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Constellation Resources Ltd. (AU:CR1)
ASX:CR1
Australian Market

Constellation Resources Ltd. (CR1) AI Stock Analysis

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AU

Constellation Resources Ltd.

(Sydney:CR1)

Rating:40Underperform
Price Target:
Constellation Resources Ltd. struggles with zero revenue and growing net losses, heavily relying on financing for cash inflow. The technical analysis suggests bearish trends, with potential oversold conditions. Valuation metrics are weak, with a negative P/E ratio and no dividend yield, resulting in an overall low attractiveness of the stock.

Constellation Resources Ltd. (CR1) vs. iShares MSCI Australia ETF (EWA)

Constellation Resources Ltd. Business Overview & Revenue Model

Company DescriptionConstellation Resources Limited engages in the exploration for mineral properties in Australia. The company primarily explores for nickel, copper, and gold deposits. It holds an interest in the Orpheus project that includes a 70% interest in three mineral exploration licenses and one mineral exploration license application comprising six tenements covering approximately 443 square kilometers located in the Fraser Range province of Western Australia, as well as a 100% interest in two exploration licenses, including E28/2738 and E28/2957. The company was incorporated in 2011 and is based in Perth, Australia.
How the Company Makes MoneyConstellation Resources Ltd. generates revenue through the exploration, development, and potential sale of mineral resources. The company invests in exploration activities to identify valuable mineral deposits, which can then be developed into commercially viable mining projects. Revenue is primarily derived from the sale of extracted minerals, such as nickel, copper, and gold, to industrial customers and commodity markets. Additionally, Constellation Resources may enter into strategic partnerships, joint ventures, or sell stakes in its projects to other mining companies, thereby generating income through these collaborations. The company's financial performance is significantly influenced by factors such as mineral prices, exploration success, and the efficiency of its exploration and development activities.

Constellation Resources Ltd. Financial Statement Overview

Summary
Constellation Resources Ltd. faces significant challenges with zero revenue and growing net losses. While the balance sheet shows no debt, the company relies heavily on financing activities for cash inflow, indicating potential liquidity risks and an unsustainable financial position.
Income Statement
10
Very Negative
Constellation Resources Ltd. has consistently reported zero revenue over the past years, indicating a lack of operational income. The company exhibits significant and increasing net losses, with no gross profit. This suggests an unsustainable financial position with a dependency on external financing.
Balance Sheet
60
Neutral
The balance sheet reflects a strong equity position relative to zero debt, with a positive equity ratio. However, the declining stockholders' equity over the years indicates a deterioration in financial stability. The absence of liabilities is a positive, contributing to a moderate score.
Cash Flow
25
Negative
Negative operating and free cash flows indicate cash outflow issues. The company relies heavily on financing activities for cash inflows, suggesting potential liquidity risks. The lack of consistent operating cash flow is concerning for long-term sustainability.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue0.000.000.000.000.000.00
Gross Profit0.00-9.29K-10.73K-3.12K-2.53K-1.70K
EBITDA-2.45M-1.97M-1.33M-1.94M-1.75M-1.57M
Net Income-2.37M-1.89M-1.27M-1.95M-1.66M-1.37M
Balance Sheet
Total Assets2.03M2.68M2.80M4.09M3.31M4.74M
Cash, Cash Equivalents and Short-Term Investments1.31M2.29M2.42M3.67M2.94M4.31M
Total Debt0.000.000.000.000.000.00
Total Liabilities252.09K101.29K64.91K77.59K187.60K289.00K
Stockholders Equity1.78M2.58M2.74M4.01M3.12M4.45M
Cash Flow
Free Cash Flow-1.48M
Operating Cash Flow-1.47M
Investing Cash Flow-3.49K0.00-43.62K-5.60K-1.28M
Financing Cash Flow1.36M0.002.80M226.48K0.00

Constellation Resources Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.13
Price Trends
50DMA
0.13
Positive
100DMA
0.15
Negative
200DMA
0.16
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
61.92
Neutral
STOCH
83.33
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:CR1, the sentiment is Positive. The current price of 0.13 is above the 20-day moving average (MA) of 0.12, above the 50-day MA of 0.13, and below the 200-day MA of 0.16, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 61.92 is Neutral, neither overbought nor oversold. The STOCH value of 83.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:CR1.

Constellation Resources Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (43)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUWIN
51
Neutral
AU$11.00M-118.63%-1123.94%
AUBYH
45
Neutral
AU$6.79M-8.84%64.06%
43
Neutral
AU$1.41B-6.02-40.74%3.99%-3.45%-41.76%
AUCR1
40
Underperform
AU$10.93M-128.56%-40.78%
AUGTR
AU$9.00M-6.64%
AUDM1
37
Underperform
AU$9.29M-137.14%-417.70%
AUEVG
34
Underperform
AU$8.70M-44.85%-77.78%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:CR1
Constellation Resources Ltd.
0.13
-0.03
-18.75%
AU:WIN
Widgie Nickel Limited
0.02
0.00
0.00%
AU:GTR
GTI Resources Ltd
AU:BYH
Bryah Resources Ltd.
0.01
0.00
0.00%
AU:EVG
BlackEarth Minerals NL
0.02
0.00
0.00%
AU:DM1
Desert Metals Ltd.
0.02
>-0.01
-33.33%

Constellation Resources Ltd. Corporate Events

Constellation Resources Launches Entitlement Offer to Raise Capital
Apr 28, 2025

Constellation Resources Limited has announced the dispatch of documents related to its non-renounceable pro-rata entitlement offer, allowing eligible shareholders to purchase new shares at a set price. This offer aims to raise approximately $2.36 million and is open to shareholders in specific regions, reflecting the company’s strategic focus on these markets. The initiative is expected to enhance the company’s capital structure, potentially impacting its operational capabilities and market positioning.

Constellation Resources Ltd. Announces Share Entitlement Offer
Apr 15, 2025

Constellation Resources Ltd. has announced a non-renounceable pro-rata entitlement offer of new shares at an issue price of $0.15 each, on the basis of one new share for every four shares held on the record date. This offer is made under the provisions of the Corporations Act, allowing rights issues without a prospectus, and is intended for existing shareholders. The offer opens on April 28, 2025, and closes on May 19, 2025. This move is expected to provide the company with additional capital, potentially impacting its financial position and market operations.

Constellation Resources Announces Share Entitlement Offer
Apr 15, 2025

Constellation Resources Ltd. has announced a non-renounceable pro-rata entitlement issue, offering eligible shareholders the opportunity to acquire one new fully paid ordinary share for every four existing shares at a price of $0.15 per share, aiming to raise approximately $2.36 million. The impact of this offer on the company’s control will depend on shareholder participation, with potential dilution for those not fully subscribing, while ensuring no single participant exceeds a 19.9% voting power.

Constellation Resources Advances Copper-Gold and Hydrogen Projects
Apr 15, 2025

Constellation Resources Limited has reported significant progress in its Ularring Copper Gold Project, where a dipole-dipole induced polarisation survey identified a high-quality chargeable anomaly, suggesting potential high-grade copper-gold mineralization. Additionally, the company is advancing its natural hydrogen projects over a large area with ongoing geological reviews and technical collaborations, which could establish a viable hydrogen system if successful.

Constellation Resources Announces New Securities Issue
Apr 14, 2025

Constellation Resources Limited has announced a proposed issue of securities, with a total of 15,759,806 ordinary fully paid securities to be issued. The issue is a standard pro rata, non-renounceable offering, with key dates including an ex date of April 17, 2025, a record date of April 22, 2025, and an offer closing date of May 19, 2025. This move is part of the company’s strategic financial activities and could impact its market position by potentially increasing its capital base.

Constellation Resources Launches Drilling Program at Ularring Project
Apr 14, 2025

Constellation Resources Limited has initiated a diamond drilling program at its Ularring Copper Gold Project to explore a high-quality chargeable anomaly, potentially indicating a high-grade copper-gold deposit. The program involves a two-hole drilling plan, with the first hole targeting a significant chargeability peak, and a second hole contingent on initial results. Additionally, the company announced a non-renounceable entitlement offer to raise approximately $2.36 million.

Constellation Resources Identifies Promising Copper Gold Target at Ularring
Mar 17, 2025

Constellation Resources Ltd. has completed a dipole-dipole induced polarisation survey at the Centre Forest Prospect within its Ularring Copper Gold Project in Western Australia. The survey identified a significant chargeable anomaly, suggesting a high-grade copper gold target that remains untested by previous drilling. This finding could indicate potential for discovering higher-grade mineralization, and the company plans to initiate a priority diamond drilling program to explore this promising target.

Constellation Resources Ltd. Releases Interim Financial Report for 2024
Mar 4, 2025

Constellation Resources Ltd. has released its interim consolidated financial report for the half-year ending December 31, 2024. The report provides insights into the company’s financial performance, including statements of profit or loss, financial position, and cash flows. This release is crucial for stakeholders to assess the company’s financial health and operational efficiency during the period.

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: May 01, 2025