Energy Resources of Australia Class A (ERA) AI Stock Analysis

• Market Cap: $810.79M
• Dividend Yield: N/A
• Average Volume (3M): 17.71M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.02
• Revenue Growth: -100.00%
• EPS Growth: 98.06%
• Country: AU
• Employees: 190
• Sector: Energy
• Sector Strength: 52
• Industry: Uranium
• EPS (TTM): >-0.01
• Shares Outstanding: 405,396,250,000
• 10 Day Avg. Volume: 17,706,186
• 30 Day Avg. Volume: 17,706,186
• PEG Ratio: <0.01
• Price to Book (P/B): -0.17
• Price to Sales (P/S): 5.30
• P/FCF Ratio: -1.05
• Enterprise Value/Market Cap: 0.52
• Enterprise Value/Revenue: 8.30
• Enterprise Value/Gross Profit: -10.72
• Enterprise Value/Ebitda: -33.74
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 34 Underperform
• Price Target: ―

The company's overall stock score reflects significant financial instability with negative profitability and cash flow issues. The absence of technical analysis data and unappealing valuation metrics further reduce confidence in the stock.

Energy Resources of Australia Class A Business Overview & Revenue Model

Company Description

Energy Resources of Australia Class A (ERA) is a leading uranium mining company based in Australia. It primarily operates within the mining and energy sectors, focusing on the extraction and processing of uranium ore. ERA's core product is uranium oxide, which is used globally for nuclear power generation. The company is a significant player in the uranium supply chain, providing a crucial raw material for the nuclear energy industry.

How the Company Makes Money

ERA makes money through the mining and sale of uranium oxide. Its revenue model is centered around the extraction of uranium ore from its mining operations, processing it into uranium oxide, and selling it to nuclear power companies and other entities involved in nuclear energy production. Key revenue streams include long-term contracts with energy companies and spot market sales. ERA's earnings are influenced by uranium market prices, production volumes, and operational efficiency. The company may also engage in partnerships or joint ventures to optimize its mining and sales operations, though specific details on such partnerships are null.

Energy Resources of Australia Class A Financial Statement Overview

Summary

Energy Resources of Australia Ltd. faces significant financial challenges with negative profitability, a weak balance sheet, and poor cash flow generation. The company needs to address its operational inefficiencies and financial structure to enhance stability and investor confidence.

Income Statement

The company has experienced significant volatility in its income statement metrics. Despite a positive gross profit margin, the net profit margin is heavily negative due to substantial net losses. Revenue growth is inconsistent, showing declines in recent years. Overall, the profitability measures such as EBIT and EBITDA margins are weak, indicating operational challenges.

Balance Sheet

The balance sheet reveals a concerning financial structure with negative stockholders' equity, indicating potential solvency issues. The debt-to-equity ratio is not meaningful due to negative equity, and the equity ratio is highly negative, signifying financial instability and risk.

Cash Flow

Cash flow analysis indicates negative free cash flows and operating cash flows, posing liquidity challenges. The company relies heavily on financing activities to cover cash shortfalls, highlighting cash management issues. Ratios such as the operating cash flow to net income and free cash flow to net income are not favorable.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	51.24M	36.35M	34.18M	35.55M	190.35M	242.46M
Gross Profit	-39.65M	35.88M	33.08M	12.80M	-640.07M	156.65M
EBITDA	-12.60M	-135.06M	18.74M	-53.77M	-627.51M	40.47M
Net Income	-134.98M	-245.97M	-1.39B	-160.55M	-650.21M	11.46M
Balance Sheet
Total Assets	1.26B	1.35B	828.80M	679.77M	855.93M	1.00B
Cash, Cash Equivalents and Short-Term Investments	690.90M	791.33M	216.95M	87.12M	163.87M	204.35M
Total Debt	233.00K	385.00K	680.00K	13.22M	93.00K	1.77M
Total Liabilities	2.41B	2.46B	2.46B	1.28B	1.30B	785.57M
Stockholders Equity	-1.15B	-1.11B	-1.63B	-603.66M	-442.42M	214.58M
Cash Flow
Free Cash Flow	-195.26M	-184.02M	-223.32M	-147.19M	-37.98M	-19.47M
Operating Cash Flow	-195.26M	-183.95M	-223.25M	-146.96M	-37.93M	-19.28M
Investing Cash Flow	-459.55M	-459.69M	1.27M	59.28M	-43.00K	-454.19M
Financing Cash Flow	757.88M	758.00M	351.81M	10.94M	-2.51M	469.23M

Energy Resources of Australia Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
BKY	57 Neutral	AU$263.02M	230.43	-6.30%	―	―	-67.12%
DYL	49 Neutral	$1.96B	275.68	1.08%	―	-100.00%	―
PDN	45 Neutral	AU$3.83B	28.42	-6.47%	―	―	-163.65%
BMN	43 Neutral	$762.05M	―	-2.73%	―	―	60.83%
AEE	41 Neutral	£229.68M	―	-26.26%	―	―	-75.25%
ERA	34 Underperform	$810.79M	―	―	―	-100.00%	98.06%

Energy Resources of Australia Class A Corporate Events

Energy Resources of Australia Faces Legal and Operational Challenges Amidst Rehabilitation Efforts

Energy Resources of Australia Class A is currently facing legal proceedings regarding the renewal of the Jabiluka Mineral Lease and the compulsory acquisition of its shares by Rio Tinto, which requires court approval due to shareholder objections. The company is actively working on the rehabilitation of the Ranger Project Area, with significant investments in environmental management and infrastructure improvements, while also seeking to extend its authority to complete these activities beyond January 2026.

Energy Resources of Australia Announces Director’s Change in Securities Interest

Energy Resources of Australia Ltd announced a change in the director’s interest in securities, specifically involving Justin Carey. The change includes the acquisition of Rio Tinto Limited Shares and Matching RT Share Rights under the Rio Tinto Global Employee Share Plan. This adjustment in securities holdings reflects the company’s ongoing engagement with its employee incentive programs, which may impact shareholder value and director alignment with company performance.

North Limited Seeks Court Approval for ERA Share Acquisition

North Limited has initiated a compulsory acquisition process to acquire the remaining ordinary shares in Energy Resources of Australia Ltd (ERA) that it does not already own. This move is part of a strategic effort to consolidate ownership under the regulations of the Corporations Act 2001. The process faced objections from shareholders holding at least 10% of the shares, prompting North Limited to seek court approval for the acquisition. The outcome of this legal proceeding will determine the finalization of the acquisition, impacting ERA’s shareholder structure and potentially its market operations.

Energy Resources of Australia Announces AGM Results and Reaffirms Rehabilitation Commitment

Energy Resources of Australia Ltd announced the results of its Annual General Meeting, where resolutions were passed with overwhelming support. The company’s focus on sustainable rehabilitation and its commitment to the Ranger Rehabilitation Project highlight its dedication to environmental responsibility and collaboration with Indigenous communities.

Energy Resources of Australia Advances Ranger Rehabilitation Project Under Rio Tinto Management

In 2024, Energy Resources of Australia Class A successfully transitioned the management of the Ranger Rehabilitation Project to Rio Tinto, marking significant progress in environmental rehabilitation, including the advancement of Pit 3 rehabilitation. The company maintained a strong safety record and focused on water management and Indigenous procurement, highlighting its commitment to community engagement and sustainable practices. Looking forward, the company aims to continue its rehabilitation efforts and secure necessary regulatory approvals.

ERA Advances Ranger Rehabilitation Amidst Corporate Developments

Energy Resources of Australia Ltd reported significant achievements in 2024, including maintaining a zero all-injury frequency rate and securing $766.5 million through a capital raising to fund the Ranger Rehabilitation Project until the third quarter of 2027. The appointment of Rio Tinto as the manager of the Ranger Rehabilitation Project is expected to enhance project execution and operational efficiencies. However, the company faces challenges, such as ongoing Federal Court proceedings regarding the Jabiluka lease and potential compulsory acquisition of shares by Rio Tinto, which requires court approval due to shareholder objections.

Rio Tinto’s Compulsory Acquisition of ERA Shares Faces Court Approval

Energy Resources of Australia Ltd (ERA) announced that Rio Tinto has lodged a notice for the compulsory acquisition of the remaining shares in ERA that it does not own, priced at $0.002 per share. With 43% of the shares covered by the notice objected to the acquisition, the process now requires court approval to proceed. This development could significantly impact ERA’s operations and its stakeholders, as it transitions from uranium production to rehabilitation projects.

North Limited Seeks Court Approval for ERA Share Acquisition

North Limited has initiated a compulsory acquisition of the remaining shares of Energy Resources of Australia Ltd (ERA) that it does not already own, offering $0.002 per share. The objection period for this acquisition has ended, with shareholders holding at least 10% of the shares objecting to the acquisition. North Limited has applied for court approval to proceed with the acquisition, following the necessary legal procedures.

ERA’s Jabiluka Lease Legal Proceedings Delayed

The Federal Court of Australia has vacated the final hearing regarding the legal proceedings over the Jabiluka Mineral Lease, with a new date pending. This decision, agreed upon by all parties, delays the resolution of the case, with a case management hearing scheduled no earlier than June 9, 2025. Energy Resources of Australia Ltd (ERA) will continue to update shareholders as required, maintaining transparency in line with its disclosure obligations. This development may impact ERA’s operations and stakeholder interests, particularly concerning its commitments to the Jabiluka Mineral Lease.