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Ardea Resources Ltd. (AU:ARL)
:ARL
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Ardea Resources (ARL) AI Stock Analysis

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AU:ARL

Ardea Resources

(OTC:ARL)

Rating:50Neutral
Price Target:
AU$0.50
▲(25.00%Upside)
The overall stock score for Ardea Resources Ltd. is primarily driven by financial performance and technical analysis. The company's strong equity position and low leverage are offset by persistent losses and cash flow challenges. While technical indicators provide some optimism, the negative valuation metrics highlight significant risks. Improving profitability and cash flow will be key to enhancing the stock's appeal.

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

Ardea Resources Business Overview & Revenue Model

Company DescriptionArdea Resources Limited (ARL) is an Australian-based exploration and development company primarily focused on the mining and production of nickel, cobalt, and other mineral resources. The company's core asset is the Kalgoorlie Nickel Project (KNP), which is one of the largest nickel-cobalt resources in the world. Ardea Resources aims to supply crucial minerals for the growing battery and electric vehicle industries, capitalizing on the increasing demand for sustainable energy solutions.
How the Company Makes MoneyArdea Resources generates revenue primarily through the exploration and development of its mineral resources, particularly from the Kalgoorlie Nickel Project. The company makes money by advancing its mining projects to production stages, where it can then extract and sell nickel and cobalt to global markets. Significant revenue streams include the sale of these mineral resources to manufacturers and suppliers in the electric vehicle and battery sectors. Additionally, Ardea may enter into strategic partnerships and joint ventures with other mining companies to enhance its production capabilities and explore new opportunities. The company also benefits from fluctuating commodity prices, which can impact its profitability and revenue potential.

Ardea Resources Financial Statement Overview

Summary
Ardea Resources Ltd. is facing financial challenges with persistent losses affecting profitability and cash flow. Despite strong equity and low leverage, the income and cash flow statements highlight issues with revenue scale and operational cash generation.
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.
BreakdownJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue322.36K75.12K22.24K146.85K83.57K
Gross Profit322.36K-163.20K-118.52K54.76K-41.62K
EBITDA-7.45M-4.00M-5.19M-2.21M-1.95M
Net Income-7.71M-4.24M-5.33M-2.30M-2.08M
Balance Sheet
Total Assets59.78M47.78M50.60M36.10M33.50M
Cash, Cash Equivalents and Short-Term Investments14.85M10.65M22.02M5.69M10.01M
Total Debt1.24M153.60K280.29K51.79K120.84K
Total Liabilities4.61M1.92M1.59M812.07K794.75K
Stockholders Equity55.17M45.87M49.01M35.29M32.70M
Cash Flow
Free Cash Flow-11.63M-13.31M-10.34M-10.14M-5.74M
Operating Cash Flow-4.14M-1.37M-2.07M-554.67K-91.01K
Investing Cash Flow-7.49M-10.00M-7.28M-8.40M-3.88M
Financing Cash Flow15.83M-5.00K25.68M4.64M2.79M

Ardea Resources Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.40
Price Trends
50DMA
0.41
Negative
100DMA
0.42
Negative
200DMA
0.40
Positive
Market Momentum
MACD
<0.01
Positive
RSI
47.44
Neutral
STOCH
4.76
Positive
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 above the 200-day MA of 0.40, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 47.44 is Neutral, neither overbought nor oversold. The STOCH value of 4.76 is Positive, 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 (44)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
52
Neutral
AU$130.57M-15.33%-52.53%-27.29%
50
Neutral
AU$86.27M-15.37%-34.41%
44
Neutral
AU$1.51B-6.22-41.37%3.85%-3.52%-43.04%
43
Neutral
AU$105.15M-141.59%562.03%-336.00%
41
Neutral
AU$77.45M-5.23%54.26%
36
Underperform
AU$129.61M-26.16%-28.93%
35
Underperform
AU$86.35M-15.36%17.39%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:ARL
Ardea Resources
0.41
-0.05
-10.87%
AU:AVL
Australian Vanadium
0.01
>-0.01
-37.50%
AU:MTH
Mithril Resources Ltd
0.51
0.36
240.00%
AU:EQR
EQ Resources Limited
0.04
0.00
0.00%
AU:ASM
Australian Strategic Materials Ltd
0.72
0.02
2.86%
AU:PSC
Prospect Resources Ltd.
0.18
0.06
50.00%

Ardea Resources Corporate Events

Ardea Resources Advances Goongarrie Project with Positive Economic Potential
Jul 23, 2025

Ardea Resources 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 development positions Ardea Resources to strengthen its role in the global battery value chains, potentially impacting stakeholders by enhancing the company’s operational capabilities and market positioning.

Ardea Resources Advances Goongarrie Hub with Japanese Consortium Partnership
Jul 4, 2025

Ardea Resources announced that a Japanese Consortium, including Sumitomo Metal Mining and Mitsubishi Corporation, has earned a 17.5% interest in the Kalgoorlie Nickel Project’s Goongarrie Hub by reaching a 50% milestone in the Definitive Feasibility Study (DFS) budget. This development marks a significant step towards the project’s advancement and positions Ardea as a key player in the nickel-cobalt industry, potentially benefiting the local and national economies through a major Critical Minerals collaboration between Australia and Japan.

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 Nickel-Cobalt Production with Successful Drilling Results
Jun 24, 2025

Ardea Resources has completed an infill drilling program at its Highway nickel-cobalt deposit, part of the larger Kalgoorlie Nickel Project – Goongarrie Hub. The drilling results reveal thick, high-grade nickel and cobalt mineralization, which is expected to enhance the project’s early production years. The company is advancing its Definitive Feasibility Study (DFS) with updated Mineral Resource Estimates and plans for detailed mine optimization. This progress is crucial for Ardea’s strategic positioning as a significant nickel-cobalt producer, aligning with high ESG standards and supported by major industry partners.

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 Key Milestones Achieved
Jun 22, 2025

Ardea Resources Limited has announced significant progress in the Definitive Feasibility Study (DFS) for its Kalgoorlie Nickel Project – Goongarrie Hub, with the completion of an infill drilling program designed to enhance resource categorization. The project, managed by subsidiary Kalgoorlie Nickel Pty Ltd and funded by Sumitomo Metal Mining Co., Ltd and Mitsubishi Corporation, is on track to become a major nickel-cobalt producer. The company has achieved key milestones, including zero lost time injuries over the past year, and has made strategic management appointments to strengthen the project team. The ongoing stakeholder engagement and technical excellence demonstrated by the KNPL team are pivotal as the project advances toward production, aligning with high ESG standards expected in Australia and Japan.

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 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.

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: Jul 25, 2025