Forsys Metals (FSY) AI Stock Analysis

• Market Cap: C$105.34M
• Dividend Yield: N/A
• Average Volume (3M): 277.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.65
• Revenue Growth: N/A
• EPS Growth: 54.70%
• Country: CA
• Employees: 12
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): -0.01
• Shares Outstanding: 210,679,470
• 10 Day Avg. Volume: 98,890
• 30 Day Avg. Volume: 276,997
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -46.60
• P/FCF Ratio: 0.00
• 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

Forsys Metals' financial performance presents major challenges, with zero revenue and significant cash burn. Despite promising corporate events indicating potential project advancements, the company's weak valuation and mixed technical indicators suggest cautious optimism. Continued financial losses and lack of positive cash flows remain key risks.

Forsys Metals Business Overview & Revenue Model

Company Description

Forsys Metals Corp., an exploration stage company, engages in the acquisition, exploration, and development of mineral properties in Namibia, Africa. The company explores for uranium and gold mineral properties. Its flagship project is Norasa Uranium Project, which includes the Valencia project covering an area of 735.6 hectares located in the south-west of the town of Usakos in central-west Namibia; and the Namibplaas project located in the northeast of Valencia. The company was formerly known as Forsys Technologies Inc. and changed its name to Forsys Metals Corp. in June 2005. Forsys Metals Corp. was incorporated in 1985 and is headquartered in Toronto, Canada.

How the Company Makes Money

Forsys Metals makes money primarily through the exploration and development of its mineral properties, with a focus on uranium. Revenue is generated by advancing these projects to production stages where they can either extract and sell the uranium directly or enter into joint ventures and partnerships with larger mining companies. The company's earnings are influenced by factors such as uranium market prices, successful project development, investment into exploration activities, and strategic partnerships with other entities in the mining sector.

Forsys Metals Financial Statement Overview

Summary

Overall, Forsys Metals is facing significant financial challenges due to the absence of revenue and persistent losses, which are reflected in its income statement and cash flow metrics. The balance sheet is stable due to a lack of debt, yet the declining cash reserves highlight liquidity concerns. The company needs to address its revenue generation and operational efficiency to improve financial health.

Income Statement

Forsys Metals has consistently reported zero revenue, resulting in negative EBIT and net income for the TTM and past years. The lack of revenue and persistent losses indicate significant challenges in operations and profitability. This absence of revenue growth and negative margins is a concern for financial stability.

Balance Sheet

The company has no debt, which is a positive sign of financial stability. However, the stockholders' equity has decreased slightly over the years. The equity ratio remains strong due to the absence of liabilities. The company's cash reserves have diminished over time, indicating potential liquidity issues.

Cash Flow

Forsys Metals has negative operating and free cash flows, reflecting the operational struggles. The free cash flow has declined, indicating cash generation issues. The operating cash flow to net income ratio is negative, showing inefficiencies in converting income into cash.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00	0.00
	Gross Profit
0.00	0.00	0.00	0.00	0.00	0.00
	EBIT
-4.11M	-6.15M	-8.47M	-3.85M	-766.57K	-985.73K
	EBITDA
-1.10M	383.40K	0.00	0.00	0.00	-925.41K
	Net Income Common Stockholders
-4.41M	-5.82M	3.25M	-3.86M	-762.73K	-902.19K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
652.62K	12.41M	16.92M	12.56M	876.97K	712.65K
	Total Assets
15.65M	24.27M	27.32M	24.86M	14.20M	14.85M
	Total Debt
0.00	0.00	0.00	0.00	0.00	0.00
	Net Debt
-652.62K	-12.41M	-16.92M	-12.56M	-876.97K	-712.65K
	Total Liabilities
204.48K	2.04M	2.15M	78.84K	142.81K	102.55K
	Stockholders Equity
15.61M	22.24M	25.17M	24.78M	14.05M	14.74M
Cash Flow		Free Cash Flow
-5.44M	-4.78M	-3.18M	-1.42M	-780.30K	-479.02K
	Operating Cash Flow
-3.59M	-2.71M	-2.86M	-1.35M	-744.66K	-461.71K
	Investing Cash Flow
-4.86M	-1.47M	6.87M	-69.93K	-34.26K	414.52K
	Financing Cash Flow
0.00	0.00	-1.00	13.12M	991.61K	0.00

Forsys Metals Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:FSY, the sentiment is Negative. The current price of 0.5 is below the 20-day moving average (MA) of 0.59, below the 50-day MA of 0.52, and below the 200-day MA of 0.60, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 42.35 is Neutral, neither overbought nor oversold. The STOCH value of 13.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:FSY.

Forsys Metals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CCO	72 Outperform	$24.94B	144.99	2.73%	0.28%	21.18%	-52.58%
Sector *	48 Neutral	$1.92B	-1.99	-22.85%	3.95%	0.94%	-27.31%
DML	47 Neutral	$1.62B	33.39	-4.64%	―	―	―
FSY	45 Neutral	C$105.34M	―	-12.23%	―	―	54.70%
NXE	42 Neutral	$3.60B	27.25	-7.77%	―	―	-197.27%
LAM	28 Underperform	C$147.15M	―	-6.64%	―	―	-34.39%

Forsys Metals Corporate Events

Forsys Metals Announces Positive Ore Sorting Results at Norasa Project

Forsys Metals Corp. has reported positive results from ore-sorting testwork at its Norasa Uranium project, which could enhance processing efficiency and reduce operating costs. The successful exploratory evaluations have led to further confirmatory testwork, with results expected by the end of Q2 2025, potentially impacting the company’s operational efficiency and market positioning.

Spark’s Take on TSE:FSY Stock

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

Forsys Metals’ overall stock score reflects significant financial performance challenges, including zero revenue and cash burn. Despite technical indicators showing positive momentum, the company’s valuation remains weak due to negative earnings. Recent corporate events are promising but have yet to translate into financial results.

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

Stefano Roma Increases Stake in Forsys Metals Corp.

Stefano Roma, a director of Forsys Metals Corp., has acquired 5,687,500 units of the company through a private placement, increasing his ownership to 31.23% of the company’s common shares on an undiluted basis. This acquisition, intended for investment purposes, could influence Roma’s future actions regarding his holdings, potentially impacting Forsys Metals’ market positioning and stakeholder interests.

Forsys Metals Announces Promising Drilling Results at Norasa Uranium Project

Forsys Metals Corp. has reported additional interim drilling results from its ongoing Resource Extension and Exploration drilling program at the Norasa Uranium project. The results, which include significant uranium mineralization at the Valencia and Jolie Zone deposits, indicate a strong potential to expand and upgrade resources, thereby enhancing the project’s economic viability and extending its mine life.

Forsys Metals Completes C$5 Million Private Placement to Advance Uranium Project

Forsys Metals Corp. has completed a non-brokered private placement, raising C$5,005,000 through the issuance of 10,010,000 units, each comprising one common share and a warrant. Proceeds will fund the Norasa Uranium project in Namibia and general working capital. The placement was fully subscribed by company management and board members, making it a related party transaction. Post-placement, stakeholder Stefano Roma increased his ownership to 31.23% of the company, reflecting potential changes in shareholder dynamics.

Forsys Metals Announces Board Change and Private Placement

Forsys Metals Corp. has announced the appointment of Mr. Stefano Roma to its Board of Directors, following the resignation of Mr. Richard Parkhouse. Mr. Roma, who has been a significant shareholder for over fifteen years, brings extensive experience in capital markets, which is expected to benefit Forsys as it progresses its Norasa Uranium Project. Additionally, the company plans to raise up to C$5.28 million through a non-brokered private placement, which will support its financial strategy and operations.