tiprankstipranks
Trending News
More News >
Austral Resources Australia Limited (AU:AR1)
:AR1
Australian Market
Advertisement

Austral Resources Australia Limited (AR1) AI Stock Analysis

Compare
2 Followers

Top Page

AU

Austral Resources Australia Limited

(Sydney:AR1)

Rating:39Underperform
Price Target:
Austral Resources Australia Limited is facing significant financial difficulties, with declining revenues and profitability, high leverage, and negative equity. The technical analysis shows no stock price momentum, and the valuation metrics are concerning with a negative P/E ratio and no dividend yield. These factors suggest a high-risk investment with limited upside potential.

Austral Resources Australia Limited (AR1) vs. iShares MSCI Australia ETF (EWA)

Austral Resources Australia Limited Business Overview & Revenue Model

Company DescriptionAustral Resources Australia Ltd focuses on the exploration of copper properties in Queensland. It has a pipeline of projects at various stages of development, such as the Anthill, Lady Annie, Cameron River, and Miranda Mining projects. The company also produces copper cathodes. Austral Resources Australia Ltd was incorporated in 2010 and is based in Brisbane, Australia.
How the Company Makes MoneyAustral Resources Australia Limited generates revenue through the production and sale of copper. The company owns and operates mining assets where it explores for copper deposits, extracts copper ore, and processes it into copper concentrate or cathode. This copper is then sold to industrial consumers, manufacturers, and commodity markets worldwide. The company's earnings are influenced by the global demand for copper, copper prices, and operational efficiency. Austral Resources may also engage in strategic partnerships or joint ventures to enhance its production capabilities or access new markets, contributing to its revenue streams.

Austral Resources Australia Limited Financial Statement Overview

Summary
Austral Resources Australia Limited faces financial challenges with declining revenues and profitability. High leverage and negative equity raise concerns about financial stability. Cash flow generation is weak but shows some ability to convert operating activities into cash.
Income Statement
The company experienced a significant decline in revenue from 2023 to 2024, with negative gross and net profit margins indicating operational challenges. EBIT and EBITDA margins also turned negative, reflecting deteriorating profitability.
Balance Sheet
30
The balance sheet shows negative stockholders' equity, indicating potential solvency issues. The high debt-to-equity ratio reflects significant leverage, posing financial risk. The equity ratio is negative, further highlighting financial instability.
Cash Flow
Operating cash flow has decreased significantly, but free cash flow remains negative. The operating cash flow to net income ratio is positive, suggesting better cash realization from operations compared to net income figures.
BreakdownDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income Statement
Total Revenue110.28M54.83M37.26M25.04M24.31M
Gross Profit29.74M13.23M2.08M-2.12M3.88M
EBITDA39.30M-11.54M-4.69M-17.80M1.90M
Net Income9.45M-29.80M-11.73M-22.53M-7.10M
Balance Sheet
Total Assets156.48M134.30M69.99M62.92M52.17M
Cash, Cash Equivalents and Short-Term Investments1.15M1.53M13.33M48.74M271.00K
Total Debt68.44M65.52M27.54M28.00M223.32M
Total Liabilities164.75M152.97M82.61M68.00M315.29M
Stockholders Equity-8.27M-18.68M-12.62M-5.08M-263.12M
Cash Flow
Free Cash Flow4.57M-51.21M-3.77M-11.75M-1.37M
Operating Cash Flow41.85M-1.80M646.00K-11.29M-1.19M
Investing Cash Flow-37.28M-49.41M-10.62M-81.00K5.26M
Financing Cash Flow-5.01M38.95M23.27M11.68M-8.80M

Austral Resources Australia Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
57
Neutral
£2.54B5.05-9.48%4.22%5.28%-6.27%
AUHGO
41
Neutral
AU$101.82M-49.83%-35.29%
AUAR1
39
Underperform
AU$84.35M
-25.56%-339.66%
$64.83M-4.78%
DEAYR
DESTC
€49.95M-52.97%
AUNRX
47
Neutral
AU$6.70M-174.10%32.35%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:AR1
Austral Resources Australia Limited
0.16
0.00
0.00%
HHLKF
Hot Chili Limited
0.41
-0.23
-35.94%
AU:HGO
Hillgrove Resources Limited
0.04
-0.03
-42.86%
DE:AYR
Cyprium Metals Limited
DE:STC
Caravel Minerals Limited
0.08
-0.02
-20.00%
AU:NRX
Noronex Ltd.
0.01
0.00
0.00%

Austral Resources Australia Limited Corporate Events

Austral Resources Announces Lapse of Director’s Performance Rights
Jul 16, 2025

Austral Resources Australia Limited announced a change in the director’s interest notice involving Michael Hansel. The company disclosed that 881,842 performance rights held by MHHG Holdings Pty Ltd, where Mr. Hansel is a director and shareholder, have lapsed due to unmet vesting conditions. This change does not impact the number of shares held by Mr. Hansel through Hamick Pty Ltd and MHHG Holdings Pty Ltd.

Austral Resources Announces Director’s Interest Change
Jul 16, 2025

Austral Resources Australia Limited announced a change in the director’s interest, specifically regarding Daniel Jauncey’s holdings. The company reported that 12,247,812 performance rights held by Moose 2.0 Pty Ltd, a trust where Mr. Jauncey is the sole director and shareholder, lapsed due to unmet vesting conditions. This change does not affect the number of shares held directly or indirectly by Mr. Jauncey, indicating a strategic adjustment in the company’s executive compensation structure.

Austral Resources Announces Director’s Interest Change
Jul 4, 2025

Austral Resources Australia Ltd announced a change in the director’s interest, specifically involving Daniel Jauncey. The change includes the acquisition of 1,584,798 shares subject to voluntary escrow until June 2026 and the disposal of an equivalent number of performance rights. This adjustment in shareholding reflects internal financial restructuring and may impact the company’s governance and shareholder dynamics.

Austral Resources Announces Director’s Interest Change
Jul 4, 2025

Austral Resources Australia Limited has announced a change in the director’s interest, specifically involving Michael Hansel. The change includes the acquisition of 514,943 shares, which are subject to voluntary escrow until June 30, 2026, and the disposal of an equal number of performance rights. This adjustment in securities reflects a strategic move in the company’s governance, potentially impacting shareholder value and the company’s market positioning.

Austral Resources Announces Quotation of New Securities
Jul 4, 2025

Austral Resources Australia Limited has announced the quotation of 3,442,821 ordinary fully paid securities on the Australian Securities Exchange, effective June 30, 2025. This move is part of the company’s strategy to enhance its market presence and provide liquidity to its shareholders, potentially impacting its operational capabilities and stakeholder engagement positively.

Austral Resources Announces New Securities Issue to Raise Capital
Jul 2, 2025

Austral Resources Australia Limited has announced a proposed issue of securities, with a total of 21 million new securities to be issued. This move is part of their strategy to raise capital, with the securities set to be issued on August 29, 2025. The announcement indicates a strategic effort to bolster their financial position and potentially expand their operations, reflecting the company’s proactive approach to leveraging market opportunities.

Austral Resources Acquires Rocklands to Boost Copper Operations
Jul 2, 2025

Austral Resources Australia Ltd has announced the acquisition of Copper Resources Australia Pty Ltd, owner of the Rocklands Copper Mine, as part of its strategy to consolidate and expand its operations in North-West Queensland. This acquisition is expected to transform Austral’s operations by establishing a copper sulphide processing hub, enhancing production capacity, and providing a low-risk pathway for growth. The transaction, funded through offtake-linked financing and capital raise, positions Austral to become a dominant player in the Mount Isa-Cloncurry Copper District, with immediate processing scale and potential for resource expansion and integration synergies.

Austral Resources Announces AGM Results: Key Resolutions Passed
May 21, 2025

Austral Resources Australia Ltd announced the results of its 2025 Annual General Meeting, where several resolutions were voted on. Resolutions related to the remuneration report and director re-elections were passed, while those concerning the issuance of performance rights were defeated. The approval of a 10% additional placement capacity was also secured, indicating strategic financial flexibility for the company.

Austral Resources Australia Ltd Poised for Strategic Acquisitions and Growth
May 21, 2025

Austral Resources Australia Limited is on the verge of announcing two significant acquisitions that are expected to catalyze a capital raising and the re-quotation of its securities on the ASX. The company faced significant challenges in 2024, including natural disasters and receivership, but has since restructured under the Anthill Project Agreement and is now focusing on a revitalized strategy. This strategy includes a renewed board, a commitment to Australian copper opportunities, and a production-focused approach. The company aims to expand its shareholder base and enhance shareholder value through dividends or growth, with a long-term strategy to extend mine life and generate significant cash flow.

Austral Resources Reports Strategic and Operational Progress Amid Recapitalization Efforts
Apr 29, 2025

Austral Resources Australia Ltd announced significant operational and strategic developments in its March 2025 quarterly activities report. The company completed its mining campaign at the Anthill West pit and signed a Memorandum of Understanding with New Frontier Minerals to boost production at its Mt Kelly facility. Despite challenges from seasonal flooding, Austral continues to pursue recapitalization efforts to strengthen its financial position and avoid voluntary administration, aiming for long-term growth and competitiveness in the Australian copper sector.

Austral Resources Announces 2025 AGM Details
Apr 17, 2025

Austral Resources Australia Ltd has announced the details of its upcoming annual general meeting (AGM), scheduled for 21 May 2025. The company will not be sending hard copies of the meeting notice unless specifically requested by shareholders, with documents available online. This move reflects a shift towards digital communication, potentially enhancing accessibility and efficiency for stakeholders.

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: Apr 08, 2025