Alara Resources (AUQ) AI Stock Analysis

• Market Cap: AU$31.32M
• Dividend Yield: N/A
• Average Volume (3M): 393.80K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.52
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: AU
• Employees: 7
• Sector: Basic Materials
• Sector Strength: 67
• Industry: Industrial Materials
• EPS (TTM): >-0.01
• Shares Outstanding: 803,087,500
• 10 Day Avg. Volume: 254,916
• 30 Day Avg. Volume: 393,804
• PEG Ratio: 0.05
• Price to Book (P/B): 1.53
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.59
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 45 Neutral
• Price Target: AU$0.00 ▼(-100.00%Downside)

The overall stock score reflects significant financial challenges, with high leverage and negative profitability as primary concerns. While the stock shows positive technical momentum, overbought indicators and valuation issues limit potential attractiveness.

Alara Resources Business Overview & Revenue Model

Company Description

Alara Resources Limited operates as minerals exploration and development company. It explores for gold, zinc, and copper deposits. The company holds a 51% interest in the Al Wash-hi Majaza copper-gold project that consists of three exploration licences and one mining licence covering an area of approximately 80 square kilometers; and a 50% interest in the Daris Copper-Gold Project, which comprises one exploration license covering an area of approximately 587 square kilometers located in Muscat, Oman. It also has interest in the Khnaiguiyah Zinc-Copper project situated in the Kingdom of Saudi Arabia. The company was formerly known as Alara Uranium Limited. Alara Resources Limited was incorporated in 2006 and is based in Balcatta, Australia.

How the Company Makes Money

Alara Resources makes money primarily through the exploration and development of mineral resources with a focus on copper and gold. The company's revenue model is based on advancing its projects from exploration to production, at which point it can generate income through the sale of extracted minerals. Key revenue streams include potential future sales of copper and gold once production commences. Alara Resources also engages in strategic partnerships and joint ventures, which can provide funding and share the financial burden of project development, thus contributing to its earnings. However, as the company is currently in the development stage, significant revenue generation is contingent upon successful project advancement to production.

Alara Resources Financial Statement Overview

Summary

Alara Resources Limited shows growth in revenue but faces significant challenges with profitability, high leverage, and cash management. Negative net income and high debt-to-equity ratio reflect financial instability, requiring strategic improvements in efficiency and structure.

Income Statement

The company shows a fluctuating revenue trend with a recent significant increase in total revenue. However, net income remains negative, suggesting ongoing profitability challenges. Gross profit margin improved to 40.18% in the latest period, but the net profit margin is deeply negative at -106.06%, indicating high operational costs. EBIT and EBITDA margins are also negative, reflecting difficulties in covering operational expenses.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 5.20, indicating significant leverage and potential risk in financial stability. The equity ratio is low at 10.88%, suggesting limited equity financing. Return on equity is negative, reflecting ongoing losses. The company's asset base has grown, but the increase in liabilities outweighs equity growth.

Cash Flow

Cash flow analysis shows negative free cash flow with no significant improvement, highlighting cash management issues. Operating cash flow to net income ratio is not meaningful due to negative values. The company is heavily reliant on financing activities to support cash flow needs, which may not be sustainable long-term.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	5.46M	25.30K	11.17K	11.78K	642.85K
Gross Profit	2.20M	-738.53K	-10.71K	-320.00	633.28K
EBITDA	-2.18M	-1.93M	-1.57M	-1.60M	-34.78K
Net Income	-5.79M	-1.91M	-1.32M	-1.62M	273.99K
Balance Sheet
Total Assets	171.95M	117.66M	44.99M	23.32M	23.83M
Cash, Cash Equivalents and Short-Term Investments	4.69M	4.46M	3.49M	5.27M	7.68M
Total Debt	97.17M	66.83M	18.15M	712.10K	684.41K
Total Liabilities	151.35M	88.58M	22.10M	1.81M	982.72K
Stockholders Equity	18.70M	23.68M	23.32M	21.67M	22.96M
Cash Flow
Free Cash Flow	-31.28M	-53.76M	-19.35M	-3.79M	-5.31M
Operating Cash Flow	-12.00M	-1.55M	-1.81M	-1.65M	-2.12M
Investing Cash Flow	-19.09M	-45.33M	-17.59M	-3.17M	2.27M
Financing Cash Flow	31.79M	48.04M	17.36M	1.89M	-188.66K

Alara Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.04
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:AUQ, the sentiment is Positive. The current price of 0.04 is above the 20-day moving average (MA) of 0.04, above the 50-day MA of 0.03, and above the 200-day MA of 0.03, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 63.34 is Neutral, neither overbought nor oversold. The STOCH value of 51.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:AUQ.

Alara Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AUQ	45 Neutral	AU$31.32M	―	-26.98%	―	―	―
Sector *	44 Neutral	C$961.63M	-6.69	-13.73%	2.61%	17.55%	-32.57%
AKO	―	AU$15.80M	―	-17.86%	―	―	―
CST	44 Neutral	AU$17.43M	―	-3.70%	―	―	-92.59%
ACP	41 Neutral	AU$21.39M	―	-37.04%	―	―	-23.08%
CBE	39 Underperform	AU$18.62M	―	-3.74%	―	―	67.62%
CMD	31 Underperform	AU$16.26M	―	-186.04%	―	―	-47.06%

Alara Resources Corporate Events

Alara Resources Expands Market Presence with New Securities Quotation

Alara Resources Limited announced the quotation of 85,000,000 ordinary fully paid securities on the Australian Securities Exchange (ASX) as part of a previously announced transaction. This move is expected to bolster the company’s financial position and enhance its market presence, potentially impacting its stakeholders by increasing liquidity and investment opportunities.

Alara Resources Shareholders Approve Key Resolutions

Alara Resources Limited announced the results of its shareholders’ meeting, where resolutions to issue shares to ATI and Vikas Jain were passed with overwhelming support. This decision reflects strong shareholder confidence and is expected to bolster the company’s financial position, supporting its ongoing operations and exploration activities in Oman.

Alara Resources Reports Promising Copper Findings in Oman Exploration

Alara Resources Limited has provided an update on its Block 8 exploration project in Oman, highlighting significant findings at the Al Maider and Al Mansur prospects. The exploration has revealed promising copper results and defined new targets, with ongoing geological mapping and survey work supporting the project’s potential. The company has submitted a full technical report to the Oman Ministry of Mining to support the renewal of the project license, indicating a strategic move to secure its exploration activities and potentially enhance its market position.

Alara Resources Dispatches 20th Copper Concentrate Shipment

Alara Resources Limited has successfully dispatched its 20th shipment of copper concentrate from the Al Wash-hi – Majaza copper-gold mine in Oman. The shipment, consisting of 1323.3 wet metric tons of copper-gold concentrate, includes approximately 237.4 metric tons of copper and 2 kilograms of gold. This milestone underscores the company’s operational capabilities and strengthens its position in the copper and gold mining industry.

Alara Resources Reports Promising Copper Exploration Results in Oman

Alara Resources Limited has provided an exploration update for its Block 8 project in Oman, highlighting significant copper findings at the Al Maider and Al Mansur prospects. The exploration, conducted in partnership with Power Metal Resources, has reached key milestones, including defining new drilling targets and submitting a technical report for license renewal. The ongoing exploration efforts underscore the potential for substantial copper mineralization in the area, with Alara aiming to increase its stake in the project.

Alara Resources Advances Wash-hi Majaza Project with Sustainability Initiatives

Alara Resources has announced significant progress in the commissioning of the Wash-hi Majaza Copper-Gold Project in Oman, where it holds a 51% interest. The installation of two new tailings filter presses is nearing completion, with a planned integration shutdown scheduled for early July to enhance operational efficiency. Additionally, the construction of a 5,000 MT concentrate storage facility is on track, and efforts to connect the site to grid power are underway, aligning with the company’s sustainability goals by reducing reliance on diesel generators and lowering emissions. These developments are expected to improve logistics, reduce costs, and enhance Alara’s commitment to responsible operations, ultimately unlocking long-term value for stakeholders.

Alara Resources Dispatches 19th Copper Shipment from Oman

Alara Resources Limited has dispatched its 19th shipment of copper concentrate from the Al Wash-hi – Majaza copper-gold mine in Oman, operated by its joint venture company Al Hadeetha Resources LLC. The shipment, which departed Sohar Port on June 15, 2025, included 1200.5 wet metric tons of copper-gold concentrate, containing approximately 223.5 metric tons of copper and 1.7 kilograms of gold. This milestone highlights Alara’s ongoing production capabilities and strengthens its position in the base and precious metals market.

Alara Resources Announces Proposed Issue of 85 Million Securities

Alara Resources Limited announced a proposed issue of 85,000,000 fully paid ordinary securities, with the issue date set for July 15, 2025. This move is part of a placement or other type of issue, potentially impacting the company’s capital structure and market positioning as it seeks to raise funds or expand its operations.

Alara Resources Announces Share Issuance to Raise Capital

Alara Resources Limited has announced a general meeting to discuss the issuance of placement shares. The company plans to issue 60,000,000 shares to ATI and 25,000,000 shares to Mr. Vikas Jain, a director, both at an issue price of A$0.04 per share. This move is aimed at raising capital and potentially strengthening the company’s financial position, which could have significant implications for its operational capabilities and stakeholder interests.

Alara Resources Secures A$3.4 Million Through Private Placement

Alara Resources Limited has entered into subscription agreements for a private placement to raise A$3.4 million through the issuance of 85,000,000 shares at A$0.04 each to Al Tasnim Infrastructure LLC and Director Vikas Jain. This move is aimed at repaying a portion of the company’s debt under its finance facility with Trafigura Pte Ltd and covering interest payments and taxes. The placement is subject to shareholder approval, and if approved, will increase the voting power of ATI and Vikas Jain in the company. The funds will also support the company’s financial commitments and projects in Oman.

Alara Resources Dispatches 18th Copper Shipment from Oman

Alara Resources Limited announced the dispatch of its 18th shipment of copper concentrate from the Al Wash-hi Majaza copper-gold mine in Oman. The shipment, which includes 1279 WMT of copper-gold concentrate with 216.4 MT of copper and 2.4 kg of gold, highlights the company’s ongoing production capabilities and its strategic focus on expanding its operations in the region. This development underscores Alara’s commitment to enhancing shareholder value through sustainable and profitable growth.

Alara Resources Dispatches 17th Copper Concentrate Shipment from Oman

Alara Resources Limited has dispatched its 17th shipment of copper concentrate from the Al Wash-hi – Majaza copper-gold mine in Oman, marking a significant milestone in its operations. The shipment, which includes 1277 WMT of copper-gold concentrate with 223.6 MT of copper and 2.96 kg of gold, underscores the company’s ongoing production capabilities and its commitment to maintaining a steady supply chain, potentially strengthening its market position and benefiting stakeholders.

Alara Resources Enhances Copper-Gold Project Efficiency and Reports Increased Production Costs

Alara Resources Limited has announced an update on its Al Wash-hi Majaza Copper-Gold Project in Oman, highlighting the installation of new Tailings Filter Presses (TFPs) which are expected to enhance tailings processing efficiency and increase copper concentrate production to 90-92% of the plant’s capacity. This improvement is anticipated to boost production to 3200-3400 wet metric tons per month, with a future goal of reaching full capacity. Additionally, the company reported a significant rise in production-related payments due to the resumption of mining operations and the purchase of essential consumables and spare parts, reflecting a stabilization of operations post-inventory buildup.

Alara Resources Dispatches 16th Copper-Gold Shipment from Oman

Alara Resources Limited has successfully dispatched its 16th shipment of copper-gold concentrate from the Al Wash-hi – Majaza mine in Oman, operated by its joint venture company Al Hadeetha Resources LLC. The shipment, which departed from Sohar Port on April 26, 2025, consisted of 1395 wet metric tonnes of concentrate containing 237.9 metric tonnes of copper and 2.6 kilograms of gold. This milestone underscores Alara’s ongoing operational success and strengthens its position in the base and precious metals industry, potentially enhancing shareholder value and market presence.

Alara Resources Unveils Promising Survey Results for Block 8 in Oman

Alara Resources Limited has announced the results of a gravimetric geophysical survey conducted on its Block 8 exploration concession in Oman. The survey, part of a joint venture with Power Metal Resources, aims to identify potential mineral deposits, enhancing Alara’s exploration capabilities and potentially increasing its stake in the project. This development could strengthen Alara’s position in the metals exploration industry and offer new opportunities for stakeholders.