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

• Market Cap: AU$1.22B
• Dividend Yield: N/A
• Average Volume (3M): N/A
• Price to Earnings (P/E): ―
• Beta (1Y): -0.05
• Revenue Growth: -100.00%
• EPS Growth: 98.06%
• Country: AU
• Employees: 190
• Sector: Energy
• Sector Strength: 52
• Industry: Uranium
• EPS (TTM): N/A
• Shares Outstanding: 405,396,250,000
• 10 Day Avg. Volume: N/A
• 30 Day Avg. Volume: N/A
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 43 Neutral
• Price Target: $0.01 ▲(0.00% Upside)
• Action: Upgraded Date: 02/24/26
• Date: Action: Upgraded 02/24/26

The score is driven primarily by very weak financial performance: persistent net losses, sustained large cash burn, and deeply negative equity that elevates financial risk. Technical and valuation factors could not be assessed from the provided data, limiting any offsetting positives.

Positive Factors

Strategic commodity exposure

Uranium is a structurally important fuel for baseload nuclear power and a component of the low-carbon transition. ERA’s focus on uranium oxide gives it durable demand exposure to utility offtake and long-term contracts, supporting core revenue relevance over months.

Low headline debt

Minimal headline debt reduces near-term refinancing pressure and interest cost risk. For a loss-making miner, low nominal debt helps preserve operational optionality and lowers immediate liquidity strain, making it easier to prioritize remediation or restart plans.

2025 revenue rebound and margin improvement

A topline rebound with sharper gross and EBIT margins signals operational leverage and execution on cost or pricing levers. If sustained, this trend can improve cash conversion dynamics and indicates the business can scale revenues more profitably than in prior loss years.

Negative Factors

Sustained large cash burn

Persistent negative operating and free cash flows of this magnitude materially erode runway and require external funding or asset actions. Over months this raises solvency and execution risk, limits reinvestment capacity, and forces dilutive or costly financing choices.

Deeply negative shareholders' equity

A prolonged negative equity position reflects accumulated losses and a depleted capital cushion. This structural impairment reduces financial flexibility, increases creditor and counterparty risk, and elevates the probability of recapitalisation, dilution, or restructuring.

Persistent net losses and earnings volatility

Multi-year net losses and high earnings volatility undermine the company’s ability to self-fund operations or invest for growth. Over a 2–6 month horizon this increases dependence on external capital, complicates strategic planning, and raises execution and refinancing risks.

Energy Resources of Australia Class A Business Overview & Revenue Model

Company Description

Energy Resources of Australia Class A (ERA) is a leading Australian company engaged in the exploration, mining, and processing of uranium, primarily at its Ranger Project located in the Northern Territory. The company operates within the energy sector, focusing on the production of uranium oxide, which serves as a critical fuel source for nuclear power generation. ERA is committed to sustainable practices and environmental stewardship while contributing to Australia's energy resources and supporting the global transition towards cleaner energy alternatives.

How the Company Makes Money

ERA primarily generates revenue through the sale of uranium oxide, which is sold to various nuclear power plants and energy companies worldwide. The company operates under a long-term sales agreement with key customers, which provides a stable revenue stream. Additionally, ERA benefits from strategic partnerships and joint ventures that enhance its operational capabilities and market reach. The fluctuating global price of uranium also significantly impacts its earnings, as higher market prices can lead to increased revenue from sales. Cost management and operational efficiency are essential for maintaining profitability, especially in a competitive mining sector.

Energy Resources of Australia Class A Financial Statement Overview

Summary

Overall financial health is very weak despite a 2025 revenue rebound and improved reported margins. Net income remains negative (about -A$50.3m in 2025) with a history of large losses, cash flow is consistently and materially negative (operating and free cash flow about -A$192.2m in 2025), and equity is deeply negative (about -A$1.17bn in 2025), which materially increases financial risk even with minimal debt.

Income Statement

Revenue rebounded in 2025 (annual revenue up ~14.9% to ~A$58.9m), and reported gross and EBIT margins improved sharply versus 2024. However, profitability remains weak: net income stayed negative in 2025 (~-A$50.3m) following very large losses in prior years (notably 2023 and 2024). The multi-year track record shows high earnings volatility and persistent net losses, which keeps the income statement quality and durability low despite the recent top-line improvement.

Balance Sheet

Leverage from debt appears low in absolute terms (total debt is minimal in recent years), but the capital structure is severely impaired: stockholders’ equity is deeply negative from 2021–2025 (about -A$1.17bn in 2025), indicating accumulated losses and a weak balance-sheet cushion. Total assets remain sizable, but negative equity materially increases financial risk and reduces flexibility, even if headline debt levels are small.

Cash Flow

Cash generation is consistently negative: operating cash flow and free cash flow were both about -A$192.2m in 2025, following similarly negative outflows in 2022–2024. Free cash flow growth is also volatile and negative most recently, signaling deteriorating cash burn. While net losses mean comparisons to net income can look mechanically favorable, the key issue is the sustained, large cash outflows with no clear trend toward breakeven.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	51.24M	58.87M	36.35M	34.18M	35.55M	190.35M
Gross Profit	-39.65M	85.19M	35.88M	33.08M	12.80M	-640.07M
EBITDA	-12.60M	49.59M	-135.06M	18.74M	-53.77M	-627.51M
Net Income	-134.98M	-50.32M	-245.97M	-1.39B	-160.55M	-650.21M
Balance Sheet
Total Assets	1.26B	1.17B	1.35B	828.80M	679.77M	855.93M
Cash, Cash Equivalents and Short-Term Investments	690.90M	598.37M	791.33M	216.95M	87.12M	163.87M
Total Debt	233.00K	78.00K	385.00K	680.00K	13.22M	93.00K
Total Liabilities	2.41B	2.34B	2.46B	2.46B	1.28B	1.30B
Stockholders Equity	-1.15B	-1.17B	-1.11B	-1.63B	-603.66M	-442.42M
Cash Flow
Free Cash Flow	-195.26M	-192.22M	-184.02M	-223.32M	-147.19M	-37.98M
Operating Cash Flow	-195.26M	-192.22M	-183.95M	-223.25M	-146.96M	-37.93M
Investing Cash Flow	-459.55M	-79.87M	-459.69M	1.27M	59.28M	-43.00K
Financing Cash Flow	757.88M	-863.00K	758.00M	351.81M	10.94M	-2.51M

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%
PDN	58 Neutral	AU$5.63B	-75.34	-6.47%	―	―	-163.65%
BMN	55 Neutral	AU$809.92M	-169.51	-2.73%	―	―	60.83%
DYL	53 Neutral	AU$2.34B	345.95	1.08%	―	-100.00%	―
BKY	46 Neutral	AU$234.30M	-45.08	-6.30%	―	―	-67.12%
ERA	43 Neutral	AU$1.22B	―	―	―	-100.00%	98.06%
AEE	43 Neutral	AU$152.92M	-8.47	-26.26%	―	―	-75.25%

Energy Resources of Australia Class A Corporate Events

Energy Resources of Australia Narrows Loss as Rehabilitation Provisions Ease

Energy Resources of Australia reported a net loss after tax of $50 million for 2025, a sharp improvement from the $246 million loss in 2024, as lower rehabilitation cost estimates and reduced corporate expenses partially offset the ongoing impact of unwinding the rehabilitation provision discount. Revenue from continuing operations rose 58% to $58.9 million, driven mainly by higher interest income on enlarged cash and term deposit balances, while the business continued to generate negative operating cash flow of $192 million as it progresses rehabilitation of the Ranger site with no debt and significant funds held in cash, term deposits and the government-managed trust fund.

The company ended 2025 with total cash and security receivables of $1,159 million, including substantial term deposits and funds in the Ranger Rehabilitation Trust Fund, underpinning its capacity to meet long-term closure obligations despite persistent cash outflows. Operating costs were slightly lower year on year due to reduced corporate employee and other corporate expenses, suggesting tighter cost control as ERA focuses on execution of rehabilitation commitments, a key issue for shareholders, regulators and local stakeholders.

The most recent analyst rating on (AU:ERA) stock is a Sell with a A$0.01 price target. To see the full list of analyst forecasts on Energy Resources of Australia Class A stock, see the AU:ERA Stock Forecast page.

Energy Resources of Australia Director Updates Indirect Rio Tinto Shareholdings

Energy Resources of Australia has disclosed a change in director Alfred Grigg’s indirect interests in Rio Tinto Limited securities, stemming from vesting and purchases under Rio Tinto’s global employee share arrangements. Grigg’s holdings through trustee and nominee structures were adjusted following the vesting and issue of matching Rio Tinto share rights, the issuance of additional shares in lieu of dividends, and the purchase of new shares under the myShare plan, reflecting routine remuneration-related equity movements rather than a strategic shift in his exposure.

The most recent analyst rating on (AU:ERA) stock is a Sell with a A$0.01 price target. To see the full list of analyst forecasts on Energy Resources of Australia Class A stock, see the AU:ERA Stock Forecast page.

Energy Resources of Australia Director Updates Rio Tinto Shareholdings Under Employee Plan

Energy Resources of Australia has disclosed a change in director Justin Carey’s relevant interests in Rio Tinto Limited securities, reflecting adjustments under Rio Tinto’s global employee share schemes. Carey’s indirect holdings increased slightly following the vesting and issue of matching share rights and the purchase of additional Rio Tinto shares through the myShare plan, with no cash consideration for the vested rights and standard market pricing applied to purchased shares. The notification confirms that the trades did not occur during a closed period and indicates routine remuneration-related equity movements rather than any strategic shift, providing transparency for shareholders regarding director equity exposure linked to Rio Tinto.

The most recent analyst rating on (AU:ERA) stock is a Sell with a A$0.01 price target. To see the full list of analyst forecasts on Energy Resources of Australia Class A stock, see the AU:ERA Stock Forecast page.

ERA Faces Court Hurdle on Rio Tinto Buyout as Ranger Rehabilitation Costs and Timing Come Under Pressure

Energy Resources of Australia reported that Rio Tinto, which now holds more than 98% of its shares, is pursuing compulsory acquisition of the remaining minority stake, but the process has been delayed after more than 10% of affected shareholders objected, triggering a Federal Court review scheduled for February 2026. Operationally, ERA continues progressive rehabilitation of the Ranger Project Area, spending about $59 million in the December quarter and holding $58 million in cash and $540 million in other financial assets at year-end, but it is facing technical delays and heightened cost and schedule risks related to dry capping of Pit 3 and higher-than-expected process water volumes, even as water treatment performance outpaces plan in some areas and new regulatory authority has been secured to complete rehabilitation and long-term monitoring.

The most recent analyst rating on (AU:ERA) stock is a Sell with a A$0.01 price target. To see the full list of analyst forecasts on Energy Resources of Australia Class A stock, see the AU:ERA Stock Forecast page.

ERA Secures New Rehabilitation Authority for Ranger Project

Energy Resources of Australia Ltd (ERA) has received a new section 41 Rehabilitation Authority from the Minister for Resources, effective from 9 January 2026, to continue its rehabilitation activities in the Ranger Project Area. This development is crucial for ERA’s strategic priority of achieving world-class rehabilitation of the site, ensuring compliance with the Atomic Energy Act 1953. The company is also in ongoing negotiations with the Commonwealth regarding associated agreements, highlighting its commitment to a positive legacy and sustainable practices.