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FAR Ltd (AU:FAR)
ASX:FAR

FAR Ltd (FAR) AI Stock Analysis

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AU:FAR

FAR Ltd

(Sydney:FAR)

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Neutral 52 (OpenAI - 5.2)
,
Neutral 52 (OpenAI - 5.2)
,
Neutral 52 (OpenAI - 5.2)
Rating:52Neutral
Price Target:
AU$0.61
▲(44.29% Upside)
Action:ReiteratedDate:03/21/26
The score is held back primarily by weak profitability and consistently negative cash flow, despite a strong low-debt balance sheet. Technicals are supportive due to a clear uptrend but are tempered by overbought readings. Valuation gets a lift from the very high dividend yield, though losses (negative P/E) limit confidence.
Positive Factors
Conservatively financed balance sheet
Very low leverage and zero reported debt in 2025, plus sizable equity (~41.1m), provide an enduring financial buffer. This reduces refinancing pressure, supports ongoing operations through cyclical oil & gas volatility, and gives optionality to fund projects or weather downside.
Material revenue improvement year-over-year
A >50% reported revenue growth metric reflects meaningful top-line improvement versus prior periods. Sustained revenue expansion, if maintained, supports future scale, improves operational leverage prospects and helps narrow operating losses over the medium term.
Reduced cash burn from worst years
The company has sharply reduced historical outflows versus peak burn years, indicating progress toward operational stabilization. Lower absolute cash burn reduces near-term financing needs and increases the time available to execute restructuring or growth initiatives.
Negative Factors
Persistent negative operating and free cash flow
Consistent negative operating and free cash flow means the business does not self-fund capex or working capital, forcing reliance on equity or other financing. Over 2-6 months this constrains strategic flexibility and raises dilution or liquidity risk if conditions worsen.
Weak, volatile profitability
Persistent operating losses and swings in reported results undermine consistent return generation. This volatility limits ability to deliver sustainable ROE, maintain distributions, or reinvest organically, increasing execution risk over the medium term.
Small, uneven revenue base and low scale
A small and inconsistent revenue base limits economies of scale and bargaining power in exploration/production. Structural lack of scale raises unit costs, constrains investment in portfolio development, and amplifies operational and pricing shocks over time.

FAR Ltd (FAR) vs. iShares MSCI Australia ETF (EWA)

FAR Ltd Business Overview & Revenue Model

Company DescriptionFAR Limited operates as an oil and gas exploration and development company with primary assets in West Africa and Australia. The company holds a portfolio of exploration licenses in the Gambia and the Guinea-Bissau projects. It also holds a petroleum exploration permit in Western Australia. The company was formerly known as First Australian Resources NL and changed its name to FAR Limited in 2010. FAR Limited was incorporated in 1984 and is based in Melbourne, Australia.

FAR Ltd Financial Statement Overview

Summary
Overall fundamentals are constrained by weak operating results and cash burn. Income statement quality is poor with small/uneven revenue and ongoing losses (Income Statement Score: 22). Cash flow is a major risk with persistently negative operating and free cash flow despite improvement (Cash Flow Score: 18). The main offset is a conservatively financed balance sheet with minimal debt and sizable equity (Balance Sheet Score: 74).
Income Statement
22
Negative
Profitability remains weak and volatile. The latest annual period (2025) shows modest revenue (~5.6m) but still negative gross profit and operating losses, ending in a net loss (~-1.0m). Prior years show long stretches of losses and effectively no recurring revenue (2020–2024), with 2024’s large net profit appearing non-operational given continued operating losses and zero revenue. Overall, earnings quality and consistency are low, despite a meaningful reduction in losses versus the large deficits seen in earlier years.
Balance Sheet
74
Positive
The balance sheet is a relative strength with very low leverage: total debt is minimal in most years and is zero in 2025, supported by sizable equity (~41.1m in 2025). Assets are broadly stable (~41.1m in 2025), and the company appears conservatively financed, which helps withstand a weak operating environment. The key weakness is shareholder returns: profitability has been insufficient to generate consistently positive returns on equity, with results swinging sharply year to year.
Cash Flow
18
Very Negative
Cash generation is consistently negative. Operating cash flow and free cash flow are negative across all periods shown, including 2025 (both around -0.6m) and much larger outflows in earlier years (e.g., ~-30m in 2022 and ~-19m in 2020). While the magnitude of cash burn has improved materially from the worst years, the business still does not self-fund, increasing reliance on the balance sheet and/or external capital if the pattern persists.
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue5.63M0.000.000.000.00
Gross Profit-795.96K0.00-211.00K-306.00K-368.00K
EBITDA-1.31M-940.00K-4.63M-4.97M-35.71M
Net Income-1.03M44.08M-6.54M-5.19M-44.78M
Balance Sheet
Total Assets41.13M46.95M3.08M52.30M57.05M
Cash, Cash Equivalents and Short-Term Investments1.93M1.73M2.95M33.72M55.46M
Total Debt0.0027.93K177.56K612.00K70.74K
Total Liabilities32.38K86.83K285.32K2.63M17.42M
Stockholders Equity41.09M46.87M2.79M33.69M39.63M
Cash Flow
Free Cash Flow-575.78K-912.36K-4.57M-30.08M-35.18M
Operating Cash Flow-575.78K-912.36K-4.57M-30.05M-25.15M
Investing Cash Flow5.73M2.37K1.01M339.00K116.10M
Financing Cash Flow-5.00M-158.97K-26.58M-1.04M-58.28M

FAR Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
$15.17B7.614.09%5.20%3.87%-62.32%
52
Neutral
AU$55.45M-24.75-2.42%19.28%
44
Neutral
AU$41.94M-29.16-15.00%40.00%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:FAR
FAR Ltd
0.60
0.19
48.15%
DE:J2E
Jupiter Energy
0.02
>-0.01
-11.76%
ELXPF
Elixir Energy Limited
0.07
0.04
133.33%
RDFEF
Brookside Energy
0.31
0.07
27.69%
AU:TDO
3D Oil Limited
0.08
-0.03
-27.27%

FAR Ltd Corporate Events

FAR Limited Details 2025 Corporate Governance Framework and Compliance
Mar 17, 2026

FAR Limited has released its Corporate Governance Statement outlining how it complies with the ASX Corporate Governance Council’s principles and recommendations for the 2025 financial year, including where it departs from best practice and why. The board has formalised its role through a Board Charter, clear delegations of authority and regular performance review, and it has embedded policies for director appointments, written agreements with directors and senior executives, and direct accountability of the company secretary to the chair, together with a disclosed diversity policy and gender diversity objectives, reinforcing disciplined oversight and stakeholder protections.

The statement details the board’s responsibilities for setting strategy, approving budgets and major capital expenditure, overseeing risk management and internal controls, and managing the appointment and removal of senior executives and the company secretary. It also confirms that FAR conducts comprehensive checks on prospective directors, provides shareholders with detailed biographical information for election decisions and ensures directors receive extensive reporting and access to company records, which collectively are intended to enhance governance transparency and investor confidence.

The most recent analyst rating on (AU:FAR) stock is a Hold with a A$0.46 price target. To see the full list of analyst forecasts on FAR Ltd stock, see the AU:FAR Stock Forecast page.

FAR Limited Publishes 2025 Annual Report
Mar 17, 2026

FAR Limited has released its Annual Report for the year ended 31 December 2025, detailing the Chairman’s review, Directors’ report and full audited financial statements. The report package also includes notes to the accounts, a consolidated entity disclosure statement, shareholder information and a corporate directory, providing investors with a comprehensive view of the company’s governance, performance and structure.

The most recent analyst rating on (AU:FAR) stock is a Hold with a A$0.46 price target. To see the full list of analyst forecasts on FAR Ltd stock, see the AU:FAR Stock Forecast page.

FAR Limited plans AUD 0.35 per share capital return to investors
Mar 15, 2026

FAR Limited has announced a proposed cash return of capital to holders of its ordinary fully paid shares, with a payment of AUD 0.35 per security. Trading on an ex-return-of-capital basis is scheduled to commence on 2 June 2026, with a record date of 3 June 2026 and payment to shareholders set for 11 June 2026.

The transaction is structured as a non-selective reduction of capital, meaning it applies uniformly to all holders of the relevant shares and is subject to shareholder approval expected to be determined on 28 May 2026. The move signals a planned distribution of surplus capital to investors, which may affect FAR’s capital structure and could be seen as a return of value to shareholders following recent corporate developments or asset realisations.

The most recent analyst rating on (AU:FAR) stock is a Hold with a A$0.46 price target. To see the full list of analyst forecasts on FAR Ltd stock, see the AU:FAR Stock Forecast page.

FAR to Return Capital After Provisional US$23.7m Sangomar Payment
Mar 15, 2026

FAR Limited has agreed with Woodside Energy to receive a provisional 2025 contingent payment of US$23.7 million tied to oil sales from the Sangomar project, following an initial US$11.5 million tranche received in 2025. The latest payment reflects Woodside’s reported 2025 production volumes and reduces the maximum remaining contingent amount payable to FAR to US$19.8 million.

With the expected receipt of these funds in April 2026, FAR’s board has determined that the company will hold surplus capital and plans to return approximately A$32.3 million to shareholders via a proposed capital return of 35 cents per share. The move, subject to shareholder approval at the May 2026 annual general meeting and a tax ruling to confirm the payment is not treated as a dividend, continues FAR’s strategy of distributing excess proceeds from the Sangomar asset sale to investors.

The most recent analyst rating on (AU:FAR) stock is a Hold with a A$0.46 price target. To see the full list of analyst forecasts on FAR Ltd stock, see the AU:FAR Stock Forecast page.

Harvest Lane trims substantial stake in FAR Ltd
Mar 11, 2026

Harvest Lane Asset Management and its associated entities have reduced their substantial shareholding in FAR Ltd, lowering their voting power from 9.92% to 7.03% of the company’s ordinary shares. The change reflects disposals and adjustments across nominee-held positions, leaving Harvest Lane with just over 6.5 million FAR shares, a shift that may slightly dilute its influence in shareholder decisions while keeping it a notable institutional investor.

The updated filing underscores ongoing repositioning among FAR’s institutional holders, which can signal evolving views on the company’s valuation and strategic outlook within the energy sector. While Harvest Lane remains a substantial holder, the reduced stake could marginally alter voting dynamics at future meetings and is likely to be monitored by other investors tracking ownership concentration in FAR.

The most recent analyst rating on (AU:FAR) stock is a Hold with a A$0.46 price target. To see the full list of analyst forecasts on FAR Ltd stock, see the AU:FAR Stock Forecast page.

FAR Limited Settles US$6m Woodside Claim Over Senegal Petroleum Costs
Dec 21, 2025

FAR Limited has reached a settlement with Woodside Energy (Senegal) BV over a US$6.0 million claim tied to the sale of FAR’s interest in the RSSD Project in 2021. The dispute stemmed from a decision by Senegal’s Ministry of Energy, Petroleum and Mines that prevented Woodside from recovering certain petroleum expenditures, triggering an indemnity obligation under the original sale agreement. FAR will promptly pay the full claim amount, for which it has already reserved funds, while the settlement preserves upside for FAR by requiring Woodside to refund any amounts later recovered from the Senegalese authorities before the end of 2030, thereby capping FAR’s immediate liability but leaving scope for partial reimbursement and reducing long-term uncertainty for shareholders.

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: Mar 21, 2026