American Rare Earths (ARR) AI Stock Analysis

• Market Cap: $124.32M
• Dividend Yield: N/A
• Average Volume (3M): 443.64K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.02
• Revenue Growth: N/A
• EPS Growth: -0.72%
• Country: AU
• Employees: 5
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Industrial Materials
• EPS (TTM): -0.01
• Shares Outstanding: 507,423,300
• 10 Day Avg. Volume: 406,032
• 30 Day Avg. Volume: 443,643
• PEG Ratio: 5.32
• Price to Book (P/B): 4.20
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -14.55
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 42 Neutral
• Price Target: ―

American Rare Earths is struggling financially, with zero revenue and ongoing losses. While the balance sheet is stable, the company's inability to generate returns or positive cash flow poses significant risks. Technical analysis indicates some short-term stability, but the overall valuation remains weak due to unprofitability.

American Rare Earths Business Overview & Revenue Model

Company Description

American Rare Earths Limited engages in the exploration and development of mineral resources in Australia and the United States. The company explores for rare earth, scandium, and cobalt deposits. Its flagship properties include the La Paz project covering an area of approximately 890 hectares located in Arizona, the United States; and Halleck Creek project situated in Wyoming, the United States. The company was formerly known as Broken Hill Prospecting Limited and changed its name to American Rare Earths Limited in July 2020. American Rare Earths Limited was incorporated in 1986 and is based in Sydney, Australia.

How the Company Makes Money

American Rare Earths makes money by identifying, developing, and eventually monetizing rare earth element deposits. Their primary revenue streams are anticipated to be derived from the extraction and sale of rare earth elements, such as neodymium, praseodymium, and dysprosium, which are used in various high-tech and clean energy applications. ARR's business model involves exploring and proving the viability of their mining projects, securing necessary permits, and establishing partnerships with technology and manufacturing companies that require a steady supply of rare earth materials. Revenue generation is also supported by strategic partnerships and potential joint ventures with other companies in the mining and technology sectors to accelerate the development of their projects.

American Rare Earths Financial Statement Overview

Summary

American Rare Earths is facing significant financial challenges. The income statement shows zero revenue and persistent losses, indicating major profitability issues. The balance sheet is stable due to low leverage but struggles with poor returns on equity. The cash flow statement highlights liquidity problems and a reliance on external financing.

Income Statement

American Rare Earths has experienced a significant decline in revenue, with total revenue dropping to zero in the most recent annual report. The company has consistently reported negative net income, indicating ongoing challenges in achieving profitability. The gross profit margin is negative, and both EBIT and EBITDA margins reflect significant losses, highlighting operational inefficiencies and cost management issues. Overall, the income statement reveals a struggling company with limited revenue generation and profitability challenges.

Balance Sheet

The balance sheet of American Rare Earths shows a relatively strong equity position, with stockholders' equity comprising a substantial portion of total assets, leading to a high equity ratio. The debt-to-equity ratio is low, indicating low leverage, which could provide stability. However, the company has been unable to turn equity into profit, reflected in negative ROE. Overall, the balance sheet suggests a financially stable company in terms of leverage but struggling in terms of generating returns on its equity.

Cash Flow

The cash flow statement indicates negative free cash flow, driven by significant operating cash outflows and capital expenditures. The operating cash flow to net income ratio is unfavorable, highlighting cash flow struggles relative to the reported net losses. The company's ability to generate positive cash flow from operations remains a concern. Despite receiving substantial financing cash flows, primarily through equity, the company has not managed to improve its cash flow position significantly. Overall, the cash flow statement reflects liquidity challenges and dependency on external financing.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	-110.94K	0.00	66.60K	40.97K	93.90K	55.98K
Gross Profit	-317.27K	-136.94K	-23.07K	-27.38K	28.82K	-8.03K
EBITDA	-5.87M	-5.28M	-4.75M	-1.95M	-182.44K	-2.28M
Net Income	-6.87M	-6.26M	-4.85M	-2.04M	-258.92K	923.29K
Balance Sheet
Total Assets	32.70M	34.02M	25.91M	16.93M	9.95M	6.72M
Cash, Cash Equivalents and Short-Term Investments	11.74M	16.30M	12.49M	6.34M	3.70M	1.43M
Total Debt	189.01K	342.06K	116.16K	173.36K	48.51K	110.05K
Total Liabilities	680.89K	961.61K	715.81K	925.98K	395.07K	412.68K
Stockholders Equity	32.02M	33.06M	25.20M	16.00M	9.55M	6.31M
Cash Flow
Free Cash Flow	-9.42M	-8.18M	-6.87M	-5.17M	-2.39M	-1.63M
Operating Cash Flow	-5.10M	-4.13M	-3.19M	-2.34M	-1.17M	-964.90K
Investing Cash Flow	-4.78M	-5.02M	-4.08M	-1.83M	1.19M	-160.54K
Financing Cash Flow	15.39M	12.96M	13.34M	6.89M	2.29M	2.10M

American Rare Earths Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.24
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ARR, the sentiment is Negative. The current price of 0.24 is below the 20-day moving average (MA) of 0.26, below the 50-day MA of 0.27, and below the 200-day MA of 0.27, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 41.04 is Neutral, neither overbought nor oversold. The STOCH value of 18.65 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:ARR.

American Rare Earths Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MLG	62 Neutral	AU$111.45M	14.03	6.05%	―	20.39%	48.21%
AIS	51 Neutral	AU$174.29M	7.23	8.30%	―	-7.16%	―
Sector *	43 Neutral	AU$1.38B	-6.10	-40.62%	4.17%	-4.78%	-43.21%
ARR	42 Neutral	$124.32M	―	-25.89%	―	―	-0.72%
PKREF		$76.79M	―	-21.89%	―	―	―
ASM	42 Neutral	AU$91.58M	―	-15.33%	―	-52.53%	-27.29%
SCT	36 Underperform	AU$1.63M	―		―	18.59%	22.71%

American Rare Earths Corporate Events

American Rare Earths Advances Halleck Creek Project with Resource Expansion and Metallurgical Breakthrough

American Rare Earths announced significant progress in its Halleck Creek Project, with a 12.2% increase in mineral resource estimates and a breakthrough in metallurgical processing that enhances project economics. The updated scoping study reveals strong financial potential, with scalable production rates offering substantial returns and expansion opportunities, while the company remains well-funded to advance its operations.

Director’s Interest Change at American Rare Earths

American Rare Earths Limited has announced a change in the director’s interest, specifically involving Hugh Keller. The notice details that Keller has acquired an additional 70,000 fully paid ordinary shares through an on-market trade, increasing his total holdings to 130,000 shares, while maintaining his 1,000,000 unlisted options.

American Rare Earths Issues Unlisted Options as Part of Incentive Scheme

American Rare Earths Limited has announced the issuance of unquoted equity securities in the form of unlisted options. These options, totaling 7.5 million, are exercisable at prices of $0.30 and $0.35 with expiry dates ranging from August 2027 to July 2029. This move is part of an employee incentive scheme, potentially enhancing the company’s ability to attract and retain talent while aligning employee interests with long-term company performance.

American Rare Earths Releases Interim Financial Statements for 2024

American Rare Earths Limited has released its interim financial statements for the six months ending December 31, 2024. The report provides insights into the company’s financial performance, including statements of profit or loss, changes in equity, and cash flows. This financial disclosure is crucial for stakeholders to assess the company’s financial health and strategic positioning in the rare earth industry, which is vital for technological advancements and sustainable energy solutions.

American Rare Earths Limited Announces Quotation of New Securities

American Rare Earths Limited has announced the quotation of 1,000,000 fully paid ordinary securities on the Australian Securities Exchange, effective February 24, 2025. This move is part of the company’s strategy to enhance its financial flexibility and support its ongoing projects, potentially strengthening its position in the rare earths market.

American Rare Earths CEO to Present at BMO Global Metals Conference

American Rare Earths announced that CEO Chris Gibbs will present at the BMO Global Metals, Mining & Critical Minerals Conference in Florida, highlighting the company’s strategic initiatives and industry positioning. The presentation is part of a series of key industry events aimed at attracting investor interest and reinforcing the company’s role in securing U.S. supply chain security for rare earth elements. This move underscores the company’s commitment to advancing the Halleck Creek Project, which is pivotal for U.S. mineral independence and aligns with national priorities.

American Rare Earths Achieves Major Metallurgical Milestone at Halleck Creek

American Rare Earths announced a significant metallurgical milestone at its Halleck Creek Project in Wyoming, demonstrating a 10-fold upgrade of rare earth concentration using cost-effective methods. This achievement, confirmed through large-scale testing, involves removing 93.5% of non-rare earth material early in the process, reducing refining requirements and costs. The results provide critical support for the upcoming Pre-Feasibility Study, de-risking the project and reinforcing its potential for efficient rare earth production.