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Alara Resources Limited (AU:AUQ)
ASX:AUQ

Alara Resources (AUQ) AI Stock Analysis

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AU:AUQ

Alara Resources

(Sydney:AUQ)

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Neutral 49 (OpenAI - 4o)
Rating:49Neutral
Price Target:
AU$0.04
▲(26.67% Upside)
Alara Resources' overall stock score is primarily impacted by its financial performance challenges, including high leverage and negative profitability. Technical analysis provides a mixed outlook with some positive trends, but valuation remains a concern due to the negative P/E ratio. The absence of earnings call data and corporate events means these factors do not influence the score.
Positive Factors
Revenue Growth
Strong revenue growth indicates expanding operations and potential market demand for Alara's mineral projects, supporting long-term business development.
Cash Flow Improvement
Positive operating cash flow suggests better cash management and operational efficiency, which can support future investments and debt servicing.
Strategic Partnerships
Strategic partnerships through joint ventures reduce financial risk and leverage industry expertise, enhancing project execution and profitability.
Negative Factors
High Leverage
High leverage increases financial risk and limits flexibility, potentially impacting the company's ability to invest in growth and weather economic downturns.
Negative Profitability
Negative profitability indicates operational inefficiencies and challenges in covering expenses, which could hinder long-term sustainability and growth.
Operational Inefficiencies
Negative EBIT and EBITDA margins highlight inefficiencies in operations, suggesting the need for cost control measures to improve financial health.

Alara Resources (AUQ) vs. iShares MSCI Australia ETF (EWA)

Alara Resources Business Overview & Revenue Model

Company DescriptionAlara Resources Limited (AUQ) is an Australian mineral exploration and development company focused on the acquisition and development of mineral resources within the resource-rich regions of Oman and other strategic locations. The company primarily targets copper and gold projects, leveraging advanced exploration techniques and strong industry partnerships to drive sustainable growth. Alara aims to build a robust portfolio of mining assets that can contribute to the global demand for these essential minerals, which are critical for various industries, including construction, electronics, and renewable energy.
How the Company Makes MoneyAlara Resources generates revenue primarily through the exploration and potential development of its mineral projects. The company focuses on securing joint venture agreements, which allows it to share the financial burden and risk associated with mining exploration while retaining a significant interest in future profits. Additionally, Alara may monetize its projects by selling them outright or partnering with larger mining corporations that have the resources to bring the projects into production. Key revenue streams include potential sales of extracted minerals, royalties from production, and any revenue generated from strategic partnerships or joint ventures that contribute to the development of its mineral assets.

Alara Resources Financial Statement Overview

Summary
Alara Resources shows strong revenue growth but faces significant profitability and leverage challenges. High debt levels and negative profit margins pose risks to financial stability. Improvement in cash flow is noted, but operational efficiency and debt management need enhancement.
Income Statement
45
Neutral
Alara Resources has shown significant revenue growth, with a 125.15% increase in the latest year. However, the company struggles with profitability, as evidenced by negative gross profit and net income. The EBIT and EBITDA margins are also negative, indicating operational inefficiencies and challenges in covering operating expenses.
Balance Sheet
40
Negative
The balance sheet reflects high leverage, with a debt-to-equity ratio of 10.83, indicating significant reliance on debt financing. The return on equity is negative, showing that the company is not generating profits from its equity base. The equity ratio is low, suggesting limited financial stability and a high risk of insolvency.
Cash Flow
50
Neutral
The cash flow statement shows improvement in operating cash flow, turning positive in the latest year. However, free cash flow growth is negative, and the free cash flow to net income ratio indicates that cash generation is not sufficient to cover net losses. The company needs to improve its cash management to ensure sustainability.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue55.12M55.12M5.46M25.30K11.17K11.78K
Gross Profit10.99M-4.59M2.20M-738.53K-10.71K-320.00
EBITDA13.12M13.19M-2.18M-2.01M-1.57M-1.60M
Net Income-10.15M-10.15M-5.79M-1.91M-1.32M-1.62M
Balance Sheet
Total Assets181.04M181.04M171.95M117.66M44.99M23.32M
Cash, Cash Equivalents and Short-Term Investments12.48M12.48M4.69M4.46M3.49M5.27M
Total Debt101.44M101.44M97.17M66.83M18.15M712.10K
Total Liabilities178.64M178.64M151.35M88.58M22.10M1.81M
Stockholders Equity9.37M9.37M18.70M23.68M23.32M21.67M
Cash Flow
Free Cash Flow8.21M8.54M-31.28M-53.76M-19.35M-3.79M
Operating Cash Flow8.62M8.62M-12.00M-1.55M-1.81M-1.65M
Investing Cash Flow-1.87M-1.87M-19.09M-51.98M-17.59M-3.17M
Financing Cash Flow1.26M1.26M31.79M54.69M17.36M1.89M

Alara Resources Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.03
Price Trends
50DMA
0.04
Negative
100DMA
0.04
Negative
200DMA
0.03
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
43.16
Neutral
STOCH
<0.01
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:AUQ, the sentiment is Negative. The current price of 0.03 is below the 20-day moving average (MA) of 0.03, below the 50-day MA of 0.04, and below the 200-day MA of 0.03, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 43.16 is Neutral, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:AUQ.

Alara Resources Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
53
Neutral
AU$32.10M-25.00-3.45%-57.14%
49
Neutral
AU$26.50M-2.34-71.33%909.03%-74.07%
41
Neutral
AU$18.68M-15.33-43.49%-7.14%
39
Underperform
AU$50.05M-17.65-6.39%37.04%
31
Underperform
AU$20.83M-5.77-136.26%-79.31%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:AUQ
Alara Resources
0.03
<0.01
6.45%
AU:AKO
Akora Resources Ltd.
0.08
-0.02
-20.00%
AU:CBE
Cobre Limited
0.09
0.04
80.00%
AU:CST
Castile Resources Ltd
0.11
0.03
37.50%
AU:ACP
Audalia Resources Limited
0.02
0.00
0.00%
AU:CMD
Cassius Mining Ltd
0.03
0.02
200.00%

Alara Resources Corporate Events

Alara Resources Reinforces Commitment to Corporate Governance
Dec 5, 2025

Alara Resources Limited has released its Corporate Governance Statement, highlighting its commitment to adhering to the ASX Corporate Governance Principles and Recommendations. The Board of Directors emphasizes transparency, fair dealing, and shareholder protection, while also ensuring compliance with contractual, regulatory, and social obligations. The statement outlines the Board’s responsibilities, including strategic direction, financial oversight, and risk management, as well as the delegation of day-to-day management to senior executives. This governance framework aims to maintain ethical standards and effective communication with stakeholders, reinforcing Alara’s dedication to robust corporate governance practices.

Alara Resources Updates Corporate Governance Statement
Dec 4, 2025

Alara Resources Limited has released its updated corporate governance statement as of December 4, 2025, which has been approved by the board. The statement outlines the company’s adherence to the ASX Corporate Governance Council’s principles and recommendations, highlighting its commitment to transparency and accountability. This announcement underscores Alara’s dedication to maintaining robust governance practices, which is crucial for its operational integrity and stakeholder trust.

Alara Resources Dispatches 30th Copper Shipment from Oman
Dec 1, 2025

Alara Resources Limited has dispatched its 30th shipment of copper concentrate from the Al Wash-hi – Majaza mine in Oman, marking a significant milestone in its operations. The shipment, which includes 1720 WMT of copper-gold concentrate with 324 MT of copper and 2.6 kg of gold, underscores the company’s ongoing production capabilities and its strategic positioning in the base and precious metals market.

Alara Resources Secures Shareholder Approval for Key Resolutions at 2025 AGM
Nov 28, 2025

Alara Resources Limited announced the results of its 2025 Annual General Meeting, where all proposed resolutions were passed. Key resolutions included the adoption of the 2025 Remuneration Report, re-election of directors, and approval of a 10% share placement facility. These outcomes reflect strong shareholder support and are expected to bolster the company’s governance and financial flexibility, potentially enhancing its operational capabilities and market position.

Alara Resources Achieves Milestone Year with Successful Production and Strategic Growth in Oman
Nov 28, 2025

Alara Resources has marked 2025 as a milestone year, transitioning from an exploration-focused entity to a fully integrated, sustainable mining group. The company successfully commenced production at the Al Wash-hi Majaza Copper Concentrator Plant in Oman, with operations ramping up and revenue generation growing. Alara’s strategic initiatives, including the acquisition of Block 22B and ongoing exploration efforts, position it for sustained profitability and growth in the Omani mining sector. The company’s commitment to health, safety, and environmental stewardship has been recognized by the Omani Ministry of Energy and Minerals, further solidifying its leadership in responsible mining practices.

Alara Resources Highlights Caution in AGM Presentation
Nov 28, 2025

Alara Resources Limited has released a presentation in conjunction with its Annual General Meeting, emphasizing that the document is for informational purposes only and not an offer for securities. The presentation includes forward-looking statements and financial data, highlighting the inherent risks and uncertainties in the mining industry, and advises stakeholders to conduct their own investigations before making investment decisions.

Alara Resources Dispatches 29th Copper Concentrate Shipment
Nov 17, 2025

Alara Resources Limited has successfully dispatched its 29th shipment of copper concentrate from the Al Wash-hi – Majaza mine in Oman. The shipment, which left Sohar Port on November 16, 2025, consisted of 1995.4 WMT of copper-gold concentrate, including approximately 363 MT of copper and 3.7 kg of gold. This milestone underscores Alara’s ongoing production capabilities and strengthens its position in the base and precious metals market.

Alara Resources Releases Revised Annual Report for FY2025
Nov 14, 2025

Alara Resources Limited has released a revised Annual Report for the financial year ending June 30, 2025, following a routine review that identified omitted mandatory disclosures. The revised report, which includes updates on mineral resources and reserves, aims to enhance stakeholder visibility without affecting the financial results or audit opinions of the original report. This action underscores Alara’s commitment to transparency, strong governance, and regulatory compliance, reinforcing stakeholder confidence in the company’s operations.

Alara Resources Poised for Growth with Enhanced Operations and Exploration in Oman
Nov 14, 2025

Alara Resources has made significant operational progress and expanded exploration efforts in Oman, positioning itself for growth in 2026. With enhanced efficiency through key process upgrades and ongoing drilling programs, the company is well-positioned to capitalize on the rising global demand for copper, supported by strong partnerships and a focus on sustainability.

Alara Resources Boosts Production and Expands Operations in Oman
Oct 31, 2025

Alara Resources has achieved significant operational milestones in the quarter ending September 2025, including the installation of new tailings filter presses at the Al Wash-hi Majaza mine, which boosted copper concentrate production by 77%. The company also received the Daris 3A5 mining license and commenced drilling at the Al Mansur Prospect, positioning itself for further growth and exploration success in Oman.

Alara Resources Achieves Record Copper Concentrate Shipment
Oct 29, 2025

Alara Resources Limited has announced the dispatch of its 28th copper concentrate shipment from the Al Wash-hi – Majaza mine in Oman, marking the highest monthly shipment quantity to date. This achievement underscores Alara’s operational success and strengthens its position in the base and precious metals industry, potentially enhancing stakeholder confidence and market presence.

Alara Resources Reports Milestone Year and Clear Growth Pathway for 2026
Oct 24, 2025

Alara Resources has reported a milestone year of operational progress and expanded exploration activities, entering 2026 with a clear growth pathway. The company has enhanced its efficiency through key process upgrades and is well-positioned to capitalize on the rising global demand for copper, aiming to deliver long-term value for its shareholders as a leading regional copper-gold producer.

Alara Resources Announces 2025 AGM and Key Resolutions
Oct 24, 2025

Alara Resources has announced its Annual General Meeting (AGM) scheduled for November 28, 2025, where shareholders will consider various resolutions including the adoption of the 2025 Remuneration Report, re-election of directors, and approval of a 10% share placement facility. These resolutions are critical for the company’s governance and financial strategy, potentially impacting its operational capabilities and shareholder value.

Alara Resources Dispatches 27th Copper Concentrate Shipment
Oct 22, 2025

Alara Resources Limited has successfully dispatched its 27th shipment of copper concentrate from the Al Wash-hi – Majaza copper-gold mine in Oman. This shipment, containing 1620 WMT of copper-gold concentrate with approximately 287.6 MT of copper and 3.5 kg of gold, marks a significant milestone in the company’s operations, reinforcing its position in the base and precious metals market and demonstrating its ongoing commitment to sustainable and profitable growth.

Alara Resources Dispatches 25th Copper Shipment from Oman
Oct 1, 2025

Alara Resources Limited has successfully dispatched its 25th shipment of copper concentrate from the Al Wash-hi Majaza mine in Oman, marking a significant milestone in its production and export operations. This shipment, comprising 1003.7 WMT of copper-gold concentrate, was sent to India as part of its ongoing commitments with Trafigura. The dispatch schedule is influenced by production cycles, vessel availability, and port restrictions, reflecting the company’s strategic efforts to optimize its supply chain and maintain its market positioning.

Alara Resources Dispatches 23rd and 24th Copper Concentrate Shipments
Sep 23, 2025

Alara Resources Limited announced the successful dispatch of the 23rd and 24th shipments of copper concentrate from its Al Wash-hi – Majaza mine in Oman, totaling 3006 WMT of copper-gold concentrate. This shipment cycle included approximately 542.3 MT of copper and 4.6 kg of gold, highlighting the company’s ongoing production capabilities and its strategic positioning in the copper-gold market. The shipments were dispatched from Sohar Port due to logistical constraints and vessel availability, underscoring the operational challenges and strategic planning involved in the company’s export activities.

Alara Resources Advances Exploration with Drilling at Block 8 in Oman
Sep 9, 2025

Alara Resources Limited has announced an update on its Block 8 exploration project in Oman, where it is conducting a maiden reconnaissance diamond core drilling program. The program, set to begin on September 15, 2025, aims to test targets identified through recent gravity surveys conducted by Power Arabia, a technical team of Power Metal Resources. The surveys revealed two significant gravimetric anomalies, AM1 and AM2, which suggest potential massive sulphide mineralization. This advancement marks a critical phase in the exploration efforts, with Alara expressing commitment to increasing its stake in the joint venture and pursuing further copper discoveries in the region.

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 03, 2025