Velocity Minerals (VLC) AI Stock Analysis

• Market Cap: C$40.91M
• Dividend Yield: N/A
• Average Volume (3M): 18.15K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.35
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: CA
• Employees: 20
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Gold
• EPS (TTM): >-0.01
• Shares Outstanding: 204,532,850
• 10 Day Avg. Volume: 23,450
• 30 Day Avg. Volume: 18,153
• PEG Ratio: 5.33
• Price to Book (P/B): 1.34
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -9.29
• 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: 48 Neutral
• Price Target: C$0.20 ▲(10.00% Upside)

Overall score is held back primarily by the pre-revenue income statement and ongoing losses (negative P/E), with additional pressure from weak technical momentum (below major moving averages and negative MACD). Offsetting factors include a low-risk balance sheet and a notable recent improvement in reported operating and free cash flow.

Positive Factors

Low leverage / strong liquidity

Extremely low debt relative to equity materially reduces financial distress risk and preserves optionality for capital allocation. For an exploration company this supports sustained funding of drilling and permitting without immediate refinancing pressure, extending runway for discovery-driven value creation.

Recent positive operating cash generation

A meaningful swing to positive operating and free cash flow provides durable runway to fund exploration and corporate activity without near-term reliance on equity issuance. If sustained, it reduces dilution risk and allows selective reinvestment or strategic transactions to advance projects.

Focused exploration model and lean operations

A clear, region-focused exploration strategy concentrates technical expertise and regulatory know-how in Bulgaria/Europe, improving project selection and permitting efficiency. A small headcount (20 employees) implies low fixed overheads, keeping exploration spend targeted and flexible.

Negative Factors

Pre-revenue business model

Operating without revenue means the company’s long-term viability depends on discovery outcomes or external capital/events. This structural dependency limits margin visibility, makes cash generation uncertain, and can force periodic financing that dilutes shareholders if exploration success is delayed.

Negative returns on equity

A negative ROE signals persistent erosion of shareholder value despite available equity capital. Over time this raises questions about management’s ability to convert invested capital into profitable projects, potentially hindering longer-term capital-raising and partner confidence.

Volatile and potentially non-recurring cash flows

While recent cash inflows are positive, their volatility and unclear source suggest they may be lumpy (asset sales or one-off receipts). If not repeatable from core exploration, the company may face funding gaps, forcing dilution or curtailed programs when cash is absent.

Velocity Minerals Business Overview & Revenue Model

Company Description

Velocity Minerals Ltd. engages in the acquisition, exploration, evaluation, development, and investment in mineral resource properties in Bulgaria. It explores for gold and copper deposits. The company is headquartered in Vancouver, Canada.

How the Company Makes Money

Velocity Minerals Financial Statement Overview

Summary

Financial profile is mixed: the balance sheet is conservatively levered (very low debt-to-equity) and TTM cash flow shows a sharp rebound with positive operating and free cash flow, but the company remains pre-revenue with persistent losses and negative ROE, which materially constrains overall financial quality.

Income Statement

Velocity Minerals remains in a pre-revenue phase (revenue is 0 across all periods), with persistent operating losses. Net loss widened in TTM (Trailing-Twelve-Months) to about -$2.0M vs. -$1.9M in 2024, and operating profit also deteriorated (EBIT more negative in TTM vs. 2024). A modest positive is that the annual net loss improved versus 2022, but overall profitability is still weak and margins are not meaningful without revenue.

Balance Sheet

The balance sheet is conservatively levered, with extremely low debt relative to equity in TTM (Trailing-Twelve-Months) (debt-to-equity ~0.001), which reduces financial risk. Equity remains substantial (~$21.3M in TTM), supporting liquidity and flexibility. The key weakness is ongoing negative returns on equity (around -9% in TTM), reflecting continued losses and value erosion despite low leverage.

Cash Flow

Cash flow improved sharply in TTM (Trailing-Twelve-Months), with strongly positive operating cash flow (~$21.5M) and free cash flow (~$19.3M), a major swing from negative free cash flow in 2021–2024. However, the reported free cash flow growth is extremely volatile (large negative growth reading), and the business still posts accounting losses, raising questions about the durability and source of the cash inflow versus a steady operating run-rate.

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	-33.45K	-16.00K	-57.30K	-40.13K	-11.24K	0.00
EBITDA	-1.69M	-1.61M	-1.77M	-2.68M	-2.34M	-1.60M
Net Income	-2.03M	-1.90M	-1.80M	-2.66M	-2.49M	-2.07M
Balance Sheet
Total Assets	52.73M	28.37M	29.86M	26.51M	28.48M	29.01M
Cash, Cash Equivalents and Short-Term Investments	2.88M	1.23M	3.15M	1.07M	4.68M	10.54M
Total Debt	15.12K	69.82K	165.47K	265.06K	105.92K	4.28M
Total Liabilities	26.61M	892.69K	976.49K	618.49K	474.40K	5.18M
Stockholders Equity	21.33M	22.68M	24.15M	21.26M	23.55M	20.46M
Cash Flow
Free Cash Flow	19.31M	-3.27M	-4.37M	-3.82M	-7.79M	-8.84M
Operating Cash Flow	21.54M	-1.02M	-1.35M	-2.31M	-2.33M	-1.75M
Investing Cash Flow	-20.16M	-1.03M	-719.41K	-1.49M	-5.44M	-7.09M
Financing Cash Flow	122.87K	133.22K	4.15M	189.15K	1.90M	16.17M

Velocity Minerals 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%
DEX	59 Neutral	C$34.26M	23.24	5.20%	―	―	―
BTR	50 Neutral	C$37.17M	-3.78	-67.80%	―	―	42.48%
VLC	48 Neutral	C$40.91M	-19.42	-6.83%	―	―	―
BAU	48 Neutral	C$37.62M	-3.08	-44.14%	―	―	-268.72%
PRG	47 Neutral	C$55.41M	-36.64	-30.77%	―	―	-296.61%
KALO	44 Neutral	C$27.29M	-2.54	-201.31%	―	―	-58.16%

Velocity Minerals Corporate Events

Velocity Minerals Boosts Cash Position as Warrants Exercised and New Stock Options Granted

Velocity Minerals Ltd. has strengthened its balance sheet by receiving $1,316,387 in proceeds from the exercise of nearly all (98%) of its outstanding warrants, priced at $0.18 per share, leaving the company with no remaining share purchase warrants. In conjunction, the company has granted 3,665,000 stock options at $0.18 per share to directors, officers, employees and consultants as part of its annual long-term incentive program; these options, representing 8.9% of issued and outstanding shares, vest over three years and underscore Velocity’s use of equity-based compensation to align management and staff with shareholder interests.

The most recent analyst rating on (TSE:VLC) stock is a Hold with a C$0.19 price target. To see the full list of analyst forecasts on Velocity Minerals stock, see the TSE:VLC Stock Forecast page.

Velocity Minerals Updates on Türker Transaction and Amends Artemis Agreement

Velocity Minerals Ltd. has provided an update on its transaction with Türker Global, highlighting a payment received and future transaction closing conditions. The company has also amended its investment agreement with Artemis Gold Inc., capping its board of directors and outlining profit distribution terms. These developments may impact Velocity’s operational strategies and shareholder relations, particularly with the potential reduction in final tranche payment if the Türker transaction closes early.