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

Austral Resources Australia Limited (AR1) AI Stock Analysis

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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 primarily through the extraction and sale of copper. The company owns and operates copper mining projects where it explores, develops, and extracts copper ore. Once extracted, the copper is processed and sold to various buyers, including smelters, manufacturers, and traders within the metals market. The company's earnings are influenced by the fluctuating global demand and market prices for copper. Additionally, Austral Resources may engage in strategic partnerships or agreements with other mining companies or financial entities to optimize its operations and expand its market presence. These partnerships can include joint ventures, off-take agreements, or investment arrangements that provide capital or expertise, further contributing to the company's 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.
Breakdown
Dec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
110.28M54.83M37.26M25.04M24.31M
Gross Profit
29.74M13.23M2.08M-2.12M3.88M
EBIT
25.79M-22.99M-5.30M-8.03M8.43M
EBITDA
39.30M-11.54M-4.69M-17.80M1.90M
Net Income Common Stockholders
9.45M-29.80M-11.73M-22.53M-7.10M
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.15M1.53M13.33M48.74M271.00K
Total Assets
156.48M134.30M69.99M62.92M52.17M
Total Debt
68.44M65.52M27.54M28.00M223.32M
Net Debt
67.29M63.99M14.21M11.03M223.05M
Total Liabilities
164.75M152.97M82.61M68.00M315.29M
Stockholders Equity
-8.27M-18.68M-12.62M-5.08M-263.12M
Cash FlowFree Cash Flow
4.57M-51.21M-3.77M-11.75M-1.37M
Operating Cash Flow
41.85M-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 (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUSFR
67
Neutral
$5.26B40.035.11%42.05%
AUIGO
62
Neutral
AU$3.00B1,418.92-36.53%6.58%-28.50%-532.61%
51
Neutral
$2.02B-1.12-21.36%3.65%2.87%-30.54%
AUMIN
50
Neutral
$3.94B50.78-33.95%4.54%2.22%-411.10%
AUAR1
39
Underperform
AU$84.35M
-25.56%-339.66%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:AR1
Austral Resources Australia Limited
0.16
0.00
0.00%
AU:MIN
Mineral Resources Limited
23.19
-46.16
-66.56%
AU:SFR
Sandfire Resources Limited
11.71
2.62
28.82%
AU:IGO
IGO
4.34
-2.16
-33.18%

Austral Resources Australia Limited Corporate Events

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.

Austral Resources Releases 2024 Corporate Governance Statement
Mar 31, 2025

Austral Resources Australia Ltd has released its Appendix 4G and 2024 Corporate Governance Statement, in compliance with ASX Listing Rules. This announcement outlines the company’s adherence to corporate governance principles and provides stakeholders with transparency regarding its governance practices, which are crucial for maintaining investor confidence and ensuring regulatory compliance.

Austral Resources Releases 2024 Annual Report Highlighting Performance and ESG Commitment
Mar 31, 2025

Austral Resources Australia Limited has released its annual report for the year ending December 31, 2024. The report highlights the company’s performance, operational reviews, and commitment to environmental, social, and governance (ESG) principles. Key insights from the report indicate a focus on strengthening operations and enhancing shareholder value, which may have significant implications for its market positioning and stakeholder engagement.

Austral Resources Announces 2025 AGM and Director Re-elections
Mar 17, 2025

Austral Resources Australia Ltd has announced its intention to hold the 2025 Annual General Meeting on 21 May 2025. A key agenda item will be the re-election of directors, with nominations closing on 28 March 2025. This meeting is significant for stakeholders as it will influence the company’s governance and future strategic direction.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.