Tectonic Metals (TECT) AI Stock Analysis

• Market Cap: C$62.06M
• Dividend Yield: N/A
• Average Volume (3M): 53.50K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.24
• Revenue Growth: N/A
• EPS Growth: 57.01%
• Country: CA
• Employees: 5
• Sector: Basic Materials
• Sector Strength: 62
• Industry: Gold
• EPS (TTM): -0.02
• Shares Outstanding: 67,457,970
• 10 Day Avg. Volume: 44,251
• 30 Day Avg. Volume: 53,500
• PEG Ratio: -0.12
• Price to Book (P/B): 9.24
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.94
• 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

• Rating: 45 Neutral
• Price Target: ―

Tectonic Metals' overall stock score reflects significant financial challenges with no revenue and consistent losses. Despite a debt-free balance sheet, cash flow issues persist. The technical analysis indicates neutral momentum. The company's valuation remains unattractive due to negative earnings, but recent corporate events, including significant gold discoveries and secured funding, present potential growth opportunities.

Tectonic Metals Business Overview & Revenue Model

Company Description

Tectonic Metals Inc. (TECT) is a mineral exploration company engaged in the acquisition, exploration, and development of mineral properties in North America. The company focuses on discovering and advancing gold, silver, copper, and other precious and base metal deposits. Operating primarily in Alaska, Tectonic Metals leverages its experienced team and strategic partnerships to identify high-potential mineral resources, aiming to create value for its shareholders through successful exploration and project development.

How the Company Makes Money

Tectonic Metals makes money primarily through the exploration and development of mineral properties, with a focus on discovering economically viable deposits of gold and other metals. The company's revenue model involves increasing the value of its mineral projects through exploration activities and strategic partnerships, then monetizing these assets either through selling or joint venturing with larger mining companies. Additionally, Tectonic Metals might secure funding through equity financing, grants, or other investment avenues to support its exploration efforts. The company's financial success relies significantly on its ability to discover promising mineral resources and the prevailing market conditions for the metals it targets.

Tectonic Metals Financial Statement Overview

Summary

Tectonic Metals faces substantial financial challenges with no revenue generation and consistent losses. The balance sheet is supported by no debt, yet cash flow struggles persist. The company must address its revenue generation and operational efficiency to improve financial health.

Income Statement

Tectonic Metals has consistently reported zero revenue over the years, which is a significant concern. Their gross profit margin and net profit margin are non-existent due to negative gross profit and net income. The company has been unable to generate positive EBIT or EBITDA, indicating operational challenges.

Balance Sheet

The company has no debt, which provides a strong equity position with a debt-to-equity ratio of zero. However, the absence of revenue and consistent net losses have led to a highly volatile equity base. The equity ratio remains relatively healthy due to minimal liabilities compared to assets.

Cash Flow

Operating and free cash flows are negative, highlighting cash flow issues. Despite receiving financing cash flows, the company struggles to convert these into operational efficiency. The free cash flow to net income ratio is negative, indicating cash burn.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00
	Gross Profit
0.00	-14.74K	-37.08K	-43.77K	-38.81K
	EBIT
-4.77M	-9.23M	-3.76M	-9.19M	-5.27M
	EBITDA
-4.77M	-9.24M	-3.97M	-9.34M	-5.34M
	Net Income Common Stockholders
-5.09M	-9.60M	-4.01M	-9.39M	-5.38M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.97M	2.38M	2.55M	1.07M	3.42M
	Total Assets
3.78M	3.75M	3.37M	1.91M	4.15M
	Total Debt
0.00	0.00	9.92K	37.77K	62.60K
	Net Debt
-1.97M	-2.38M	-2.54M	-1.04M	-3.36M
	Total Liabilities
826.06K	1.10M	418.71K	335.79K	305.64K
	Stockholders Equity
2.95M	2.65M	2.95M	1.57M	3.85M
Cash Flow		Free Cash Flow
-5.27M	-9.42M	-3.78M	-9.12M	-4.95M
	Operating Cash Flow
-5.11M	-9.27M	-3.64M	-8.82M	-4.78M
	Investing Cash Flow
-167.26K	-153.36K	-139.82K	-303.03K	-165.15K
	Financing Cash Flow
4.86M	9.25M	5.26M	6.77M	6.70M

Tectonic Metals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.92
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TECT, the sentiment is Positive. The current price of 0.92 is above the 20-day moving average (MA) of 0.71, above the 50-day MA of 0.62, and above the 200-day MA of 0.54, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 71.53 is Negative, neither overbought nor oversold. The STOCH value of 82.34 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:TECT.

Tectonic Metals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KNT	76 Outperform	C$3.76B	14.90	39.28%	―	105.06%	481.75%
SKE	52 Neutral	C$2.24B	―	-137.38%	―	―	-19.29%
Sector *	51 Neutral	$2.02B	-1.14	-21.37%	3.64%	2.88%	-30.57%
TECT	45 Neutral	C$62.06M	―	-246.19%	―	―	57.01%
FVL	43 Neutral	C$592.44M	―	-1.08%	―	―	66.34%
NVO	41 Neutral	C$35.46M	―	-25.75%	―	―	―

Tectonic Metals Corporate Events

Tectonic Metals Secures Funding for Major Gold Exploration in Alaska

Tectonic Metals has secured over $5 million in strategic funding led by Crescat Capital, with plans to raise a total of $7 million to fully fund its 2025 Phase One Drill Program at the Alpha Bowl site in Alaska. This initiative is part of Tectonic’s efforts to explore and expand its high-grade oxide gold discovery, positioning the company for potential growth and increased interest from institutional investors. The Alpha Bowl project, situated near one of the world’s largest gold deposits, represents a significant opportunity for Tectonic to enhance its market position and deliver substantial returns to its stakeholders.

Spark’s Take on TSE:TECT Stock

According to Spark, TipRanks’ AI Analyst, TSE:TECT is a Neutral.

Tectonic Metals’ overall score reflects significant financial challenges, with no revenue and consistent losses. While the balance sheet is debt-free, cash flow issues persist. The technical analysis indicates neutral momentum, and the valuation remains unattractive due to negative earnings. However, the recent gold discovery at the Flat Project is a positive development that could improve future prospects if successfully capitalized on.

To see Spark’s full report on TSE:TECT stock, click here.

Tectonic Metals Unveils Significant Gold Discovery at Flat Project

Tectonic Metals Inc. has announced a new gold discovery at its Alpha Bowl target within the Flat Gold Project, extending the mineralized strike length of the Chicken Mountain gold system to 3 kilometers. This discovery, along with a 100% drill success rate at Chicken Mountain, underscores the potential of Flat to become a major gold asset in Alaska, further supported by its proximity to the established Donlin Gold Project.