Element 25 Limited (E25) AI Stock Analysis

• Market Cap: AU$90.36M
• Dividend Yield: N/A
• Average Volume (3M): 653.93K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.13
• Revenue Growth: -85.84%
• EPS Growth: 73.66%
• Country: AU
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): -0.01
• Shares Outstanding: 265,776,820
• 10 Day Avg. Volume: 1,064,426
• 30 Day Avg. Volume: 653,929
• PEG Ratio: 0.12
• Price to Book (P/B): 0.94
• Price to Sales (P/S): 27.54
• P/FCF Ratio: -4.17
• 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: 48 Neutral
• Price Target: AU$0.33 ▼(-0.91% Downside)
• Action: Reiterated Date: 02/03/26
• Date: Action: Reiterated 02/03/26

The score is primarily held down by severe financial deterioration (major revenue decline, very negative margins, and negative operating/free cash flow). Technicals provide partial support with an improving longer-term trend and neutral momentum, while valuation remains challenged due to negative earnings and no indicated dividend yield.

Positive Factors

Very low leverage

A debt-to-equity ratio of ~0.005 implies minimal financial leverage, reducing solvency risk and interest burden. Over a multi-month horizon this balance-sheet conservatism provides strategic flexibility to manage operating losses, access modest debt if needed, and avoid forced asset sales.

Strategic commodity exposure

Element 25's focus on manganese, plus longer-term plans to expand into manganese-based battery and industrial products, aligns with structural demand for battery metals. If executed, downstream integration could capture more value over months to years and insulate revenue from raw concentrate price swings.

Owned operating asset (Butcherbird)

Ownership and operation of the Butcherbird Manganese Project provide tangible production capacity and near-term revenue optionality. Having an extractive asset reduces exploration uncertainty, creates a foundation for offtakes or partnerships, and supports any staged ramp or downstream initiatives.

Negative Factors

Severe revenue decline

A near-80% revenue collapse signals significant demand, production, or contract disruption. Such a large reduction erodes scale, undermines fixed-cost coverage, and weakens cash generation. Recovering revenue to prior levels typically requires material operational or market improvements and may take many months.

Deep negative margins

Extremely negative gross and net margins indicate costs or impairments far exceeding sales, not just transient compression. This points to structural cost, production inefficiency, or write-down issues that must be corrected to restore profitability; margins at these levels threaten equity and deter long-term investment.

Negative operating and free cash flow

Sustained negative operating and free cash flow create a cash burn dynamic that forces reliance on external financing or asset sales. Over the coming months this constrains capital allocation, raises dilution or leverage risk, and limits the company's ability to fund downstream expansion or steady operations without raising capital.

Element 25 Limited Business Overview & Revenue Model

Company Description

Element 25 Limited engages in the exploration of mineral properties in Australia and France. The company explores for manganese, copper, and nickel deposits. It owns a 100% interest in the Butcherbird manganese project for producing high purity manganese sulphate monohydrate for use in lithium-ion battery. The company's Butcherbird project is located to the north of Perth and south of Newman in the Pilbara region, Western Australia. It also holds 100% interest in the Pinnacles project located to the northeast of Kalgoorlie. The company was formerly known as Montezuma Mining Company Limited and changed its name to Element 25 Limited in May 2018. Element 25 Limited was incorporated in 2006 and is based in Osborne Park, Australia.

How the Company Makes Money

Element 25 Limited generates revenue primarily through the sale of high-purity manganese products, which are in demand for their applications in battery technology and alloy production. The company’s revenue model is centered around the extraction and processing of manganese ore, which is then sold to various industrial clients, including manufacturers of lithium-ion batteries and steel producers. Key revenue streams include contract sales to established buyers and potential long-term supply agreements with major players in the battery and steel industries. Additionally, E25 may benefit from strategic partnerships with technology firms and other mining companies, enhancing its market reach and operational efficiencies, thereby contributing positively to its earnings.

Element 25 Limited Financial Statement Overview

Summary

Financials are weak: revenue fell sharply (-78.44%) and profitability is deeply negative (gross margin -192.32%, net margin -311.58%). Cash flow is also negative (operating and free cash flow), indicating funding and execution pressure. The main offset is very low leverage (debt-to-equity 0.005), which reduces balance-sheet risk but does not solve losses.

Income Statement

Element 25 Limited has experienced significant revenue decline with a negative revenue growth rate of -78.44% in the most recent year. The company also shows negative margins across the board, including a gross profit margin of -192.32% and a net profit margin of -311.58%, indicating substantial losses relative to revenue. These metrics highlight severe profitability challenges and a need for strategic improvements.

Balance Sheet

The balance sheet shows a low debt-to-equity ratio of 0.005, suggesting minimal leverage, which is a positive aspect. However, the return on equity is negative, reflecting ongoing losses. The equity ratio is relatively stable, indicating a solid capital structure despite profitability issues.

Cash Flow

Operating cash flow and free cash flow are both negative, with a free cash flow to net income ratio of 2.59, indicating cash flow challenges. The company has seen a decline in free cash flow growth, further emphasizing the need for cash management improvements.

Breakdown	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	1.88M	13.30M	33.47M	21.10M	34.94K
Gross Profit	-3.62M	-17.15M	-14.06M	-15.09M	-505.55K
EBITDA	-5.36M	-19.10M	-22.45M	-15.07M	-6.56M
Net Income	-5.87M	-21.52M	-24.88M	-18.10M	-6.49M
Balance Sheet
Total Assets	62.23M	65.19M	68.06M	60.92M	68.97M
Cash, Cash Equivalents and Short-Term Investments	2.50M	11.57M	29.54M	16.98M	38.15M
Total Debt	282.37K	180.02K	547.29K	890.25K	1.16M
Total Liabilities	7.16M	8.06M	12.64M	15.64M	6.50M
Stockholders Equity	55.07M	57.13M	55.43M	45.28M	62.47M
Cash Flow
Free Cash Flow	-12.44M	-40.49M	-21.87M	-21.46M	-27.88M
Operating Cash Flow	-4.81M	-20.01M	-20.63M	-19.95M	-27.60M
Investing Cash Flow	-7.63M	-20.37M	1.31M	-1.03M	-282.12K
Financing Cash Flow	3.12M	22.70M	33.49M	534.56K	60.04M

Element 25 Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.33
• 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:E25, the sentiment is Neutral. The current price of 0.33 is below the 20-day moving average (MA) of 0.34, below the 50-day MA of 0.35, and above the 200-day MA of 0.30, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 48.06 is Neutral, neither overbought nor oversold. The STOCH value of 61.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:E25.

Element 25 Limited 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%
BKT	52 Neutral	AU$36.51M	-2.50	-15.13%	―	―	23.60%
E25	48 Neutral	AU$90.36M	-13.08	-10.46%	―	-85.84%	73.66%
CZR	48 Neutral	AU$80.21M	-4.21	-103.22%	―	―	-278.88%
TGN	47 Neutral	AU$390.98M	-34.57	-27.95%	―	―	-43.08%
LEL	43 Neutral	AU$41.44M	-6.89	-13.86%	―	―	-12.34%