EMP Metals (EMPS) AI Stock Analysis

• Market Cap: C$37.92M
• Dividend Yield: N/A
• Average Volume (3M): 23.36K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.39
• Revenue Growth: N/A
• EPS Growth: -6.91%
• Country: CA
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 69
• Industry: Other Precious Metals
• EPS (TTM): -0.04
• Shares Outstanding: 114,906,910
• 10 Day Avg. Volume: 43,907
• 30 Day Avg. Volume: 23,358
• PEG Ratio: 1.37
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.50
• 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

• Rating: 36 Underperform
• Price Target: ―

EMP Metals faces considerable financial challenges, with zero revenue and persistent losses posing significant risks to its viability. While the balance sheet shows strength in equity, the lack of profitability and unsustainable cash flows are concerning. Technical analysis provides no clear direction, and valuation metrics indicate the stock's unattractiveness due to its financial issues.

EMP Metals Business Overview & Revenue Model

Company Description

EMP Metals (EMPS) is a company engaged in the exploration and development of mineral resources, primarily focusing on metals. The company operates within the mining sector, aiming to identify, acquire, and develop mineral properties that have the potential to yield economically viable quantities of metal resources. EMP Metals is involved in various stages of the mining process, from initial exploration to resource estimation and development planning.

How the Company Makes Money

EMP Metals makes money through the exploration and development of mineral resources, which are subsequently extracted and sold. The company's revenue model primarily involves the sale of extracted metals and minerals to industrial buyers, manufacturers, and commodity markets. Key revenue streams include the sale of metals such as lithium, copper, and other valuable minerals that are in demand for various industrial applications. Significant partnerships with mining contractors, technology providers, and industrial buyers contribute to its earnings by enhancing operational efficiency and expanding market reach. The company's financial performance is influenced by factors such as commodity prices, extraction costs, and regulatory developments within the mining industry.

EMP Metals Financial Statement Overview

Summary

EMP Metals faces significant operational challenges with zero revenue and consistent losses, raising concerns about its viability. While the balance sheet shows strong equity, the unsustainable cash flow situation and lack of profitability signal financial distress. Strategic changes are needed to create revenue streams and improve cash flow management.

Income Statement

The company has consistently reported zero revenue over the past years, indicating a lack of operational income streams. The persistent negative net income and EBIT margins reflect ongoing operational challenges and lack of profitability. The absence of revenue eliminates the possibility to calculate growth rates and profit margins, highlighting a critical issue in generating sales.

Balance Sheet

The company shows a relatively strong equity position with a high equity ratio, indicating reliance on equity financing. However, the negative return on equity suggests inefficiencies in generating returns from shareholder investments. The absence of debt lowers financial risk, but the lack of revenue remains a significant concern for future stability.

Cash Flow

The company experiences negative free and operating cash flows, indicating cash outflows exceed inflows, primarily due to high capital expenditures. Despite this, the financing cash flow is positive due to external funding, which temporarily supports liquidity but is unsustainable long-term without revenue generation. The negative free cash flow growth rate further emphasizes cash flow management issues.

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
0.00	0.00	0.00	0.00	0.00	0.00
	EBIT
-2.67M	-2.02M	-1.90M	-1.80M	-1.46M	-111.81K
	EBITDA
-3.93M	-801.17K	-1.53M	-1.89M	-680.28K	-111.81K
	Net Income Common Stockholders
-4.01M	-2.73M	-1.65M	-2.47M	-3.75M	-111.81K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.94M	7.79M	4.15M	1.47M	265.87K	324.86K
	Total Assets
36.42M	33.46M	25.33M	17.82M	589.94K	634.86K
	Total Debt
2.80M	0.00	0.00	0.00	0.00	0.00
	Net Debt
867.80K	-7.76M	-3.91M	-1.47M	-265.87K	-324.86K
	Total Liabilities
3.17M	290.91K	1.14M	251.35K	45.14K	19.66K
	Stockholders Equity
33.25M	30.66M	23.28M	12.51M	544.80K	615.20K
Cash Flow		Free Cash Flow
-10.58M	-5.43M	-5.19M	-1.56M	-1.69M	-326.01K
	Operating Cash Flow
-3.12M	-3.12M	-2.41M	-1.02M	-1.42M	-121.02K
	Investing Cash Flow
-7.45M	-2.31M	-2.51M	-166.57K	-353.48K	-205.00K
	Financing Cash Flow
2.79M	9.27M	7.37M	2.38M	1.71M	572.78K

EMP Metals Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.26
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:EMPS, the sentiment is Negative. The current price of 0.26 is above the 20-day moving average (MA) of 0.26, above the 50-day MA of 0.26, and below the 200-day MA of 0.36, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 48.74 is Neutral, neither overbought nor oversold. The STOCH value of 49.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:EMPS.

EMP Metals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SGML	53 Neutral	C$770.69M	―	-30.69%	―	11.53%	-154.63%
Sector *	51 Neutral	$2.01B	-1.11	-21.16%	3.67%	2.69%	-30.65%
LAC	49 Neutral	$796.81M	―	-8.91%	―	―	―
CRE	41 Neutral	C$93.68M	8.92	13.24%	―	―	―
LITH	41 Neutral	C$113.65M	18.77	11.66%	―	―	-7.56%
PMET	38 Underperform	C$339.14M	5,680.00	-2.20%	―	―	-2226.67%
EMPS	36 Underperform	C$37.92M	―	-12.51%	―	―	-6.91%

EMP Metals Corporate Events

EMP Metals Issues Warrants to Tembo Following Loan Drawdown

EMP Metals Corp. has issued 216,000 common share purchase warrants to Tembo Capital Holdings as part of a loan agreement. This move follows a drawdown of US$1,000,000 from a non-revolving loan facility, which is to be repaid by the end of 2025, potentially impacting EMP Metals’ financial strategy and stakeholder interests.

Spark’s Take on TSE:EMPS Stock

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

EMP Metals faces significant financial challenges with no current revenue and continuous losses. While its balance sheet is stable, the negative cash flow and reliance on external funding are concerns. Technically, the stock shows a bearish trend. However, recent positive corporate events related to potential lithium production offer a glimmer of hope for future revenue opportunities, slightly lifting the overall outlook.

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

EMP Metals Amends Loan Agreement with Tembo Capital

EMP Metals Corp., a company involved in the resource sector, has amended its loan agreement with Tembo Capital Holdings to extend the drawdown deadline for a US$3 million loan facility. The amendment allows EMP Metals to access an additional US$1 million until March 14, 2025, with an interest rate of 13.5% per annum. The agreement also includes a provision for drawdown fees payable in common share purchase warrants if the loan is not repaid promptly. Tembo Capital, which holds a significant stake in EMP Metals, may adjust its investment based on various market and company conditions.