Constellation Resources Ltd. (CR1) AI Stock Analysis

• Market Cap: AU$13.67M
• Dividend Yield: N/A
• Average Volume (3M): 98.33K
• Price to Earnings (P/E): ―
• Beta (1Y): >-0.01
• Revenue Growth: N/A
• EPS Growth: -32.39%
• Country: US
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): -0.03
• Shares Outstanding: 80,394,450
• 10 Day Avg. Volume: 25,621
• 30 Day Avg. Volume: 98,328
• PEG Ratio: -0.06
• Price to Book (P/B): 33.07
• Price to Sales (P/S): 119.61
• P/FCF Ratio: -3.08
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 42 Neutral
• Price Target: AU$0.17 ▲(8.12% Upside)

The score is driven primarily by weak financial performance (persistent losses, minimal revenue, and worsening cash burn with shrinking equity), which outweighs the benefit of having no debt. Technicals add modestly negative influence (below key moving averages and negative MACD), and valuation is constrained by a negative P/E and lack of dividend support.

Positive Factors

Conservative capital structure (no debt)

Zero total debt materially reduces near-term financial risk and interest burden, preserving flexibility to fund exploration via equity or partnerships. For a capital-intensive explorer, low leverage sustains optionality for project sequencing or JV deals without servicing debt obligations.

Early revenue recognition from assets

Recording revenue suggests the company has begun monetising assets or services, a structural step from pure exploration. While small, this validates commercial pathways (sales, royalties or services) that can be scaled or used in partner negotiations over the medium term.

Asset-centric exploration business model

An asset-led model focuses capital on progressing discrete projects to extractable resources or JV/asset sales, which can create binary value events. Durable upside comes from discovery and structured partnerships that transfer funding risk while retaining upside through staged development.

Negative Factors

Consistent operating losses

Sustained annual losses indicate the business is not yet generating operational profitability, undermining self-funding capacity. Over 2–6 months this structural deficit increases reliance on external capital, dilutes economics for existing projects, and weakens negotiating leverage with partners.

Accelerating cash burn / negative free cash flow

Persistent negative operating and free cash flow, with acceleration recently, depletes reserves and heightens financing urgency. For an exploration firm, this raises dilution and timing risk for drilling programs or project advancement, potentially forcing scaled-back work or unfavorable funding terms.

Severely eroded equity base

A sharp reduction in shareholder equity diminishes the balance-sheet buffer against losses and elevates going-concern and dilution risk. Structurally, a weak equity base limits capacity to absorb setbacks, reduces creditors' confidence, and narrows options for funding exploration or executing JV transactions.

Constellation Resources Ltd. Business Overview & Revenue Model

Company Description

Constellation 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 Money

Constellation 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

Weak financial quality: the company is consistently loss-making with minimal revenue (only ~$54.6K in the latest year), persistent operating losses, and accelerating cash burn (latest free cash flow about -$2.1M). The key offsetting strength is a conservative capital structure with zero debt, but equity has eroded sharply, increasing future funding/dilution risk.

Income Statement

The company remains loss-making across the full history provided, with annual net losses ranging from roughly $1.3M to $3.0M. Revenue was effectively zero for multiple years and only appeared in the latest annual period (about $54.6K), which is too small to offset the cost base; profitability is weak, with deeply negative operating results and net margin in the latest year. A positive is that the presence of revenue in the most recent period suggests early commercialization progress, but overall earnings quality and profitability trajectory are still unfavorable.

Balance Sheet

Leverage is very conservative with zero total debt across all periods, reducing financial risk. However, the equity base has declined materially (from about $4.45M in 2020 to about $0.20M in 2025), reflecting sustained losses and raising dilution/going-concern pressure if spending continues. Returns on equity are negative throughout, and the sharp drop in equity in the most recent year is a key balance-sheet weakness despite the low-debt profile.

Cash Flow

Cash generation is consistently negative: operating cash flow and free cash flow are outflows in every period shown, with a sharp deterioration in the latest year (about -$2.1M free cash flow). Cash burn broadly tracks net losses (free cash flow roughly in line with net income in several years), which suggests limited non-cash add-backs and a business still reliant on external funding. While the company carries no debt, the magnitude and acceleration of cash burn in the most recent year increase financing risk.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	0.00	54.62K	0.00	0.00	0.00	0.00
Gross Profit	0.00	54.62K	-9.29K	-10.73K	-3.12K	-2.53K
EBITDA	-2.61M	-2.61M	-1.97M	-1.33M	-1.94M	-1.75M
Net Income	-2.97M	-2.97M	-1.89M	-1.27M	-1.93M	-1.68M
Balance Sheet
Total Assets	691.81K	691.81K	2.68M	2.80M	4.09M	3.31M
Cash, Cash Equivalents and Short-Term Investments	330.90K	330.90K	2.29M	2.42M	3.67M	2.94M
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	494.25K	494.25K	101.29K	64.91K	77.59K	187.60K
Stockholders Equity	197.56K	197.56K	2.58M	2.74M	4.01M	3.12M
Cash Flow
Free Cash Flow	-1.12M	-2.12M	-1.48M	-1.26K	-45.64K	-7.20K
Operating Cash Flow	-1.12M	-2.08M	-1.47M	-1.26K	-2.02K	-1.60K
Investing Cash Flow	-39.76K	-39.76K	-3.49K	0.00	-43.62K	-5.60K
Financing Cash Flow	-2.75K	157.25K	1.36M	0.00	2.80M	226.48K

Constellation Resources Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.16
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:CR1, the sentiment is Neutral. The current price of 0.16 is below the 20-day moving average (MA) of 0.17, below the 50-day MA of 0.17, and above the 200-day MA of 0.15, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 49.78 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:CR1.

Constellation Resources Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
AMU	49 Neutral	AU$20.35M	-8.64	-6.61%	―	―	―
EVG	49 Neutral	AU$17.33M	-3.13	-42.91%	―	―	-4.35%
WIN	45 Neutral	AU$29.14M	-0.40	-121.41%	―	―	-1034.67%
DM1	45 Neutral	AU$5.75M	-2.16	-21.73%	―	―	91.79%
CR1	42 Neutral	AU$13.67M	-3.62	-213.82%	―	―	-32.39%

Constellation Resources Ltd. Corporate Events

Constellation Resources Successfully Passes All AGM Resolutions

Constellation Resources Limited held its Annual General Meeting on November 19, 2025, where all proposed resolutions were passed by poll. This includes the approval of the remuneration report, re-election of a director, and an additional 10% placement capacity, indicating strong shareholder support and potentially enhancing the company’s operational flexibility.

Constellation Resources Expands Hydrogen Projects and Advances Copper-Gold Exploration

Constellation Resources Ltd. has expanded its natural hydrogen project area to 87,602 km² across several basins in Western Australia, with promising results from CSIRO studies indicating potential for large-scale hydrogen production. Additionally, the company has identified a significant copper-gold soil anomaly at its Ularring Copper Gold Project, supported by an Exploration Incentive Scheme grant for upcoming drilling.