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Austral Resources Australia Limited (AU:AR1)
ASX:AR1
Australian Market

Austral Resources Australia Limited (AR1) AI Stock Analysis

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AU:AR1

Austral Resources Australia Limited

(Sydney:AR1)

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Underperform 40 (OpenAI - 4o)
Rating:40Underperform
Price Target:
AU$0.04
▲(5.00% Upside)
The overall stock score is primarily driven by significant financial challenges, including declining revenues and profitability, high leverage, and negative equity. Technical indicators also suggest a bearish trend with weak momentum. Valuation metrics are poor, with a negative P/E ratio and no dividend yield.
Positive Factors
Sustainable Practices
The company's focus on sustainable mining practices can enhance its reputation and compliance with environmental regulations, potentially leading to long-term operational stability and attractiveness to environmentally conscious investors.
Strategic Partnerships
Strategic partnerships can improve operational efficiency and expand market reach, providing a competitive edge and supporting revenue growth over the long term.
Copper Demand
The increasing demand for copper, driven by industries like electronics and renewable energy, supports long-term growth prospects for the company, aligning with global economic and technological trends.
Negative Factors
Declining Revenue
Declining revenues indicate potential market share loss or operational inefficiencies, which can undermine long-term growth and financial health if not addressed.
High Leverage
High leverage increases financial risk, potentially limiting the company's ability to invest in growth opportunities and affecting its resilience to economic downturns.
Negative Profit Margins
Negative profit margins suggest operational inefficiencies and cost management issues, which can impact long-term profitability and shareholder value.

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

Austral Resources Australia Limited Business Overview & Revenue Model

Company DescriptionAustral Resources Australia Limited (AR1) is an Australian mining and exploration company engaged primarily in the development and production of copper and other mineral resources. The company focuses on the extraction and processing of mineral deposits, aiming to contribute to the growing demand for copper, which is essential for various industries, including electronics, construction, and renewable energy technologies. Austral Resources operates primarily in the mineral-rich regions of Australia, leveraging innovative mining techniques and sustainable practices to enhance productivity and minimize environmental impact.
How the Company Makes MoneyAustral Resources generates revenue primarily through the sale of copper concentrate and other mineral products extracted from its mining operations. The company’s revenue model is centered around the extraction, processing, and marketing of these minerals to both domestic and international buyers. Key revenue streams include direct sales agreements with industrial consumers and partnerships with trading firms that facilitate the distribution of its products. Additionally, Austral Resources may benefit from fluctuations in global commodity prices, particularly for copper, which can significantly impact its earnings. Strategic partnerships and collaborations with other mining companies or stakeholders in the industry also play a crucial role in enhancing operational efficiency and expanding market reach, further contributing to the company's financial performance.

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
45
Neutral
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
Negative
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
50
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue39.22M82.09M110.28M54.83M37.26M25.04M
Gross Profit-13.40M-9.03M29.74M13.23M2.08M-2.12M
EBITDA6.21M-8.43M39.30M-11.54M-4.69M-17.80M
Net Income-43.27M-22.62M9.45M-29.80M-11.73M-22.53M
Balance Sheet
Total Assets141.07M148.63M156.48M134.30M69.99M62.92M
Cash, Cash Equivalents and Short-Term Investments596.00K79.00K1.15M1.53M13.33M48.74M
Total Debt83.31M84.61M68.44M65.52M27.54M28.00M
Total Liabilities197.46M179.85M164.75M152.97M82.61M68.00M
Stockholders Equity-56.39M-31.22M-8.27M-18.68M-12.62M-5.08M
Cash Flow
Free Cash Flow-1.53M-3.69M4.57M-51.21M-3.77M-11.75M
Operating Cash Flow3.96M9.41M41.85M-1.80M646.00K-11.29M
Investing Cash Flow-4.90M-12.51M-37.28M-49.41M-10.62M-81.00K
Financing Cash Flow787.00K2.03M-5.01M38.95M23.27M11.68M

Austral Resources Australia Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.04
Price Trends
50DMA
0.09
Negative
100DMA
0.12
Negative
200DMA
0.14
Negative
Market Momentum
MACD
-0.01
Negative
RSI
26.84
Positive
STOCH
-75.00
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:AR1, the sentiment is Negative. The current price of 0.04 is below the 20-day moving average (MA) of 0.04, below the 50-day MA of 0.09, and below the 200-day MA of 0.14, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 26.84 is Positive, neither overbought nor oversold. The STOCH value of -75.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:AR1.

Austral Resources Australia 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%
47
Neutral
AU$8.12M-2.13-157.73%6.15%
41
Neutral
AU$129.74M-4.30-29.41%281.37%2.27%
41
Neutral
€150.87M-20.29-73.21%-11.29%
40
Underperform
AU$76.45M-0.51-57.00%-1789.13%
31
Underperform
AU$211.06M-16.67-4.91%-20.00%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:AR1
Austral Resources Australia Limited
0.04
-0.12
-75.00%
AU:HCH
Hot Chili Limited
1.22
0.53
77.58%
AU:HGO
Hillgrove Resources Limited
0.04
-0.01
-20.00%
AU:CYM
Cyprium Metals Limited
0.38
0.14
60.34%
AU:CVV
Caravel Minerals Limited
0.28
0.10
51.35%
AU:NRX
Noronex Ltd.
0.01
0.00
0.00%

Austral Resources Australia Limited Corporate Events

Citigroup Adjusts Holdings in Austral Resources
Nov 12, 2025

Austral Resources Australia Limited has announced a change in its substantial shareholders, with Citigroup Global Markets Australia Pty Limited ceasing to be a substantial holder as of November 10, 2025. This change reflects a decrease in Citigroup Global Markets Australia’s relevant interest in the company’s shares, while Citigroup Global Markets Limited has increased its relevant interest through securities lending agreements. This shift in shareholding may impact the company’s market dynamics and stakeholder interests, as it reflects changes in the investment strategies of significant financial entities.

Austral Resources Reinstated on ASX, Eyes Mid-Tier Copper Status
Nov 5, 2025

Austral Resources Australia Ltd has been reinstated to trading on the ASX following a comprehensive recapitalisation and corporate transformation, marked by a successful $40 million placement. This development positions Austral as a potential mid-tier copper powerhouse, with plans to produce 50,000 tonnes of copper annually over the next two decades, leveraging its dual-hub platform in Queensland and a long-term partnership with Glencore.

Austral Resources to Resume Trading After $40M Capital Raise
Nov 4, 2025

Austral Resources Australia Limited, a company listed on the Australian Securities Exchange, is set to resume trading following a successful capital raising effort. The company has completed a Placement Offer, issuing 800 million fully paid ordinary shares at $0.05 each, raising a total of $40 million. This development marks the fulfillment of all conditions required for reinstatement to the ASX, potentially enhancing the company’s operational capacity and market presence.

Austral Resources Appoints New Director Neil Meadows
Nov 4, 2025

Austral Resources Australia Ltd has announced the appointment of Neil Meadows as a director, effective from November 5, 2025. The notice indicates that Neil Meadows does not currently hold any relevant interests in securities or contracts associated with the company, suggesting a fresh start in his role without pre-existing financial ties to Austral Resources.

Austral Resources Releases Holdings Range Report Highlighting Concentrated Ownership
Nov 4, 2025

Austral Resources Australia Limited has released a holdings range report as of October 24, 2025, detailing the distribution of its ordinary fully paid shares and escrowed shares. The report highlights that a significant majority of the company’s issued share capital, 97.88%, is held by a small number of shareholders with holdings above 100,000 units, indicating a concentrated ownership structure. This concentration could impact the company’s market dynamics and influence shareholder decisions.

Austral Resources Reveals Top Shareholders in Latest Report
Nov 4, 2025

Austral Resources Australia Limited has released a report detailing the top 20 shareholders of its ordinary fully paid shares and escrowed shares. The report highlights that the top three shareholders are Thiess Group Investments Pty Ltd, Citicorp Nominees Pty Limited, and Dragon Field International Limited, collectively holding a significant portion of the company’s shares. This shareholder distribution provides insights into the company’s ownership structure, which could impact its strategic decisions and influence in the market.

Austral Resources Updates Pro Forma Balance Sheet Reflecting Strategic Transactions
Nov 4, 2025

Austral Resources Australia Ltd has released a revised pro forma balance sheet reflecting its financial position as of June 30, 2025, with adjustments for recent transactions including a Placement, the Rocklands Acquisition, and creditor and loan amendments. Notably, the AES Offer was not completed, affecting trade payables and issued capital, while the issuance of DFIL Options as part of the CRA Acquisition impacted equity option reserves and property costs. These changes will be presented for shareholder approval, indicating a strategic financial restructuring aimed at optimizing the company’s capital structure.

Austral Resources Secures Funding and Strategic Agreements for Growth
Nov 4, 2025

Austral Resources Australia Ltd has successfully raised $40 million through the issuance of 800 million shares, facilitating its reinstatement on the ASX. The company has secured a $15 million loan from Glencore to fund the Rocklands Acquisition and has completed various strategic agreements, including the Anthill Project Agreement and the settlement with Thiess, positioning itself for future growth and stability.

Austral Resources Awaits ASX Reinstatement Amid Extended Suspension
Oct 31, 2025

Austral Resources Australia Ltd has announced that its suspension from the Australian Securities Exchange (ASX) has been extended until November 7, 2025, as the ASX continues to review the company’s submitted documentation for reinstatement. The company remains optimistic about the reinstatement of its shares before the extension period ends, which could impact its market operations and investor confidence.

Austral Resources Reports Strong Q3 Performance and Secures $40 Million Funding
Oct 29, 2025

Austral Resources Australia Ltd reported strong operational performance in the September 2025 quarter, with significant achievements in mining and processing at its Anthill and Mt Kelly sites. The company successfully raised $40 million through a Placement Offer, which will fund various strategic initiatives, including balance sheet recapitalisation and resource development. The completion of this offer and the anticipated ASX reinstatement are pivotal steps in Austral’s ambition to become a mid-tier copper powerhouse.

Austral Resources Announces Director’s Shareholding Change
Oct 24, 2025

Austral Resources Australia Limited announced a change in the director’s interest, with Daniel Jauncey, the director, reducing his indirect shareholding by 40 million shares through Yellow Gear Pty Ltd as part of a capital raise. This adjustment in shareholding is significant as it reflects the company’s ongoing efforts to manage capital and potentially enhance its financial positioning, impacting stakeholders’ perception of the company’s strategic financial management.

Austral Resources Issues New Unquoted Options
Oct 24, 2025

Austral Resources Australia Limited announced the issuance of 2,464,900 unquoted options with an exercise price of $0.075 and an expiry of two years from the date of issue. This issuance is part of transactions previously disclosed to the market and is not intended to be quoted on the ASX, reflecting the company’s ongoing strategic financial maneuvers to enhance its operational capabilities and market positioning.

Austral Resources Announces Quotation of 1 Billion New Securities
Oct 24, 2025

Austral Resources Australia Limited has announced the application for the quotation of 1 billion ordinary fully paid securities on the Australian Securities Exchange (ASX), under the code AR1, effective from October 24, 2025. This move is part of a previously announced transaction, potentially enhancing the company’s capital structure and market presence, which could have significant implications for its operational growth and stakeholder engagement.

Austral Resources Secures $40 Million to Boost Copper Production
Oct 21, 2025

Austral Resources Australia Ltd has secured $40 million through a placement offer, issuing approximately 800 million shares at $0.05 each. The funds will support balance sheet recapitalization, acquisition integration, and development projects, including the Rocklands mine. This financial move positions Austral to meet ASX reinstatement conditions and leverage its recent acquisitions to enhance its standing in the copper industry, aiming for sustainable production of 50,000 tonnes of copper annually over 20 years.

Austral Resources Extends Placement Offer Deadline
Oct 8, 2025

Austral Resources Australia Limited has issued a Supplementary Prospectus to extend the closing date for its placement offer to sophisticated investors, aiming to raise $40 million. The extension moves the closing date from October 10 to October 20, 2025, allowing more time for potential investors to participate. The company plans to issue new shares and options, with trading expected to commence on October 28, 2025. Failure to meet reinstatement conditions by October 31, 2025, could result in removal from the ASX Official List.

Austral Resources Aims for Mid-Tier Copper Status with Strategic Growth
Sep 8, 2025

Austral Resources Australia Limited has released an investor presentation outlining its strategic vision to become a mid-tier copper powerhouse through disciplined consolidation and low-cost production. The company’s operations in Queensland’s world-class copper belt are positioned to deliver sustained value, with a focus on responsible growth. The presentation highlights the company’s commitment to maintaining its production targets and financial forecasts, as well as its adherence to the JORC Code for reporting mineral resources and ore reserves.

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: Nov 22, 2025