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Cobre Limited (AU:CBE)
ASX:CBE
Australian Market

Cobre Limited (CBE) AI Stock Analysis

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AU

Cobre Limited

(Sydney:CBE)

Rating:39Underperform
Price Target:
Cobre Limited's overall stock score is low due to significant financial challenges, including persistent losses and negative cash flow, despite a strong equity position. Technical indicators point to weak momentum, and the valuation highlights a lack of profitability with a negative P/E ratio. Recent revenue improvements are a positive sign, but the company's reliance on equity financing limits growth opportunities.

Cobre Limited (CBE) vs. iShares MSCI Australia ETF (EWA)

Cobre Limited Business Overview & Revenue Model

Company DescriptionCobre Limited engages in the exploration and evaluation of mineral properties. It explores for copper, gold, silver, and zinc deposits. The company holds 100% interest in the Perrinvale project covering an area of approximately 381 square kilometers of the Panhandle and Illaara Greenstone Belts in Western Australia; and an option to earn up to 80% interests in the Sandiman tenement covering an area of approximately 202 square kilometers located in Gascoyne Province, Australia. It also holds 51% interest in the Kalahari Copper Belt covering an area of approximately 5,026.9 square kilometers located in Botswana. The company was incorporated in 2018 and is based in Sydney, Australia.
How the Company Makes MoneyCobre Limited makes money primarily through the exploration and development of copper mining projects. The company's revenue model is centered around discovering and developing mineral resources, which are then sold or partnered with larger mining operators. Key revenue streams include the sale of mineral rights, joint venture agreements, and potential future income from mining operations. Strategic partnerships with other mining companies and stakeholders in the mining industry also contribute to its earnings by sharing the risks and costs associated with exploration and development activities.

Cobre Limited Financial Statement Overview

Summary
Cobre Limited faces significant financial challenges with persistent losses and negative cash flow, despite having a strong equity position. The recent improvement in revenue offers a potential path to future profitability, but the lack of diversification in financing and reliance on equity may limit growth opportunities.
Income Statement
30
Negative
Cobre Limited's income statement reveals significant challenges in generating revenue and achieving profitability. The company struggled with negative net income and EBIT across the periods, reflecting operational inefficiencies and high expenses relative to revenue. However, there was a positive shift in revenue in the most recent period, indicating potential future growth opportunities.
Balance Sheet
55
Neutral
The balance sheet of Cobre Limited shows a strong equity base with no debt, which reduces financial risk. However, the company's equity ratio indicates that a significant portion of its assets are financed by equity, which could limit leverage opportunities. The absence of debt provides stability, but profitability remains a concern.
Cash Flow
35
Negative
Cobre Limited's cash flow statements highlight persistent negative free cash flow, suggesting ongoing capital expenditures and cash outflows that are not yet generating positive returns. Operating cash flow to net income ratios are unfavorable, indicating inefficiencies in converting revenue into cash.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
758.60K758.60K0.000.00
Gross Profit
758.60K758.60K-1.40K-172.00
EBIT
-1.11M-1.58M-1.94M324.40K-2.71M-2.05M
EBITDA
-1.16M-1.63M-1.45M-1.46M-2.69M-1.73M
Net Income Common Stockholders
-1.21M-2.39M-1.74M-5.39M-2.75M-1.97M
Balance SheetCash, Cash Equivalents and Short-Term Investments
2.72M980.63K5.76M2.73M8.15M7.17M
Total Assets
36.94M31.51M31.50M18.68M18.26M9.94M
Total Debt
0.000.000.001.88M532.06K0.00
Net Debt
-2.72M-980.63K-5.76M-852.11K-7.61M-7.17M
Total Liabilities
714.18K928.24K726.59K2.28M1.21M830.85K
Stockholders Equity
36.22M30.58M30.77M12.88M17.05M9.11M
Cash FlowFree Cash Flow
-6.51M-6.64M-9.98M-2.28M-3.33M-2.66M
Operating Cash Flow
-785.95K-1.34M-2.06M-1.20M-1.17M-1.48M
Investing Cash Flow
-5.72M-5.61M-9.58M-5.62M-3.07M-1.71M
Financing Cash Flow
7.29M2.16M14.67M1.41M5.21M10.18M

Cobre Limited Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.05
Price Trends
50DMA
0.05
Positive
100DMA
0.05
Negative
200DMA
0.06
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
71.60
Negative
STOCH
107.50
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:CBE, the sentiment is Neutral. The current price of 0.05 is above the 20-day moving average (MA) of 0.04, above the 50-day MA of 0.05, and below the 200-day MA of 0.06, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 71.60 is Negative, neither overbought nor oversold. The STOCH value of 107.50 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:CBE.

Cobre Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
51
Neutral
$2.04B-1.15-21.24%3.95%2.91%-30.44%
AUCBE
39
Underperform
AU$20.22M-3.74%67.62%
$19.48B25.0111.01%2.32%
$11.06B24.2916.97%1.30%
$2.10B1,408.33-36.53%6.22%
$2.37B-0.38%
$2.10B9.1326.42%2.87%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:CBE
Cobre Limited
0.05
-0.04
-44.44%
NESRF
Northern Star Resources Ltd
13.48
4.52
50.45%
CAHPF
Evolution Mining
5.50
2.98
118.25%
IPGDF
IGO
2.95
-1.49
-33.56%
RGRNF
Regis Resources Limited
2.98
1.77
146.28%
RMLRF
Ramelius Resources Limited
1.92
0.70
57.38%

Cobre Limited Corporate Events

Cobre Limited Strengthens Exploration Efforts with BHP Partnership
Apr 30, 2025

Cobre Limited has entered into an Earn-In Agreement with BHP Group Ltd, allowing BHP to invest up to US$25 million for exploration in Cobre’s Kitlanya Projects in Botswana, granting BHP a 75% interest. This strategic partnership enhances Cobre’s exploration capabilities and positions it for potential high-grade copper discoveries. Recent assay results from the Ngami Copper Project in Botswana show promising copper and silver grades, indicating significant exploration potential. In Australia, Cobre’s High Purity Quartz Project has shown successful beneficiation and thermal testing results, suggesting the potential for high purity silica products.

Cobre Limited Completes Infill Drilling at Ngami Copper Project
Apr 22, 2025

Cobre Limited has completed an infill resource drilling program at the Comet Target within its Ngami Copper Project in Botswana. The drilling, consisting of 10 diamond drill holes over a 2km strike, aims to establish a Mineral Resource Estimate and support a pilot study for in-situ copper recovery. Initial assay results are promising, aligning with expectations and demonstrating continuity of copper and silver grades. The company plans to proceed with metallurgical testing and environmental assessments to advance the project, potentially enhancing its position in the copper mining industry.

Cobre Limited Confirms Viability of High Purity Quartz Project
Apr 15, 2025

Cobre Limited has announced successful beneficiation and thermal testing results for its High Purity Quartz (HPQ) project at Perrinvale, Western Australia. The tests confirm the viability of producing high purity silica products and smelter furnace feedstock, with significant interest from international stakeholders, including a Malaysian silicon smelting operation. The completion of an Aboriginal Cultural Heritage survey has cleared the way for further exploration, positioning the company to advance towards a Mineral Resource Estimate.

Cobre Limited Director Increases Stake in Strategic Move
Apr 2, 2025

Cobre Limited announced a change in the director’s interest, with David Michael McNeilly acquiring additional shares and options. This change, approved by shareholders, reflects a strategic move to strengthen the director’s stake in the company, potentially impacting its governance and stakeholder confidence.

Cobre Limited Completes Second Tranche of Capital Raising
Apr 2, 2025

Cobre Limited has issued 12,307,693 ordinary shares at $0.065 per share as part of the second tranche of a capital raising effort announced in November 2024. This move is part of the company’s strategy to strengthen its financial position, with compliance to relevant provisions of the Corporations Act, and signifies a step towards enhancing its market presence and operational capabilities.

Cobre Limited Announces New Securities Issuance
Apr 2, 2025

Cobre Limited has announced the issuance of 12,307,693 fully paid ordinary securities, which will be quoted on the Australian Securities Exchange (ASX) under the code CBE. This move is part of previously announced transactions and is expected to enhance the company’s capital structure, potentially impacting its market position and stakeholder interests positively.

Cobre Limited Initiates Drilling at Kitlanya West Project
Mar 31, 2025

Cobre Limited has commenced a diamond drilling program at its Kitlanya West Copper Project in Botswana, following promising seismic survey results. This initiative, part of a joint venture with BHP, aims to explore potential copper-silver mineralization sites and assess the region’s capacity to host large deposits, potentially enhancing Cobre’s position in the mining industry.

Cobre Limited Advances Exploration with BHP Partnership
Mar 13, 2025

Cobre Limited has entered into an Earn-In Agreement with a subsidiary of BHP Group Ltd for its Kitlanya East and West Copper projects in Botswana, marking a significant step in its exploration efforts. Additionally, the company continues to advance its exploration projects in Botswana and Western Australia, while maintaining a strategic investment in Rapid Lithium Limited, which is focusing on lithium assets in the USA and mineral claims in Canada.

Cobre Limited Secures A$40M Exploration Deal with BHP for Botswana Projects
Mar 9, 2025

Cobre Limited has entered into an Earn-In Agreement with BHP Group Ltd, where BHP will invest up to A$40 million for exploration in Cobre’s Kitlanya Copper Projects in Botswana. This partnership allows BHP to earn a 75% interest in the projects, providing Cobre with significant funding and expertise to enhance its exploration efforts. The collaboration highlights Cobre’s confidence in discovering Tier 1 copper-silver deposits and allows the company to maintain full ownership of its other projects. The initial exploration phase, scheduled to begin in April 2025, includes deep drilling and seismic surveys to assess the potential for major mineral discoveries.

Cobre Limited Announces Strategic Placement Option Offer
Feb 25, 2025

Cobre Limited has announced a Placement Option Offer, which includes issuing up to 29,570,892 free attaching Options for the first tranche and 6,153,847 for the second tranche, based on one free Option for every two Shares issued. Additionally, up to 4,000,000 Options will be offered to Canaccord Genuity (Australia) Limited and CPS Capital Group Pty Ltd as part of a Broker Offer. These offers are not available to the general public, indicating a strategic move to strengthen relationships with key stakeholders and potentially enhance market positioning.

Cobre Limited Announces Extraordinary General Meeting
Feb 20, 2025

Cobre Limited has announced an Extraordinary General Meeting of its shareholders, which will be held on March 24, 2025, in Sydney, Australia. The meeting is set to take place at the offices of Baker McKenzie and will address various resolutions outlined in an accompanying Explanatory Memorandum, which shareholders are advised to review thoroughly. This meeting is crucial for stakeholders to understand the strategic direction and decisions the company plans to undertake.

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.