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Australian Rare Earths Limited (AU:AR3)
ASX:AR3
Australian Market

Australian Rare Earths Limited (AR3) AI Stock Analysis

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AU:AR3

Australian Rare Earths Limited

(Sydney:AR3)

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Neutral 50 (OpenAI - 5.2)
Rating:50Neutral
Price Target:
AU$0.21
â–²(2.50% Upside)
The score is held back primarily by weak financial performance: persistent losses and deeply negative free cash flow indicate ongoing funding needs despite a low-debt balance sheet. Technicals are neutral-to-mixed (RSI near 50, MACD slightly negative; price above 20DMA but below 50DMA), and valuation is constrained by a negative P/E and no dividend yield data.
Positive Factors
Strategic Partnerships
The partnership with ANSTO and government support enhances AR3's ability to advance its Koppamurra Project, strengthening its market position and aligning with national priorities for rare earth supply chains.
Regulatory Milestones
Achieving key regulatory milestones for the Koppamurra Project reduces potential delays and ensures a structured approach to development, enhancing project viability and stakeholder confidence.
Government Support
Government financial support through grants and tax incentives strengthens AR3's financial position and underscores its strategic importance in the critical minerals supply chain.
Negative Factors
Cash Flow Challenges
Persistent negative cash flow indicates ongoing funding needs, which may lead to further dilution or financial strain if not addressed by scaling operations or securing additional capital.
Inconsistent Revenue
Minimal and inconsistent revenue highlights the early-stage nature of AR3's operations, posing challenges to achieving sustainable profitability and necessitating continued investment and development.
Persistent Losses
Ongoing losses reflect the company's developmental stage and the need for substantial investment before achieving profitability, impacting long-term financial sustainability.

Australian Rare Earths Limited (AR3) vs. iShares MSCI Australia ETF (EWA)

Australian Rare Earths Limited Business Overview & Revenue Model

Company DescriptionAustralian Rare Earths Limited engages in the exploration and development of rare earths mineral resource opportunities in Australia. Its flagship project is the Koppamurra project located in South Australia and Victoria. The company was formerly known as Tawel Exploration Pty Ltd and changed its name to Australian Rare Earths Limited in March 2021. Australian Rare Earths Limited was incorporated in 2019 and is headquartered in Adelaide, Australia.
How the Company Makes MoneyAustralian Rare Earths Limited makes money through the exploration, development, and eventual extraction and sale of rare earth elements from its mining projects. The company's revenue model is primarily based on the successful identification and development of economically viable rare earth deposits, which can then be mined and sold to manufacturers and industries that rely on these materials. Key revenue streams include the sale of raw or processed rare earth elements to industries such as electronics, renewable energy, and automotive, particularly those involved in the production of magnets, batteries, and other high-tech components. Partnerships with technology companies, as well as strategic alliances with other mining companies, may also contribute to its earnings by providing access to advanced extraction technologies and shared resources.

Australian Rare Earths Limited Financial Statement Overview

Summary
Australian Rare Earths Limited is facing significant financial challenges, primarily due to the absence of revenue. While the balance sheet reflects a strong equity position, the lack of revenue and negative cash flow highlight liquidity concerns. The company needs to improve operational efficiencies or secure additional funding to ensure long-term viability.
Income Statement
The company has reported zero revenue in recent years, indicating a lack of sales or operational income. The consistent negative EBIT and EBITDA margins highlight ongoing operational losses, and the absence of net profit figures further underscores financial challenges.
Balance Sheet
Despite having a strong equity position with the equity ratio improving to 92.9%, the company has limited liabilities which is positive. However, the negative cash flow and no revenue generation pose potential risks for maintaining financial stability in the long term.
Cash Flow
The company has consistently reported negative free cash flow, indicating more cash outflows than inflows. Despite some financing activities observed in previous years, the continuous negative operating cash flow raises concerns about liquidity and the ability to sustain operations.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue0.00222.15K0.000.0066.70K0.00
Gross Profit-222.96K222.15K-221.00K-60.85K22.95K0.00
EBITDA-3.45M-3.40M-3.23M-2.36M-5.33M4.00K
Net Income-1.87M-3.48M-3.45M-2.42M-5.37M-587.00K
Balance Sheet
Total Assets25.08M25.08M23.76M26.96M18.48M13.15M
Cash, Cash Equivalents and Short-Term Investments4.91M4.91M7.61M14.98M12.62M12.08M
Total Debt520.17K520.17K643.75K224.51K62.23K0.00
Total Liabilities2.27M2.27M1.69M2.07M1.26M1.18M
Stockholders Equity22.81M22.81M22.08M24.89M17.22M11.97M
Cash Flow
Free Cash Flow-809.93K-6.83M-7.26M-7.95M-6.09M-1.10M
Operating Cash Flow-802.17K-1.33M-2.40M-2.10M-1.69M-214.90K
Investing Cash Flow-4.77M-4.77M-4.89M-5.89M-4.49M-893.64K
Financing Cash Flow3.40M3.40M-86.28K10.36M6.71M13.18M

Australian Rare Earths Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.20
Price Trends
50DMA
0.21
Positive
100DMA
0.18
Positive
200DMA
0.13
Positive
Market Momentum
MACD
<0.01
Negative
RSI
59.46
Neutral
STOCH
74.20
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:AR3, the sentiment is Positive. The current price of 0.2 is above the 20-day moving average (MA) of 0.20, below the 50-day MA of 0.21, and above the 200-day MA of 0.13, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 59.46 is Neutral, neither overbought nor oversold. The STOCH value of 74.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:AR3.

Australian Rare Earths 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$51.14M-11.33-15.50%――3.79%
49
Neutral
AU$20.97M-8.42-11.09%――36.67%
48
Neutral
AU$8.41M-1.48-217.79%――43.46%
45
Neutral
AU$30.86M-0.42-121.41%――-1034.67%
41
Neutral
AU$44.97M-6.76-5.81%―-67.81%-244.10%
41
Neutral
AU$29.56M-6.74-84.97%―-100.00%8.51%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:AR3
Australian Rare Earths Limited
0.23
0.15
177.11%
AU:WIN
Widgie Nickel Limited
0.04
0.02
111.76%
AU:REE
RareX Limited
0.03
0.02
163.64%
AU:OLY
CropLogic Ltd.
0.07
0.03
67.50%
AU:VML
Vital Metals Ltd
0.19
0.13
216.67%
AU:PVT
Rafaella Resources Ltd.
0.02
<0.01
60.00%

Australian Rare Earths Limited Corporate Events

Australian Rare Earths Seeks ASX Quotation for Additional 208,945 Shares
Dec 19, 2025

Australian Rare Earths Limited has applied to the ASX for quotation of 208,945 new fully paid ordinary shares under code AR3, following the issue of these securities on 19 December 2025. The modest increase in quoted capital reflects the conversion or exercise of existing securities and marginally broadens the company’s tradable share base, with limited immediate dilution but signalling ongoing capital structuring as the company advances its rare earths portfolio.

Australian Rare Earths Limited Announces Quotation of New Securities
Dec 17, 2025

Australian Rare Earths Limited has announced the quotation of 91,667 fully paid ordinary securities on the ASX, effective December 17, 2025. This move is part of the company’s strategy to enhance its financial flexibility and support its growth initiatives in the rare earths sector, potentially impacting its market position and offering new opportunities for stakeholders.

Australian Rare Earths Ltd Announces Director’s Interest Change
Dec 4, 2025

Australian Rare Earths Limited announced a change in the director’s interest, as Pauline Carr, the sole director of Equinalia Pty Ltd and Equinas Apache Pty Ltd, has seen the expiry of 500,000 unlisted options. This change reflects the ongoing management of the company’s securities and may impact the company’s stock options strategy, potentially influencing investor perceptions and market positioning.

Australian Rare Earths Limited Announces Director’s Interest Change
Dec 2, 2025

Australian Rare Earths Limited has announced a change in the director’s interest, with Angus Jack Rutherford Barker acquiring 1,500,000 unlisted options expiring in November 2028. This change reflects strategic adjustments in the company’s governance and may influence its future operational strategies and stakeholder interests.

Australian Rare Earths Limited Announces Quotation of New Securities
Dec 2, 2025

Australian Rare Earths Limited has announced the quotation of 75,229 fully paid ordinary securities on the Australian Securities Exchange (ASX) as of December 2, 2025. This move is part of the company’s strategy to enhance its market presence and potentially increase liquidity, which could have positive implications for its stakeholders and overall industry positioning.

Australian Rare Earths Advances Koppamurra Project with Key Regulatory Milestone
Dec 1, 2025

Australian Rare Earths Limited has announced a significant regulatory milestone for its Koppamurra Project with the publication of a scoping report by South Australia’s Department for Energy and Mining. This report outlines the necessary environmental, social, and technical studies required before a Mining Lease application, reducing potential delays and ensuring a structured approach to project development. The scoping report is a critical step in the approvals process, enhancing transparency and stakeholder alignment, and positioning Koppamurra as a leading ionic clay rare earth project in Australia with the potential to supply critical minerals to global markets.

AR3 Partners with ANSTO to Advance Koppamurra Rare Earth Project
Nov 30, 2025

Australian Rare Earths Limited (AR3) has announced its strategic partnership with the Australian Nuclear Science and Technology Organisation (ANSTO) to utilize their new pilot-scale rare earth processing facility. This collaboration marks a significant milestone for AR3, allowing the company to advance its Koppamurra Project by processing 25 tonnes of ore to produce 35kg of Mixed Rare Earth Carbonate (MREC). The initiative is supported by a $5 million Australian Government grant, underscoring national efforts to bolster domestic rare earth supply chains. This development not only accelerates AR3’s commercial pathway but also strengthens Australia’s position in the global rare earth market, aligning with national economic and strategic priorities.

Australian Rare Earths Issues Performance Rights to Employees
Nov 26, 2025

Australian Rare Earths Limited has announced the issuance of 4,901,753 performance rights under an employee incentive scheme. These securities are unquoted and subject to transfer restrictions, reflecting the company’s strategy to incentivize employees and align their interests with long-term corporate goals.

Australian Rare Earths Limited Issues New Performance Rights
Nov 26, 2025

Australian Rare Earths Limited announced the issuance of 7,889,088 performance rights as part of its unquoted equity securities. This move is likely aimed at incentivizing key personnel and aligning their interests with the company’s growth objectives, potentially impacting its operational strategy and stakeholder engagement.

Australian Rare Earths Limited Issues New Equity Options
Nov 26, 2025

Australian Rare Earths Limited announced the issuance of 654,490 unquoted equity securities, specifically options expiring on September 30, 2029. This move is part of the company’s strategic financial maneuvers, potentially impacting its capital structure and providing stakeholders with insights into its future growth and operational strategies.

Australian Rare Earths Limited Issues New Unlisted Options
Nov 26, 2025

Australian Rare Earths Limited has announced the issuance of 3,000,000 unlisted options, exercisable at $0.325 and expiring on November 26, 2028. This move could potentially enhance the company’s financial flexibility and strategic positioning within the rare earths market, offering implications for stakeholders regarding future growth and investment opportunities.

Australian Rare Earths Limited Successfully Passes All AGM Resolutions
Nov 26, 2025

Australian Rare Earths Limited announced that all resolutions presented at its 2025 Annual General Meeting were successfully passed. This outcome supports AR3’s strategic initiatives and positions the company for growth in the critical minerals market, enhancing its role in diversifying global rare earth supply chains.

Australian Rare Earths Limited Strengthens Strategic Position Amid Global Supply Chain Shifts
Nov 26, 2025

Australian Rare Earths Limited’s Koppamurra Rare Earth Project is gaining strategic importance as geopolitical tensions and policy shifts highlight the need for diversified rare earth supplies. With significant support from the Australian Government and partnerships like Neo Performance Materials, the company is poised to complete a pre-feasibility study by early 2026. The project is positioned as a critical non-China source of rare earths, aligning with national security priorities and benefiting from fiscal incentives and international agreements aimed at securing critical mineral supply chains.

Australian Rare Earths Limited Issues New Securities to Boost Market Presence
Nov 19, 2025

Australian Rare Earths Limited has announced the issuance of 404,316 fully paid ordinary securities, which will be quoted on the ASX under the code AR3. This move is part of the company’s strategy to enhance its market presence and potentially increase its capital base, impacting its operational capabilities and market positioning positively.

Australian Rare Earths Limited Issues New Securities on ASX
Nov 14, 2025

Australian Rare Earths Limited has announced the issuance of 372,901 ordinary fully paid securities, which are set to be quoted on the Australian Securities Exchange (ASX) under the code AR3. This move reflects the company’s efforts to enhance its financial flexibility and potentially expand its operations, which could strengthen its position in the rare earth market and impact stakeholders positively.

Australian Rare Earths to Present at Noosa Mining Conference
Nov 11, 2025

Australian Rare Earths Limited announced that its Managing Director and CEO, Travis Beinke, will present at the Noosa Mining Conference in Queensland. This participation underscores the company’s commitment to advancing the Koppamurra Rare Earths Project and engaging with stakeholders, potentially enhancing its industry positioning and investor relations.

Australian Rare Earths Limited Quotes New Securities on ASX
Nov 11, 2025

Australian Rare Earths Limited has announced the quotation of 514,388 fully paid ordinary securities on the Australian Securities Exchange (ASX) under the code AR3. This move is part of the company’s strategic efforts to enhance its market presence and operational capacity, potentially impacting its industry positioning positively by increasing liquidity and investor interest.

Australian Rare Earths Limited Issues New Securities
Nov 7, 2025

Australian Rare Earths Limited has announced the issuance of 259,548 fully paid ordinary securities, which will be quoted on the ASX. This move indicates the company’s ongoing efforts to enhance its capital structure and potentially expand its operational capabilities, reflecting its strategic positioning within the rare earth elements market.

Australian Rare Earths Identifies Promising Uranium Targets in South Australia
Nov 6, 2025

Australian Rare Earths Limited has identified significant uranium mineralization within its newly granted exploration licenses in South Australia’s Overland Project. Assay results from historic drilling have confirmed the presence of uranium, revealing two extensive sedimentary-hosted uranium target zones. These findings enhance the exploration potential of the project and provide a strong basis for planned follow-up drilling and technical evaluation. The company plans to integrate data and conduct geophysical reviews to refine their geological model and confirm the mineralization potential, which could strengthen their position in the uranium exploration sector.

Australian Rare Earths Limited Announces Quotation of New Securities
Nov 5, 2025

Australian Rare Earths Limited has announced the quotation of 54,628 ordinary fully paid securities on the Australian Securities Exchange as of November 5, 2025. This move reflects the company’s strategic efforts to enhance its market presence and potentially increase liquidity, which could have positive implications for its stakeholders and market positioning.

Australian Rare Earths Limited Announces Quotation of New Securities on ASX
Oct 30, 2025

Australian Rare Earths Limited has announced the quotation of 170,926 fully paid ordinary securities on the Australian Securities Exchange (ASX) as of October 30, 2025. This move signifies the company’s ongoing efforts to enhance its financial standing and potentially increase its market presence, which could have positive implications for stakeholders by providing more liquidity and investment opportunities.

Australian Rare Earths Advances Projects and Strengthens Market Position
Oct 28, 2025

Australian Rare Earths Limited reported significant progress in its Koppamurra Rare Earths Project, achieving a 99% recovery rate of magnet rare earths, which underscores the scalability and efficiency of its processes. The company also expanded its Overland Uranium Project by acquiring additional land and resuming drilling activities. Financially, AR3 maintains a strong cash position and has secured further funding through government grants and option exercises. The company actively participated in international events to strengthen its position in the critical minerals supply chain and engaged with local communities through the establishment of the Koppamurra Community Consultative Committee.

Australian Rare Earths Limited Announces 2025 AGM Details
Oct 28, 2025

Australian Rare Earths Limited has announced its Annual General Meeting (AGM) scheduled for November 26, 2025, in Adelaide. The company encourages shareholders to participate by lodging proxy forms online or by mail if they cannot attend in person. The AGM will include a poll for voting on resolutions and an opportunity for shareholders to ask questions, including those directed to the company’s auditor. This meeting is a significant event for stakeholders to engage with the company’s strategic direction and governance.

Australian Rare Earths Limited Announces Quotation of New Securities
Oct 27, 2025

Australian Rare Earths Limited has announced the quotation of 434,966 ordinary fully paid securities on the Australian Securities Exchange (ASX) under the code AR3. This move is part of the company’s strategy to enhance its capital structure and support its growth initiatives in the rare earths sector, potentially impacting its operational capacity and market positioning.

Australian Rare Earths Limited Announces Quotation of New Securities
Oct 22, 2025

Australian Rare Earths Limited has announced the quotation of 987,678 ordinary fully paid securities on the Australian Securities Exchange (ASX) under the code AR3. This move is part of the company’s strategy to enhance its financial flexibility and support its ongoing projects in the rare earth sector, potentially strengthening its position in the industry and offering new opportunities for stakeholders.

AR3 Secures Government R&D Incentive Amid Critical Minerals Focus
Oct 22, 2025

Australian Rare Earths Limited has received a A$617,492 R&D tax refund from the Australian Government, recognizing its investment in innovation at the Koppamurra Rare Earth Project. This financial boost, alongside a A$5 million grant, positions AR3 as a key player in the global critical minerals supply chain, especially as geopolitical developments like the Critical Minerals Framework between the US and Australia emphasize the importance of secure supply chains. AR3’s strategic projects and international partnerships aim to build resilient supply chains for light and heavy rare earths, crucial for technologies such as electric vehicles and wind turbines, aligning with the global energy transition.

Australian Rare Earths Limited Announces Quotation of New Securities
Oct 21, 2025

Australian Rare Earths Limited has announced the quotation of 361,319 ordinary fully paid securities on the Australian Securities Exchange (ASX) under the code AR3. This move is part of the company’s strategy to enhance its market presence and potentially increase its capital base, which could have significant implications for its operational expansion and stakeholder engagement.

Australian Rare Earths Limited Announces Quotation of New Securities
Oct 17, 2025

Australian Rare Earths Limited has announced the quotation of 541,457 fully paid ordinary securities on the Australian Securities Exchange (ASX) under the code AR3, effective from October 17, 2025. This move is part of the company’s strategy to enhance its market presence and potentially increase liquidity, which could have positive implications for its stakeholders by improving access to capital and supporting its growth initiatives.

Australian Rare Earths Limited Announces Quotation of New Securities on ASX
Oct 15, 2025

Australian Rare Earths Limited has announced the quotation of 2,814,095 ordinary fully paid securities on the Australian Securities Exchange (ASX) under the code AR3. This move is part of the company’s strategy to enhance its market presence and potentially increase its capital base, which could have significant implications for its operational capabilities and stakeholder interests.

Australian Rare Earths Limited Issues New Securities to Boost Market Presence
Oct 13, 2025

Australian Rare Earths Limited has announced the issuance of 683,147 ordinary fully paid securities, which are set to be quoted on the ASX under the code AR3. This move reflects the company’s ongoing efforts to enhance its market presence and operational capacity, potentially impacting its strategic positioning within the rare earth minerals sector.

Australian Rare Earths Limited Issues New Securities to Boost Market Presence
Oct 8, 2025

Australian Rare Earths Limited has announced the issuance of 314,706 fully paid ordinary securities, which will be quoted on the Australian Securities Exchange (ASX) under the code AR3. This move is part of the company’s strategy to enhance its market presence and potentially increase liquidity, benefiting shareholders and stakeholders involved in the rare earths sector.

Australian Rare Earths to Host Investor Webinar Post-Industry Events
Oct 7, 2025

Australian Rare Earths Limited announced an upcoming investor webinar led by Managing Director Travis Beinke and Chairman Angus Barker. The webinar aims to provide insights from their participation in key industry events across the US, Canada, and Europe, potentially influencing the company’s strategic positioning and stakeholder engagement.

Australian Rare Earths Limited Announces 2025 AGM and Director Nomination Deadline
Oct 2, 2025

Australian Rare Earths Limited has announced its 2025 Annual General Meeting will be held around November 26, with the closing date for Director Nominations set for October 10. This meeting is crucial for stakeholders as it will discuss the company’s strategic direction amidst its ongoing projects in rare earth elements and uranium, which are vital for the clean energy transition. With strong government backing and strategic partnerships, AR3 is well-positioned for growth in the critical minerals market.

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