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Ardea Resources Ltd. (AU:ARL)
ASX:ARL

Ardea Resources (ARL) AI Stock Analysis

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AU

Ardea Resources

(Sydney:ARL)

Rating:48Neutral
Price Target:
AU$0.50
▲(25.00%Upside)
Ardea Resources Ltd.'s overall stock score reflects its challenging financial position with persistent losses affecting profitability and cash flow. Technical analysis and valuation indicate potential weaknesses, as the stock shows bearish trends and valuation concerns. The absence of a dividend yield and negative P/E ratio further impact the score. The company's strong equity position is a positive aspect, but significant improvements in profitability and cash flow management are needed.

Ardea Resources (ARL) vs. iShares MSCI Australia ETF (EWA)

Ardea Resources Business Overview & Revenue Model

Company DescriptionArdea Resources Limited engages in the evaluation, exploration, and development of mineral properties in Australia. The company explores for nickel, cobalt, scandium, gold, PGEs, and copper deposits. It holds 100% interest in Kalgoorlie Nickel Project (KNP) located in the Kalgoorlie, Western Australia that comprises nickel, cobalt, and scandium laterite mineral resources, as well as and nickel sulphide and critical projects; the Kalpini Project is located in the City of Kalgoorlie-Boulder that covers approximately 121 square kilometers; and the Bardoc Tectonic Zone Gold Project, which has nickel sulphide prospects. Ardea Resources Limited was incorporated in 2016 and is based in West Perth, Australia.
How the Company Makes MoneyArdea Resources Ltd. generates revenue primarily through the exploration, development, and potential future production of mineral resources, particularly nickel and cobalt. The company aims to capitalize on the increasing demand for these metals driven by the growth of the electric vehicle and renewable energy sectors. Revenue streams include the sale of extracted minerals once production commences, as well as potential joint ventures, partnerships, and offtake agreements with other companies in the mining and technology sectors. Ardea Resources may also engage in strategic alliances to enhance its project development capabilities and share financial and technical resources.

Ardea Resources Financial Statement Overview

Summary
Ardea Resources Ltd. is in a challenging financial position with persistent losses affecting profitability and cash flow. While the balance sheet shows strength with low leverage and strong equity, the income and cash flow statements highlight issues with revenue scale and operational cash generation. The company must focus on improving profitability and cash flow management to enhance its financial health.
Income Statement
45
Neutral
Ardea Resources Ltd. shows a considerable increase in revenue from the previous year, but it remains a low-revenue company in the Industrial Materials sector. The company has a negative net profit margin and EBIT margin due to continued losses, which is concerning for profitability. However, the gross profit margin is positive, indicating some operational efficiency.
Balance Sheet
55
Neutral
The company has a strong equity position with a high equity ratio, indicating stability. The debt-to-equity ratio is low, suggesting minimal leverage, which reduces financial risk. However, continuous net losses impact the return on equity, which remains negative.
Cash Flow
50
Neutral
Operating cash flow is negative, and free cash flow is also negative, showing cash flow challenges. The company relies heavily on financing activities to support its cash flow needs. However, the free cash flow position has slightly improved from the previous year, indicating some progress in managing cash outflows.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
82.25K322.36K75.12K22.24K146.85K83.57K
Gross Profit
82.25K322.36K-163.20K-118.52K54.76K-41.62K
EBIT
-5.10M-4.42M-3.10M-1.86M-1.08M-1.15M
EBITDA
-8.52M-7.45M-4.00M-5.19M-2.21M-1.95M
Net Income Common Stockholders
-8.35M-7.71M-4.24M-5.33M-2.30M-2.08M
Balance SheetCash, Cash Equivalents and Short-Term Investments
13.28M14.85M10.65M22.02M5.69M10.01M
Total Assets
77.15M59.78M47.78M50.60M36.10M33.50M
Total Debt
19.85M1.24M153.60K280.29K51.79K120.84K
Net Debt
6.56M-13.60M-10.49M-21.74M-5.64M-9.89M
Total Liabilities
25.68M4.61M1.92M1.59M812.07K794.75K
Stockholders Equity
51.47M55.17M45.87M49.01M35.29M32.70M
Cash FlowFree Cash Flow
-27.36M-11.63M-13.31M-10.34M-10.14M-5.74M
Operating Cash Flow
-6.58M-4.14M-1.37M-2.07M-554.67K-91.01K
Investing Cash Flow
-19.39M-7.49M-10.00M-7.28M-8.40M-3.88M
Financing Cash Flow
19.63M15.83M-5.00K25.68M4.64M2.79M

Ardea Resources Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.40
Price Trends
50DMA
0.41
Negative
100DMA
0.41
Negative
200DMA
0.40
Positive
Market Momentum
MACD
>-0.01
Negative
RSI
47.51
Neutral
STOCH
61.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ARL, the sentiment is Negative. The current price of 0.4 is below the 20-day moving average (MA) of 0.41, below the 50-day MA of 0.41, and below the 200-day MA of 0.40, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 47.51 is Neutral, neither overbought nor oversold. The STOCH value of 61.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:ARL.

Ardea Resources Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
51
Neutral
$2.04B-1.15-21.24%3.95%2.91%-30.44%
AUARL
48
Neutral
$85.22M-15.37%-34.41%
$50.53M-15.36%
AUASM
54
Neutral
AU$130.57M-15.33%-52.53%-27.29%
AUEQR
44
Neutral
AU$101.73M-141.59%562.03%-336.00%
AUMTH
41
Neutral
AU$75.80M-5.23%54.26%
AUPSC
36
Underperform
AU$98.37M-26.16%-28.93%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:ARL
Ardea Resources
0.40
-0.12
-23.43%
ATVVF
Australian Vanadium
0.02
0.01
100.00%
AU:MTH
Mithril Resources Ltd
0.49
0.28
133.33%
AU:EQR
EQ Resources Limited
0.04
0.00
0.00%
AU:ASM
Australian Strategic Materials Ltd
0.71
-0.11
-13.41%
AU:PSC
Prospect Resources Ltd.
0.15
<0.01
7.14%

Ardea Resources Corporate Events

Ardea Resources Advances Goongarrie Project with Positive Economic Outlook
Jun 3, 2025

Ardea Resources has announced the progression of its Goongarrie Project, a significant nickel-cobalt development in Australia. The project has completed its Pre-Feasibility Study phase and is moving into the Definitive Feasibility Study phase, indicating positive economic potential. This advancement positions the company strategically within the nickel-cobalt industry, potentially impacting its market presence and offering promising prospects for stakeholders.

The most recent analyst rating on (AU:ARL) stock is a Buy with a A$1.12 price target. To see the full list of analyst forecasts on Ardea Resources stock, see the AU:ARL Stock Forecast page.

Ardea Resources Secures $1.2 Million R&D Tax Rebate for Innovative Nickel Project
May 20, 2025

Ardea Resources Limited has received a $1.2 million R&D Tax Incentive Rebate from the Australian Tax Office for its innovative processing research at the Kalgoorlie Nickel Project. This rebate, alongside a recent strategic placement, strengthens Ardea’s financial position, supporting its ongoing research and development efforts. The company’s focus on maximizing the value of the Goongarrie deposits is highlighted by its Mineralised Neutraliser process, which has led to an international patent application. This development underscores Ardea’s commitment to advancing its globally significant Critical Minerals project and enhancing its industry positioning.

The most recent analyst rating on (AU:ARL) stock is a Buy with a A$1.12 price target. To see the full list of analyst forecasts on Ardea Resources stock, see the AU:ARL Stock Forecast page.

Ardea Resources Advances Kalgoorlie Nickel Project with Strategic Developments
Apr 28, 2025

Ardea Resources has reported significant progress in the March 2025 quarter for its Kalgoorlie Nickel Project – Goongarrie Hub, with substantial advancements in drilling, design, and feasibility studies. The company remains financially robust with $12M cash and no debt, and has further strengthened its position by raising $4.6M through a placement with Sumitomo Metal Mining. The appointment of ICA Partners to support funding strategy and the submission for Major Project Status renewal highlight Ardea’s strategic moves to enhance its project execution capabilities. Additionally, the company has been active in ESG initiatives, including supporting community projects and engaging consultants for environmental assessments, which underscores its commitment to sustainable development.

Sumitomo Metal Mining Acquires Substantial Stake in Ardea Resources
Apr 23, 2025

Sumitomo Metal Mining Co., Ltd. has become a substantial holder in Ardea Resources Limited, acquiring a 5.10% voting power through the purchase of 10,730,000 ordinary shares. This acquisition, valued at $4,613,900, signifies a strategic investment by Sumitomo Metal Mining, potentially impacting Ardea Resources’ market positioning and stakeholder interests.

Ardea Resources Issues New Shares to Sumitomo Metal Mining
Apr 23, 2025

Ardea Resources Ltd has issued 10,730,000 fully paid ordinary shares at $0.43 each to Sumitomo Metal Mining Co., Ltd as part of a placement. This issuance, announced on April 16, 2025, allows the shares to be traded immediately under the exemption provided by section 708A(5) of the Corporations Act, indicating compliance with relevant legal provisions and enabling liquidity for investors.

Ardea Resources Ltd. Announces Quotation of New Securities on ASX
Apr 23, 2025

Ardea Resources Ltd. has announced the quotation of 10,730,000 ordinary fully paid securities on the Australian Securities Exchange (ASX), as part of a previously announced transaction. This move is expected to enhance the company’s financial flexibility and support its ongoing projects, potentially strengthening its position in the mining sector and offering new opportunities for stakeholders.

Ardea Resources Ltd. Announces Proposed Securities Issuance
Apr 16, 2025

Ardea Resources Ltd. has announced a proposed issuance of 10,730,000 ordinary fully paid securities, scheduled for April 23, 2025. This move is part of a strategic placement, potentially impacting the company’s financial structure and market positioning by increasing its capital base, which could enhance its operational capabilities and investor appeal.

Ardea Resources Secures A$4.6M Investment from Sumitomo Metal Mining
Apr 15, 2025

Ardea Resources Limited has secured a strategic investment of A$4.6 million from Sumitomo Metal Mining Co., Ltd, which will enhance their partnership and support the development of the Kalgoorlie Nickel Project – Goongarrrie Hub. This investment, made at a premium to Ardea’s recent share prices, underscores the strength of their collaboration and the strategic importance of the Goongarrrie Hub as a major nickel-cobalt source in a prime jurisdiction. The funds will be used primarily for working capital to advance the ongoing Definitive Feasibility Study.

Ardea Resources Completes Infill Drilling at Key Nickel-Cobalt Deposits
Apr 14, 2025

Ardea Resources Limited has completed an infill drilling program at its Big Four and Scotia Dam nickel-cobalt deposits, part of the Kalgoorlie Nickel Project’s Goongarrie Hub. The results confirm the continuity and high grade of the mineralization, supporting potential upgrades to resource classifications and aiding in the development of a robust mining plan. This is crucial for the project’s first five years of production, with ongoing drilling and assays at other deposits continuing to bolster the project’s feasibility.

Ardea Resources Advances Goongarrie Project to Definitive Feasibility Study Phase
Mar 31, 2025

Ardea Resources Ltd. has announced the completion of the Pre-Feasibility Study phase for its Goongarrie Project, which is part of the larger Kalgoorlie Nickel Project. The project has now moved into the Definitive Feasibility Study phase, indicating positive economic potential. This advancement underscores the company’s strategic focus on enhancing its market position in the nickel and cobalt sectors, which are crucial for battery production. The announcement highlights the potential impact on Ardea’s operations, positioning it as a significant player in the future-facing commodities market.

Ardea Resources Announces Director Departure and Securities Update
Mar 23, 2025

Ardea Resources Limited announced the cessation of Ian Buchhorn as a director of the company as of March 21, 2025. The notice detailed Buchhorn’s interests in the company’s securities, including both direct and indirect holdings. This change in directorship may impact the company’s governance structure and could influence stakeholder perceptions regarding the company’s strategic direction.

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.