Grid Metals (GRDM) AI Stock Analysis

• Market Cap: $30.66M
• Dividend Yield: N/A
• Average Volume (3M): 211.85K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.30
• Revenue Growth: N/A
• EPS Growth: 70.96%
• Country: CA
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): <0.01
• Shares Outstanding: 204,401,170
• 10 Day Avg. Volume: 450,964
• 30 Day Avg. Volume: 211,849
• PEG Ratio: 0.03
• Price to Book (P/B): 45.82
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.03
• Enterprise Value/Market Cap: 0.22
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -13.13
• Enterprise Value/Ebitda: -3.77
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 32 Underperform
• Price Target: ―

Grid Metals is currently facing significant financial difficulties, with no revenue and increasing losses, which severely impact its attractiveness. The technical analysis indicates potential for a rebound, but the valuation remains unattractive due to negative earnings. However, positive corporate events, including strategic partnerships and project advancements, provide a glimmer of hope for future improvement.

Grid Metals Business Overview & Revenue Model

Company Description

Grid Metals Corp (GRDM) is a Canadian-based exploration and development company focused on advancing its portfolio of projects centered around nickel, copper, platinum group metals (PGMs), and lithium. The company primarily operates in mining-friendly jurisdictions within Canada and is committed to the responsible development of its mineral resources. Grid Metals' key projects include the Makwa Mayville Nickel Copper PGM Project and the Donner Lake Lithium Project, which are aimed at catering to the growing demand for battery metals and clean energy solutions.

How the Company Makes Money

Grid Metals makes money through the exploration and development of its mineral properties, with the objective of bringing them into production. The company's revenue model primarily revolves around increasing the value of its projects through successful exploration, resource definition, and feasibility studies, which can lead to joint ventures, partnerships, or outright sales of assets to larger mining companies. Additionally, Grid Metals may generate revenue through strategic alliances or partnerships with other companies in the mining sector, which can provide funding and technical expertise to advance its projects. The company may also benefit from metal price appreciation, which can enhance the value of its in-ground resources.

Grid Metals Financial Statement Overview

Summary

Grid Metals faces substantial financial challenges, with no revenue generation and increasing losses. The high debt levels add financial risk, and negative cash flows exacerbate liquidity issues. Strategic changes are needed to improve financial health and operational efficiency.

Income Statement

Grid Metals has consistently reported no revenue over the years, leading to negative gross and net profit margins. The company is facing increasing operational expenses and negative EBIT and EBITDA figures, indicating operational inefficiencies and lack of profitability.

Balance Sheet

The company's balance sheet shows a high debt-to-equity ratio, indicating significant leverage and financial risk. The equity ratio has been declining, suggesting a weakened financial structure. However, the company maintains a reasonable level of cash and cash equivalents, providing some liquidity cushion.

Cash Flow

Grid Metals reports negative operating and free cash flows, reflecting cash flow challenges. The operating cash flow to net income ratio is unfavorable, showing poor cash generation from operations. Free cash flow trends are also negative, raising concerns about sustainability without further financing.

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	-514.85K	-808.75K	-151.00K	-25.25K	-12.39K	-11.15K
EBITDA	-1.79M	-5.00M	-10.09M	301.00K	-3.84M	-3.19M
Net Income	-2.35M	-6.04M	-10.37M	275.76K	-3.85M	-3.20M
Balance Sheet
Total Assets	679.64K	1.53M	12.79M	12.90M	3.00M	32.72M
Cash, Cash Equivalents and Short-Term Investments	613.32K	1.25M	3.47M	12.30M	2.91M	3.09M
Total Debt	216.73K	465.27K	3.65M	78.00K	90.73K	63.89K
Total Liabilities	519.02K	1.36M	6.69M	1.40M	516.43K	1.64M
Stockholders Equity	160.63K	178.25K	6.10M	11.50M	2.49M	31.08M
Cash Flow
Free Cash Flow	-9.36M	-7.89M	-8.14M	-4.28M	-3.60M	-2.83M
Operating Cash Flow	-9.39M	-7.89M	-8.14M	-4.20M	-3.60M	-995.40K
Investing Cash Flow	1.43M	944.00K	2.08M	839.63K	44.76K	-1.83M
Financing Cash Flow	4.99M	4.83M	-620.55K	9.86M	3.42M	4.77M

Grid Metals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:GRDM, the sentiment is Positive. The current price of 0.15 is above the 20-day moving average (MA) of 0.09, above the 50-day MA of 0.08, and above the 200-day MA of 0.05, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 86.41 is Negative, neither overbought nor oversold. The STOCH value of 96.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:GRDM.

Grid Metals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LUN	67 Neutral	14.79B	-476.03	0.24%	1.52%	-16.62%	-112.03%
CNC	54 Neutral	185.76M	-12.76	0.00%	―	0.00%	-4.01%
FPX	40 Underperform	108.61M	-31.65	0.00%	―	0.00%	-37.97%
NOU	39 Underperform	455.26M	-6.24	0.00%	―	0.00%	54.72%
GRDM	32 Underperform	$30.66M	―	-177.59%	―	―	70.96%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Grid Metals Corporate Events

Grid Metals’ Makwa Project Advances to Drilling Stage with Teck Partnership

Grid Metals Corp. has announced that its Makwa nickel project in southeastern Manitoba is advancing to the drilling stage, following a joint venture agreement with Teck Resources Limited. Teck can earn up to a 70% interest in the project by investing $17.3 million. Aerial geophysical surveys have identified high-priority targets, and Teck plans to commence drilling after obtaining exploration permits. This development marks a significant step in Grid’s strategic partnership with Teck, potentially enhancing its position in the nickel exploration industry.

Grid Metals Corp Strengthens Financial Position and Advances Cesium Projects

Grid Metals Corp has appointed Arif Shivji as the new Chief Financial Officer, enhancing its financial leadership with his extensive experience. The company has improved its working capital position by amending a lease agreement, reducing future spending commitments, and securing funding for exploration from industry partners. Additionally, Grid has completed significant drilling at its Donner lithium-cesium property, funded by a toll processing agreement with Tantalum Mining Corporation of Canada Limited, indicating progress in its cesium projects.

Grid Metals Initiates Cesium Drilling and Engages at PDAC Convention

Grid Metals Corp. has commenced a cesium drilling program at the High-Grade Dyke on the Donner lithium/cesium property in southeastern Manitoba, supported by an initial prepayment from Tanco as part of a cesium supply agreement. The company is also participating in the PDAC Convention, inviting stakeholders to visit their booth, highlighting their active engagement in the resources industry and commitment to advancing their projects.

Grid Metals Secures Strategic Cesium Agreement with Tanco

Grid Metals Corp. has entered into a cesium supply agreement with Tantalum Mining Corporation of Canada Limited, facilitating the exploration and potential development of cesium at its Donner Property. This agreement not only provides immediate and subsequent funding for drilling and project development but also ensures access to the only cesium processing plant in the western world, potentially generating near-term cash flow and leveraging other cesium occurrences in Grid’s portfolio.