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Alara Resources Limited (AU:AUQ)
ASX:AUQ
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Alara Resources (AUQ) AI Stock Analysis

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AU:AUQ

Alara Resources

(Sydney:AUQ)

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Neutral 51 (OpenAI - 4o)
Rating:51Neutral
Price Target:
AU$0.00
▼(-100.00% Downside)
The overall stock score is primarily influenced by financial performance challenges, including high leverage and negative profitability. Technical analysis provides some support with positive price trends, but valuation concerns due to negative earnings weigh heavily.

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 is experiencing strong revenue growth but faces significant profitability and leverage challenges. The high debt levels and negative profit margins pose risks to financial stability. While there is some improvement in cash flow, the company needs to enhance its operational efficiency and manage its debt to improve overall financial health.
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-1.93M-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
Positive
Last Price0.04
Price Trends
50DMA
0.04
Negative
100DMA
0.04
Positive
200DMA
0.04
Positive
Market Momentum
MACD
>-0.01
Negative
RSI
50.75
Neutral
STOCH
62.22
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, below the 50-day MA of 0.04, and above the 200-day MA of 0.04, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 50.75 is Neutral, neither overbought nor oversold. The STOCH value of 62.22 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
$10.43B7.12-0.05%2.87%2.86%-36.73%
€32.93M-2.91-71.33%909.03%-74.07%
AU$33.63M-3.45%-57.14%
AU$21.12M-43.49%-7.14%
AU$42.25M-6.39%37.04%
AU$25.69M-136.26%-79.31%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:AUQ
Alara Resources
0.04
>-0.01
-18.37%
AU:AKO
Akora Resources Ltd.
0.08
-0.05
-38.46%
AU:CBE
Cobre Limited
0.10
0.02
25.00%
AU:CST
Castile Resources Ltd
0.11
0.02
22.22%
AU:ACP
Audalia Resources Limited
0.03
<0.01
50.00%
AU:CMD
Cassius Mining Ltd
0.03
0.02
200.00%

Alara Resources Corporate Events

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.

Alara Resources Appoints New Director
Sep 4, 2025

Alara Resources Limited has announced the appointment of John Michel Shingleton as a director, effective from September 2, 2025. This announcement is part of the company’s compliance with ASX listing rules, ensuring transparency in the disclosure of directors’ interests, although no specific securities or contracts are associated with the new director at this time.

Alara Resources Boosts Copper Production by 77% in August
Aug 25, 2025

Alara Resources Limited has announced a significant increase in its copper concentrate production, with a 77% rise in average daily output in August 2025, following the successful commissioning of new filter presses. This boost in production, highlighted by the dispatch of the 22nd shipment of copper concentrate from the Al Wash-hi Majaza mine, underscores the company’s strategic efforts to enhance plant performance and maintain consistent shipments, reinforcing its growth trajectory and operational reliability.

Alara Resources Boosts Production with New Tailings Filter Presses
Aug 6, 2025

Alara Resources Limited has successfully commissioned new interim tailings filter presses at its Al Wash-hi Majaza Copper-Gold Project in Oman, significantly boosting production capacity. The new equipment is expected to increase plant production to 85-90% of its design capacity, enhancing operational efficiency and increasing monthly copper-gold concentrate production to an estimated 3000-3200 dry metric tonnes. This development marks a key milestone in Alara’s efforts to enhance reliability and capacity, reflecting its commitment to operational excellence and delivering value for shareholders.

Alara Resources Secures Mining License for Daris 3A5 in Oman
Aug 5, 2025

Alara Resources Limited has been awarded a mining license for the Daris 3A5 prospect, part of the Daris Copper-Gold Project in Oman. This milestone reinforces Alara’s growth strategy and leadership in Oman’s mining sector. The license, granted after extensive approvals and negotiations, allows Alara to proceed with its second copper mining operation in the region. The Daris 3A5 prospect has shown high-grade copper mineralization, and further exploration will determine its economic viability.

Alara Resources Addresses ASX Query on Late Disclosure
Aug 1, 2025

Alara Resources Limited responded to an ASX query regarding the late submission of Appendix 3Y, which was related to shares issued in a recent placement. The company explained that the delay was due to the time taken to prepare the document and obtain external advice to ensure correct disclosure. Alara has agreements with its directors to ensure compliance with disclosure obligations under Listing Rule 3.19A.

Alara Resources Dispatches 21st Copper Shipment Post-Maintenance
Jul 31, 2025

Alara Resources has dispatched its 21st shipment of copper concentrate from the Al Wash-hi – Majaza copper-gold mine in Oman, marking a production of 1563.9 WMT of copper-gold concentrate containing approximately 263 MT of copper and 2.7 kg of gold. The shipment follows a routine 10-day maintenance shutdown of the SAG mill, which temporarily interrupted production. The company expects the shipping schedule to return to normal, underscoring its ongoing commitment to maintaining efficient operations and reinforcing its position in the base and precious metals industry.

Alara Resources Boosts Production and Explores New Prospects in Oman
Jul 31, 2025

Alara Resources has made significant progress at its Al Wash-hi Majaza Copper-Gold Project, with the installation and commissioning of interim replacement filter presses at the plant. The company has dispatched a total of 20 copper-gold concentrate shipments, containing 3963 MT of copper metal and 87.7 kg of gold, marking an improvement in production and quality. The exploration program has identified a new prospect within the Block 8 license, and exploration has commenced in the Block 22B concession. These developments are expected to enhance the company’s production capabilities and strengthen its market position.

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: Oct 30, 2025