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Emmerson Resources Limited (AU:ERM)
:ERM

Emmerson Resources Limited (ERM) AI Stock Analysis

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AU

Emmerson Resources Limited

(OTC:ERM)

Rating:43Neutral
Price Target:
AU$0.00
▼(-100.00%Downside)
The stock score is primarily driven by significant financial challenges, including persistent operating losses and negative cash flows, which are the most impactful factors. Technical analysis indicates neutral momentum with potential overbought signals, and valuation metrics show unattractiveness due to negative earnings without dividend yield. The lack of earnings call data and corporate events means these factors do not influence the final score.

Emmerson Resources Limited (ERM) vs. iShares MSCI Australia ETF (EWA)

Emmerson Resources Limited Business Overview & Revenue Model

Company DescriptionEmmerson Resources Limited (ERM) is an Australian-based company engaged in the exploration and development of mineral resources. The company primarily focuses on gold and copper exploration, with its operations centered around the Tennant Creek Mineral Field in the Northern Territory of Australia. Emmerson Resources aims to discover and develop economically viable mineral deposits, leveraging advanced exploration techniques and strategic partnerships to achieve its goals.
How the Company Makes MoneyEmmerson Resources Limited generates revenue primarily through its exploration activities aimed at discovering valuable mineral deposits. The company makes money by identifying and developing potential mining sites, which can lead to the sale or joint venture development of these sites with larger mining companies. Key revenue streams include the sale of exploration rights, joint venture agreements, and potential future income from mining operations. Significant partnerships with larger mining firms or investors can provide additional funding and resources, aiding in the exploration and development processes. The company's earnings are influenced by the success of its exploration activities, market demand for minerals, and the ability to attract investment for further development of discovered resources.

Emmerson Resources Limited Financial Statement Overview

Summary
Emmerson Resources Limited faces significant financial challenges, with persistent operating losses and negative cash flows despite revenue growth. The company's low debt levels provide some financial flexibility, but the continued erosion of equity and inability to generate positive cash flow pose substantial risks.
Income Statement
25
Negative
Emmerson Resources Limited demonstrates a consistent increase in revenue over the years; however, the company continues to report negative net income, resulting in a negative net profit margin. The EBIT and EBITDA margins remain negative, indicating ongoing operational challenges. Revenue growth is present but not sufficient to offset the high operating losses.
Balance Sheet
35
Negative
The company's balance sheet shows a relatively low debt-to-equity ratio, suggesting limited leverage, but the net debt is negative due to substantial cash reserves. However, the stockholders' equity has decreased over the years, reflecting ongoing losses. The equity ratio remains robust, indicating a strong equity base compared to assets.
Cash Flow
30
Negative
Operating and free cash flows are consistently negative, highlighting challenges in generating cash from operations. The free cash flow to net income ratio suggests that cash outflows exceed net losses, which may be unsustainable in the long term without external financing.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue171.94K136.57K122.51K79.36K91.74K33.72K
Gross Profit171.94K136.57K170.88K94.32K190.54K106.31K
EBITDA-2.24M-3.00M-2.51M-2.88M-1.56M-1.75M
Net Income-2.21M-2.94M-2.59M-2.91M-1.58M-1.48M
Balance Sheet
Total Assets9.55M5.70M8.10M11.79M23.14M16.70M
Cash, Cash Equivalents and Short-Term Investments6.41M2.69M5.30M8.96M5.48M1.28M
Total Debt275.85K299.84K56.80K127.64K192.89K0.00
Total Liabilities1.21M940.17K730.77K1.97M1.04M552.96K
Stockholders Equity8.34M4.76M7.37M9.82M22.10M16.15M
Cash Flow
Free Cash Flow-2.03M-2.58M-3.59M-1.33M-3.17M-2.05M
Operating Cash Flow-1.95M-2.50M-3.55M-1.30M-1.22M-958.27K
Investing Cash Flow-90.41K-39.93K-46.22K-43.57K-1.94M-655.18K
Financing Cash Flow4.62M-62.74K-70.84K4.82M7.37M0.00

Emmerson Resources Limited Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.12
Price Trends
50DMA
0.13
Negative
100DMA
0.13
Negative
200DMA
0.10
Positive
Market Momentum
MACD
>-0.01
Positive
RSI
45.51
Neutral
STOCH
47.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ERM, the sentiment is Neutral. The current price of 0.12 is below the 20-day moving average (MA) of 0.13, below the 50-day MA of 0.13, and above the 200-day MA of 0.10, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.51 is Neutral, neither overbought nor oversold. The STOCH value of 47.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:ERM.

Emmerson Resources Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (43)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUVTM
48
Neutral
AU$97.83M-1.37%96.13%
AUKAI
46
Neutral
AU$76.30M-6.55%-50.00%
43
Neutral
AU$1.42B-6.13-40.62%4.05%-4.78%-42.91%
AUERM
43
Neutral
AU$79.45M-32.13%51.91%42.86%
AUWWI
39
Underperform
AU$69.08M-7.39%-28.57%
AUHRN
36
Underperform
AU$78.94M-1.69%79.79%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:ERM
Emmerson Resources Limited
0.13
0.07
108.33%
AU:KAI
Kairos Minerals
0.03
0.02
190.00%
AU:VTM
Victory Goldfields Limited
0.85
0.49
136.11%
AU:WWI
West Wits Mining Limited
0.02
0.00
0.00%
AU:HRN
Horizon Gold Ltd
0.54
0.24
80.00%

Emmerson Resources Limited Corporate Events

Emmerson Resources Advances White Devil Gold Deposit with New Drilling Initiatives
Jul 3, 2025

Emmerson Resources Limited has completed a 5,000m reverse circulation drill program and commenced a geotechnical diamond drilling program at the White Devil Gold Deposit in Northern Territory. The ongoing Scoping Study is expected to define the deposit as a Major Mine Deposit, potentially enhancing Emmerson’s stake in joint ventures. The company is also advancing its Hermitage Copper, Gold, and Critical Metals Project with recent drilling aimed at extending mineralization.

Emmerson Resources Announces Director Departure
Jun 20, 2025

Emmerson Resources Limited announced the cessation of Andrew McIlwain as a director, effective June 19, 2025. This change in the board may impact the company’s strategic direction and stakeholder interests, given McIlwain’s significant holdings in the company, including both direct and indirect shares and unquoted options.

Emmerson Resources Announces Board Changes Amidst Strategic Growth
Jun 20, 2025

Emmerson Resources Limited announced changes to its board, with Andrew McIlwain and Dr. Allan Trench retiring after long tenures, marking a transition under the new leadership of Mark Connelly as Non-Executive Chair. These changes come as the company is poised for growth, with anticipated cash flow from gold royalties and the development of the White Devil Gold Deposit, positioning Emmerson strongly in the market.

Emmerson Resources Advances White Devil Scoping Study Towards Major Mine Development
Jun 10, 2025

Emmerson Resources Limited has provided an update on its White Devil Scoping Study, highlighting the potential for a major mine development. Preliminary pit optimizations have shown a high conversion rate of the mineral resource estimate into the pit shell, with the study assuming a gold price of A$4,000 per ounce. The scoping study is expected to be completed soon, with permitting underway and plans to move into a pre-feasibility study. The development of the White Devil deposit is seen as a significant opportunity under the joint venture agreement with Tennant Mining, with Emmerson retaining a substantial interest in the project.

Emmerson Resources Advances White Devil Gold Project with Promising Scoping Study
Jun 9, 2025

Emmerson Resources Limited has announced a major development opportunity at its White Devil gold deposit, with preliminary pit optimizations showing a high conversion rate of the mineral resource estimate into the pit shell. The scoping study, which is expected to be completed in early July 2025, indicates that the deposit will be classified as a Major Mine Deposit under the joint venture agreement with Tennant Mining. With a gold price assumption of A$4,000, the study suggests a robust potential for open-pit mining, and the company is moving towards a pre-feasibility study. The completion of the scoping study and the commencement of permitting are significant steps towards advancing the White Devil project, potentially enhancing Emmerson’s position in the mining industry.

Emmerson Resources Resumes Drilling at White Devil to Boost Gold Prospects
Jun 4, 2025

Emmerson Resources Limited has recommenced a 5,000m Reverse Circulation drill program at the White Devil deposit, aiming to extend the mineralization and optimize the open pit design. The White Devil deposit, with a significant Mineral Resource Estimate, is expected to be defined as a Major Mine Deposit under joint venture agreements, potentially impacting Emmerson’s stake in the project. The company is also advancing a Scoping Study, with plans for a Pre-Feasibility Study, which could enhance its industry positioning and stakeholder interests.

Emmerson Resources Begins Commercial Gold Production at Nobles Project
May 30, 2025

Emmerson Resources Limited has announced the commencement of commercial gold production at the Nobles Project in Tennant Creek, in partnership with Tennant Mining, a subsidiary of Pan African Resources. This marks a significant milestone just four and a half years after the joint venture’s inception. The production is expected to generate substantial royalty payments for Emmerson, with a potential shortfall payment of approximately $18 million anticipated if production targets are not met. The company is also looking forward to further exploration and development opportunities in the region, including the White Devil Gold Project and its own gold-copper projects.

Emmerson Resources Unveils High-Grade Gold and Copper Discoveries at Tennant Creek
May 6, 2025

Emmerson Resources Limited has announced further high-grade gold and copper findings at its Tennant Creek projects, including significant mineral resource expansions at sites like White Devil and Golden Forty. These developments underscore the company’s potential to enhance its resource base and strengthen its position in the mining industry, offering promising implications for stakeholders.

Emmerson Resources Advances White Devil Gold Exploration
May 5, 2025

Emmerson Resources Limited has announced an update on its exploration activities at the White Devil Gold Deposit, where the mineral resources have increased by 25% since January 2025. The company is conducting a scoping study to classify the deposit as a Major Mine Deposit, potentially allowing Emmerson to retain a 40% equity interest in its development. Additionally, an ultra-detailed drone-based aerial magnetic survey is underway to identify further mineralization, and a 5,000-meter RC drilling program is planned to enhance resource confidence west of the historical open pit.

Emmerson Resources Boosts Gold Reserves and Advances Strategic Projects
Apr 30, 2025

Emmerson Resources Limited has announced a significant update to its White Devil Mineral Resource Estimate, now totaling 611,400 ounces of gold, following a successful drilling program. This development, along with the advancement of the Nobles CIL processing facility, positions Emmerson to benefit from increased gold production and potential royalty revenues. The company’s strategic alliance with CuFe Limited and Tennant Minerals Limited aims to explore further copper and gold opportunities, potentially enhancing its market position and stakeholder value.

Emmerson Resources Announces Cessation of Securities
Apr 28, 2025

Emmerson Resources Limited announced the cessation of 4,000,000 securities due to the expiry of options without exercise or conversion as of April 26, 2025. This development could impact the company’s capital structure and may influence investor perceptions regarding the company’s future financial strategies.

Emmerson Resources Boosts Tennant Creek Mineral Resources
Apr 15, 2025

Emmerson Resources Limited has announced significant developments in its Tennant Creek projects, particularly the White Devil project, which has expanded its mineral resource to 866koz and grown by 26% to 611koz. These advancements underscore the company’s strategic focus on enhancing its mineral resource base, which could strengthen its market position and offer promising opportunities for stakeholders.

Emmerson Resources Boosts White Devil Gold Estimate by 25%
Apr 15, 2025

Emmerson Resources Limited has announced a significant 25% increase in the mineral resource estimate for the White Devil deposit, now totaling 611,400 ounces of gold. This expansion contributes to a 14% increase in the total Tennant Creek resource base, which now stands at 987,400 ounces of high-grade gold. The majority of the White Devil deposit is classified as Indicated Resources, facilitating further development studies and potential conversion to an Ore Reserve. This development marks a substantial advancement for Emmerson, enhancing its economic interest and positioning within the industry. The ongoing construction of the Nobles CIL processing facility is ahead of schedule, with first gold production expected soon, further supporting Emmerson’s growth strategy.

Emmerson Resources Expands Mineralization at White Devil Project
Apr 13, 2025

Emmerson Resources Limited has completed its initial drilling program at the White Devil Gold Project in Tennant Creek, with significant mineralization found in 27 out of 40 drill holes. The drilling results indicate that mineralization extends beyond the current resource, suggesting a potential increase in the Mineral Resource Estimate (MRE) for the site. Additionally, exploration at the Nobles Nob West Prospect revealed narrow zones of copper and gold mineralization, with further downhole magnetic modeling planned to explore extensions of the mineralized ironstone bodies. These developments could enhance Emmerson’s resource base and strengthen its position in the mining sector.

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: Jun 20, 2025