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AusQuest Limited (AU:AQD)
ASX:AQD
Australian Market

AusQuest Limited (AQD) AI Stock Analysis

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AU:AQD

AusQuest Limited

(Sydney:AQD)

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Neutral 49 (OpenAI - 5.2)
Rating:49Neutral
Price Target:
AU$0.05
▼(-4.00% Downside)
The score is primarily held back by continued losses and persistent negative operating/free cash flow despite a stronger, low-debt balance sheet. Technicals are mixed (near-neutral momentum with price above several longer-term averages), while valuation is constrained by a negative P/E and no dividend yield.
Positive Factors
Strategic Partnerships
The extension of the strategic alliance with South32 until December 2027 ensures continued funding and collaboration, enhancing AusQuest's ability to advance exploration projects and potentially increasing resource discovery success.
Capital Raising
The successful capital raise of A$10 million supports the expansion of the Cangallo Project, enabling further exploration and potential resource growth, which is crucial for long-term development and market positioning.
Balance Sheet Strength
A strong balance sheet with no debt provides financial flexibility, allowing AusQuest to focus on exploration without the burden of interest obligations, supporting sustainable growth and strategic investments.
Negative Factors
Negative Cash Flow
Persistent negative cash flow indicates ongoing cash burn, which may necessitate further capital raises and could strain financial resources, impacting long-term sustainability and operational capacity.
Profitability Challenges
Continued losses and negative margins highlight challenges in achieving profitability, which could affect the company's ability to fund future projects and maintain investor confidence over the long term.
High Cash Burn
The high cash burn rate underscores the need for ongoing funding, which could limit operational flexibility and increase reliance on external financing, posing a risk to future project execution and growth.

AusQuest Limited (AQD) vs. iShares MSCI Australia ETF (EWA)

AusQuest Limited Business Overview & Revenue Model

Company DescriptionAusQuest Limited explores and evaluates mineral resources in Australia and Peru. The company explores for copper, iron oxide, gold, zinc, and nickel deposits. It holds approximately 7,300km² of exploration title within Australia, which includes 6,800km² within Western Australia and 500km² within Queensland. The company was incorporated in 2000 and is based in Ardross, Australia.
How the Company Makes MoneyAusQuest Limited makes money primarily through its exploration activities by identifying and developing mineral deposits that may be sold or optioned to major mining companies. The company engages in joint venture partnerships, notably with South32, a key partner that provides funding for exploration projects in exchange for potential future interest in the discoveries. Revenue is generated when mineral exploration projects are optioned, sold, or advanced to a stage where larger mining companies take interest and invest in further development. AusQuest's financial model relies on successful exploration outcomes and strategic partnerships to monetize its mineral discoveries.

AusQuest Limited Financial Statement Overview

Summary
AusQuest Limited faces challenges in revenue growth and cash flow management, despite maintaining a strong equity position. Operational inefficiencies are evident from negative EBIT and EBITDA margins, while the cash flow struggles underscore potential liquidity concerns.
Income Statement
The company shows inconsistent revenue trends, with a revenue decline of 81.54% from 2023 to 2024. Gross profit margin is strong at 100% due to minimal costs, but the net profit margin is volatile due to fluctuating net income. EBIT and EBITDA margins are negative, indicating operational inefficiencies and high operating expenses.
Balance Sheet
The balance sheet exhibits a strong equity position with an equity ratio of 91.91%, suggesting financial stability. However, the company has a high debt-to-equity ratio due to low total debt, and a return on equity of 3.29%, indicating modest profitability from shareholders' investments.
Cash Flow
The cash flow statement reveals negative free cash flow growth, highlighting cash burn issues. Operating cash flow is negative, and the free cash flow to net income ratio is unfavorable. The company struggles to convert income into cash flow efficiently.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue494.59K494.59K201.94K1.09M648.66K1.02M
Gross Profit96.33K494.59K201.94K995.81K529.64K966.15K
EBITDA-2.01M-1.31M-1.59M-480.00K-2.28M-2.09M
Net Income-1.61M-1.61M256.73K361.98K-1.46M-1.28M
Balance Sheet
Total Assets18.61M18.61M8.48M9.65M8.49M9.39M
Cash, Cash Equivalents and Short-Term Investments7.20M7.20M1.07M3.73M3.88M5.41M
Total Debt0.000.0089.59K0.0087.68K23.20K
Total Liabilities2.05M2.05M686.40K1.34M1.05M1.48M
Stockholders Equity16.56M16.56M7.80M8.31M7.43M7.92M
Cash Flow
Free Cash Flow-3.19M-8.13M-4.52M-8.00M-7.24M-6.15M
Operating Cash Flow-833.91K-833.91K-964.09K103.48K-339.70K53.23K
Investing Cash Flow-2.85M-2.85M-1.61M-184.90K-1.18M-95.11K
Financing Cash Flow9.82M9.82M-93.00K-90.00K-90.57K2.77M

AusQuest 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%
50
Neutral
AU$137.03M-39.39-5.35%58.54%
49
Neutral
AU$89.61M-46.67-13.23%-20.00%
44
Neutral
AU$64.20M-5.09-12.99%
41
Neutral
AU$41.49M-8.68-13.23%-86.89%
40
Underperform
€399.38M-15.44-77.68%22.73%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:AQD
AusQuest Limited
0.06
0.03
133.33%
AU:ARL
Ardea Resources
0.65
0.33
100.00%
AU:SGQ
St. George Mining Ltd.
0.11
0.08
377.27%
AU:IMA
Image Resources NL
0.06
-0.03
-34.09%
AU:DME
Dome Gold Mines Ltd.
0.10
-0.08
-43.43%

AusQuest Limited Corporate Events

AusQuest Uncovers Early Signs of Sediment-Hosted Base Metals at Mt Davis
Dec 22, 2025

AusQuest Limited has reported encouraging early assay results from a nine-hole, 1,884-metre reconnaissance reverse circulation drilling program at its Mt Davis Project in Western Australia, where anomalous lead, copper and silver values indicate potential for sediment-hosted base metal mineralisation. Three holes intersected notable base metal anomalies in weathered carbonaceous cherty mud rocks associated with a VTEM electromagnetic conductor and soil geochemical anomalies, including a peak lead value of 2.8% at 80 metres depth, and the company will now work with partner South32 to determine next exploration steps, underscoring the project’s emerging prospectivity in a largely under-drilled area of the Earaheedy Basin.

AusQuest Seeks ASX Quotation for 1 Million New Ordinary Shares
Dec 19, 2025

AusQuest Limited has applied to the ASX for quotation of 1,000,000 new ordinary fully paid shares, to be listed under its existing ticker AQD. The new securities, issued on 19 December 2025, will increase the company’s quoted share capital, modestly expanding its equity base and potentially enhancing liquidity for existing and new shareholders.

AusQuest Limited Announces General Meeting and Progress Update
Dec 18, 2025

AusQuest Limited has announced a General Meeting scheduled for February 4, 2026, to be held in Perth, Australia. The company encourages shareholders to review the Notice of Meeting, which is available online, and to participate through proxy voting if they cannot attend in person. During the meeting, the Managing Director will provide an update on the company’s activities, reflecting its ongoing commitment to transparency and stakeholder engagement.

AusQuest Limited Completes Major Share Placement
Dec 15, 2025

AusQuest Limited has successfully completed the issuance of 189,787,234 fully paid ordinary shares as part of a placement announced earlier in December 2025. This move, conducted without the need for disclosure under certain sections of the Corporations Act, indicates the company’s compliance with regulatory requirements and its strategic efforts to strengthen its financial position, potentially impacting its operational capabilities and stakeholder interests.

AusQuest Limited Announces Quotation of New Securities on ASX
Dec 15, 2025

AusQuest Limited announced the quotation of 1,000,000 ordinary fully paid securities on the Australian Securities Exchange (ASX), effective December 11, 2025. This move reflects the company’s strategic efforts to leverage financial markets for capital, potentially impacting its operational capacity and market positioning.

AusQuest and South32 Extend Strategic Alliance for Exploration Projects
Dec 14, 2025

AusQuest Limited has extended its Strategic Alliance Agreement with South32 Limited for an additional two years, continuing their collaboration until December 2027. This partnership allows AusQuest to advance exploration projects to a drill-ready stage with funding from South32, which can earn a 70% interest in each project by investing US$4.5 million. The extension of this agreement highlights the successful collaboration between the two companies and reinforces AusQuest’s position in the exploration industry, potentially benefiting shareholders through continued project development and exploration success.

AusQuest Limited Announces Proposed Issue of 20 Million Unquoted Options
Dec 10, 2025

AusQuest Limited has announced a proposed issue of 20 million unquoted options, each exercisable at $0.0705 and expiring three years from the issue date. This move is part of a placement or other type of issue, with the proposed issue date set for February 9, 2026. The announcement signifies AusQuest’s strategic effort to raise capital, potentially impacting its exploration activities and financial positioning in the mining sector.

AusQuest Limited Announces Proposed Securities Issue
Dec 4, 2025

AusQuest Limited has announced a proposed issue of 22,978,724 ordinary fully paid securities, with the issue date set for February 9, 2026. This move is part of a placement or other type of issue, which could potentially enhance the company’s capital structure and support its exploration activities, thereby impacting its operations and positioning within the mining industry.

AusQuest Limited Announces Major Securities Issue
Dec 4, 2025

AusQuest Limited has announced a proposed issue of 189,787,234 fully paid ordinary securities, scheduled for December 12, 2025. This move is part of the company’s strategy to raise capital, potentially impacting its financial standing and offering new opportunities for stakeholders as it seeks to strengthen its market position.

AusQuest Secures $10M for Cangallo Project Expansion
Dec 4, 2025

AusQuest Limited announced a successful capital raising of A$10 million through a placement of approximately 212.8 million new shares, supported by both new and existing shareholders, including international resource-focused institutions. The funds will be used to expand Stage 3 drilling at the Cangallo Copper-Gold Project in Peru, aiming to extend mineralization and locate the center of the porphyry system, potentially enhancing copper grades. This strategic move is seen as a pivotal step in AusQuest’s growth strategy, reflecting strong market confidence in the project’s potential and marking a transformative phase for the company.

AusQuest Limited Requests Trading Halt for Imminent Capital Raise Announcement
Dec 2, 2025

AusQuest Limited, a company listed on the Australian Securities Exchange, has requested a trading halt on its securities pending an announcement concerning a proposed material capital raise. This trading halt is expected to last until the announcement is made, which will be no later than the start of trading on December 5, 2025. The halt is intended to allow the company to prepare and release information regarding the capital raise, which could have significant implications for its financial strategy and market positioning.

AusQuest Limited Announces Quotation of New Securities on ASX
Nov 28, 2025

AusQuest Limited has announced the quotation of 553,333 ordinary fully paid securities on the Australian Securities Exchange (ASX), effective November 28, 2025. This move follows the exercise of options or conversion of other convertible securities, potentially enhancing the company’s capital structure and market presence.

AusQuest Limited Successfully Passes All AGM Resolutions
Nov 18, 2025

AusQuest Limited held its Annual General Meeting on November 18, 2025, where all proposed resolutions were passed. Key outcomes included the adoption of the Remuneration Report, re-election of Mr. Christopher Ellis as a Director, approval of a 10% Placement Facility, and adoption of an Employee Securities Incentive Plan. These decisions are likely to support AusQuest’s strategic objectives and enhance its operational capabilities, potentially impacting its market positioning positively.

AusQuest Limited Issues New Securities to Boost Exploration Efforts
Nov 14, 2025

AusQuest Limited has announced the issuance of 100,025 ordinary fully paid securities, which will be quoted on the Australian Securities Exchange (ASX) under the code AQD. This move is part of the company’s strategic efforts to enhance its capital structure and support its ongoing exploration activities, potentially impacting its market positioning and providing opportunities for stakeholders.

AusQuest Commences Stage 3 Drilling at Cangallo Discovery
Nov 13, 2025

AusQuest Limited has announced the commencement of Stage 3 Reverse Circulation (RC) drilling at its Cangallo Porphyry Copper Gold discovery in Peru. The program aims to expand copper and gold mineralization to the south of current drill coverage, where geological data suggests the center of the porphyry system is located. The drilling is expected to take 4 to 6 weeks, with final assays available approximately 4 weeks after completion. This expansion could potentially double the resource size, significantly impacting the company’s operations and positioning within the mining industry.

AusQuest Expands Cangallo Copper-Gold Discovery Depth
Nov 11, 2025

AusQuest Limited has announced a significant expansion of its Cangallo Porphyry Copper-Gold discovery in Peru, with diamond drilling more than doubling the known depth of copper mineralisation to over 800 meters. This development indicates a large-scale porphyry system, with strong evidence of a mineralised porphyry center nearby. The ongoing drilling efforts, including a second diamond drill hole and upcoming Stage 3 RC drilling, aim to further delineate the extent of the system, potentially enhancing the company’s resource base and strengthening its position in the mining sector.

AusQuest Limited Advances Exploration Projects in Peru and Australia
Oct 30, 2025

AusQuest Limited reported significant progress in its Cangallo copper-gold project in Peru, with promising results from Stage 2 drilling and plans for further exploration. The company is also advancing its Australian projects, including Balladonia and Coober Pedy, with new target areas identified for testing, supported by strategic partnerships and a solid financial position.

AusQuest Highlights Cangallo Copper-Gold Discovery at IMARC
Oct 22, 2025

AusQuest Limited’s Managing Director, Mr. Graeme Drew, presented at the IMARC Conference in Sydney, highlighting the company’s recent discovery of a porphyry copper-gold deposit in Cangallo, Peru. This discovery, announced in January 2025, underscores AusQuest’s strategic efforts to enhance its mineral resource portfolio, potentially strengthening its position in the mining sector and offering promising implications for stakeholders.

AusQuest Limited Announces Annual General Meeting for Shareholders
Oct 17, 2025

AusQuest Limited has announced its upcoming Annual General Meeting (AGM) for shareholders, scheduled to be held on November 18, 2025, at the Celtic Club Perth. The meeting will provide shareholders with an opportunity to engage with the company’s management and discuss future strategies. Shareholders are encouraged to participate either in person or by proxy voting, with all related materials available online. This meeting is significant for stakeholders as it will outline the company’s future direction and operational strategies, potentially impacting its market positioning and investor relations.

AusQuest Initiates Deep Drilling at Cangallo Copper-Gold Site
Sep 30, 2025

AusQuest Limited has commenced a diamond drilling program at its Cangallo Copper-Gold Project in Peru, aiming to explore the depth extent of copper mineralization beyond current drilling limits. This initiative is expected to enhance the resource potential of the site, with initial assay results anticipated in 6-8 weeks. The company plans to follow up with Stage 3 Reverse Circulation drilling in November, which could significantly impact its resource estimates and shareholder value.

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