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NextSource Materials Inc
(TSX:NEXT)
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Rating:44Neutral
Price Target:
C$0.27
▲(4.62% Upside)
Action:Reiterated
Date:09/30/26
The score is primarily constrained by weak financial performance—very small and declining revenue, large losses, persistent cash burn, and rising leverage. Technical indicators are neutral-to-mixed with price below longer-term moving averages, and valuation is not supportive given negative earnings and no dividend yield.
Positive Factors
Strategic project funding
The binding investment framework brings a major Japanese trading company and a government-backed energy-security agency into the UAE Battery Anode Facility. Their capital contribution can reduce NextSource’s direct funding burden while adding strategic support to a core growth project.
Negative Factors
Limited and declining revenue
Revenue has not yet reached meaningful scale and contracted materially in 2026, showing that the operating business is not currently generating dependable commercial momentum. Until production and sales expand, fixed costs and project spending will remain difficult to absorb.
Read all positive and negative factors
Positive Factors
Negative Factors
Strategic project funding
The binding investment framework brings a major Japanese trading company and a government-backed energy-security agency into the UAE Battery Anode Facility. Their capital contribution can reduce NextSource’s direct funding burden while adding strategic support to a core growth project.
Read all positive factors
NextSource Materials Inc (NEXT) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$60.43M
Dividend YieldN/A
Average Volume (3M)52.17K
Price to Earnings (P/E)―
Beta (1Y)1.13
Revenue Growth7.06%
EPS Growth-39.49%
CountryCA
Employees201
SectorBasic Materials
Sector Strength58
IndustryIndustrial Materials
Share Statistics
EPS (TTM)-0.18
Shares Outstanding232,413,220
10 Day Avg. Volume55,592
30 Day Avg. Volume52,167
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)1.92
Price to Sales (P/S)61.23
P/FCF Ratio-2.42
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$0.80Price Target Upside207.69% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-0.08
Revenue Forecast (FY)C$6.22M
NextSource Materials Inc Business Overview & Revenue Model
Company Description
NextSource Materials Inc. explores for, develops, and evaluates mineral properties in Madagascar and Canada. It operates through Mine Development and Battery Anode Facilities (BAF) Development segments. The company explores for graphite and vanadi...
How the Company Makes Money
NextSource Materials makes money primarily by producing and selling graphite products from its mining operations. Its revenue model is expected to be driven by (1) sales of graphite concentrate and/or further-processed graphite products to end-use...
NextSource Materials Inc Earnings Call Summary
Earnings Call Date:Feb 14, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 16, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted significant progress in strategic partnerships, financial strengthening, and management expansion. However, market challenges due to graphite oversupply, delayed commercial production, and environmental assessment delays present notable concerns.Positive Updates
Strategic Partnerships and Offtake Agreements
Securing long-term Battery Anode Facility (BAF) offtake agreements and strategic OEM partnerships are underway, aiming to enable the construction of the first Battery Anode Facility.
Negative Updates
Market Challenges and Graphite Oversupply
Natural graphite prices declined in 2024 due to weaker than expected EV demand and market flooding by China, with a current graphite market in oversupply.
Read all updates
Q2-2025 Updates
Positive
Negative
Strategic Partnerships and Offtake Agreements
Securing long-term Battery Anode Facility (BAF) offtake agreements and strategic OEM partnerships are underway, aiming to enable the construction of the first Battery Anode Facility.
Read all positive updates
Company Guidance
During the NextSource Materials, Inc. Second Quarter 2025 Investor Call, the company provided key guidance metrics, emphasizing their strategic focus amidst challenging market conditions. They aim to ramp up the Molo plant to a production capacity between 15,000 to 17,000 tonnes per year, while balancing quality and sales growth. The company also highlighted their liquidity position, with $3.3 million cash as of December 31, 2024, and an additional $20 million credit facility. They are keen on securing long-term Battery Anode Facility offtake agreements and strategic partnerships to bolster their expansion plans. Also noted was the importance of producing SuperFlake graphite with over 95% fixed carbon content, which supports their strategy as a non-Chinese high-quality graphite producer. The company is preparing for potential growth, with equipment received for the Battery Anode Facility and feasibility studies underway for expansion beyond the initial 17,000 tonnes, potentially up to 150,000 tonnes annually, contingent on securing necessary offtakes.NextSource Materials Inc Financial Statement Overview
Summary
Income Statement
12
Very Negative
Balance Sheet
28
Negative
Cash Flow
15
Very Negative
| Breakdown | Jun 2026 | Jun 2025 | Sep 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 781.52K | 714.84K | 0.00 | 0.00 | 0.00 |
| Gross Profit | -7.61M | -4.28M | -239.00 | -393.86K | -100.00K |
| EBITDA | -25.85M | -27.44M | -7.18M | -4.40M | -2.56M |
| Net Income | -37.26M | -32.44M | -9.00M | -11.68M | 16.12M |
Balance Sheet | |||||
| Total Assets | 92.14M | 84.20M | 92.85M | 52.98M | 29.30M |
| Cash, Cash Equivalents and Short-Term Investments | 11.61M | 4.48M | 10.77M | 6.89M | 9.79M |
| Total Debt | 55.64M | 24.27M | 21.20M | 11.50M | 349.82K |
| Total Liabilities | 67.18M | 43.21M | 40.55M | 27.77M | 32.36M |
| Stockholders Equity | 24.96M | 55.93M | 52.30M | 25.20M | -3.06M |
Cash Flow | |||||
| Free Cash Flow | -19.80M | -30.90M | -21.05M | -20.56M | -14.60M |
| Operating Cash Flow | -19.34M | -29.64M | -8.89M | -7.05M | -1.63M |
| Investing Cash Flow | -1.90M | -13.46M | -20.93M | -14.05M | -13.14M |
| Financing Cash Flow | 29.38M | 32.56M | 33.70M | 18.61M | 2.05M |
NextSource Materials Inc Technical Analysis
Negative
0.26
Price Trends
0.27
Negative
0.30
Negative
0.33
Negative
Market Momentum
>-0.01
Negative
47.27
Neutral
22.86
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:NEXT, the sentiment is Negative. The current price of 0.26 is below the 20-day moving average (MA) of 0.26, below the 50-day MA of 0.27, and below the 200-day MA of 0.33, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 47.27 is Neutral, neither overbought nor oversold. The STOCH value of 22.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:NEXT.
NextSource Materials Inc Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
47 Neutral | C$33.35M | -3.96 | -55.00% | ― | ― | ― | |
44 Neutral | C$60.43M | -1.01 | -123.56% | ― | 7.06% | -39.49% | |
43 Neutral | C$29.65M | -2.09 | -168.02% | ― | ― | -140.23% | |
42 Neutral | C$47.08M | -8.73 | 253.60% | ― | ― | -41.04% | |
42 Neutral | C$13.28M | -0.42 | 66.83% | ― | -64.07% | 7.64% |
* Basic Materials Sector Average
TSE:NEXT
NextSource Materials Inc
0.26
-0.22
-45.83%
TSE:NBM
NEO Battery Materials Ltd
0.17
-0.54
-76.06%
TSE:FMS
Focus Graphite
0.43
-0.20
-31.45%
TSE:NGC
Northern Graphite
0.08
-0.18
-69.23%
TSE:STS
South Star Battery Metals
0.24
>-0.01
-2.08%
NextSource Materials Inc Corporate Events
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.