Australian Rare Earths Limited (AU:AR3)
ASX:AR3
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Australian Rare Earths Limited
(Sydney:AR3)
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Rating:46Neutral
Price Target:
AU$0.13
â–¼(-34.00% Downside)
Action:ReiteratedDate:02/06/26
The score is held down primarily by weak financial performance—persistent losses and heavy negative free cash flow indicating continued funding needs—despite a low-debt balance sheet. Technicals further pressure the score as price is below key moving averages with negative MACD. Valuation provides limited support because the P/E is negative and there is no dividend yield data.
Positive Factors
Low Leverage / Strong Equity
The balance sheet shows very low leverage and ~A$22.8m equity in FY2025, providing structural financial flexibility. Low debt reduces default and covenant risk, supports continued exploration spending, and gives the company optionality to fund development via equity or project financing without heavy interest burdens.
Negative Factors
Persistent Losses
Consistent net losses (around A$3.48m in FY2025) reflect operations that are not yet profitable and are consuming equity over time. Persistent negative earnings pressure returns on equity, increase reliance on external capital, and extend the timeline before the company can self-fund exploration or development activities.
Read all positive and negative factors
Positive Factors
Negative Factors
Low Leverage / Strong Equity
The balance sheet shows very low leverage and ~A$22.8m equity in FY2025, providing structural financial flexibility. Low debt reduces default and covenant risk, supports continued exploration spending, and gives the company optionality to fund development via equity or project financing without heavy interest burdens.
Read all positive factors
Australian Rare Earths Limited (AR3) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$33.22M
Dividend YieldN/A
Average Volume (3M)1.83M
Price to Earnings (P/E)―
Beta (1Y)1.87
Revenue GrowthN/A
EPS Growth-8.74%
CountryAU
EmployeesN/A
SectorBasic Materials
Sector Strength58
IndustryIndustrial Materials
Share Statistics
EPS (TTM)-0.01
Shares Outstanding255,543,810
10 Day Avg. Volume4,438,561
30 Day Avg. Volume1,827,049
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)0.39
Price to Sales (P/S)39.90
P/FCF Ratio-1.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Australian Rare Earths Limited Business Overview & Revenue Model
Company Description
Australian 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 ...
How the Company Makes Money
null...
Australian Rare Earths Limited Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
71
Positive
Cash Flow
24
Negative
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 0.00 | 222.15K | 0.00 | 0.00 | 66.70K | 0.00 |
| Gross Profit | -220.65K | 222.15K | -221.00K | -60.85K | 22.95K | 0.00 |
| EBITDA | -4.45M | -3.40M | -3.23M | -2.36M | -5.33M | 4.00K |
| Net Income | -4.40M | -3.48M | -3.45M | -2.42M | -5.37M | -587.00K |
Balance Sheet | ||||||
| Total Assets | 24.41M | 25.08M | 23.76M | 26.96M | 18.48M | 13.15M |
| Cash, Cash Equivalents and Short-Term Investments | 2.16M | 4.91M | 7.61M | 14.98M | 12.62M | 12.08M |
| Total Debt | 451.96K | 520.17K | 643.75K | 224.51K | 62.23K | 0.00 |
| Total Liabilities | 2.17M | 2.27M | 1.69M | 2.07M | 1.26M | 1.18M |
| Stockholders Equity | 22.25M | 22.81M | 22.08M | 24.89M | 17.22M | 11.97M |
Cash Flow | ||||||
| Free Cash Flow | -967.09K | -6.83M | -7.26M | -7.95M | -6.09M | -1.10M |
| Operating Cash Flow | -956.90K | -1.33M | -2.40M | -2.10M | -1.69M | -214.90K |
| Investing Cash Flow | -6.64M | -4.77M | -4.89M | -5.89M | -4.49M | -893.64K |
| Financing Cash Flow | 4.44M | 3.40M | -86.28K | 10.36M | 6.71M | 13.18M |
Australian Rare Earths Limited Technical Analysis
Positive
0.20
Price Trends
0.15
Positive
0.18
Negative
0.16
Negative
Market Momentum
>-0.01
Negative
57.15
Neutral
50.00
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 0.14, above the 50-day MA of 0.15, and above the 200-day MA of 0.16, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 57.15 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
49 Neutral | AU$19.01M | -4.44 | -9.05% | ― | ― | 27.27% | |
46 Neutral | AU$33.22M | -4.34 | -19.53% | ― | ― | -8.74% | |
44 Neutral | AU$10.18M | -0.86 | -330.25% | ― | ― | 43.46% | |
43 Neutral | AU$18.19M | -7.09 | -51.58% | ― | ― | 56.45% | |
43 Neutral | AU$37.18M | -2.58 | -5.94% | ― | -99.74% | -22.67% | |
42 Neutral | AU$19.72M | -2.74 | -19.15% | ― | ― | 93.90% |
* Basic Materials Sector Average
AU:AR3
Australian Rare Earths Limited
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Australian Rare Earths Limited Corporate Events
Australian Rare Earths Schedules Investor Webinar on Quarterly Results and Capital Raise
Apr 24, 2026
Australian Rare Earths has scheduled a quarterly investor webinar to be hosted by Managing Director and Chief Executive Officer Travis Beinke, where the company will discuss its recent quarterly results and a recent capital raising. Shareholders a...
Australian Rare Earths advances Koppamurra study and ramps up Overland uranium drilling
Apr 23, 2026
Australian Rare Earths has advanced its Koppamurra project by establishing a high-purity mixed rare earth oxide processing route that recovers 99.9% of rare earths from solution and targets a calcined product grade of about 98.6% REO plus yttrium ...
Australian Rare Earths Issues 18.2 Million Unquoted Options
Apr 22, 2026
Australian Rare Earths Limited has notified the market of the issue of 18,189,194 unquoted options, each exercisable at $0.2775 and expiring on 21 April 2029. The options, which are part of a previously announced transaction and are not intended t...
Australian Rare Earths Seeks ASX Quotation for New Share Issue
Apr 22, 2026
Australian Rare Earths Limited has applied to the ASX for quotation of 44,118 new fully paid ordinary shares under the code AR3. These securities arise from the exercise or conversion of existing options or other convertible securities and were is...
Australian Rare Earths Wins Shareholder Backing for Capital-Raising Resolutions
Apr 21, 2026
Australian Rare Earths Limited reported that all three ordinary resolutions put to shareholders at its 21 April 2026 general meeting were carried by poll, including the ratification of placement shares issued in February and approvals to issue pla...
Australian Rare Earths moves Koppamurra project into pilot-scale processing at ANSTO
Apr 14, 2026
Australian Rare Earths has prepared about 30 tonnes of ore from its Koppamurra project for shipment to ANSTO’s new pilot-scale rare earth processing facility in Sydney. As the first industry user of this plant, AR3 expects to shorten develop...
Australian Rare Earths Sets Virtual General Meeting as It Advances Critical Minerals Projects
Mar 24, 2026
Australian Rare Earths Limited has called a virtual general meeting for 21 April 2026, with the notice and explanatory memorandum available online via its website and the ASX platform. Shareholders will receive meeting documents electronically by ...
Australian Rare Earths Seeks Quotation for 662,508 New Ordinary Shares
Mar 10, 2026
Australian Rare Earths Limited has applied to the ASX for quotation of 662,508 new ordinary fully paid shares. The securities, issued on March 10, 2026 following the exercise or conversion of existing instruments, modestly increase the companyR...
Australian Rare Earths Director Updates Equity Holdings After Option Lapse
Mar 5, 2026
Australian Rare Earths Limited has reported a change in director Angus Jack Rutherford Barker’s interests, following the lapse of 500,000 unlisted options with an exercise price of $0.47 that were due to expire on 28 February 2026. Barker co...
Australian Rare Earths Options Lapse Without Exercise, Clarifying Capital Structure
Mar 5, 2026
Australian Rare Earths Limited has reported the cessation of 500,000 options with an exercise price of $0.4671, which expired unexercised on 2 March 2026. The expiry of these options marginally reduces the company’s potential future share di...
Australian Rare Earths to Restart Uranium Drilling at Overland in April 2026
Mar 4, 2026
Australian Rare Earths has secured regulatory approval to restart uranium drilling at its Overland Project in South Australia, with a contractor engaged and mobilisation set for April 2026. The program will test two large sedimentary-hosted uraniu...
AR3 Secures More Government Funding as Koppamurra Rare Earths Project Advances
Feb 19, 2026
Australian Rare Earths has received a further A$960,000 under the Australian Government’s International Partnerships in Critical Minerals program, lifting total grant receipts to A$2.75 million and underpinning ongoing work at its flagship K...
Australian Rare Earths Adds Modest Parcel of New Shares to ASX Quotation
Feb 9, 2026
Australian Rare Earths Limited has applied to the ASX for quotation of 31,688 new ordinary fully paid shares. The securities, issued on 9 February 2026, arise from the exercise or conversion of existing options or other convertible securities, mod...
Australian Rare Earths Confirms Compliance Following $32m-Share Placement
Feb 6, 2026
Australian Rare Earths Limited has issued 32,378,388 fully paid ordinary shares via a placement completed on 6 February 2026, following an earlier market announcement on 30 January 2026. The company confirmed that the capital raising was conducted...
Australian Rare Earths Seeks ASX Quotation for 32.4 Million New Shares
Feb 6, 2026
Australian Rare Earths Limited has applied to the ASX for quotation of 32,378,388 new fully paid ordinary shares, expanding its listed securities on the exchange as of 6 February 2026. The additional stock issuance, arising from previously announc...
Australian Rare Earths Schedules Investor Webinar on Quarterly Results and Capital Raise
Feb 2, 2026
Australian Rare Earths Limited has announced that Managing Director and CEO Travis Beinke will host a quarterly investor webinar to discuss the company’s recent quarterly results and a recent capital raising. The session, scheduled for 4 Feb...
Australian Rare Earths Seeks ASX Quotation for New Batch of Ordinary Shares
Jan 30, 2026
Australian Rare Earths Limited has applied to the ASX for quotation of 49,834 new fully paid ordinary shares, to be issued on 30 January 2026 following the exercise or conversion of existing options or other convertible securities. The modest incr...
Australian Rare Earths Fast-Tracks Koppamurra With ANSTO Pilot Access and Capital Injection
Jan 30, 2026
Australian Rare Earths Limited reported strong quarterly progress at its Koppamurra Rare Earths Project, becoming the first industry partner to access ANSTO’s new continuous pilot-scale rare earth processing facility, which is expected to re...
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.