Volcanic Gold Mines Inc (VG) AI Stock Analysis

• Market Cap: C$7.13M
• Dividend Yield: N/A
• Average Volume (3M): 96.83K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.31
• Revenue Growth: N/A
• EPS Growth: 66.36%
• Country: CA
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Gold
• EPS (TTM): >-0.01
• Shares Outstanding: 59,419,540
• 10 Day Avg. Volume: 79,386
• 30 Day Avg. Volume: 96,830
• PEG Ratio: -0.09
• Price to Book (P/B): 3.19
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.56
• 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: 51 Neutral
• Price Target: C$0.12 ▲(0.83% Upside)

Score is held back primarily by weak financial performance (no revenue, ongoing losses, and persistent cash burn with balance-sheet erosion risk). Technicals are a key offset, showing a clear uptrend with positive momentum. Valuation remains constrained by negative earnings and no dividend support.

Positive Factors

Low leverage

Very low reported debt materially reduces solvency and interest-risk over the medium term, giving management flexibility to pursue exploration or development without high fixed financing costs. This structural balance-sheet conservatism supports runway versus highly leveraged peers.

Improving cash burn

Operating cash outflows have meaningfully narrowed year-over-year, indicating improved cash management or lower operating intensity. If sustained, reduced burn extends financing runway and lowers the frequency/size of dilutive capital raises, improving strategic optionality.

Narrowing net losses

A clear reduction in net losses signals progress toward operational stabilization. Consistent narrowing of losses over multiple periods is a durable indicator that cost controls or project scaling are working, which can reduce future capital needs and support longer-term viability.

Negative Factors

Pre-revenue profile

The company remains non‑revenue generating, meaning no operating cash inflows from core activities. Over the medium term this structurally increases dependence on external financing and exposes value to exploration success rather than stable cash generation.

Consistent negative cash flow

Sustained negative operating and free cash flow implies the business cannot self-fund projects or overhead. This structural weakness forces repeated capital raises or debt, increasing dilution or financing costs and constraining the company’s ability to scale activities independently.

Balance-sheet erosion

Material depletion of equity and assets over several years reflects cumulative losses and/or dilution, reducing the firm’s financial cushion. A thinner equity base limits future borrowing capacity, raises solvency risk if losses persist, and narrows long-term strategic flexibility.

Volcanic Gold Mines Inc Business Overview & Revenue Model

Company Description

Volcanic Gold Mines Inc. engages in the acquisition and exploration of mineral properties. The company explores for gold and silver resources. It holds an option to earn a 60% interest in Holly and Banderas gold/silver properties located in Guatemala. The company was formerly known as Volcanic Metals Corp. and changed its name to Volcanic Gold Mines Inc. in January 2017. Volcanic Gold Mines Inc. was incorporated in 2007 and is headquartered in Vancouver, Canada.

How the Company Makes Money

Volcanic Gold Mines Inc generates revenue primarily through the exploration and development of gold and silver mining projects. The company identifies promising mineral deposits and conducts extensive geological surveys and feasibility studies to assess the potential for economically viable mining operations. Once a project demonstrates feasibility, Volcanic Gold Mines Inc may enter into joint ventures or partnerships with larger mining companies, thereby earning revenue through the sale of mineral rights or by retaining a percentage of the profits from the mining operations. Additionally, the company may sell shares of its stock to raise capital for exploration and development activities. The success of these ventures depends significantly on the global market prices for gold and silver, as well as the company's ability to efficiently manage operational and environmental challenges.

Volcanic Gold Mines Inc Financial Statement Overview

Summary

Pre-revenue profile with persistent operating losses and negative gross profit/EBIT/EBITDA. Cash flow is a major weakness with ongoing negative operating cash flow and free cash flow, implying continued reliance on external funding. Balance sheet leverage is modest, but equity/assets have materially eroded over time, increasing financing/dilution risk despite some improvement in loss and cash burn versus 2024.

Income Statement

Across the latest TTM (Trailing-Twelve-Months) and prior annual periods, the company reports no revenue and persistent operating losses, indicating it remains in an early-stage/exploration phase rather than a producing business. Losses have narrowed versus 2024 (net loss improved from about -2.64M in 2024 to about -1.05M in TTM), but profitability is still structurally weak with negative gross profit and negative EBIT/EBITDA.

Balance Sheet

Leverage is modest, with low debt relative to equity in TTM (debt-to-equity ~0.04) and still low in 2024 (~0.08), which reduces solvency risk. However, equity and total assets have declined materially over time (from ~11.9M equity in 2020 to ~2.0M in TTM), reflecting ongoing losses and/or funding needs, and returns on equity are deeply negative (TTM ROE ~-0.83), highlighting continued balance sheet erosion risk if losses persist.

Cash Flow

Cash generation remains a key weakness: operating cash flow and free cash flow are consistently negative (TTM operating cash flow about -1.20M; free cash flow about -1.20M). Cash burn improved versus 2024 (operating cash flow about -2.32M), but the business still requires external funding to sustain operations, and negative operating cash flow indicates limited near-term self-funding capacity.

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	-62.64K	-50.35K	-48.06K	-44.90K	-29.52K	-369.00
EBITDA	-977.52K	-2.59M	-2.25M	-2.61M	-4.37M	-2.26M
Net Income	-1.05M	-2.64M	-2.29M	-2.66M	-4.40M	-2.26M
Balance Sheet
Total Assets	2.06M	1.28M	3.66M	5.94M	8.62M	11.94M
Cash, Cash Equivalents and Short-Term Investments	1.46M	837.75K	3.16M	5.60M	8.22M	11.72M
Total Debt	85.51K	95.52K	0.00	0.00	0.00	0.00
Total Liabilities	268.46K	318.80K	234.33K	265.45K	253.09K	216.68K
Stockholders Equity	1.97M	1.14M	3.60M	5.86M	8.54M	11.90M
Cash Flow
Free Cash Flow	-1.20M	-2.33M	-2.43M	-2.65M	-3.84M	-893.07K
Operating Cash Flow	-1.20M	-2.32M	-2.23M	-2.61M	-3.65M	-793.07K
Investing Cash Flow	1.75K	-2.15K	-207.31K	-19.16K	-195.60K	-108.80K
Financing Cash Flow	1.61M	0.00	0.00	2.25K	347.06K	12.46M

Volcanic Gold Mines Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.12
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:VG, the sentiment is Negative. The current price of 0.12 is below the 20-day moving average (MA) of 0.13, above the 50-day MA of 0.12, and below the 200-day MA of 0.14, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 47.29 is Neutral, neither overbought nor oversold. The STOCH value of 25.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:VG.

Volcanic Gold Mines 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%
VG	51 Neutral	C$7.13M	-5.56	-62.30%	―	―	66.36%
VGD	51 Neutral	C$5.94M	2.94	―	―	―	38.50%
NSG	46 Neutral	C$13.36M	-8.96	-30.58%	―	―	34.71%
PGC	43 Neutral	C$6.92M	-4.62	-341.20%	―	―	-364.29%

Volcanic Gold Mines Inc Corporate Events

Volcanic Gold Mines Sees Aura’s Era Dorado Development as Catalyst for Holly Project in Guatemala

Volcanic Gold Mines Inc. has welcomed Aura Minerals’ receipt of a construction licence and start of early works on the Era Dorado underground gold mine in Guatemala, viewing the 1.6‑million‑ounce project as a key catalyst for the country’s mining sector and broader economic development. Management believes that successful, socially and environmentally responsible construction and operation of the nearby Era Dorado mine could ease local opposition and pave the way for resuming exploration and potential underground development at Volcanic’s Holly project, which hosts an inferred resource of roughly 270,000 ounces of gold and 11 million ounces of silver, while the company also continues to evaluate additional opportunities in Guatemala and across Central America.

The most recent analyst rating on (TSE:VG) stock is a Hold with a C$0.10 price target. To see the full list of analyst forecasts on Volcanic Gold Mines Inc stock, see the TSE:VG Stock Forecast page.

Volcanic Gold Mines Enhances Investor Engagement with Digital Marketing Initiative

Volcanic Gold Mines Inc. has engaged Departures Capital Inc. to conduct a digital marketing and investor outreach program to enhance its visibility within the global investment community. This initiative, which cost US$25,000, included video interviews with the CEO, a dedicated investor landing page, and digital advertising, aiming to generate investor engagement and awareness.