North Arrow Minerals (NAR) AI Stock Analysis

• Market Cap: C$5.86M
• Dividend Yield: N/A
• Average Volume (3M): 54.26K
• Price to Earnings (P/E): 15.8
• Beta (1Y): 0.58
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: CA
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 59
• Industry: Other Precious Metals
• EPS (TTM): 0.01
• Shares Outstanding: 28,580,223
• 10 Day Avg. Volume: 62,766
• 30 Day Avg. Volume: 54,259
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -2.70
• 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

North Arrow Minerals has a challenging financial outlook with no revenue and persistent losses, impacting its overall score significantly. While technical indicators show positive momentum, the stock is overbought, warranting caution. The company's strategic corporate actions may enhance future exploration success, but current financial instability and moderate valuation limit its appeal. The overall score reflects the balance of these factors, with significant weight given to financial performance and corporate events.

North Arrow Minerals Business Overview & Revenue Model

Company Description

North Arrow Minerals (NAR) is a Canadian-based exploration company that focuses on the identification and development of diamond exploration properties. The company is engaged in the acquisition, exploration, and potential development of mineral properties, primarily targeting diamond-rich regions in Canada. North Arrow Minerals leverages advanced geoscience technologies to identify promising exploration sites and aims to contribute to the supply chain of high-quality diamonds.

How the Company Makes Money

North Arrow Minerals makes money primarily through the exploration and potential development of diamond properties. As an exploration company, its revenue model includes generating value through the discovery and delineation of diamond resources, which can be sold or partnered with larger mining companies for development. The company may also enter into joint ventures or partnerships with other mining entities to share exploration costs and risks, potentially receiving milestone payments, royalties, or equity stakes in projects that advance to production. Additionally, North Arrow Minerals might raise funds through equity financing to support its exploration activities, with the long-term goal of benefiting from the appreciation in value of its mineral assets as they move closer to production stages.

North Arrow Minerals Financial Statement Overview

Summary

North Arrow Minerals struggles significantly due to a lack of revenue generation, impacting profitability and cash flow. Despite a strong equity position with low leverage, persistent negative cash flows and income statement weaknesses highlight the need for revenue and operational efficiency improvements.

Income Statement

North Arrow Minerals has not generated any revenue over the observed periods, which is a major concern for financial sustainability. The company consistently records negative gross profit, EBIT, and net income, indicating ongoing operational challenges in achieving profitability. The TTM shows a net income of $602,809, which is an improvement, but overall financial performance remains weak due to the lack of revenue.

Balance Sheet

The company's balance sheet highlights strong equity relative to its liabilities, with a high equity ratio due to low debt levels. The debt-to-equity ratio is extremely low, reflecting minimal financial leverage, which minimizes financial risk. However, there is a trend of increasing liabilities, and the company's ability to generate returns on equity is constrained by a lack of revenue and profitability.

Cash Flow

North Arrow Minerals reports negative free cash flow across periods, indicating limited cash generation from operations. The operating cash flow to net income ratio shows inefficiencies in converting income into cash flow. Although the company has positive financing cash flow, suggesting an ability to raise funds, the negative free cash flow trend raises concerns about sustainability without revenue growth.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00	0.00
	Gross Profit
-40.06K	-42.03K	-43.74K	-50.52K	-77.40K	-89.30K
	EBIT
-1.02M	-1.35M	2.60M	-22.85K	-715.83K	-907.04K
	EBITDA
-1.05M	-865.58K	-4.18M	-1.58M	-534.02K	-781.59K
	Net Income Common Stockholders
602.81K	-907.60K	-4.24M	-1.70M	-628.19K	-870.89K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
48.75K	429.81K	274.43K	1.04M	1.12M	651.47K
	Total Assets
4.26M	17.90M	16.18M	20.14M	20.60M	19.97M
	Total Debt
0.00	571.99K	593.53K	565.28K	411.73K	94.71K
	Net Debt
-48.75K	143.43K	322.02K	-467.13K	-680.19K	-484.84K
	Total Liabilities
306.35K	1.21M	1.14M	1.80M	1.61M	481.26K
	Stockholders Equity
3.96M	16.69M	15.04M	18.33M	18.99M	19.49M
Cash Flow		Free Cash Flow
-1.37M	-888.47K	-552.64K	-966.25K	-505.88K	-1.19M
	Operating Cash Flow
-808.75K	-883.31K	-548.45K	-655.67K	-503.79K	-678.27K
	Investing Cash Flow
952.07K	-1.21M	-1.07M	-341.03K	680.96K	-440.03K
	Financing Cash Flow
1.51M	2.25M	859.34K	937.18K	335.20K	1.19M

North Arrow Minerals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:NAR, the sentiment is Positive. The current price of 0.2 is above the 20-day moving average (MA) of 0.16, above the 50-day MA of 0.14, and above the 200-day MA of 0.18, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 62.86 is Neutral, neither overbought nor oversold. The STOCH value of 80.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:NAR.

North Arrow Minerals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MDI	71 Outperform	C$693.22M	19.88	6.87%	―	-2.15%	-44.75%
Sector *	49 Neutral	$1.93B	-1.63	-22.26%	3.87%	0.68%	-27.45%
NAR	48 Neutral	C$5.86M	15.77	-1.02%	―	―	―
MPVD	47 Neutral	$13.80M	―	-24.75%	―	-18.55%	-84.45%
DIAM	45 Neutral	$33.97M	―	-233.00%	―	―	-72.88%
FPC	36 Underperform	C$60.83M	―	-7.12%	―	―	-9.60%

North Arrow Minerals Corporate Events

North Arrow Minerals Announces Leadership Change to Boost African Exploration

North Arrow Minerals has announced a strategic management change, appointing Eira Thomas as President and CEO, while Ken Armstrong transitions to Chairman of the Board. This shift is aimed at leveraging Thomas’s extensive experience and relationships in southern Africa to advance the Kraaipan Gold Project and explore new opportunities. The company is actively conducting exploration activities, including geophysical surveys and drilling programs, to identify gold mineralization beneath the Kalahari overburden in Botswana.

Spark’s Take on TSE:NAR Stock

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

North Arrow Minerals faces significant financial challenges with no revenue generation, impacting profitability and cash flow. The stock shows upward momentum but is overbought, suggesting caution. Strategic corporate actions in exploration may drive future growth, but current valuation and financial health limit its overall appeal.

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

North Arrow Minerals Advances Exploration at Kraaipan Gold Project

North Arrow Minerals Inc. has announced an update on its exploration activities at the Kraaipan Gold Project in Botswana, where it is conducting detailed magnetic surveys and structural mapping. The company aims to identify and test priority targets using advanced technologies like UAV magnetic surveys and optimized reverse-circulation drilling. With 80% of the magnetic surveys completed, North Arrow plans to finalize this phase by April and commence a three-month drilling program in May, supported by its partner Rockman Resources. This initiative is expected to enhance the company’s exploration capabilities and potentially uncover significant mineral deposits beneath the Kalahari sands, strengthening its position in the mining industry.

North Arrow Minerals Completes Sale of Lithium Properties to Focus on Gold Exploration

North Arrow Minerals Inc. has completed the sale of three lithium properties in Canada’s Northwest Territories to Li-FT Power Ltd. in exchange for common shares, allowing the company to focus on its gold exploration efforts in Botswana. This transaction provides North Arrow with a stake in Li-FT’s projects while enabling it to carry out advanced exploration activities at the Kraaipan Gold Project, aiming to identify new gold mineralization beneath sand cover.