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Talon Metals

TLOFF
29
Industrial Materials · Basic Materials
Price
$5.83
+0.13 (+2.28%)
Market Cap
$547.5M
Exchange
Other OTC
Winston Score
29
Winston is worried
Below-average fundamentals — multiple weak pillars.
Data as of Aug 23, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Weak
Growth
Weak
Cash Flow
Weak
Stability
Exceptional
Valuation
Good

Share count rising — dilution

+55.7% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 67.4M (2021) → 105.0M (2025)

Winston Score History

The full picture

Talon Metals Corp. is a mining company focused on finding and developing nickel deposits in the United States. Its main project is the Tamarack Nickel Project in Minnesota, which also contains copper and cobalt. The company's goal is to supply battery-grade nickel to the electric vehicle industry, and it has a supply agreement with Tesla to deliver nickel concentrate.

Talon makes money by eventually selling nickel and other metals, but it is still in the exploration and development stage, meaning it does not yet generate significant revenue from mining operations. The company operates primarily in the US, which gives it a potential advantage as American automakers and battery makers look for domestic sources of critical minerals to reduce reliance on foreign supply chains. The biggest risk is that developing a mine is expensive and takes years, so Talon depends on outside funding and must successfully navigate permitting, environmental reviews, and construction before it can become a profitable producer.

Score breakdown

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Quality

Profit per sale
Gross Margin
10.9%
Thin — 10.9% gross margin
Profit after running costs
Operating Margin
8.3%
Modest — 8.3% operating margin
Return on the money invested
ROCE
0.8%
Weak — 0.8% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales growth
Sales YoY
N/A
Data not available
Profit growth
EPS YoY
N/A
Data not available
How steady the profit is
EPS Consistency
3/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash
Cash Conversion
-38%
Weak — only -38% of profit becomes cash
Spare cash per sale
FCF Margin
-41.9%
Burning cash (-41.9%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

What it owes vs what it owns
Debt / Equity
0.01
Conservative — low debt load (0.01)
Covers its interest
Interest Cover
8.23x
Comfortably covers interest (8.2x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
327.5x
Expensive — P/E 327.5

P/E over 35. The market is pricing in heavy, sustained growth.

Cheaper or dearer next year
P/E vs Forward
+289.0
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (327.5 → 38.5)

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Dividends

Not applicable for this business.
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