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Aruma Resources Limited (AU:AAJ)
ASX:AAJ
Australian Market

Aruma Resources Limited (AAJ) AI Stock Analysis

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AU:AAJ

Aruma Resources Limited

(Sydney:AAJ)

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Neutral 46 (OpenAI - 5.2)
Rating:46Neutral
Price Target:
AU$0.02
▼(-25.00% Downside)
The score is primarily held back by weak financial performance (ongoing losses and persistent cash burn with only small, recently returning revenue). Technical indicators are broadly neutral with limited positive momentum signals, while valuation is constrained by negative earnings and no provided dividend yield.
Positive Factors
Exploration Advancements
Identifying new exploration targets at Fiery Creek enhances Aruma's potential to discover significant mineral deposits, strengthening its market position.
Debt-Free Capital Structure
A debt-free capital structure reduces financial risk and provides Aruma with greater flexibility to fund exploration activities without the pressure of debt servicing.
Strategic Focus on High-Demand Minerals
Focusing on high-demand minerals aligns Aruma with market trends, potentially increasing its attractiveness to partners and investors as demand for these resources grows.
Negative Factors
Persistent Cash Burn
Ongoing cash burn without offsetting revenue generation could strain Aruma's financial resources, limiting its ability to sustain long-term exploration activities.
Declining Equity Base
A declining equity base due to ongoing losses may weaken Aruma's financial stability and ability to raise capital in the future.
Inconsistent Revenue Generation
Inconsistent revenue generation highlights the challenge Aruma faces in achieving financial self-sufficiency, impacting its ability to fund exploration independently.

Aruma Resources Limited (AAJ) vs. iShares MSCI Australia ETF (EWA)

Aruma Resources Limited Business Overview & Revenue Model

Company DescriptionAruma Resources Limited operates as a mineral exploration company in Australia. The company explores for gold and lithium deposits. The company holds 100% interests in the Mt Deans lithium project covering an area of 1.44 square kilometers located in Norseman, Western Australia; and Salmon Gums project, which include two exploration licenses totaling an area of approximately 222 square kilometers located to the south of the mining town of Norseman, Western Australia. It also owns 100% interests in the Melrose project covers an area of 381 square kilometers located in the Pilbara region, Western Australia; Saltwater gold project consisting of four granted exploration licenses covering an area of 398 square kilometers located in Pilbara, Western Australia. In addition, the company holds interest in the Carter Well gold project totaling an area of 294 square kilometers located in the Murchison region in Western Australia. Aruma Resources Limited was incorporated in 2010 and is headquartered in West Perth, Australia.
How the Company Makes MoneyAruma Resources Limited generates revenue primarily through its exploration activities aimed at discovering economically viable mineral deposits, which can then be developed into productive mining operations. By identifying promising gold and lithium prospects, the company can enhance its asset portfolio and potentially engage in joint ventures or sell these projects to larger mining companies. These transactions can provide upfront payments, royalties, or equity stakes, contributing to the company's earnings. Additionally, Aruma Resources might attract investments or strategic partnerships that can provide funding and expertise to further develop its exploration projects.

Aruma Resources Limited Financial Statement Overview

Summary
Aruma Resources Limited is struggling financially due to a lack of revenue generation and ongoing profitability challenges. Despite a strong balance sheet with low leverage, negative cash flows and operational losses highlight significant financial hurdles.
Income Statement
Aruma Resources Limited has faced significant challenges on the income statement front, with consistent negative EBIT and net income over the years. The company has not generated any revenue for the last couple of years, indicating operational difficulties and potentially a focus on exploration or early-stage development. The lack of revenue growth and negative profitability margins highlight ongoing financial struggles.
Balance Sheet
The balance sheet shows a relatively strong equity position with a low debt load, as seen in the low debt-to-equity ratio. The equity ratio is healthy, suggesting a stable financial structure. However, the consistent negative net income has impacted return on equity, presenting a challenge for future profitability.
Cash Flow
Aruma Resources exhibits negative operating cash flow and free cash flow, indicating cash management challenges. Although the company has managed to maintain operations through financing activities in some years, the free cash flow remains consistently negative, highlighting underlying operational inefficiencies.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue425.07K425.07K0.000.000.00401.74K
Gross Profit425.07K425.07K-35.34K-30.57K-9.26K395.06K
EBITDA-2.13M-2.13M-1.20M-3.85M-3.69M-1.75M
Net Income-2.10M-2.10M-1.13M-3.05M-3.24M-1.60M
Balance Sheet
Total Assets2.09M2.09M2.41M3.49M4.85M2.89M
Cash, Cash Equivalents and Short-Term Investments961.31K961.31K2.30M3.26M4.75M2.82M
Total Debt0.000.005.88K27.69K0.000.00
Total Liabilities128.20K128.20K157.34K203.33K595.13K188.36K
Stockholders Equity1.96M1.96M2.25M3.29M4.26M2.71M
Cash Flow
Free Cash Flow-2.10M-2.10M-992.15K-3.55M-2.33M-1.80M
Operating Cash Flow-2.09M-2.09M-983.66K-3.52M-2.31M-1.79M
Investing Cash Flow-2.36K-2.36K-8.50K-100.14K-19.71K577.13K
Financing Cash Flow813.86K813.86K-18.98K2.08M4.34M2.85M

Aruma Resources Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.02
Price Trends
50DMA
0.02
Positive
100DMA
0.02
Positive
200DMA
Market Momentum
MACD
>-0.01
Negative
RSI
51.93
Neutral
STOCH
266.67
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:AAJ, the sentiment is Positive. The current price of 0.02 is above the 20-day moving average (MA) of 0.02, above the 50-day MA of 0.02, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 51.93 is Neutral, neither overbought nor oversold. The STOCH value of 266.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:AAJ.

Aruma Resources Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
49
Neutral
AU$34.41M-27.03-51.49%5.93%
48
Neutral
AU$4.68M-15.38-66.08%80.88%
46
Neutral
AU$6.61M-1.87-99.88%-59.65%
46
Neutral
AU$13.34M-2.01-37.42%3.65%
45
Neutral
AU$9.90M-4.88-131.62%65.32%
41
Neutral
AU$22.79M-11.75-32.31%69.23%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:AAJ
Aruma Resources Limited
0.02
<0.01
70.00%
AU:DAF
Discovery Alaska Limited
0.02
0.00
0.00%
AU:GNM
Great Northern Minerals Limited
0.05
0.03
213.33%
AU:GSM
Golden State Mining Ltd.
0.02
0.01
110.00%
AU:SFM
Santa Fe Minerals Ltd.
0.30
0.27
900.00%
AU:TMB
Tambourah Metals Ltd
0.05
0.03
165.00%

Aruma Resources Limited Corporate Events

Aruma Resources Issues 70 Million Unquoted Performance Rights
Jan 14, 2026

Aruma Resources Limited has notified the market of the issue of 70 million unquoted performance rights, recorded under ASX code AAJAH, which are not intended to be listed on the ASX. The new securities, issued on 13 January 2026, represent an adjustment to the company’s capital structure and may influence future dilution and incentive alignment for stakeholders, though they will not be directly tradeable on the exchange.

The most recent analyst rating on (AU:AAJ) stock is a Hold with a A$0.02 price target. To see the full list of analyst forecasts on Aruma Resources Limited stock, see the AU:AAJ Stock Forecast page.

Aruma Resources Plans Issue of 70 Million Director Performance Rights
Jan 13, 2026

Aruma Resources Limited has lodged an Appendix 3B with the ASX outlining a proposed issue of securities in the form of Director Performance Rights. On 13 January 2026, the company plans to issue up to 70 million Director Performance Rights as a placement or similar issue type, a move that adjusts its capital structure and further aligns director incentives with shareholder outcomes, though the announcement does not detail specific performance conditions or broader strategic context for the grant.

The most recent analyst rating on (AU:AAJ) stock is a Hold with a A$0.02 price target. To see the full list of analyst forecasts on Aruma Resources Limited stock, see the AU:AAJ Stock Forecast page.

Aruma Resources Shareholders Back Capital Raising and Incentive Resolutions at General Meeting
Jan 12, 2026

Aruma Resources Limited has confirmed that all resolutions put to shareholders at its 12 January 2026 general meeting were passed by the required majority on a poll, with strong levels of support across the register. The approvals ratify the prior issue of Tranche 1 placement shares, clear the way for the issue of Tranche 2 placement shares and associated placement options, allow director participation in the capital raising, authorise the grant of options to Oakley Capital Partners, and endorse additional performance rights and securities under the employee incentive plan, collectively strengthening the company’s capital structure and aligning management, directors and key partners with shareholder interests.

The most recent analyst rating on (AU:AAJ) stock is a Hold with a A$0.02 price target. To see the full list of analyst forecasts on Aruma Resources Limited stock, see the AU:AAJ Stock Forecast page.

Aruma Resources Enhances Priority Targets at Fiery Creek Project
Dec 17, 2025

Aruma Resources Limited announced the identification of new priority targets at its Fiery Creek Copper Project in Queensland, specifically the Twilight Prospect for zinc-lead-silver and the Dawn Prospect for copper exploration. The company plans to advance its exploration activities with IP and ground gravity surveys in Q1 2026, progressing toward potential drilling. These developments align with Aruma’s strategy to uncover large-scale regional mineral deposits, contributing to its position in the mining sector and offering potential value to stakeholders.

Aruma Resources Announces Upcoming General Meeting for Shareholders
Dec 8, 2025

Aruma Resources Limited has announced a General Meeting for its shareholders, scheduled for January 12, 2026, in Perth, Western Australia. Shareholders can participate in person or by proxy, with proxy forms due by January 10, 2026. The meeting will address various resolutions, and shareholders are encouraged to review the notice of meeting available on the company’s website or the ASX website. This meeting is a standard procedure for shareholder engagement and decision-making, reflecting the company’s commitment to transparent governance and stakeholder involvement.

Aruma Resources Schedules General Meeting for Key Shareholder Votes
Dec 8, 2025

Aruma Resources Limited has announced a General Meeting to be held on January 12, 2026, where shareholders will vote on several resolutions related to the issuance of placement shares and options. These resolutions include ratifications of prior share issues, approvals for new share and option issuances, and participation of directors and Oakley Capital Partners in these placements. The outcomes of these resolutions could significantly impact the company’s capital structure and stakeholder interests.

Aruma Resources Identifies New Priority Exploration Targets at Bortala Copper Project
Dec 4, 2025

Aruma Resources Limited has identified new priority exploration targets at its 100%-owned Bortala Copper Project in northern Queensland. The company has pinpointed multiple high-priority targets, including the R9 Anomaly and Nara West Prospect, which are associated with major regional structures and favorable host lithologies. These targets, which have not yet been drill tested, offer significant exploration opportunities for potential regional-scale gold and base metal mineralization, including iron oxide copper gold (IOCG) and structural hosted copper. Aruma plans to commence an infill soil sampling program in Q1 2026 to refine these targets for the first phase of drilling.

Aruma Resources Emphasizes High-Impact Exploration at 2025 AGM
Nov 28, 2025

Aruma Resources Limited presented its 2025 AGM presentation, emphasizing its commitment to delivering shareholder value through disciplined and high-impact exploration. The presentation highlighted the company’s ongoing exploration results and confirmed that there is no new information affecting previous announcements. This approach reinforces Aruma’s strategic focus on mineral exploration, potentially impacting its market positioning and stakeholder interests.

Aruma Resources Launches Extensive Soil Sampling at Saltwater Project
Nov 13, 2025

Aruma Resources Limited has announced the commencement of an extensive soil sampling program at its Saltwater Project in the Pilbara region of Western Australia. This initiative targets the Tunnel Creek and Saltwater Dome prospects with approximately 800 samples planned over a 17.3 km strike length. The program aims to refine drill targets for gold, base metals, and critical minerals, which are essential for emerging technologies. This phase is part of Aruma’s systematic strategy to enhance its exploration activities and potentially discover significant mineral deposits, thereby strengthening its position in the industry.

Aruma Resources Launches HMS Sampling Program at Wilan Project
Nov 6, 2025

Aruma Resources Limited has announced the commencement of its first heavy mineral sands (HMS) reconnaissance sampling program at the Wilan Project in South Australia’s Eromanga Basin. This initiative, which has received consent from landowners and the Traditional Owners, aims to explore the potential for economically significant HMS deposits, leveraging the project’s strategic location near recent discoveries by Altitude Minerals. The program is expected to conclude next month, with results anticipated to provide insights into the project’s potential and contribute to the growing demand for HMS in various industries.

Aruma Resources Advances Exploration Projects with High-Grade Copper and New Targets
Oct 28, 2025

Aruma Resources Limited announced the completion of its maiden drilling program at the Fiery Creek Copper Project in Queensland, yielding high-grade copper results. The company also identified heavy mineral sands potential at the Wilan Project in South Australia and new gold and copper targets at the Saltwater Project in Western Australia. These developments, alongside a successful capital raise of $3.515 million, are set to bolster Aruma’s exploration efforts and strengthen its position in the mineral exploration sector.

Aruma Resources Issues New Shares to Bolster Exploration Efforts
Oct 28, 2025

Aruma Resources Limited has issued 2,984,730 fully paid ordinary shares following the exercise of unlisted options at a price of $0.017 per share. This issuance is part of the company’s strategy to enhance its financial position and support its exploration and development activities in high-demand mineral sectors, potentially strengthening its market presence and offering new opportunities for stakeholders.

Aruma Resources Announces 2025 Annual General Meeting Details
Oct 24, 2025

Aruma Resources Limited has announced its Annual General Meeting (AGM) scheduled for November 28, 2025, in Sydney, Australia. Shareholders are invited to attend in person or vote by proxy, with proxy forms due by November 26, 2025. The company emphasizes the importance of reviewing the meeting documents available online and encourages electronic communication to streamline future interactions. This AGM is a routine corporate governance activity, allowing shareholders to participate in decision-making processes, which is crucial for maintaining transparency and engagement with stakeholders.

Aruma Resources Limited Announces 2025 Annual General Meeting Details
Oct 24, 2025

Aruma Resources Limited has announced its upcoming Annual General Meeting (AGM) scheduled for November 28, 2025, at 11:45 am AEDT in Sydney, NSW. Shareholders are encouraged to participate either in person or by proxy, with specific instructions provided for voting procedures. This meeting is significant for stakeholders as it will address key resolutions, including those related to the remuneration of key management personnel, highlighting the company’s governance practices and shareholder engagement.

Aruma Resources Expands Share Issuance to Boost Exploration Projects
Oct 23, 2025

Aruma Resources Limited has issued 81,900,013 fully paid ordinary shares as part of the first tranche of a placement announced on 15 October 2025. This issuance is in compliance with the Corporations Act and is aimed at enhancing the company’s operational capabilities in its exploration projects, potentially strengthening its position in the minerals exploration industry.

Aruma Resources to Quote New Securities on ASX
Oct 23, 2025

Aruma Resources Limited has announced the application for quotation of 81,900,013 fully paid ordinary securities on the Australian Securities Exchange (ASX) under the code AAJ. This move is part of a previously announced transaction, potentially enhancing the company’s capital structure and market presence.

Aruma Resources Highlights Exploration Competence and Transparency
Oct 15, 2025

Aruma Resources Limited has released a statement emphasizing the importance of its exploration results and the competence of its managing director, Mr. Grant Ferguson, in overseeing these activities. The company reiterates its commitment to transparency by confirming that all exploration results have been previously released and are available on its website. This announcement underscores Aruma’s strategic focus on tier-1 mineral belts and its ongoing efforts to maintain stakeholder confidence through clear communication of its exploration activities.

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.Date of analysis: Dec 30, 2025