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Southstone Minerals Limited (SML) Fair Value & Analysis

Energy · CA · Market cap C$334K

SM Southstone Minerals Limited SML · V
PriceC$0.0450
Fair ValueC$0.0301
Upside-33.1%
Quality48/100
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Weak Growth
Loss-making · -25.2% net margin
Negative equity (buybacks among others) · generates free cash flow
Trails peers (3/9)
Narrow moat 16/100
Evidence: Medium Range C$0.0281 – C$0.0311 Share as image

Fair value as of: Jul 31, 2026

From 12 valuation models · updated 11 days ago

Fair value updated Jul 31, 2026, revised from C$0.0100 to C$0.0301 (+201.6%) since Jun 26, 2026. Share price −100.0% over the past month.

Below-average quality, and screening another 33% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (C$0.0311). The favourable scenario is already priced in.
  • Solid but not exceptional quality (48/100) and above fair value, neither a clear bargain nor a standout compounder.
  • The models converge in a tight band (C$0.0281 to C$0.0311), unusually little disagreement for a valuation.
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Price vs Fair Value (5 years)

C$1,797 C$0.0050 Fair Value C$0.0301 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 31, 2026.

How to read this chart

60‑month range C$0.0050 – C$1,797 · fair‑value band C$0.0281 – C$0.0311 · the C$0.0450 price screens above the C$0.0301 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 31, 2026.

Full chart & analysis →

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Analysis

Southstone Minerals Limited (SML) currently trades at C$0.0450, while our model-based Fair Value estimate is C$0.0301, implying the stock looks roughly 33.1% overvalued today. The Quality Score stands at 48/100 (below-average quality), in the Energy sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: medium).

Over the trailing twelve months, Southstone Minerals Limited generated revenue of C$923K at a net margin of -25.2%. Fundamentals as of Jul 31, 2026

Our scenario range runs from C$0.0281 (bear case) to C$0.0311 (bull case); at C$0.0450, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. For context, the median of 10 Energy peers we cover trades at -12% fair-value upside, at -33%, SML screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF C$0.1200 C$0.1800 C$0.2900 72
Rev-Margin DCF C$0.0600 C$0.0800 C$0.1100 67
ROIC Compounder C$0.0200 C$0.0200 C$0.0200 67
All 12 models by family
DCF Models
FCF DCF C$0.1300 C$0.1800 C$0.3100 38
5Y Revenue Exit C$0.0600 C$0.0700 C$0.0900 39
5Y EBITDA Exit C$0.0600 C$0.0700 C$0.0800 41
10Y Revenue Exit C$0.0800 C$0.1200 C$0.1300 36
10Y EBITDA Exit C$0.0800 C$0.1100 C$0.1600 37
Earnings-Based
EPV C$0.0200 C$0.0200 C$0.0200 59
Multiples
EV/EBIT C$0.0200 C$0.0200 C$0.0200 53
EV/EBITDA C$0.0200 C$0.0200 C$0.0200 54
EV/Revenue C$0.0200 C$0.0200 C$0.0300 43
Growth DCF
Growth DCF C$0.1200 C$0.1800 C$0.2900 72
Rev-Margin DCF C$0.0600 C$0.0800 C$0.1100 67
Economic Profit
ROIC Compounder C$0.0200 C$0.0200 C$0.0200 67

Widest divergence: DCF Models (C$0.1100) versus Earnings-Based (C$0.0200). Highest evidence: Growth DCF (72).

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Key figures & financial health

Revenue (TTM) C$923K
Revenue growth (YoY) -95.7%
Net margin -25.2%
Free cash flow C$329K FY2025
Operating margin 8.0%
EPS (TTM) C$-0.0100
More key figures
EPS growth (YoY) -67.9%
Net debt C$374K FY2025

Figures from reported company fundamentals · as of Jul 31, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 48/100

Of which business quality 51 · Market factors (momentum, volatility) 48

Profitability 50
Margins and returns on capital today
Quality Growth 49
Are margins and returns improving?
Cashflow 62
Earnings quality: real cash, not paper profit
Fin. Strength 26
Balance sheet, leverage, solvency risk
Investment 50
Disciplined investing over empire-building
Low Volatility 0
Calm price path (market factor)
Momentum 78
Price trend over the last 3–12 months (market factor)
52W Momentum 50
Distance to the 52-week high (market factor)
Net Issuance 75
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Southstone Minerals Limited engages in the acquisition, exploration, evaluation, and development of mineral properties in Canada. It holds interest in the Oena Diamond Mine, an alluvial diamond property, which is located in the Northern Cape Province in South Africa.

Full company description

Southstone Minerals Limited engages in the acquisition, exploration, evaluation, and development of mineral properties in Canada. It holds interest in the Oena Diamond Mine, an alluvial diamond property, which is located in the Northern Cape Province in South Africa. The company was formerly known as Tango Mining Limited and changed its name to Southstone Minerals Limited in October 2019. The company was incorporated in 2007 and is based in Victoria, Canada.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Southstone Minerals Limited reported revenue of C$3.6M in FY2025 versus C$2.8M in FY2021, a compound +7.0%/yr. Reported net income was −C$115K in FY2025.

Growth Quality 29/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
C$3.6M
Latest YoY
+77.5%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+62.1%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−8.7%
Avg. growth/yr (9Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−13.2%
Revenue +7.0%/yr
FY21 C$2.8M
FY22 C$848K
FY23 C$1.3M
FY24 C$2.0M
FY25 C$3.6M
Net income
FY21 −C$514K
FY22 −C$579K
FY23 −C$196K
FY24 −C$158K
FY25 −C$115K

SML screens 33% overvalued. Compare with China Shenhua Energy Company →

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Cite: Fair Value Calculator (2026). "Southstone Minerals Limited Fair Value". https://www.fairvalue-calculator.com/stock/SML

Peer Group

Thermal Coal · 101 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 48 · Above median
Fair Value upside −33% · Below median
Return on assets -30% · Bottom 25%
Net margin (TTM) -25% · Bottom 25%
Operating margin (TTM) 8% · Below median
Revenue growth -96% · Bottom 25%

Valuation Multiples vs Thermal Coal median · lower = cheaper

P/S (TTM) 0.26× · Cheaper than 75% of peers
P/FCF 0.7× · Cheaper than median

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

Coal Oil & gas

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Thermal Coal stocks, each showing price versus our Fair Value estimate (as of Jul 31, 2026).

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Frequently asked questions

Is Southstone Minerals Limited (SML) overvalued or undervalued?
As of Jul 31, 2026, our model estimates a fair value of C$0.0301 versus a price of C$0.0450, about −33% (overvalued).
What is the fair value of SML?
Our model-based fair value for Southstone Minerals Limited is C$0.0301 (as of Jul 31, 2026), built from audited fundamentals. The current price is C$0.0450.
What is the quality score of SML?
Southstone Minerals Limited has a Quality Score of 48/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Southstone Minerals Limited (SML)?
Southstone Minerals Limited reported trailing-twelve-month revenue of about C$923K (latest available figure, as of Jul 31, 2026).
What is the net profit margin of SML?
The net profit margin of Southstone Minerals Limited is about -25.2%, meaning it is currently running at a net loss. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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