FAR Ltd (FAR) AI Stock Analysis

• Market Cap: AU$55.45M
• Dividend Yield: 19.28%
• Average Volume (3M): 10.73K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.20
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: AU
• Employees: 3
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.01
• Shares Outstanding: 92,409,645
• 10 Day Avg. Volume: 21,314
• 30 Day Avg. Volume: 10,726
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -33.23
• 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: 51 Neutral
• Price Target: AU$0.46 ▲(10.00% Upside)
• Action: N/A Date: 01/04/26
• Date: Action: N/A 01/04/26

The score is held back primarily by weak operating performance and persistent cash burn despite a strong, low-debt balance sheet. Technical indicators are broadly neutral with slightly negative momentum. Valuation is a partial offset due to the very high dividend yield and a moderate P/E.

Positive Factors

Low Leverage / Strong Balance Sheet

Extremely low leverage provides durable financial flexibility for a capital-intensive exploration business. It reduces refinancing and default risk, preserves optionality to fund drilling or seismic programs, and enables the company to pursue opportunities or withstand setbacks without immediate solvency pressure.

Equity Rebuild / Stronger Capital Base

The large equity rebuild materially strengthens the capital base, lowering insolvency risk and reducing the need for immediate dilutive financing. A healthier equity cushion improves the company's ability to invest in exploration, execute transactions, or absorb project setbacks over the medium term.

Lean Cost Structure

A three-person workforce implies very low fixed overhead, which conserves cash in a company with negative operating cash flow. Persistently lean operating costs extend runway, allow more capital to be allocated to prospect work, and make scaling or restructuring less disruptive when projects progress.

Negative Factors

No Reported Revenue / Negative Operating Results

Zero reported revenue and consistently negative EBITDA/EBIT show the firm lacks a revenue-generating core business and has not demonstrated operating profitability. This structural shortfall means future value depends on successful exploration outcomes or asset sales rather than recurring operations.

Persistent Cash Burn

Repeated negative operating and free cash flow indicate structural cash burn and that the business is not self-funding. Continued reliance on asset sales, financing, or equity injections raises dilution and liquidity risk and constrains the ability to fund sustained exploration programs without external capital.

2024 Profit Likely Non-Operating / One-Off

The sharp 2024 net income improvement appears driven by non-operating or one-off items rather than operating performance. This makes reported profitability non-recurring and increases earnings volatility, reducing the reliability of the 2024 result as evidence of durable fundamental improvement.

FAR Ltd Business Overview & Revenue Model

Company Description

FAR 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

Financials are mixed: the balance sheet is a clear strength with extremely low leverage and a large equity rebuild in 2024, but operating fundamentals remain weak with zero reported revenue, negative EBITDA/EBIT each year, and consistently negative operating and free cash flow (ongoing cash burn). The 2024 net income swing appears less supported by core operations.

Income Statement

The income statement remains weak from an operating standpoint: the company reports zero revenue across the annual periods provided, while operating results stay loss-making (EBITDA and EBIT are negative every year). A notable positive is the sharp swing to a large profit in 2024 (net income of 44.1M vs. a loss in 2023), but without revenue and with ongoing operating losses, this looks more like non-operating or one-off driven profitability rather than a durable earnings base.

Balance Sheet

The balance sheet is a clear strength. Leverage is extremely low (2024 debt is ~28K versus equity of ~46.9M; debt-to-equity ~0.0006), providing flexibility for an exploration business. Equity rebuilt substantially in 2024 (from ~2.8M in 2023 to ~46.9M), and return on equity in 2024 is very strong (about 94%), though the prior years show negative returns—highlighting that profitability has not been consistent through the cycle.

Cash Flow

Cash flow quality is weak: operating cash flow is negative in every year shown (including 2024 at about -0.9M), and free cash flow is also consistently negative—signaling ongoing cash burn. While the cash outflow improved materially versus earlier years (e.g., 2022 and 2021 were far more negative), the business still is not self-funding from operations, increasing dependence on asset sales, financing, or cash reserves despite the improved 2024 net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.02M	0.00	0.00	0.00	0.00	0.00
Gross Profit	1.02M	0.00	-211.00K	-306.00K	-368.00K	-493.00K
EBITDA	701.56K	-940.00K	-4.63M	-4.97M	-35.71M	-15.64M
Net Income	-983.91K	44.08M	-6.54M	-5.19M	-44.78M	-91.13M
Balance Sheet
Total Assets	41.13M	46.95M	3.08M	52.30M	57.05M	178.17M
Cash, Cash Equivalents and Short-Term Investments	1.93M	1.73M	2.95M	33.72M	55.46M	25.77M
Total Debt	0.00	27.93K	177.56K	612.00K	70.74K	947.37K
Total Liabilities	32.38K	86.83K	285.32K	2.63M	17.42M	36.81M
Stockholders Equity	41.09M	46.87M	2.79M	33.69M	39.63M	141.36M
Cash Flow
Free Cash Flow	-585.53K	-912.36K	-4.57M	-30.08M	-35.18M	-99.35M
Operating Cash Flow	-585.54K	-912.36K	-4.57M	-30.05M	-25.15M	-19.27M
Investing Cash Flow	5.07M	2.37K	1.01M	339.00K	116.10M	-71.67M
Financing Cash Flow	-4.67M	-158.97K	-26.58M	-1.04M	-58.28M	100.40M

FAR Ltd 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%
FAR	51 Neutral	AU$55.45M	-3.09	3.29%	19.28%	―	―
TDO	44 Neutral	AU$41.94M	-29.16	-15.00%	―	―	40.00%

FAR Ltd Corporate Events

FAR Limited plans AUD 0.35 per share capital return to investors

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

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

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

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.