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Estrella Resources Limited (AU:ESR)
ASX:ESR
Australian Market

Estrella Resources Limited (ESR) AI Stock Analysis

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AU

Estrella Resources Limited

(Sydney:ESR)

Rating:37Underperform
Price Target:
Estrella Resources Limited faces significant financial challenges with negative revenues and ongoing losses. The company's strong equity position without debt is a positive aspect, but cash flow issues and the lack of income generation are major concerns. Technically, the stock shows bearish trends, and its negative valuation further complicates its investment outlook. These factors contribute to a low overall stock score.

Estrella Resources Limited (ESR) vs. iShares MSCI Australia ETF (EWA)

Estrella Resources Limited Business Overview & Revenue Model

Company DescriptionEstrella Resources Limited, together with its subsidiaries, explores for and develops nickel projects in Western Australia. It holds 100% interests in the Carr Boyd nickel project that includes three mining leases and six exploration licenses located near the city of Kalgoorlie-Boulder; and Spargoville nickel project situated near South-West of Kambalda. The company was incorporated in 2011 and is headquartered in Perth, Australia.
How the Company Makes MoneyEstrella Resources Limited primarily makes money through the exploration and development of mineral resources, specifically nickel, copper, and gold. The company generates revenue by identifying promising mineral deposits, advancing them through exploration and development stages, and potentially selling or partnering with larger mining companies for further development and production. Key revenue streams include proceeds from the sale of mineral rights, joint venture agreements, and eventual production royalties or direct sales of extracted minerals. Strategic partnerships with larger mining firms can also provide crucial funding and expertise, enabling Estrella Resources to advance its projects more efficiently and profitably.

Estrella Resources Limited Financial Statement Overview

Summary
Estrella Resources Limited faces ongoing financial hurdles, with declining revenues and consistent losses affecting profitability and growth prospects. The balance sheet reflects a cautious approach with no debt, but cash flow issues persist, highlighting the need for better operational efficiencies. The company must focus on revitalizing its revenue streams and improving cash management to enhance its financial position.
Income Statement
30
Negative
Estrella Resources Limited has faced significant challenges in revenue generation with TTM revenue at zero, indicating halted sales activity. The company has consistently operated at a loss, with a negative net profit margin. Revenue growth has been volatile, with no consistent upward trajectory, highlighting instability in generating income.
Balance Sheet
40
Negative
The company maintains a relatively strong equity position with no long-term debt, resulting in a zero debt-to-equity ratio. However, the equity ratio has been slightly decreasing, which may indicate an erosion of asset base relative to equity. Despite this, the company still holds a significant portion of its assets as equity, suggesting some financial stability.
Cash Flow
35
Negative
Cash flow management remains a challenge, with negative free cash flow and operating cash flow consistently over recent years. The operating cash flow to net income ratio is unfavorable, indicating inefficiencies in converting operations into cash. However, the company has managed to secure financing to sustain operations.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
36.12K0.00405.52K2.29K1.38M0.00
Gross Profit
-19.42K-140.61K405.52K-124.75K19.62K-8.45K
EBIT
-884.07K-829.62K-1.57M-2.18M-461.24K-583.37K
EBITDA
-2.94M-2.77M-1.38M-2.13M-428.37K-574.92K
Net Income Common Stockholders
-3.05M-2.99M-1.60M-2.28M-543.23K-609.68K
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.34M359.61K1.08M776.39K3.61M36.48K
Total Assets
23.33M21.11M23.33M21.14M15.42M4.65M
Total Debt
0.000.001.04M0.00275.33K400.47K
Net Debt
-1.24M-196.89K-3.37K-721.18K-3.27M364.00K
Total Liabilities
371.81K390.24K1.30M1.46M1.40M646.85K
Stockholders Equity
22.91M20.72M22.03M19.67M14.02M4.01M
Cash FlowFree Cash Flow
-2.34M-1.44M-5.20M-9.62M-8.03M-942.69K
Operating Cash Flow
-1.14M-1.15M-1.13M-1.26M-824.41K-484.36K
Investing Cash Flow
-1.00M-287.09K-3.04M-8.12M-5.40M-208.33K
Financing Cash Flow
1.63M586.22K4.50M6.55M9.74M450.00K

Estrella Resources Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
51
Neutral
$2.02B-1.14-21.36%3.64%2.88%-30.57%
AUESR
37
Underperform
AU$96.44M-13.69%-100.00%-88.89%
$13.54M-120.40%
$4.07M-4.28%
AUGAL
65
Neutral
AU$20.75M6.537.75%
AUAX8
44
Neutral
AU$5.58M-19.32%47.46%
AUARN
36
Underperform
AU$58.15M-27.98%-100.00%25.15%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:ESR
Estrella Resources Limited
0.05
0.04
400.00%
PSDNF
Poseidon Nickel Limited
DE:RISA
Pursuit Minerals Ltd
0.08
0.00
0.00%
AU:ARN
Aldoro Resources Ltd.
0.30
0.24
400.00%
AU:GAL
Galileo Mining Ltd.
0.12
-0.14
-53.85%
AU:AX8
Accelerate Resources Ltd.
0.01
-0.04
-80.00%

Estrella Resources Limited Corporate Events

Estrella Resources Issues New Shares, Ensures Compliance
May 2, 2025

Estrella Resources Limited has issued 20,000 fully paid ordinary shares as of May 2, 2025, without disclosure under the Corporations Act. The company confirms compliance with relevant legal provisions and assures that no undisclosed information affects investors’ ability to assess the company’s financial standing or the rights attached to the securities.

Estrella Resources Expands Market Presence with New Securities Issuance
May 2, 2025

Estrella Resources Limited has announced the issuance of 20,000 fully paid ordinary securities, which will be quoted on the Australian Securities Exchange (ASX) under the code ESR. This move is part of the company’s strategic efforts to leverage convertible securities, potentially enhancing its financial flexibility and market positioning.

Estrella Resources Initiates Legal Action Over Lithium Royalty Dispute
May 2, 2025

Estrella Resources Limited has initiated legal proceedings in the Supreme Court of Western Australia against several entities, including WIN Metals Limited and its subsidiary, regarding a dispute over the entitlement to a royalty from lithium-bearing ore extracted from a specific mining lease. The company is determined to protect its legal rights concerning the Mt Edwards Lithium Royalty and assures shareholders that the legal action will not affect its current operations.

Estrella Resources Initiates Legal Action Over Munda Tenement Lithium Rights
May 1, 2025

Estrella Resources Ltd has initiated legal proceedings against Auric Mining Limited and its subsidiary, Widgie Gold Pty Ltd, along with Neometals Ltd and WIN Metals Ltd, concerning lithium rights and royalties related to the Munda Tenement M15/87. Auric Mining has stated its intention to vigorously defend against Estrella’s claims, which could have significant implications for the involved parties’ operations and stakeholder interests in the lithium sector.

Estrella Resources to Launch First-Ever Drilling Campaign in Timor-Leste
Apr 29, 2025

Estrella Resources Limited is set to commence its maiden drilling program in Timor-Leste, marking the first mineral exploration drilling in the country under its new mining code. The company has finalized drill targets and is in the final stages of securing environmental approvals, with drilling expected to begin in May. Estrella has also reported high-grade manganese assays from various prospects and completed a $3.75 million share placement to fund the drilling campaign. The initiative has received strong support from local communities and the Timor-Leste government, positioning Estrella as a key player in the region’s mining sector.

Estrella Resources Launches Drilling Program in Timor-Leste
Apr 4, 2025

Estrella Resources Limited has announced a partnership with CoreSearch Minerals and Mining Services LDA to initiate a mineral drilling program in Timor-Leste. This collaboration involves importing a custom rig and equipment to support the country’s emerging exploration and mining sector. The initial drilling will target manganese prospects, with operations expected to begin in May, pending environmental approvals. This venture marks a significant step in developing Timor-Leste’s mining industry, with Estrella providing capital support and retaining exclusive equipment rights until costs are recouped.

Estrella Resources Limited Releases Interim Financial Report for H2 2024
Mar 13, 2025

Estrella Resources Limited has released its interim financial report for the half-year ending December 31, 2024. The report includes key financial statements such as the Consolidated Statement of Profit or Loss and Other Comprehensive Income, and the Consolidated Statement of Financial Position, among others. This release provides insights into the company’s financial health and operational performance, which are crucial for stakeholders to assess the company’s market positioning and future prospects.

Estrella Resources Issues New Shares with Full Compliance
Feb 27, 2025

Estrella Resources Limited has announced the issuance of 99,996 fully paid ordinary shares. The company has complied with relevant provisions of the Corporations Act and confirmed that there is no undisclosed information that would affect investors’ assessment of the company’s financial position or the rights attached to the securities.

Estrella Resources Unveils Significant Manganese Discovery at Soru Prospect
Feb 26, 2025

Estrella Resources Limited has announced the discovery of a significant area of alluvial manganese at the Soru Manganese Prospect within its Lautém Manganese Project in Timor-Leste. The discovery, which covers an area of 1.5km by 700m, is derived from the erosion of secondary manganese in nearby hills. The company is working to determine the grade, width, and source of the manganese deposits and is in the process of upgrading its Environmental License to allow for further exploration activities such as trenching and drilling. This development is expected to enhance Estrella’s exploration capabilities and potentially improve its market positioning in the manganese sector.

Estrella Resources Announces Director’s Interest Adjustment
Feb 19, 2025

Estrella Resources Limited reported a change in the director’s interest involving Les Pereira. This adjustment involves a transfer of 4,000,000 Class B Performance Rights and an equivalent number of Fully Paid Ordinary Shares through Nannook Holdings Pty Ltd, reflecting strategic adjustments in the company’s securities that could impact its governance and stakeholder interests.

Estrella Resources Issues 12.25 Million Share Performance Rights
Feb 19, 2025

Estrella Resources Limited has announced the issuance of 12,250,000 Share Performance Rights under an employee incentive scheme. These unquoted equity securities are intended to reward and motivate the company’s employees, potentially strengthening the company’s operational performance and market positioning.

Estrella Resources Expands Share Base, Reinforces Market Position
Feb 19, 2025

Estrella Resources Limited has announced the issuance of 19,798,333 fully paid ordinary shares, in compliance with the Corporations Act 2001. This strategic move, executed without additional disclosure, signifies the company’s adherence to regulatory requirements and reflects its commitment to transparency, potentially enhancing its market position and investor relations.

Estrella Resources Limited Issues Employee Incentive Securities
Feb 19, 2025

Estrella Resources Limited has announced the issuance of 1,500,000 fully paid ordinary securities as non-cash consideration to its employees under the Employee Securities Incentive Plan (ESIP). This move is part of the company’s strategy to align employee interests with corporate goals, potentially impacting its operational efficiency and market positioning positively.

Estrella Resources Boosts Market Presence with New Securities Quotation
Feb 19, 2025

Estrella Resources Limited has announced the quotation of 18,298,333 fully paid ordinary securities on the Australian Securities Exchange as of February 19, 2025. This development is part of the company’s strategic efforts to enhance its market presence and operational capabilities, potentially impacting its industry positioning and offering implications for its stakeholders.

Estrella Resources Discovers High-Grade Manganese in Timor-Leste
Feb 12, 2025

Estrella Resources Limited announced promising assay results from its Lautém Manganese Project in Timor-Leste, highlighting significant manganese deposits at the Ira Miri and Sica sites. These findings, with manganese grades reaching up to 58.6%, enhance Estrella’s exploration model, opening new areas for exploration and potentially strengthening its position in the manganese market.

Estrella Resources Announces Director’s Interest Change
Feb 11, 2025

Estrella Resources Limited has announced a change in the director’s interest, as detailed in their latest notice to the ASX. The notice highlights that director Les Pereira, through Nannook Holdings Pty Ltd, has adjusted his holdings, acquiring and disposing of 2,000,000 Class A Performance Rights valued at $24,000. This change reflects the company’s ongoing management of its internal stakeholder interests, potentially impacting its strategic direction and investor relations.

WMA Holding FZCO Doubles Stake in Estrella Resources
Feb 11, 2025

Estrella Resources Limited has experienced a significant change in its shareholder structure. WMA Holding FZCO has increased its voting power in Estrella Resources from 6.08% to 13.54% through a series of market purchases and private placements. This change indicates a growing interest and confidence in Estrella Resources by WMA Holding FZCO, which could impact the company’s strategic decisions and influence within the industry.

Estrella Resources Expands Market Presence with New Securities Issuance
Feb 7, 2025

Estrella Resources Limited announced the issuance of 6,000,000 fully paid ordinary securities on the Australian Securities Exchange (ASX). This move signifies a strategic step for the company, potentially impacting its capital structure and market presence, thereby affecting stakeholders and its positioning within the mining industry.

Estrella Resources Seeks ASX Quotation for New Securities
Feb 7, 2025

Estrella Resources Limited has announced the application for the quotation of 125 million fully paid ordinary securities on the Australian Securities Exchange (ASX) under the code ‘ESR’. This move is part of previously announced transactions, potentially enhancing the company’s capital structure and market presence.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.