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American Rare Earths (AU:ARR)
ASX:ARR

American Rare Earths (ARR) AI Stock Analysis

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AU:ARR

American Rare Earths

(Sydney:ARR)

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Neutral 46 (OpenAI - 5.2)
Rating:46Neutral
Price Target:
AU$0.40
▼(-0.75% Downside)
The score is driven primarily by weak fundamentals: zero recent revenue, widening losses, and persistent negative operating/free cash flow, implying continued external funding needs. Low leverage is a notable positive but does not offset the cash-burn profile. Technicals are neutral-to-bearish with the price below key short/intermediate moving averages, and valuation is constrained by negative earnings and no dividend support.
Positive Factors
Low Financial Leverage
Very low debt reduces near-term solvency risk and gives management flexibility to pursue exploration and project advancement without immediate debt servicing pressure. This structural balance-sheet strength supports longevity through multi‑period development cycles common in mining.
Strategic US REE Focus
Concentrating on US-based rare earth projects aligns with durable secular demand from cleantech, electrification, and defense supply‑chain reshoring. This strategic position increases the likelihood of long-term policy support, offtake interest, and premium demand for domestically sourced REEs.
Active Project Advancement
Ongoing geological surveying, drilling and resource definition are durable value‑creation activities that de‑risk projects over months to years. Progressing technical studies enhances asset quality and can materially increase feasibility and attractiveness to partners or acquirers long term.
Negative Factors
Zero Recent Revenue
A sustained pre‑revenue profile with widening losses undermines commercial validation and means the company cannot self‑fund operations from sales. Over multi‑quarter horizons this raises dilution and execution risk if project milestones do not attract capital or partners.
Persistent Cash Burn
Consistent negative operating and free cash flows indicate structural reliance on external funding to sustain exploration and technical work. Growing cash burn increases the frequency and size of financing needs, pressuring dilution and potentially delaying project timelines if capital conditions tighten.
Declining Equity and Negative Returns
Declining equity coupled with negative historical returns signals that the balance sheet is being consumed to fund operations. Over medium terms this erodes shareholder value, limits ability to fund projects internally, and may force non‑optimal financing or asset sales to maintain operations.

American Rare Earths (ARR) vs. iShares MSCI Australia ETF (EWA)

American Rare Earths Business Overview & Revenue Model

Company DescriptionAmerican 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 MoneyAmerican 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
Income statement and cash flow are very weak (zero revenue in 2024–2025, widening losses, and consistently negative operating/free cash flow with rising burn), indicating an early-stage, cash-consuming profile. The main offset is a relatively strong balance sheet with low leverage (very low debt-to-equity), which reduces near-term solvency risk but does not resolve funding/dilution risk.
Income Statement
8
Very Negative
The company remains in a pre-revenue/early-stage profile: revenue is zero in 2024 and 2025, and gross profit is negative across the period, indicating ongoing operating costs with limited commercial activity. Losses have widened materially from 2021 to 2025 (net income moving from a small loss to multi-million losses), which points to increasing spend without offsetting revenue. A positive in the earlier history is that revenue did exist in 2020–2023, but the step-down to zero revenue in the last two annual periods and consistently negative profitability drive a weak income-statement score.
Balance Sheet
62
Positive
Leverage appears low, with very small total debt relative to equity across all periods (debt-to-equity roughly around 0.5%–1.7%), which reduces solvency risk. Equity and assets remain sizeable, although equity declined from 2024 to 2025, consistent with ongoing losses. Returns to shareholders are negative in most years (and materially negative recently), highlighting that the balance sheet is supporting losses rather than generating returns—still, the low debt load is a meaningful strength.
Cash Flow
18
Very Negative
Cash generation is a key pressure point: operating cash flow is negative every year shown, and free cash flow is also consistently negative, with the cash burn expanding in 2025 versus 2024. While free cash flow growth is positive in 2025, it is coming off a deeply negative base and does not change the fact that the business is consuming cash. Overall, the cash-flow profile suggests continued reliance on external funding (e.g., equity issuance) to sustain operations.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue17.91K0.000.0066.60K40.97K93.90K
Gross Profit-134.65K-134.65K-136.94K-23.07K-27.38K28.82K
EBITDA-6.34M-6.33M-5.28M-4.75M-1.95M-182.44K
Net Income-6.47M-6.47M-6.26M-4.85M-2.04M-258.92K
Balance Sheet
Total Assets31.33M31.33M34.02M25.91M16.93M9.95M
Cash, Cash Equivalents and Short-Term Investments10.38M10.38M16.30M12.49M6.34M3.70M
Total Debt182.87K182.87K342.06K116.16K173.36K48.51K
Total Liabilities1.22M1.22M961.61K715.81K925.98K395.07K
Stockholders Equity30.11M30.11M33.06M25.20M16.00M9.55M
Cash Flow
Free Cash Flow-7.08M-10.59M-8.18M-6.87M-5.17M-2.39M
Operating Cash Flow-4.42M-4.42M-4.13M-3.19M-2.34M-1.17M
Investing Cash Flow-6.98M-6.98M-5.02M-4.08M-1.83M1.19M
Financing Cash Flow4.45M4.45M12.96M13.34M6.89M2.29M

American Rare Earths Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.40
Price Trends
50DMA
0.39
Positive
100DMA
0.41
Negative
200DMA
0.35
Positive
Market Momentum
MACD
<0.01
Negative
RSI
53.34
Neutral
STOCH
61.39
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ARR, the sentiment is Positive. The current price of 0.4 is above the 20-day moving average (MA) of 0.38, above the 50-day MA of 0.39, and above the 200-day MA of 0.35, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 53.34 is Neutral, neither overbought nor oversold. The STOCH value of 61.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:ARR.

American Rare Earths Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
AU$730.27M13.0615.33%6.70%
62
Neutral
AU$142.54M11.218.79%15.32%10.05%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
46
Neutral
$232.31M-31.40-20.10%4.44%
43
Neutral
AU$201.04M-5.54-12.73%2.00%8.82%
36
Underperform
AU$1.63M-0.72-12.49%51.70%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:ARR
American Rare Earths
0.41
0.14
52.83%
AU:AIS
Aeris Resources Limited
0.61
0.44
258.82%
AU:MLG
MLG Oz Ltd
0.92
0.30
48.39%
AU:ASM
Australian Strategic Materials Ltd
0.75
0.25
48.51%
AU:SCT
Scout Security Ltd.
0.52
0.00
0.00%

American Rare Earths Corporate Events

American Rare Earths Exits Substantial Holding in Godolphin Resources
Jan 13, 2026

American Rare Earths Limited has notified the market that it has ceased to be a substantial shareholder in Godolphin Resources Limited. Between 5 and 8 January 2026, the company sold a total of 56,535,000 Godolphin ordinary shares for aggregate consideration of approximately A$1.81 million, thereby reducing its holding below the substantial shareholder threshold and potentially signaling a shift in its capital allocation or strategic focus away from its prior investment in Godolphin.

The most recent analyst rating on (AU:ARR) stock is a Hold with a A$0.36 price target. To see the full list of analyst forecasts on American Rare Earths stock, see the AU:ARR Stock Forecast page.

American Rare Earths Issues 2 Million Unlisted Options Expiring 2028
Dec 22, 2025

American Rare Earths Limited has notified the ASX of the issue of 2,000,000 unlisted options exercisable at A$0.3882, expiring on 22 December 2028. The new options, which are unquoted securities, expand the company’s equity-based instruments and may provide additional future capital if exercised, signaling ongoing efforts to strengthen its capital structure and align incentives as it advances its rare earths portfolio.

The most recent analyst rating on (AU:ARR) stock is a Buy with a A$0.65 price target. To see the full list of analyst forecasts on American Rare Earths stock, see the AU:ARR Stock Forecast page.

American Rare Earths Issues 12 Million Unlisted Options as Part of Capital Strategy
Dec 22, 2025

American Rare Earths Limited has notified the market of the issue of 12 million unlisted options, exercisable at A$0.30 and expiring on 19 December 2028. The issuance of these unquoted securities is likely part of the company’s broader capital management and incentive strategy, potentially aligning management and stakeholder interests with long-term share price performance while providing additional funding optionality for its rare earths development activities.

The most recent analyst rating on (AU:ARR) stock is a Buy with a A$0.65 price target. To see the full list of analyst forecasts on American Rare Earths stock, see the AU:ARR Stock Forecast page.

American Rare Earths Options Lapse, Simplifying Capital Structure
Dec 22, 2025

American Rare Earths Limited has announced the expiry of 1,190,500 listed options (ARRAP) with an exercise price of A$0.40, which lapsed unexercised on 18 December 2025. The cessation of these options slightly simplifies the company’s capital structure by removing a class of derivative securities, though it does not immediately affect cash balances or existing ordinary shareholders’ equity.

The most recent analyst rating on (AU:ARR) stock is a Buy with a A$0.65 price target. To see the full list of analyst forecasts on American Rare Earths stock, see the AU:ARR Stock Forecast page.

American Rare Earths Achieves Major Breakthrough with Halleck Creek Ore
Dec 15, 2025

American Rare Earths has achieved a significant technical milestone by producing mixed rare earth oxides (MREO) from Halleck Creek ore using an updated preliminary pre-feasibility study (PFS) mineral processing flowsheet. This breakthrough confirms the feasibility of extracting rare earths into metallic oxides, paving the way for further solvent extraction processes. The development is expected to enhance the company’s operations and industry positioning by facilitating the production of individually separated rare earth products, which are essential for manufacturing advanced technologies.

American Rare Earths Announces Director’s Interest Change
Dec 15, 2025

American Rare Earths Limited has announced a change in the director’s interest, with Director Brian Arkell acquiring 250,000 unlisted options exercisable at $0.4818, expiring on November 30, 2028. This issuance of options, approved by shareholders, reflects a strategic move to align the interests of the director with the company’s growth objectives, potentially impacting the company’s operational focus and stakeholder interests.

American Rare Earths Issues New Unlisted Options as Part of Employee Incentive Scheme
Dec 12, 2025

American Rare Earths Limited has announced the issuance of 250,000 unlisted options with an exercise price of $0.4818, set to expire on November 30, 2028. This move is part of an employee incentive scheme, indicating the company’s strategy to retain and motivate its workforce, which could enhance its operational capabilities and market position.

American Rare Earths Announces Director’s Interest Change
Dec 10, 2025

American Rare Earths Limited announced a change in the director’s interest, specifically the expiration of 2,000,000 unlisted options held by Director Richard Hudson. This change reflects an adjustment in the director’s indirect interest in the company, with no new acquisitions or disposals of shares, indicating a routine update in compliance with corporate governance requirements.

American Rare Earths Announces Cessation of Securities
Dec 9, 2025

American Rare Earths Limited announced the cessation of 4,000,000 securities due to the expiry of options without exercise or conversion. This development may impact the company’s capital structure and could influence investor perceptions regarding the company’s financial strategies and market positioning.

American Rare Earths Appoints New CEO to Drive U.S. Growth
Dec 7, 2025

American Rare Earths has appointed Mark Wall as the new CEO to lead the company into its next phase of growth, focusing on transitioning from an explorer to a producer of rare earth elements in the U.S. Wall’s extensive experience in global mining and project development aligns with the company’s strategic goals. Under his leadership, the company will advance the Halleck Creek project in Wyoming, complete a prefeasibility study, and prepare for a potential U.S. listing. This move is expected to strengthen the company’s market position and contribute to North American supply chain security.

American Rare Earths Expands Market Presence with New Securities Quotation
Nov 23, 2025

American Rare Earths Limited has announced the quotation of 500,000 fully paid ordinary securities on the Australian Securities Exchange (ASX). 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 market position and providing value to its stakeholders.

American Rare Earths Expands Partnership with Tetra Tech for Government Funding
Nov 20, 2025

American Rare Earths has expanded its partnership with Tetra Tech to explore U.S. Government funding opportunities for its Halleck Creek project, which is crucial for securing a long-term supply of U.S. magnet metals for national security and defense. This collaboration aims to leverage Tetra Tech’s expertise in governmental funding to accelerate the project’s development and address supply chain vulnerabilities in the U.S. rare earths industry. The partnership is expected to enhance the project’s profile and contribute to diversifying and de-risking the U.S. magnetics industry’s supply chain.

American Rare Earths Updates Mineral Resource Estimate at Halleck Creek
Nov 19, 2025

American Rare Earths has announced an updated Mineral Resource Estimate for the Cowboy State Mine area at its Halleck Creek Rare Earths Project, reflecting a reclassification of 68.4 million tonnes to the indicated resource category. This update, based on 102 channel samples, includes a standout sample with a record high assay grade, significantly enhancing the project’s potential. Additionally, the company has secured new exploration drilling permits, allowing for further development and technical studies, which positions the project for timely advancement and potentially increases the resource estimates at Halleck Creek.

American Rare Earths Advances Strategic Initiatives with AGM Resolutions
Nov 13, 2025

American Rare Earths Limited announced the results of its Annual General Meeting, highlighting the approval of several resolutions, including the re-election of directors and the ratification of prior share placements. These outcomes are expected to support the company’s strategic initiatives, particularly the development of the Halleck Creek Project, which is pivotal for enhancing U.S. supply chain security in the rare earths sector. The meeting results underscore the company’s commitment to advancing its projects and maintaining strong governance practices.

American Rare Earths Advances Halleck Creek Project Amid Geopolitical Tensions
Nov 13, 2025

American Rare Earths is advancing its Halleck Creek Rare Earths Project amidst geopolitical tensions and U.S. efforts to secure a domestic supply chain for rare earth elements. The company has made significant progress in resource estimation, technical development, and permitting, positioning itself strategically with U.S. agencies and securing financial support. These developments are crucial for reducing reliance on foreign minerals and enhancing national security, with the project expected to supply rare earths for over a century.

American Rare Earths Aims to Strengthen U.S. Rare Earths Supply Chain
Nov 12, 2025

American Rare Earths has released an investor presentation highlighting its strategic initiative to diversify and de-risk the United States’ upstream rare earths supply chain through its operations in Wyoming. This move is significant for the company as it aims to strengthen its position in the rare earths industry, potentially impacting stakeholders by enhancing supply chain security and reducing reliance on foreign sources.

American Rare Earths Advances Halleck Creek Project with Promising Test Results
Nov 9, 2025

American Rare Earths has released a preliminary updated mineral processing flowsheet for its Halleck Creek Rare Earths Project, marking a significant step towards becoming a leading rare earths producer in the U.S. The company has reported promising results from beneficiation optimisation tests, particularly with the Reflux Classifier Concentrator (RCC), which may improve rare earth recoveries and reduce operating costs. These advancements are expected to positively impact the project’s pre-feasibility study economics, potentially enhancing the company’s position in the rare earths market.

American Rare Earths Director Acquires Shares, Signaling Confidence
Nov 5, 2025

American Rare Earths Limited has announced a change in the director’s interest, with Director Brian Arkell acquiring 25,000 ordinary shares through on-market trades, valued at US$7,500. This acquisition may indicate a positive outlook from the director on the company’s future performance and could influence stakeholder confidence in the company’s strategic direction.

American Rare Earths Strengthens Board with New Appointment
Oct 28, 2025

American Rare Earths announced changes to its Board of Directors with the appointment of Jason Beckton as a Non-Executive Director and the resignation of Hugh Keller. Beckton, a seasoned geologist with over 30 years of experience, is expected to bring significant technical expertise to the company as it advances its Halleck Creek Project toward demonstration and pre-feasibility stages. His international experience and understanding of critical mineral markets are seen as valuable assets for the company’s strategic goals. The changes are part of the company’s ongoing efforts to strengthen its position in the rare earths industry and align with U.S. supply-chain objectives.

American Rare Earths Advances U.S. Supply Chain Security with Wyoming Projects
Oct 20, 2025

American Rare Earths has released an investor presentation highlighting its strategic efforts to diversify and de-risk the United States’ upstream rare earths supply chain through its Wyoming projects. This initiative is significant for the company’s operations as it aims to strengthen its position in the rare earths market, potentially impacting stakeholders by ensuring a more stable and secure supply of these critical materials.

American Rare Earths Limited Announces Quotation of New Securities on ASX
Oct 19, 2025

American Rare Earths Limited has announced the application for the quotation of 100,000 fully paid ordinary securities on the Australian Securities Exchange (ASX), effective from October 17, 2025. This move is part of the company’s strategic efforts to enhance its financial flexibility and market presence, potentially impacting its operational capabilities and stakeholder interests positively.

American Rare Earths Advances Halleck Creek Project to Strengthen U.S. Supply Chain
Oct 17, 2025

American Rare Earths has made significant progress in its Halleck Creek Rare Earths Project in Wyoming, which aims to diversify and de-risk the U.S. rare earths supply chain. The project has achieved technical milestones, including breakthroughs in hydrometallurgical processing and leach testing, which reduce impurities and improve recoveries of rare earth elements. These advancements position Halleck Creek as a potential major supplier of rare earths, capable of fulfilling a significant portion of the U.S. demand for light and heavy rare earths, thereby reducing reliance on foreign sources and enhancing national security.

American Rare Earths Expands Capital with New ASX Quotation
Oct 16, 2025

American Rare Earths Limited announced the quotation of 250,000 new ordinary fully paid securities on the Australian Securities Exchange (ASX). This move is part of the company’s strategy to enhance its financial flexibility and support its ongoing projects. The issuance of these securities may impact the company’s market positioning by potentially increasing its capital base, which could be beneficial for stakeholders interested in the company’s growth and development in the rare earths sector.

American Rare Earths Expands Market Presence with New Securities Issuance
Oct 15, 2025

American Rare Earths Limited announced the issuance of 6,000,000 fully paid ordinary securities, which will be quoted on the Australian Securities Exchange (ASX) as of October 15, 2025. This move is part of the company’s strategic efforts to strengthen its financial position and enhance its market presence, potentially benefiting stakeholders by increasing liquidity and supporting future growth initiatives.

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