South Star Battery Metals (STS) AI Stock Analysis

• Market Cap: C$16.26M
• Dividend Yield: N/A
• Average Volume (3M): 90.27K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.36
• 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: 43 Neutral
• Price Target: C$0.15 ▲(10.00% Upside)

The score is held down primarily by weak financial performance (no revenue, widening losses, sustained recent cash burn, and equity decline). Technicals provide only modest support via a short-term rebound that still sits within a broader downtrend, while valuation is limited by negative earnings and no dividend support.

Positive Factors

Very low leverage

Minimal debt reduces long-term financial risk and interest burden, giving management flexibility to time financing or JV deals for project development. For a multi-year mining/processing build, low leverage preserves optionality and lowers default risk during capital cycles.

Aligned with battery-anode demand

Operating in natural graphite for lithium-ion anodes places the company in a durable structural growth market driven by EVs and energy storage. This end-market alignment supports long-term demand prospects for commercial graphite producers if the company reaches production scale.

Active project development and permitting

A focus on technical studies, permitting and project development indicates progression beyond pure exploration toward deliverable assets. Successfully completing studies and permits materially de-risks timelines to production and enhances the company's ability to attract strategic partners or offtake agreements.

Negative Factors

No revenue and widening losses

Sustained absence of revenue with expanding net losses erodes equity and prevents internal funding of development. Over a multi-quarter horizon this undermines credibility on commercial viability, forces reliance on external capital, and increases execution risk for project milestones.

Sustained negative operating and free cash flow

Repeated substantial cash burn constrains the company's ability to fund long-lead development activities without new financing. For capital-intensive graphite projects this raises dilution and financing-risk over the next several quarters, slowing project advancement and partner negotiations.

Equity and asset base contraction

Sharp declines in equity and total assets reduce balance-sheet headroom and collateral for debt or project financing. This increases the probability of dilutive capital raises or asset disposals to fund development, elevating long-term funding and execution risk for advancing projects.

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

South Star Battery Metals faces significant financial challenges, with no revenue generation and increasing losses. While the company maintains a strong equity position relative to debt, its cash flow and profitability metrics indicate potential sustainability concerns without strategic intervention or revenue generation.

Income Statement

The company has consistently reported zero revenue over the years, indicating no sales activity or monetization of its operations. Net income remains negative, with increasing losses, suggesting persistent operational challenges and inefficiencies.

Balance Sheet

The balance sheet shows a relatively low debt-to-equity ratio due to minimal debt, suggesting low leverage risk. However, the company has negative gross profit and accumulated losses, weighing down equity growth. The equity ratio remains strong, but overall asset growth is slow.

Cash Flow

Free cash flow has significantly decreased, reflecting high capital expenditures and negative operating cash flows. The operating cash flow to net income ratio is negative, indicating cash flow challenges despite equity financing inflows.

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: Positive
• Last Price: 0.14
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:STS, the sentiment is Positive. The current price of 0.14 is above the 20-day moving average (MA) of 0.14, below the 50-day MA of 0.15, and below the 200-day MA of 0.24, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 54.66 is Neutral, neither overbought nor oversold. The STOCH value of 71.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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%
LIT	53 Neutral	C$22.01M	-2.12	-24.07%	―	―	76.16%
CELL	53 Neutral	C$6.77M	-2.17	-58.31%	―	―	4.17%
ILI	48 Neutral	C$10.22M	-38.89	-1.36%	―	―	-136.00%
ULTH	46 Neutral	C$16.63M	-4.94	-22.36%	―	―	-4.68%
STS	43 Neutral	C$16.26M	-1.02	―	―	―	―
AVE	40 Underperform	C$22.43M	-8.75	-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.

South Star Battery Metals Closes Second Tranche of Private Placement

South Star Battery Metals Corp. has closed the second tranche of its non-brokered private placement, raising C$2,432,135. The funds will be used for exploration, development, and general expenses. The company plans additional tranches and a shareholder meeting to approve the interim CEO as a control person. This move strengthens South Star’s financial position and supports its 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.