LIBERTY STAR URANIUM & METALS CORP. (LBSR)
Liberty Star Uranium & Metals Corp. (LBSR) is an early‐stage mineral explorer focused on porphyry copper–gold targets in Arizona’s Tombstone Caldera, with flagship Hay Mountain, Red Rock Canyon, and other claims. In FY 2025 they completed two deep holes (4,937 ft) at Hay Mountain, intersecting tr...
Liberty Star Uranium & Metals Corp (LBSR): 2025 10-K Deep Dive
Introduction
Warren.AI 💰 3.2 / 10
Liberty Star Uranium & Metals Corp (OTCQB: LBSR) is a junior mineral exploration company focused on acquiring and exploring precious and base metal targets in the Southwestern U.S., primarily in Arizona. Now in the exploration stage, LBSR holds over 14 square miles of mineral rights in and around the historic Tombstone Caldera, targeting a buried porphyry copper–gold system at its flagship Hay Mountain property, while also advancing gold prospects at Red Rock Canyon.
In this deep dive, we break down the company’s 2025 Form 10-K, covering: business description, key projects, financial performance, risk factors, and outlook. We conclude with our Investment Score and an actionable perspective for investors.
1. Business Description (Item 1)
- Corporate History: Founded 2001 (Nevada), underwent name changes, and spin-outs. Wholly-owned subsidiaries include Hay Mountain Holdings LLC, Earp Ridge Mines LLC (2019), and Red Rock Mines LLC (2020).
- Primary Focus: Acquisition & exploration of mineral properties in Arizona.
- Flagship Properties:
- Hay Mountain: 2.5 sq. mi. federal lode claims + 20 sq. mi. AZ State permits. Rich in copper, molybdenum, gold, silver, zinc, lead, and REEs.
- Red Rock Canyon: Adjacent to Hay Mountain, gold-target focus. Channel sampling returned 107.5 g/t Au in jasperoid veins.
- Tombstone Caldera: Nine federal claims (320 acres) + 31 state permits (12,878 acres), prioritized targets for porphyry mineralization.
- Exploration Stage: No revenues. Viability depends on financing new work, defining an NI 43-101 resource, and potential joint ventures.
Geological Work:
- Biogeochemical rock and vegetation sampling (~1,800 samples). 3D Z-TEM & magnetic surveys by Geotech generated deep-penetrating anomalies.
- Phase-1 drilling (Dec 2023–Mar 2024): Two holes totaling 4,937 ft at Hay Mountain. Hole HM-23-02 intersected trace copper (0.1%) at ~2,230 ft.
- Detailed mapping identified skarn breccia and structural corridors typical of porphyry systems. Follow-up IP, MT, and ground geophysics recommended.
2. Financial Performance & Position (Items 7 & 8)
Key Figures (Fiscal 2025 vs. 2024)
| Metric | 2025 | 2024 | Comment |
|---|---|---|---|
| Revenues | $0 | $0 | No commercial operations yet |
| Net Income (Loss) | $2.12 m | ($4.08 m) | 2025 gain due to derivative revaluation |
| Exploration & G&A Costs | $1.70 m | $1.54 m | Cash burn funding field programs |
| Cash & Equivalents | $20,962 | $72,099 | < $21k at 1/31/25 |
| Working Capital Deficit | $1.65 m | $3.08 m | Liquidity stress |
| Total Debt (ex-convertible) | $32.4 k | $32.4 k | SBA EIDL loan |
| Convertible Debt | $252.7 k | $110 k | Net of discount |
| Derivative Liability | $311.3 k | $2.55 m | Mark-to-market on warrants/debt |
Cap Table and Dilution
- Shares O/S (1 May 2025): 59.75 m common + 0.5 m Class A.
- Fully diluted > 73 m shares, including options (5.6 m) and warrants (13.4 m).
- Recent financings include 1800 Diagonal Lending debt, private placements to GHS Investments, and in-kind board compensation.
Cash Burn
- Operating cash flow used: $1.02 m (FY 25).
- Financing proceeds: $968.8 k, including debt, stock for cash, and advances.
- Cash runway at quarter-end: ~2–3 months, barring further raises.
Going Concern
- Auditors flagged substantial doubt. Continued exploration hinges on new capital.
- No revenues or near-term offtake agreements.
3. Risk Factors (Item 1A)
- Exploration Stage: No proven reserves; high failure rate in minerals exploration.
- Liquidity Crunch: Working capital deficit, minimal cash. Dependent on equity/debt funding.
- Going Concern: Auditors express doubt; limited borrowing capacity.
- Dilution: Heavy use of convertible notes and warrants inflates share count.
- Regulatory: Annual claims maintenance fees; environmental and permitting hurdles.
- Market Risks: Commodity price volatility, investor sentiment on “penny stock.”
- Competitive: Larger peers with deeper wells target the same ground.
4. Governance & Management (Items 10 & 11)
- Board & Officers:
- Interim CEO/CFO: Patricia Madaris, MBA, 20 yrs finance/accounting.
- Chairman: Pete OHeeron, 25 yrs med-tech/M&A exec, 150+ patents.
- Directors: Hemmerly (investment banking), Elmasri (CPA, finance advisor), King (capital markets).
- Related Party: Several notes and advances from Chairman; shares issued as in-kind board pay.
- Insider Control: Class A shares (500k) carry 200 votes/share for board seats—prevents hostile takeovers.
5. Outlook & Catalysts
Near-Term (6–12 Months)**
- Phase-2 Drilling at Hay Mountain: 2–3 deep holes to test porphyry targets.
- Joint Venture Talks: Seeking a partner to fund $5–10 m drill program.
- Geophysical Follow-Up: Ground IP/MT surveys to refine targets.
- Permitting: Renew AZ MEPs; secure federal claim rentals.
Medium-Term (12–24 Months)**
- Resource Estimate: NI 43-101 compliant inferred resource.
- Strategic Partner: Major miner JV or spin-out.
- Drill to Development: Step-out drilling to define deposit outline.
Bear Catalysts
- Failure to raise > $2 m in 2025.
- Drilling returns barren or sub-economic mineralization.
- Persistent share price < $0.05 impairs equity raises.
6. Investment Score: 3.2/10
How We Arrived at 3.2
- Geological Potential: ✔✔ (first-mover in large Tombstone caldera, strong geochem/geophys)
- Financial Health: ✘ (no cash, negative working capital, heavy dilution)
- Execution: ✔ (completed Phase-1 drilling, lab data in hand)
- Takeover/ JV Likelihood: ✘ (high risk without results, early stage)
- Downside Protection: ✘ (no revenue, spots commodity price, share price risk)
Verdict: High-risk, high-potential. Investors with a tolerance for venture-stage exploration and deep pockets may chase a multi-bagger if a porphyry body is defined. For most, the company is too early, too undercapitalized, and too volatile. A speculative “watch**” while management secures next financing.
Disclosure: I hold no position in LBSR. This report is for educational purposes, not personalized advice. Check current SEC filings and consult your advisor before trading.
Author: Independent resource equity analyst. Not affiliated with LBSR.