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Alchemy Resources Limited (AU:ALY)
ASX:ALY

Alchemy Resources Limited (ALY) AI Stock Analysis

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AU:ALY

Alchemy Resources Limited

(Sydney:ALY)

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Neutral 52 (OpenAI - 5.2)
Rating:52Neutral
Price Target:
AU$0.01
▲(10.00% Upside)
The score is primarily constrained by weak financial performance (recurring losses and negative operating/free cash flow), partially offset by a debt-free balance sheet. Technical indicators are neutral-to-slightly constructive, while valuation is weakened by negative earnings and no dividend support.
Positive Factors
Debt-Free Balance Sheet
A debt-free balance sheet reduces financial risk and interest burden, providing Alchemy Resources with greater financial flexibility and resilience, especially important for an early-stage exploration company.
Strategic Partnerships
The partnership with Newcam Minerals provides immediate funding and strategic support, enhancing Alchemy's ability to advance its iron ore projects, which could significantly improve its growth prospects and market positioning.
High-Grade Mineral Discoveries
The discovery of high-grade mineralization at the Valley Bore Project enhances the project's strategic value, potentially leading to future growth opportunities and strengthening Alchemy's market position in the resource sector.
Negative Factors
Negative Cash Flow
Consistently negative cash flow indicates ongoing funding needs, which may require Alchemy to seek external capital, potentially diluting existing shareholders and impacting financial stability.
Recurring Losses
Persistent net losses reflect weak profitability and limit the company's ability to reinvest in growth opportunities, posing a challenge to achieving long-term financial sustainability and shareholder returns.
Volatile Revenue
Volatile revenue patterns create uncertainty in financial planning and hinder the company's ability to predict future cash flows, complicating strategic decision-making and potentially affecting investor confidence.

Alchemy Resources Limited (ALY) vs. iShares MSCI Australia ETF (EWA)

Alchemy Resources Limited Business Overview & Revenue Model

Company DescriptionAlchemy Resources Limited engages in the discovery, exploration, and development of mineral properties in Australia. The company explores for gold, nickel, cobalt, copper, silver, lead, zinc, lithium, and alumina deposits. It owns a 100% interest in the Karonie project covering 1,196 square kilometers located to the east of Kalgoorlie, Western Australia; the Lake Rebecca gold project covering approximately 570 square kilometers located in the Eastern Goldfields of Western Australia; and the Lachlan/Cobar Basin projects covering 674 square kilometers situated in New South Wales. In addition, it owns interests in the West Lynn and Woodsreef projects covering an area of 381 square kilometers located in New South Wales and Bryah Basin project covering an area of 584 square kilometers located to the north east of Meekatharra, Western Australia. Alchemy Resources Limited was incorporated in 2007 and is based in West Perth, Australia.
How the Company Makes MoneyAlchemy Resources Limited generates revenue through the exploration, development, and potential sale or joint venture of its mineral projects. The company focuses on discovering valuable mineral deposits, particularly gold and base metals, which can be developed into profitable mining operations. Revenue is primarily derived from the successful sale of mineral rights or through partnerships and joint ventures with larger mining companies that are interested in developing these resources further. Additionally, Alchemy Resources may earn income from the sale of extracted minerals once a project reaches production. Key factors contributing to its earnings include successful exploration outcomes, the strategic location of its projects, and favorable market conditions for the minerals it targets.

Alchemy Resources Limited Financial Statement Overview

Summary
Alchemy Resources Limited faces financial difficulties with continuous losses and cash flow issues. Despite a strong equity position and no leverage, the company struggles with profitability and cash management, necessitating improvements in operational efficiency and cost control.
Income Statement
Alchemy Resources Limited has experienced inconsistent and modest revenue growth over the years, with a significant revenue increase only in the most recent year. The company has struggled with negative EBIT and EBITDA margins, indicating operational inefficiencies and ongoing losses. The net profit margin remains negative, reflecting persistent challenges in achieving profitability.
Balance Sheet
The company maintains a strong equity position with no debt, resulting in a favorable debt-to-equity ratio. The equity ratio is solid, showcasing a stable financial foundation. However, the return on equity (ROE) is negative due to continuous net losses, indicating challenges in generating returns for shareholders.
Cash Flow
Alchemy Resources Limited has consistently faced negative free cash flow, indicating cash management issues. The operating cash flow to net income ratio is negative, suggesting inefficiencies in converting earnings to cash. While operating cash flow has improved slightly, capital expenditures remain high, contributing to cash flow challenges.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue107.31K107.31K8.22K85.15K16.85K21.89K
Gross Profit107.31K107.31K8.22K-453.0016.85K13.84K
EBITDA-483.50K-483.19K-1.48M-712.12K-557.00K-516.78K
Net Income-1.30M-1.30M-1.48M-713.00K-806.00K-524.83K
Balance Sheet
Total Assets12.31M12.31M13.49M14.98M10.19M7.81M
Cash, Cash Equivalents and Short-Term Investments1.23M1.23M3.01M5.01M2.01M924.38K
Total Debt0.000.000.000.000.000.00
Total Liabilities319.00K319.00K239.69K353.31K247.29K155.34K
Stockholders Equity11.99M11.99M13.25M14.62M9.94M7.65M
Cash Flow
Free Cash Flow-1.78M-1.78M-1.99M-2.23M-1.90M-1.68M
Operating Cash Flow-304.58K-304.58K-273.16K-212.90K-453.43K-428.52K
Investing Cash Flow-1.48M-1.48M-1.72M-2.01M-1.44M-1.25M
Financing Cash Flow0.000.000.005.22M2.98M1.73M

Alchemy 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%
52
Neutral
AU$11.29M-9.09-10.51%15.38%
50
Neutral
AU$40.73M-4.75-59.44%23.08%
50
Neutral
AU$10.62M-1.77
48
Neutral
AU$11.73M-0.68-62.79%-40.85%
46
Neutral
AU$21.57M-3.06-60.89%77.62%
46
Neutral
AU$23.56M-6.05-13.63%31.75%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:ALY
Alchemy Resources Limited
0.01
0.00
0.00%
AU:PRX
Prodigy Gold NL
0.07
0.02
28.30%
AU:MDI
Middle Island Resources Limited
0.04
0.03
245.45%
AU:AUV
Sipa Resources Limited
0.02
<0.01
30.77%
AU:MBK
Metal Bank Limited
0.03
0.01
85.71%
AU:GMN
Gold Mountain Limited
0.06
-0.04
-40.78%

Alchemy Resources Limited Corporate Events

Alchemy Resources Updates Director Anthony Ho’s Option Holdings After Expiry
Dec 23, 2025

Alchemy Resources Limited has reported a change in the indirect holdings of director Anthony Ho, following the expiry of a series of unquoted options. The 2,000,000 unquoted options exercisable at $0.0405 and expiring on 23 December 2025 have lapsed with no consideration, leaving Ho indirectly holding 2,000,000 unquoted options exercisable at $0.015 and expiring on 31 December 2028; the administrative update indicates a simplification of his option exposure without any on‑market trading or impact on the company’s share capital.

Alchemy Resources Options Lapse, Simplifying Capital Structure
Dec 23, 2025

Alchemy Resources Limited has announced the expiry of 6,000,000 unexercised options, each with an exercise price of A$0.0405 and an expiry date of 23 December 2025, resulting in the cessation of these securities. The lapse of these options slightly simplifies the company’s capital structure by removing a tranche of potential equity dilution, which may provide greater clarity around the current issued capital for shareholders and potential investors.

Alchemy Resources Announces Director’s Interest Change
Dec 17, 2025

Alchemy Resources Limited announced a change in the director’s interest, with Anthony Ho acquiring 2,000,000 unquoted options exercisable at $0.015, expiring on 31 December 2028. This change follows shareholder approval at the company’s annual general meeting in November 2025, reflecting the company’s ongoing efforts to align its leadership interests with long-term strategic goals, potentially impacting stakeholder confidence and market perception.

Alchemy Resources Issues Unquoted Equity Securities
Dec 17, 2025

Alchemy Resources Limited has announced the issuance of 6,000,000 unquoted equity securities, specifically options expiring on December 31, 2028, at an exercise price of $0.015. This issuance is part of previously announced transactions and is not intended to be quoted on the ASX, potentially impacting the company’s capital structure and providing strategic flexibility for future operations.

Alchemy Resources Unveils Promising Iron Ore Intercepts at Valley Bore
Dec 10, 2025

Alchemy Resources Limited has announced further high-grade iron ore intercepts at its Valley Bore Project in Western Australia. The latest assay results from the Southern Ridge target confirm the presence of substantial high-grade mineralization, extending over a 600-meter strike length and remaining open at depth and along strike. The project’s strategic location near major transport infrastructure enhances its development potential, and an option agreement with Newcam Minerals Pty Ltd could accelerate its advancement. These findings significantly boost the project’s strategic value and position Alchemy Resources for future growth.

Alchemy Resources Initiates Trading Halt Pending Iron Ore Project Update
Dec 9, 2025

Alchemy Resources Limited has requested a trading halt on its securities pending the release of further assay results from its Valley Bore Iron Ore Project in Western Australia. This move is likely to impact the company’s operations and market positioning as stakeholders await potentially significant updates regarding the project’s progress.

Alchemy Resources Reports High-Grade Iron Ore Discoveries at Valley Bore
Dec 8, 2025

Alchemy Resources Limited announced promising assay results from its maiden reverse circulation drilling program at the Valley Bore Iron Ore Project in Western Australia. The results indicate substantial high-grade iron ore mineralization, reinforcing the project’s potential and supporting the company’s strategic approach. With the project located on a granted mining lease, Alchemy is poised for accelerated development, especially with its recent partnership with Newcam Minerals Pty Ltd, which could enhance logistics and transport solutions essential for commercializing the project.

Alchemy Resources Initiates Trading Halt Pending Key Assay Results
Dec 8, 2025

Alchemy Resources Limited has requested a trading halt on its securities pending the release of assay results from its Valley Bore Iron Ore Project in Western Australia. This decision is aimed at ensuring the market is informed simultaneously, potentially impacting the company’s operations and stakeholder interests once the results are disclosed.

Alchemy Resources Director Increases Shareholding
Dec 1, 2025

Alchemy Resources Limited announced a change in the director’s interest, with Lindsay George Dudfield acquiring an additional 5,000,000 ordinary fully paid shares through an on-market purchase. This acquisition reflects a significant increase in the director’s holdings, potentially indicating confidence in the company’s future prospects and impacting stakeholder perceptions positively.

Alchemy Resources Begins Drilling at Valley Bore Iron Ore Project
Nov 23, 2025

Alchemy Resources Limited has commenced reverse circulation drilling at its Valley Bore Iron Ore Project in Western Australia. The drilling program, consisting of up to 15 holes, aims to explore high-grade iron ore mineralization and is expected to enhance the project’s potential as a Direct Shipping Ore site. The project is further strengthened by a partnership with Newcam Minerals, which can earn a 60% interest in Alchemy’s iron ore assets, while Alchemy retains a 40% interest.

Alchemy Resources Limited Passes All Resolutions at 2025 AGM
Nov 21, 2025

Alchemy Resources Limited announced that all resolutions were successfully passed during its 2025 Annual General Meeting. The resolutions included the adoption of the remuneration report, re-election of a director, approval of a placement facility, re-approval of an employee incentive plan, renewal of takeover provisions, and the issuance of director options. These approvals are expected to strengthen the company’s governance and operational strategies, potentially enhancing its market position and stakeholder confidence.

Alchemy Resources Unveils Strategic Opportunities in Precious and Base Metals
Nov 21, 2025

Alchemy Resources Limited has announced strategic opportunities in key precious and base metals belts, which could significantly impact its operations and industry positioning. This development is expected to enhance the company’s exploration capabilities and potentially offer new avenues for growth, benefiting stakeholders and solidifying its market presence.

Alchemy Resources Advances Yellow Mountain Exploration with New IP Survey
Nov 18, 2025

Alchemy Resources Limited has commenced an Induced Polarisation (IP) survey at its Yellow Mountain Project in New South Wales, aiming to map anomalies associated with sulphide mineralisation. This initiative follows significant results from recent reverse circulation drilling, which highlighted the potential scale and continuity of copper-gold mineralisation. The IP survey is expected to refine high-priority drill targets for further exploration in early 2026, presenting a significant opportunity for stakeholders as the company aims to expand its mineralised footprint.

Alchemy Resources Reports Quarterly Cash Flow with Focus on Exploration Investments
Oct 29, 2025

Alchemy Resources Limited reported its quarterly cash flow, highlighting a net cash outflow from operating activities amounting to $47,000 and a significant investment in exploration and evaluation costing $394,000. The report indicates a decrease in cash and cash equivalents, reflecting the company’s ongoing commitment to exploration activities, which may impact its financial position and require strategic financing or operational adjustments.

Alchemy Resources Advances Exploration Across Key Projects
Oct 29, 2025

Alchemy Resources Limited has made significant progress in its exploration activities across key projects in Western Australia and New South Wales. At the Karonie Project, aircore drilling commenced on high-priority lithium targets, while a binding agreement was executed with Newcam Minerals for the Bryah iron ore assets, allowing Newcam to earn a 60% interest. In New South Wales, the Lachlan Projects yielded promising assay results, confirming and expanding the known mineralized footprint, with plans for further drilling. These developments position Alchemy well to advance multiple discovery opportunities, supported by strong joint venture partnerships.

Alchemy Resources Secures $0.5M Option Payment for Bryah Iron Ore Project
Oct 28, 2025

Alchemy Resources Limited has received a $0.5 million option payment from Newcam Minerals Pty Ltd for a six-month option to acquire a 60% stake in the Bryah Iron Ore Project in Western Australia. This agreement marks a significant milestone, providing immediate funding for exploration and validating the potential of the Bryah assets. If Newcam exercises the option, Alchemy will receive an additional $0.5 million and retain a 40% interest in the project, free carried to the decision to mine, minimizing capital risk while maintaining exposure to potential development success.

Alchemy Resources Limited Announces Quotation of 10 Million Securities on ASX
Oct 28, 2025

Alchemy Resources Limited has announced the quotation of 10 million fully paid ordinary securities on the Australian Securities Exchange (ASX) as part of a previously announced transaction. This move is likely to impact the company’s operational capacity and market positioning by potentially increasing its capital base and enhancing its ability to fund exploration activities, thereby influencing stakeholder interests.

Alchemy Resources Issues 10 Million New Shares to Bolster Exploration Efforts
Oct 28, 2025

Alchemy Resources Limited has issued 10,000,000 fully paid ordinary shares as part of a placement announced earlier in October 2025. This issuance, conducted under section 708A of the Corporations Act 2001, aims to strengthen the company’s financial position and support its ongoing exploration activities. The announcement underscores Alchemy’s compliance with regulatory requirements and its strategic efforts to enhance its market presence.

Alchemy Resources Limited Announces Upcoming Annual General Meeting
Oct 23, 2025

Alchemy Resources Limited has announced its Annual General Meeting (AGM) for shareholders, scheduled to be held on November 21, 2025. The company is encouraging shareholders to participate in the meeting through various means, including in-person attendance, proxy voting, or electronic submission. This announcement highlights the company’s commitment to engaging with its stakeholders and ensuring transparency in its operations.

Alchemy Resources Limited Announces Annual General Meeting
Oct 23, 2025

Alchemy Resources Limited has announced its upcoming Annual General Meeting, scheduled for November 21, 2025, in West Perth, Western Australia. The meeting will cover the company’s annual report, the adoption of the remuneration report, and the re-election of Director Anthony Ho. Shareholders are encouraged to participate by voting, either in person or by proxy, to influence decisions on key resolutions that could impact the company’s governance and strategic direction.

Alchemy Resources Announces Cessation of 10 Million Securities
Oct 21, 2025

Alchemy Resources Limited announced the cessation of 10,000,000 securities due to the expiry of options or other convertible securities without exercise or conversion. This development may impact the company’s capital structure and could have implications for its market positioning and stakeholder interests.

Alchemy Resources Announces Proposed Issue of 10 Million Securities
Oct 15, 2025

Alchemy Resources Limited has announced a proposed issue of 10 million ordinary fully paid securities, scheduled for October 27, 2025. This move is part of a placement or other type of issue, potentially impacting the company’s capital structure and providing additional resources for its operations and strategic initiatives.

Alchemy Resources Enters Transformative Agreement with Newcam for Bryah Iron Ore Projects
Oct 15, 2025

Alchemy Resources Limited has entered into a binding Heads of Agreement with Newcam Minerals Pty Ltd to develop its Bryah Iron Ore assets in Western Australia. Under the agreement, Newcam can earn a 60% interest in these assets, while Alchemy retains a 40% interest, free carried to a decision to mine. The transaction includes an initial $500,000 option payment and a further $500,000 upon execution, alongside Newcam’s subscription for Alchemy shares at a premium. This partnership is seen as transformative for Alchemy, providing immediate funding and accelerating the advancement of its iron ore projects, thereby strengthening its financial position and growth prospects.

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