Torq Resources Inc (TORQ) AI Stock Analysis

• Market Cap: C$20.44M
• Dividend Yield: N/A
• Average Volume (3M): 93.49K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.25
• Revenue Growth: N/A
• EPS Growth: -18.42%
• Country: CA
• Employees: 15
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): -0.01
• Shares Outstanding: 185,841,140
• 10 Day Avg. Volume: 131,769
• 30 Day Avg. Volume: 93,490
• PEG Ratio: 0.01
• Price to Book (P/B): -1.20
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.81
• 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: 45 Neutral
• Price Target: C$0.10 ▼(-2.00% Downside)

The score is held down primarily by weak financial performance (no revenue, sustained losses, ongoing cash burn) and heightened balance-sheet risk from deeply negative equity. Technical indicators are roughly neutral with only mild positive momentum, and valuation offers limited support due to negative earnings and no dividend yield.

Positive Factors

Focused exploration strategy

Torq’s business model is a focused early‑stage explorer concentrating technical effort on copper and gold via mapping, geochemistry, geophysics and drilling. This specialization supports efficient capital allocation and clearer project prioritization across multi‑year exploration cycles.

Debt reduction

Reported debt declined materially versus the prior annual period, lowering near‑term creditor pressure and interest obligations. For a cash‑burning explorer, reduced absolute debt improves financial flexibility and decreases refinancing risk, strengthening balance‑sheet optionality over months.

Improving cash burn trajectory

Free cash flow and reported losses have improved versus 2023, indicating management has slowed outflows. A sustained reduction in cash burn extends runway and reduces reliance on dilutive raises, which meaningfully affects the company's ability to advance projects over the next several quarters.

Negative Factors

No revenue

Torq generates no operating revenue, meaning it cannot self‑fund exploration or development. This structural lack of cash generation makes the company chronically dependent on external financing, increasing dilution and execution risk until a monetizable resource or JV is secured.

Negative shareholders' equity

Equity turning deeply negative erodes the balance‑sheet cushion and signals solvency stress. Negative equity impairs borrowing capacity, makes creditor terms tighter, and raises long‑term financing and dilution risk—constraints that materially affect project advancement options.

Persistent operating cash burn

Operating cash flow has been consistently negative and recently worsened, indicating ongoing cash consumption from operations. Persistent negative OCF necessitates repeated capital raises, exposing the business to market timing risk and limiting the sustainability of exploration activities absent financing.

Torq Resources Inc Business Overview & Revenue Model

Company Description

Torq Resources Inc., a junior exploration company, engages in the acquisition and exploration of mineral properties in the Americas. It has an option to acquire 100% interests in the Margarita iron oxide-copper-gold project covering an area of approximately 1,045 hectares located in the city of Copiapo, Chile; Santa Cecilia gold-copper project, which covers an area of 3,250-hectares located in Chile; and Andrea copper porphyry project that covers an area of 1,200 hectares located in northern Chile. The company was formerly known as Stratton Resources Inc. and changed its name to Torq Resources Inc. in March 2017. Torq Resources Inc. is headquartered in Vancouver, Canada.

How the Company Makes Money

Torq Resources Inc generates revenue through the exploration and development of mineral properties, specifically focusing on copper and gold. The company raises capital through equity financing, joint ventures, and strategic partnerships with other mining companies and investors. As Torq Resources identifies valuable mineral deposits, it can either sell these assets to larger mining companies or develop them into producing mines, generating revenue from the sale of extracted minerals. The company's earnings are significantly influenced by the global demand and prices for copper and gold, as well as its ability to successfully discover and develop economically viable mineral resources.

Torq Resources Inc Financial Statement Overview

Summary

Very weak fundamentals: no revenue reported, ongoing net losses that widened to ~-15.9M TTM, and persistent cash burn with operating cash flow ~-10.8M TTM and free cash flow ~-11.6M TTM. Balance sheet risk is elevated as shareholders’ equity is deeply negative (~-12.0M TTM), increasing financing and dilution risk despite moderate, reduced debt (~2.7M TTM).

Income Statement

The company continues to report no revenue across the historical periods provided, while operating losses remain sizable. Net losses widened from 2024 annual (about -12.4M) to TTM (Trailing-Twelve-Months) (about -15.9M), indicating higher spend without an offsetting revenue base. A positive is that losses are below the 2023 annual level (about -19.2M), but overall profitability remains weak and visibility on a self-funding operating model is limited.

Balance Sheet

Balance sheet quality has deteriorated materially as shareholders’ equity flipped from positive in 2023 annual (~1.0M) to negative in 2024 annual (~-5.7M) and further negative in TTM (Trailing-Twelve-Months) (~-12.0M), which raises financial flexibility and solvency risk. Total debt is moderate in absolute terms (~2.7M TTM) and is down versus 2024 annual (~5.2M), but negative equity makes leverage signals unfavorable and reduces the cushion to absorb ongoing losses.

Cash Flow

Cash generation remains weak, with operating cash flow negative in every period and worsening from 2024 annual (~-7.1M) to TTM (Trailing-Twelve-Months) (~-10.8M). Free cash flow is also consistently negative (TTM ~-11.6M), implying continued reliance on external funding. A relative positive is that free cash flow improved versus 2023 annual (~-17.6M), but the trajectory still reflects meaningful cash burn and funding risk if capital markets tighten.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00	0.00
Gross Profit	-11.68K	-78.68K	-136.42K	-181.65K	-32.72K	0.00
EBITDA	-15.60M	-11.72M	-18.31M	-11.65M	-6.32M	-2.13M
Net Income	-15.88M	-12.41M	-19.21M	-11.72M	-6.48M	-2.09M
Balance Sheet
Total Assets	1.82M	2.40M	4.21M	15.61M	3.99M	9.09M
Cash, Cash Equivalents and Short-Term Investments	44.96K	538.28K	487.97K	12.47M	1.90M	8.75M
Total Debt	2.69M	5.23M	1.97M	1.97M	0.00	0.00
Total Liabilities	5.61M	8.06M	3.17M	3.60M	676.54K	202.92K
Stockholders Equity	-12.02M	-5.65M	1.04M	12.00M	3.31M	8.89M
Cash Flow
Free Cash Flow	-11.62M	-8.44M	-17.57M	-11.35M	-6.86M	-2.18M
Operating Cash Flow	-10.79M	-7.13M	-16.70M	-10.10M	-5.79M	-2.18M
Investing Cash Flow	-746.26K	-1.11M	-491.93K	-1.06M	-1.03M	84.70K
Financing Cash Flow	11.59M	8.29M	5.22M	21.73M	42.30K	17.50K

Torq Resources Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.10
• 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:TORQ, the sentiment is Positive. The current price of 0.1 is below the 20-day moving average (MA) of 0.11, above the 50-day MA of 0.10, and above the 200-day MA of 0.09, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 52.39 is Neutral, neither overbought nor oversold. The STOCH value of 34.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:TORQ.

Torq Resources Inc 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%
ELEF	49 Neutral	C$15.33M	-1.37	-179.75%	―	―	15.69%
PSE	47 Neutral	C$23.55M	-4.71	-184.63%	―	―	-269.70%
GGI	46 Neutral	C$22.81M	-0.73	-110.71%	―	―	-2850.00%
TORQ	45 Neutral	C$20.44M	-1.01	―	―	―	-18.42%
LIT	45 Neutral	C$18.57M	-1.50	-24.07%	―	―	76.16%
MTS	45 Neutral	C$15.83M	-9.02	-92.01%	―	―	―