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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 45 (OpenAI - 4o)
Rating:45Neutral
Price Target:
AU$0.00
▼(-100.00% Downside)
Alara Resources faces significant financial challenges, with high leverage and negative profitability impacting its financial performance score. Technical indicators suggest a lack of strong momentum, and the valuation is unattractive due to a negative P/E ratio and no dividend yield. These factors collectively result in a below-average stock score.

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

Alara Resources Business Overview & Revenue Model

Company DescriptionAlara 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 MoneyAlara 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 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
Positive
RSI
47.98
Neutral
STOCH
27.78
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 below 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 Positive momentum. The RSI at 47.98 is Neutral, neither overbought nor oversold. The STOCH value of 27.78 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
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
51
Neutral
AU$29.35M-3.45%-57.14%
45
Neutral
€32.12M-71.33%909.03%-74.07%
42
Neutral
AU$20.30M-43.49%-7.14%
39
Underperform
AU$32.37M-6.39%37.04%
31
Underperform
AU$22.91M-136.26%-79.31%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:AUQ
Alara Resources
0.04
<0.01
10.81%
AU:AKO
Akora Resources Ltd.
0.08
-0.06
-42.86%
AU:CBE
Cobre Limited
0.07
>-0.01
-12.50%
AU:CST
Castile Resources Ltd
0.10
0.02
25.00%
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 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.

Alara Resources Shareholder Resolutions Passed with Strong Support
Jul 25, 2025

Alara Resources announced the results of its recent shareholder meeting, where resolutions to issue shares to ATI and Vikas Jain were passed with overwhelming support. This development is significant for the company as it continues to focus on its operations and exploration activities in Oman, potentially impacting its growth and shareholder value.

Alara Resources Director Increases Stake with Major Share Acquisition
Jul 23, 2025

Alara Resources Limited announced a significant change in the director’s interest, with Devaki Gulabsi Ratansi Khimji acquiring an additional 60,000,000 shares through Al Tasnim Infrastructure LLC. This acquisition, valued at $2,400,000, increases Khimji’s total shareholding to 159,650,067 shares, reflecting a strategic move that may enhance the company’s market positioning and influence within the industry.

Alara Resources Director Increases Stake Through Share Acquisition
Jul 22, 2025

Alara Resources Limited announced a change in the director’s interest, with Vikas Jain acquiring additional shares through a placement agreement. This acquisition involves both direct and indirect interests, increasing Jain’s total securities in the company, reflecting a strategic move to strengthen his stake and potentially influence the company’s future direction.

Alara Resources Announces Change in Substantial Holder Interests
Jul 22, 2025

Alara Resources Limited has announced a change in the interests of its substantial holders, with Vikas Jain, Piyush Jain, and South West Pinnacle Exploration Limited adjusting their holdings in the company. The change involves a reduction in voting power from 19.76% to 10.83% due to a series of acquisitions and subscriptions for new shares. This adjustment in shareholding structure may impact the company’s governance and strategic direction, reflecting a shift in stakeholder influence within Alara Resources.

Alara Resources Expands Market Presence with New Securities Quotation
Jul 15, 2025

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
Jul 8, 2025

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
Jul 7, 2025

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
Jun 30, 2025

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
Jun 23, 2025

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
Jun 18, 2025

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
Jun 17, 2025

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
Jun 11, 2025

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
Jun 10, 2025

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
Jun 10, 2025

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
Jun 2, 2025

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
May 23, 2025

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
May 14, 2025

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.

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 07, 2025