Investment Thesis
Red Metal Resources exhibits fundamental insolvency with negative stockholders' equity of -$662.6K and liabilities exceeding assets by $700K. The company has collapsed operationally with revenue of only $9K (-93.6% YoY), persistent negative cash flows of -$403.2K, and a current ratio of 0.95x signaling acute liquidity distress. Without immediate operational recovery or significant capital injection, the company faces imminent financial failure.
Strengths
- Retains $908.3K in cash providing limited short-term operational runway
- Commodity metals sector exposure offers potential upside if global metal prices appreciate significantly
- Still maintains $1.7M in asset base with potential liquidation value
Risks
- Negative stockholders' equity of -$662.6K indicates technical insolvency and bankruptcy risk
- Current ratio of 0.95x signals liquidity crisis with liabilities exceeding current assets
- Negative free cash flow of -$430.9K with monthly cash burn unsustainable long-term
- Revenue collapse of 93.6% YoY with only $9K in annual revenue indicates operational shutdown
- Negative interest coverage of -8.6x demonstrates inability to service debt obligations
- Financial data from July 2021 is severely outdated, masking current operational and solvency status
Key Metrics to Watch
- Monthly cash burn rate and runway until cash depletion
- Revenue generation and evidence of resumed mining operations
- Debt restructuring status and any capital raises or asset sales
- Stockholders equity recovery trajectory
Financial Metrics
Revenue
9.0K
Net Income
-445.5K
EPS (Diluted)
$0.00
Free Cash Flow
-430.9K
Total Assets
1.7M
Cash
908.3K
Profitability Ratios
Gross Margin
N/A
Operating Margin
-4,387.3%
Net Margin
-4,940.1%
ROE
N/A
ROA
-26.2%
FCF Margin
-4,777.8%
Balance Sheet & Liquidity
Current Ratio
0.95x
Quick Ratio
0.95x
Debt/Equity
N/A
Debt/Assets
139.0%
Interest Coverage
-8.62x
Long-term Debt
N/A
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-04-09T22:00:23.623332 |
Data as of: 2021-07-31 |
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