cash flow and negative free cash flow in TTM (Trailing-Twelve-Months), indicating ongoing cash burn. Free cash flow has deteriorated versus the prior year period, and cash outflows are not supported by earnings (net losses persist). A prior year showed positive cash flow, but the pattern is inconsistent, increasing liquidity and financing risk.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	30.97K	0.00	0.00	0.00	0.00	0.00
Gross Profit	-1.20M	-28.35K	-41.98K	-14.70K	-1.30K	-1.42K
EBITDA	-4.34M	-7.65M	-4.97M	-4.73M	-2.20M	-705.01K
Net Income	-2.19M	-7.68M	-5.01M	-4.90M	-2.22M	-733.72K
Balance Sheet
Total Assets	29.40M	20.21M	29.22M	26.47M	9.39M	5.82M
Cash, Cash Equivalents and Short-Term Investments	22.28K	2.09M	6.45M	17.26M	3.48M	74.41K
Total Debt	921.38K	0.00	10.34K	27.26K	0.00	289.32K
Total Liabilities	21.06M	15.99M	17.18M	15.36M	415.89K	716.94K
Stockholders Equity	8.34M	4.22M	12.04M	11.12M	8.97M	5.11M
Cash Flow
Free Cash Flow	-1.57M	-9.35M	-14.83M	8.48M	-2.34M	-305.46K
Operating Cash Flow	-4.27M	-7.55M	-3.12M	9.65M	-2.33M	-305.46K
Investing Cash Flow	-359.24K	-5.26M	-12.79M	-2.26M	-4.46K	0.00
Financing Cash Flow	1.80M	9.74M	4.47M	6.20M	5.74M	280.00K

South Star Battery Metals Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.14
• 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:STS, the sentiment is Negative. The current price of 0.14 is below the 20-day moving average (MA) of 0.15, below the 50-day MA of 0.14, and below the 200-day MA of 0.22, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 37.10 is Neutral, neither overbought nor oversold. The STOCH value of 16.19 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:STS.

South Star Battery Metals 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%
CELL	53 Neutral	C$7.74M	-2.17	-58.31%	―	―	4.17%
ILI	51 Neutral	C$11.92M	-38.89	-1.36%	―	―	-136.00%
ULTH	49 Neutral	C$26.98M	-8.02	-22.36%	―	―	-4.68%
LIT	45 Neutral	C$20.63M	-1.67	-24.07%	―	―	76.16%
STS	44 Neutral	C$14.09M	-0.88	―	―	―	―
AVE	40 Underperform	C$17.25M	-5.63	-24.93%	―	―	-6.45%

South Star Battery Metals Corporate Events

South Star Battery Metals Reports Q3 2025 Results and Strategic Advancements

South Star Battery Metals Corp. has announced its Q3 2025 financial and operational results, highlighting significant progress in overcoming operational challenges at its Santa Cruz Graphite Mine. The company successfully raised US$4.8 million, enabling continued plant upgrades and a planned production restart in 2026. Key appointments and strategic financial maneuvers, including a loan facility with Sprott Streaming, are set to bolster its operations. The company has also achieved substantial cost savings through process optimizations and contract renegotiations, with plans to expand production capacity to 10,000 tonnes annually by the end of 2026. This expansion is expected to enhance financial stability and generate positive cash flow, positioning South Star for growth and resilience in the battery metals industry.

The most recent analyst rating on (TSE:STS) stock is a Buy with a C$1.91 price target. To see the full list of analyst forecasts on South Star Battery Metals stock, see the TSE:STS Stock Forecast page.

South Star Completes Final Tranche of Private Placement and Announces AGSM Results

South Star Battery Metals Corp. announced the successful closing of its final tranche of a non-brokered private placement, raising a total of C$6,672,000. The funds will be used for exploration, development, and general expenses. At the recent Annual General and Special Meeting, shareholders approved key resolutions, including the creation of a new control person, Tiago Sampaio Cunha, who significantly increased his stake in the company. This strategic move strengthens South Star’s financial position and could enhance its market presence in the battery-metals industry.

The most recent analyst rating on (TSE:STS) stock is a Buy with a C$1.91 price target. To see the full list of analyst forecasts on South Star Battery Metals stock, see the TSE:STS Stock Forecast page.

South Star Battery Metals Upsizes Private Placement to Meet Market Demand

South Star Battery Metals Corp. has announced an increase in its non-brokered private placement offering due to high market demand, raising the offering size from C$6,255,000 to up to C$6,672,000. The proceeds will support exploration, development, and operational activities, with the offering subject to final approval from the TSX Venture Exchange. The company has already closed two tranches, raising approximately C$3.26 million, and plans to close additional tranches soon, which could include finder’s fees. This expansion reflects strong investor interest and supports South Star’s strategic growth in the battery-metals sector.

The most recent analyst rating on (TSE:STS) stock is a Buy with a C$1.91 price target. To see the full list of analyst forecasts on South Star Battery Metals stock, see the TSE:STS Stock Forecast page.