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Eclipse Metals Ltd. (AU:EPM)
ASX:EPM

Eclipse Metals Ltd. (EPM) AI Stock Analysis

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AU:EPM

Eclipse Metals Ltd.

(Sydney:EPM)

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Neutral 46 (OpenAI - 5.2)
Rating:46Neutral
Price Target:
AU$0.03
▲(25.00% Upside)
The score is held down primarily by weak financial performance—persistent losses, sharply negative margins, and ongoing negative free cash flow—despite low balance-sheet leverage. Technical indicators are neutral-to-mildly constructive but not strong enough to offset the fundamental cash-burn profile, and valuation metrics provide limited support due to negative earnings and no dividend yield data.
Positive Factors
Low leverage / conservative balance sheet
A near-zero debt profile and low historical leverage materially reduce refinancing and solvency risk for an exploration firm. This structural conservatism gives management flexibility to fund drilling or hold assets through volatile cycles without immediate debt servicing pressure.
Growing equity capital base
An expanding equity base increases the company’s capital buffer and runway for exploration spending. Over the medium term this reduces the urgency of near-term fundraising, lowers short-term dilution risk relative to a smaller equity base, and supports project advancement.
Improving cash outflows and FCF trend
Year-over-year improvement in operating cash outflows and free cash flow signals progress in cost discipline or operational efficiency. While still negative, this trend reduces the funding gap and, if sustained, improves prospects for reaching self-funded operations over the medium term.
Negative Factors
Declining and very small revenue base
A contracting, minimal revenue base weakens the company’s path to sustainable operations; exploration firms need either resource monetization or material revenue growth to absorb fixed costs. Continued revenue declines increase reliance on external capital and heighten execution risk.
Severely negative net margins
Extremely negative margins indicate the cost structure far outpaces current revenue, making profitability unlikely without major revenue expansion or structural cost reduction. Persistently deep losses will erode shareholder equity and complicate long-term returns even if markets recover.
Consistent negative operating and free cash flow
Sustained negative operating and free cash flow means the business cannot self-fund exploration or development. Over months this requires continued external financing, increasing dilution risk and potentially constraining activity if capital markets tighten or investor appetite wanes.

Eclipse Metals Ltd. (EPM) vs. iShares MSCI Australia ETF (EWA)

Eclipse Metals Ltd. Business Overview & Revenue Model

Company DescriptionEclipse Metals Limited operates as a mineral exploration and mining development company in Australia. The company explores for uranium, palladium, cryolite, fluorite, siderite, quartz, rare earth elements, gold, platinum group metals, manganese, and vanadium. It holds a portfolio of approximately 8,044 square kilometers covering 19 mineral tenements in the Northern Territory and Queensland. The company was formerly known as Eclipse Uranium Limited and changed its name to Eclipse Metals Limited in June 2012. Eclipse Metals Limited was incorporated in 2010 and is based in West Perth, Australia.
How the Company Makes MoneyEclipse Metals Ltd. generates revenue through the exploration, development, and potential sale or joint venture of its mineral resource projects. The company's primary revenue streams include the extraction and sale of minerals such as uranium and manganese, as well as potential royalties or revenue-sharing agreements from joint ventures with other mining companies. Significant partnerships, such as collaborations with industry leaders or investors, can also contribute to its earnings by providing the necessary capital and expertise to advance its projects toward production. Additionally, fluctuations in commodity prices and successful exploration results can significantly impact the company's financial performance.

Eclipse Metals Ltd. Financial Statement Overview

Summary
Financials show early-stage, loss-making execution risk: revenue is small and declining (2025 down ~18% YoY) with deeply negative margins (net margin ~-216%) and ongoing net losses. Positives are a conservatively levered balance sheet with essentially no debt and a growing equity base, plus modest improvement in cash outflows in 2025; however, operating cash flow and free cash flow remain negative across all periods.
Income Statement
18
Very Negative
Revenue remains very small and has been volatile, with the latest annual period showing a further decline (2025 revenue down ~18% YoY). Profitability is weak: EBIT and net income have been consistently negative across all periods, and net margins are deeply negative (2025 net margin roughly -216%), indicating the cost base is far ahead of current revenue generation. A positive is that gross profit has improved versus earlier loss-making gross profit years (e.g., 2023–2022), but the company is still far from operating breakeven.
Balance Sheet
72
Positive
The balance sheet is conservatively levered, with essentially no debt in 2025 and very low leverage historically (debt-to-equity near zero). Equity has grown over time (roughly $9.9m in 2022 to $15.6m in 2025), providing a larger capital buffer. The key weakness is that returns on equity are consistently negative due to ongoing losses, which can pressure future funding needs if losses persist.
Cash Flow
32
Negative
Cash generation is weak: operating cash flow and free cash flow are negative in every period shown, consistent with an investment/cash-burn profile. There is some improvement in the latest year (2025 operating cash outflow improved vs 2024, and free cash flow also improved), but the business still does not self-fund operations. A relative positive is that free cash flow is not deteriorating versus net income (free cash flow has been less negative than net income in recent years), but the company remains reliant on external capital until cash burn moderates materially.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue4.76K4.76K8.80K12.57K12.04K309.00
Gross Profit4.76K4.76K8.80K-4.88K-6.38K-1.25K
EBITDA0.000.0050.84K-2.51M-1.30M-626.99K
Net Income-1.03M-1.03M-1.30M-2.50M-1.32M-629.06K
Balance Sheet
Total Assets16.06M16.06M14.11M13.37M9.92M11.07M
Cash, Cash Equivalents and Short-Term Investments2.14M2.14M405.93K879.59K659.75K1.81M
Total Debt0.000.00366.49K16.55K16.55K17.17K
Total Liabilities499.13K499.13K632.06K177.90K64.93K498.63K
Stockholders Equity15.62M15.62M13.53M13.25M9.88M10.59M
Cash Flow
Free Cash Flow-924.25K-924.25K-1.30M-1.66M-1.41M-897.95K
Operating Cash Flow-713.86K-713.86K-1.05M-1.10M-1.39M-689.02K
Investing Cash Flow-210.39K-210.39K-251.60K-562.68K-124.03K-319.80K
Financing Cash Flow2.66M2.66M829.00K1.88M364.10K1.86M

Eclipse Metals Ltd. 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%
56
Neutral
AU$182.95M-103.33-8.09%-275.00%
52
Neutral
AU$133.48M-34.69-2.30%12.50%
52
Neutral
AU$40.81M-2.79-15.13%23.60%
49
Neutral
AU$71.14M-22.11-100.11%-26.67%
46
Neutral
AU$85.59M-65.00-7.13%33.33%
43
Neutral
AU$41.44M-6.89-13.86%-12.34%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:EPM
Eclipse Metals Ltd.
0.03
0.01
73.33%
AU:MEU
Marmota Limited
0.16
0.10
187.04%
AU:GL1
Global Lithium Resources Ltd.
0.51
0.31
155.00%
AU:ARD
Argent Minerals Limited
0.04
0.02
75.00%
AU:BKT
Black Rock Mining Limited
0.02
-0.01
-36.67%
AU:LEL
Lithium Energy Ltd.
0.37
0.00
0.00%

Eclipse Metals Ltd. Corporate Events

Eclipse Metals Advances Metallurgical Test Work at Greenland Rare Earths Project
Jan 13, 2026

Eclipse Metals has begun preliminary metallurgical test work on its Grønnedal rare earths project in Greenland, initiating a Wet High-Intensity Magnetic Separation (WHIMS) program using seven composite samples from historic drill material stored in Australia. The company has also logged and sampled core from its 2025 diamond drilling campaign, which is en route to ALS Laboratories in Perth for analysis ahead of further metallurgical studies, as it advances flowsheet design and continues government-aligned engagement with Western stakeholders to position Grønnedal within strategic critical minerals supply chains.

The most recent analyst rating on (AU:EPM) stock is a Hold with a A$0.03 price target. To see the full list of analyst forecasts on Eclipse Metals Ltd. stock, see the AU:EPM Stock Forecast page.

Eclipse Metals Issues New Shares in Compliance with Corporations Act
Dec 11, 2025

Eclipse Metals Ltd has announced the issuance of fully paid ordinary shares without disclosure under Part 6D.2 of the Corporations Act, complying with relevant sections of the Act. This move indicates the company’s adherence to regulatory requirements and suggests a strategic approach to capital management, potentially impacting its market operations and investor relations.

Eclipse Metals Ltd. Announces Quotation of New Shares on ASX
Dec 11, 2025

Eclipse Metals Ltd. announced the issuance and quotation of 1,250,000 ordinary fully paid shares on the Australian Securities Exchange (ASX) as of December 11, 2025. This move is part of the company’s strategy to strengthen its financial position and support its ongoing exploration and development projects, potentially impacting its market presence and investor relations positively.

Eclipse Metals Director Acquires Significant Shareholding
Dec 8, 2025

Eclipse Metals Limited announced a change in the director’s interest, with Alfred John Gillman acquiring 8,000,000 fully paid ordinary shares. This acquisition was made through an issue of shares approved by the company’s shareholders, potentially impacting the company’s governance and signaling confidence in its future prospects.

Eclipse Metals Ltd Issues New Shares in Compliance with Corporations Act
Dec 8, 2025

Eclipse Metals Ltd has announced the issuance of fully paid ordinary shares without disclosure under Part 6D.2 of the Corporations Act, in compliance with relevant legal provisions. This move signifies the company’s adherence to regulatory requirements and may impact its financial operations by potentially increasing its capital base.

Eclipse Metals Ltd. Announces Quotation of New Securities on ASX
Dec 8, 2025

Eclipse Metals Ltd. has announced the quotation of 8,000,000 fully paid ordinary securities on the ASX, effective December 8, 2025. This move is part of the company’s strategic efforts to enhance its capital structure and support its ongoing exploration and development activities, potentially impacting its market presence and providing opportunities for stakeholders.

Eclipse Metals Ltd. Issues New Securities Under Employee Incentive Plan
Dec 8, 2025

Eclipse Metals Ltd. has announced the issuance of 2,000,000 fully paid ordinary securities under its Company Employee Incentive Securities Plan, with the securities set to be quoted on the Australian Securities Exchange. This move is expected to incentivize employees and align their interests with the company’s growth objectives, potentially impacting the company’s operational efficiency and market positioning positively.

Eclipse Metals Ltd Announces New Option Quotation
Nov 28, 2025

Eclipse Metals Ltd has announced the application for the quotation of options exercisable at $0.05 each, with an expiration date of October 22, 2027. This move could potentially enhance the company’s financial flexibility and market presence, as a significant portion of these options are held by a small number of stakeholders, indicating concentrated interest and investment in the company’s future prospects.

Eclipse Metals Ltd. Issues New Quoted Options
Nov 28, 2025

Eclipse Metals Ltd. announced the issuance of 71,111,106 new quoted options exercisable at $0.05 each, set to expire on October 22, 2027. This move is likely to enhance the company’s financial flexibility and could impact its market positioning by potentially increasing its capital base, offering stakeholders an opportunity for future investment returns.

Eclipse Metals Ltd Successfully Passes All AGM Resolutions
Nov 27, 2025

Eclipse Metals Ltd announced that all resolutions proposed at its recent annual general meeting were passed by poll. This includes the re-election of directors and the approval of various financial and operational measures, which are expected to support the company’s strategic initiatives and enhance shareholder value.

Eclipse Metals Ltd. Announces Prospectus for Listed Options
Nov 26, 2025

Eclipse Metals Ltd. has announced a prospectus for an offer of up to 10,000 listed options at no issue price, aiming to remove trading restrictions on these options before the closing date of November 26, 2025. This move is intended to enhance liquidity and flexibility for stakeholders, although the options are considered speculative and the offer is not underwritten.

Eclipse Metals Strengthens U.S. Ties to Advance Greenland Rare Earth Strategy
Nov 26, 2025

Eclipse Metals Ltd has engaged BGR Group, a leading U.S. strategic advisory firm, to enhance its engagement with U.S. government and defense agencies, aiming to strengthen its position in securing funding and partnerships for its Greenland rare earths strategy. This move is part of Eclipse’s broader trans-Atlantic strategy to align its operations with Western supply chain priorities, positioning its Greenland assets as key contributors to the U.S. and European critical minerals supply chain, thereby increasing its visibility and potential for strategic partnerships and funding.

Eclipse Metals Completes Drilling at Ivigtût Project, Greenland
Nov 24, 2025

Eclipse Metals Ltd has completed its 2025 diamond drilling program at the Ivigtût Project in Greenland, targeting the Ivigtut Intrusive. The drilling confirmed a polymetallic, rare earth element-fertile system with significant carbonatite-related alteration, indicating potential for high-value mineral resources. The presence of various sulphide phases and fluorescent REE-associated mineral grains suggests promising prospects for further exploration and development, potentially enhancing the company’s position in the critical minerals market.

Eclipse Metals Announces Cessation of Securities
Nov 20, 2025

Eclipse Metals Ltd. announced the cessation of 31,933,333 securities due to the expiry of options that were not exercised or converted by November 18, 2025. This cessation reflects a routine adjustment in the company’s issued capital, which may impact its financial structure and shareholder interests.

Eclipse Metals Issues New Shares in Compliance with Corporations Act
Nov 18, 2025

Eclipse Metals Ltd has announced the issuance of fully paid ordinary shares without disclosure under the Corporations Act, complying with relevant legal provisions. This move is part of their ongoing corporate activities and reflects their adherence to regulatory requirements, potentially impacting their financial operations and investor relations.

Eclipse Metals Ltd. Announces New Securities Issuance
Nov 18, 2025

Eclipse Metals Ltd. has announced the issuance of 148,066,667 fully paid ordinary securities, which will be quoted on the Australian Securities Exchange (ASX) under the code EPM. This move is part of the company’s strategy to enhance its capital structure and potentially improve its market positioning, offering stakeholders an opportunity to engage with its growth prospects.

Eclipse Metals Confirms Continuous Carbonatite System in Greenland
Nov 6, 2025

Eclipse Metals Ltd has confirmed continuous carbonatite mineralisation at its Grønnedal prospect in Greenland, following over 700 meters of diamond drilling. This discovery supports the existing mineral resource estimate and positions Grønnedal as a significant rare-earth source for the EU and North America. Additionally, drilling at the Ivigtût site aims to explore multi-commodity mineralisation, further strengthening Eclipse’s role in Greenland’s emerging critical minerals sector.

Eclipse Metals Advances Greenland Projects and Plans NASDAQ Listing
Oct 29, 2025

Eclipse Metals Ltd has made significant strides in its Greenland rare earths projects and Australian uranium portfolio during the quarter ending 30 September 2025. The company is advancing diamond drilling at the Grønnedal Rare Earth deposit in Greenland and has renewed its Ivigtût Project license, strengthening its position in the rare earth supply chain. Additionally, Eclipse Metals plans to pursue a dual listing on the NASDAQ Stock Market to increase its visibility and attract North American investors, further aligning with Western supply chains for critical materials.

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: Jan 28, 2026