Equatorial Resources Limited (EQX) AI Stock Analysis

• Market Cap: AU$21.03M
• Dividend Yield: N/A
• Average Volume (3M): 128.25K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.46
• Revenue Growth: N/A
• EPS Growth: 32.72%
• Country: AU
• Employees: 15
• Sector: Basic Materials
• Sector Strength: 68
• Industry: Steel
• EPS (TTM): -0.02
• Shares Outstanding: 131,445,360
• 10 Day Avg. Volume: 101,965
• 30 Day Avg. Volume: 128,255
• PEG Ratio: N/A
• Price to Book (P/B): 1.36
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.49K
• 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

• Rating: 28 Underperform
• Price Target: ―

Equatorial Resources Limited presents a challenging investment case with significant financial difficulties, including zero revenue and consistent losses, coupled with a negative cash flow. Technical indicators suggest bearish momentum, and valuation metrics are unattractive due to a negative P/E ratio and absence of dividends. The company's lack of operational income and declining financial health are primary concerns, overshadowing any potential strengths such as the absence of debt.

Equatorial Resources Limited Business Overview & Revenue Model

Company Description

Equatorial Resources Limited explores for and develops iron ore properties in the Republic of Congo. The company was incorporated in 1986 and is headquartered in Perth, Australia.

How the Company Makes Money

Equatorial Resources Limited generates revenue primarily through the exploration and potential development of its iron ore projects. The company's revenue model centers around identifying and developing mineral resources that can be economically extracted and sold in the global commodities market. Key revenue streams include the sale of extracted minerals, potential joint ventures, and partnerships that may provide funding and resource-sharing opportunities to advance project development. Significant factors contributing to the company's earnings include the global demand and pricing for iron ore, successful exploration outcomes, and the ability to secure necessary financing and governmental approvals for project advancement. Additionally, strategic partnerships or agreements with other mining companies or investors can also play a crucial role in funding operations and sharing the risks and rewards of developing mineral assets.

Equatorial Resources Limited Financial Statement Overview

Summary

Equatorial Resources Limited is facing significant financial challenges, characterized by zero revenue, consistent losses, and negative cash flows. While the balance sheet shows no debt, the declining equity and assets raise concerns about long-term viability. The company needs to address its operational inefficiencies and cash flow issues to improve its financial health.

Income Statement

The company has reported zero revenue over the years, indicating no operational income stream. There are consistent net losses, with a slightly reduced net loss in the latest year compared to previous years. EBIT and EBITDA margins are negative, reflecting operating inefficiencies and high cost relative to nonexistent revenue.

Balance Sheet

The company maintains a strong equity position with no debt, as indicated by the zero debt-to-equity ratio, which reduces financial risk. However, the decline in stockholders' equity over the years suggests potential financial instability. The equity ratio remains high, but shrinking assets could be a concern.

Cash Flow

The company exhibits negative operating and free cash flows, indicating cash outflows from operations without adequate cash inflows. Free cash flow has deteriorated over the years, suggesting declining financial flexibility. The lack of growth in cash flow metrics highlights ongoing cash management challenges.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00	0.00
	Gross Profit
0.00	0.00	0.00	0.00	0.00	0.00
	EBIT
―	-1.04M	-1.77M	-2.14M	-1.48M	-893.60K
	EBITDA
-1.60M	-726.05K	0.00	138.68K	-1.48M	0.00
	Net Income Common Stockholders
-1.59M	-1.76M	-4.19M	-17.26M	-7.58M	-171.54K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
12.62M	13.82M	16.66M	18.45M	35.22M	40.30M
	Total Assets
14.70M	15.90M	16.69M	18.50M	35.25M	42.53M
	Total Debt
0.00	0.00	0.00	0.00	0.00	0.00
	Net Debt
-12.62M	-13.82M	-16.66M	-18.45M	-19.96M	-40.30M
	Total Liabilities
1.39M	1.85M	2.49M	297.11K	163.45K	221.69K
	Stockholders Equity
14.57M	15.31M	15.90M	19.90M	36.78M	43.56M
Cash Flow		Free Cash Flow
―	-2.83M	-1.79M	-1.51M	-961.49K	23.75K
	Operating Cash Flow
―	-2.83M	-1.79M	-1.51M	-961.49K	23.75K
	Investing Cash Flow
0.00	-7.62K	0.00	0.00	-19.82M	0.00
	Financing Cash Flow
0.00	-6.43K	0.00	0.00	445.77K	0.00

Equatorial Resources Limited Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:EQX, the sentiment is Positive. The current price of 0.16 is above the 20-day moving average (MA) of 0.14, above the 50-day MA of 0.12, and above the 200-day MA of 0.12, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 63.00 is Neutral, neither overbought nor oversold. The STOCH value of 88.89 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:EQX.

Equatorial Resources Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FMG	76 Outperform	$49.88B	8.43	20.21%	6.03%	-11.33%	-32.11%
BHP	75 Outperform	$198.17B	11.46	26.20%	3.88%	-2.47%	57.01%
GRR	66 Neutral	$214.11M	3.66	5.68%	5.01%	-15.28%	-60.99%
CIA	61 Neutral	C$2.39B	14.86	10.03%	5.00%	-9.27%	-56.88%
MGX	61 Neutral	AU$318.48M	56.60	-35.86%	―	-39.92%	-249.60%
Sector *	51 Neutral	$2.04B	-1.21	-21.10%	3.95%	2.90%	-30.45%
EQX	28 Underperform	AU$21.03M	―	-15.31%	―	―	32.72%

Equatorial Resources Limited Corporate Events

Equatorial Resources Faces Arbitration Delay, Advances Nimba Project

Equatorial Resources Limited has experienced a delay in its international arbitration case against the Republic of Congo, with the final hearing now rescheduled to November 2025 in Washington, DC. This arbitration stems from disputes over the company’s investments in two iron ore projects in Congo. Meanwhile, Equatorial continues to advance its Nimba Alliance Iron Ore Project in Guinea, which shows promising high-grade iron mineralization and is strategically located near major iron ore projects. The company maintains a strong financial position, with substantial cash reserves to support its ongoing projects and legal proceedings.

Equatorial Resources’ Arbitration Hearing Against Congo Postponed

Equatorial Resources Limited announced a postponement of its final arbitration hearing against the Republic of Congo, initially scheduled for March 2025, due to Congo’s failure to cover hearing expenses. The dispute, initiated in 2021, involves alleged unlawful actions by Congo affecting Equatorial’s iron ore investments, with the hearing now proposed for August or November 2025.

Equatorial Resources Limited Releases Interim Financial Report for 2024

Equatorial Resources Limited has released its interim financial report for the half year ending December 31, 2024. The report is intended to be read in conjunction with the company’s annual report and any public announcements made during the interim period. The release of this financial report is part of the company’s compliance with continuous disclosure requirements, providing stakeholders with insights into its financial performance and position.