Leaf Resources Limited (FGH) AI Stock Analysis

• Market Cap: AU$65.73M
• Dividend Yield: N/A
• Average Volume (3M): 4.65M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.36
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: AU
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): >-0.01
• Shares Outstanding: 2,857,978,500
• 10 Day Avg. Volume: 2,953,221
• 30 Day Avg. Volume: 4,652,330
• 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: 41 Neutral
• Price Target: AU$0.02 ▼(-45.00% Downside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is held down primarily by weak financial performance (minimal revenue, ongoing losses, and negative free cash flow despite some FY2025 improvement) and bearish technical indicators (price below key moving averages with very weak momentum). Valuation provides limited support because the negative P/E reflects unprofitable operations and no dividend yield data is available.

Positive Factors

Balance-sheet stabilization

A lower debt-to-equity and rebuilt equity indicate meaningful balance-sheet repair versus FY2024. That improvement reduces near-term refinancing risk and gives the company more flexibility to manage cash needs and pursue restart or commercialization steps over the next several quarters.

Narrowing losses and lower cash burn

Material narrowing of losses and a smaller negative free cash flow versus the prior year show operational progress and tighter cost control. This directional improvement extends runway and reduces urgency for emergency funding, improving the company's ability to execute medium-term plans.

Equity rebuild / capital flexibility

Rebuilding equity demonstrates access to capital markets or recapitalization capability. For a near-revenue business, retained ability to raise equity is a durable positive: it provides optionality to fund R&D, pilot customers, or commercialization without immediate profitability.

Negative Factors

Lack of revenue traction

Practically no revenue undermines the business model's tested commercial viability. Without a sustained revenue stream, the company cannot demonstrate product-market fit or achieve scale economics, leaving it reliant on external financing and increasing execution risk over months.

Persistent negative cash generation

Consistently negative free cash flow and reported zero operating cash flow show an inability to self-fund operations or invest. This structural cash-generation weakness forces ongoing external financing and constrains long-term strategic investments and resilience to market stress.

Elevated leverage given no earnings

Rising absolute debt and still-elevated leverage are risky for a company with negligible revenue and negative returns. High leverage limits flexibility, raises refinancing and interest risks, and magnifies downside for equity holders if commercialization delays persist.

Leaf Resources Limited Business Overview & Revenue Model

Company Description

Foresta Group Holding Limited, together with its subsidiaries, engages in the manufacture and sale of pine chemical and wood pellet in Australia. The company offers torrefied wood pellets, rosin, and turpentine. It also engages in the extraction of chemicals; mining of gravel and general fill; provision of research and development services; ownership of intellectual property; and investment activities. The company was formerly known as Leaf Resources Limited and changed its name to Foresta Group Holding Limited in August 2023. Foresta Group Holding Limited was incorporated in 1996 and is headquartered in Melbourne, Australia.

How the Company Makes Money

Leaf Resources Limited Financial Statement Overview

Summary

Financials remain very weak: recurring net losses and consistently negative EBITDA with minimal/near-zero revenue (FY2025 revenue at 0) indicate no clear path to sustainable profitability yet. Cash flow is also pressured with negative free cash flow across all periods, though losses and cash burn improved materially in FY2025 vs FY2024. The balance sheet has stabilized from FY2024 but leverage remains high relative to the lack of earnings and cash generation.

Income Statement

Operating performance remains weak with recurring, sizable losses (net income was -11.0M in FY2024 and -3.4M in FY2025), and EBITDA is consistently negative across all periods shown. Revenue is minimal/near-zero in most years (including FY2025 at 0), limiting evidence of a sustained commercialization ramp. Losses did narrow materially in FY2025 versus FY2024, which is a positive directional sign, but profitability is still not in sight given the lack of meaningful top-line scale.

Balance Sheet

Leverage is elevated and volatile. Debt-to-equity improved to ~1.69 in FY2025 from ~6.79 in FY2024 as equity rebuilt, but it is still high for a business without consistent revenue or profits. Total debt rose in FY2025 (to ~2.15M from ~1.40M), and returns on equity remain sharply negative, reflecting continued value erosion from ongoing losses. The balance sheet is better than FY2024 but still carries notable financing risk.

Cash Flow

Cash generation is weak, with free cash flow negative every year shown (improving to about -2.65M in FY2025 from -4.63M in FY2024, but still deeply negative). Operating cash flow is reported at 0 in all periods, offering limited visibility into underlying cash earnings and reinforcing reliance on external funding to sustain operations. The pace of cash burn has improved, which helps, but the business has not yet demonstrated self-funding capacity.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	0.00	0.00	15.79K	0.00
Gross Profit	0.00	0.00	15.79K	0.00
EBITDA	-3.00M	-10.60M	-7.21M	-4.68M
Net Income	-3.38M	-11.03M	-8.21M	-6.03M
Balance Sheet
Total Assets	4.17M	4.62M	10.93M	12.74M
Cash, Cash Equivalents and Short-Term Investments	1.24M	185.75K	1.45M	747.00K
Total Debt	2.15M	1.40M	1.60M	4.63M
Total Liabilities	2.89M	2.10M	2.93M	6.05M
Stockholders Equity	1.27M	206.35K	8.00M	6.69M
Cash Flow
Free Cash Flow	-2.65M	-4.63M	-5.99M	-8.14M
Operating Cash Flow	0.00	0.00	0.00	0.00
Investing Cash Flow	168.84K	706.21K	-2.38M	-2.83M
Financing Cash Flow	3.53M	2.13M	6.59M	7.03M

Leaf Resources Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ANO	60 Neutral	AU$61.08M	42.39	3.53%	―	24.88%	―
LMG	49 Neutral	AU$59.43M	-17.27	-5.89%	―	―	59.26%
HZR	46 Neutral	AU$107.61M	-15.94	-55.86%	―	―	64.63%
ATC	42 Neutral	AU$66.72M	-3.52	-39.14%	―	―	57.49%
FGH	41 Neutral	AU$65.73M	-17.69	-235.77%	―	―	―
WCE	34 Underperform	AU$77.16M	-4.16	-440.50%	―	―	-61.06%

Leaf Resources Limited Corporate Events

Foresta Deepens Half-Year Loss but Advances New Zealand Pine Chemicals Project

Foresta Group Holdings reported a half-year after-tax loss of about A$2.0 million for the period ended 31 December 2025, with no revenue from ordinary activities and no dividend declared, reflecting its ongoing development phase. Despite the deeper loss, the group strengthened its position by advancing technical and operational work on its Kawerau Stage 1 Project, securing expert consultants, and receiving A$2.4 million in insurance settlement related to the Apple Tree Creek incident, supporting both project momentum and balance sheet resilience.

The company’s focus on detailed design, regulatory consents and best-practice project governance underscores its commitment to bringing a world-first integrated pine chemicals and torrefied wood pellet facility to market. This continued investment, coupled with the insurance payout and robust oversight structures, positions Foresta to progress its New Zealand project while aiming to create longer-term value for shareholders once operations commence.

The most recent analyst rating on (AU:FGH) stock is a Sell with a A$0.02 price target. To see the full list of analyst forecasts on Leaf Resources Limited stock, see the AU:FGH Stock Forecast page.

Foresta Secures 50-Year Kawerau Site Lease to Advance Biomass Facility

Foresta Group Holdings has executed a long-term lease with the Putauaki Trust for its Kawerau site in New Zealand, following satisfaction of conditions under a prior agreement. The lease, commencing 1 March 2026, runs for 30 years with an option for a further 20 years, underscoring the company’s commitment to establishing a significant industrial presence in the region.

A formal signing ceremony at New Zealand’s Parliament, attended by senior government figures and local officials, highlighted the strategic importance of the deal. The lease provides a stable platform for Foresta’s integrated biomass manufacturing facility in Kawerau and marks a major milestone in advancing its regional growth and production plans.

The most recent analyst rating on (AU:FGH) stock is a Sell with a A$0.03 price target. To see the full list of analyst forecasts on Leaf Resources Limited stock, see the AU:FGH Stock Forecast page.

Foresta Group Options Lapse After Conditions Go Unmet

Foresta Group Holdings Limited has confirmed the expiry of a tranche of options (FGHAA) that were due to expire on 6 February 2026, with a total of 287,671 options ceasing due to conditions attached to the rights not being satisfied or no longer capable of being met. The lapse of these conditional options reduces the company’s pool of potential future equity securities, clarifying its issued capital structure and slightly limiting prospective dilution for existing shareholders, though it does not immediately affect its current share capital on issue.

The most recent analyst rating on (AU:FGH) stock is a Hold with a A$0.03 price target. To see the full list of analyst forecasts on Leaf Resources Limited stock, see the AU:FGH Stock Forecast page.

Foresta Group Issues 7.5 Million Shares with ASX Cleansing Notice

Foresta Group Holdings has issued 7.5 million fully paid ordinary shares and has lodged a cleansing notice with the ASX under section 708A(5)(e) of the Corporations Act to ensure these securities can be traded without a prospectus. The company confirmed it has complied with its financial reporting and continuous disclosure obligations and that there is no excluded information, signalling regulatory compliance and transparency around the new share issuance for investors.

The most recent analyst rating on (AU:FGH) stock is a Hold with a A$0.04 price target. To see the full list of analyst forecasts on Leaf Resources Limited stock, see the AU:FGH Stock Forecast page.

Foresta Group Holdings Seeks ASX Quotation for 7.5 Million New Shares

Foresta Group Holdings Limited has applied to the ASX for quotation of 7.5 million new ordinary fully paid shares, to be listed under its existing ticker FGH from 2 February 2026. The issue expands the company’s quoted capital base, potentially affecting its liquidity and ownership structure, and signals ongoing capital management activities that may underpin future corporate or strategic initiatives.

The most recent analyst rating on (AU:FGH) stock is a Hold with a A$0.04 price target. To see the full list of analyst forecasts on Leaf Resources Limited stock, see the AU:FGH Stock Forecast page.

Foresta Group Options Lapse, Reducing Potential Dilution

Foresta Group Holdings Limited has advised the market that a total of 25,134,616 options on issue have ceased, following the lapse of conditional rights attached to these securities. The expired instruments include 384,616 options with various expiry dates and exercise prices, and 24,750,000 options expiring on 1 March 2025 at an exercise price of $0.023, all of which lapsed because their vesting or performance conditions were not met or became incapable of being satisfied, resulting in a reduction of the company’s potential future dilutive securities on issue.

The most recent analyst rating on (AU:FGH) stock is a Hold with a A$0.04 price target. To see the full list of analyst forecasts on Leaf Resources Limited stock, see the AU:FGH Stock Forecast page.

Foresta Extends Key Technology Licence and Advances Kawerau Low-Carbon Project

Foresta Group has overhauled several key operational and strategic settings this quarter, including switching its share registry management services from MUFG Corporate Markets to Boardroom Pty Ltd and entering into a conditional payment arrangement with the Putauaki Trust tied to its Agreement to Lease for the Kawerau project site, with the payment to be offset against future rent or repaid if a binding lease is not executed. The company also extended its exclusive technology licence with E3 Carbon for advanced torrefaction technology out to the end of 2027, while continuing to advance the Kawerau Stage 1 Plant through best-practice project governance, deferring earthworks to the third quarter of 2026 to avoid costly winter construction risks, progressing a low-carbon process heat feasibility study with EECA, and pursuing long-term forestry supply and collaboration agreements to secure a robust and sustainable operational foundation in New Zealand.

The most recent analyst rating on (AU:FGH) stock is a Hold with a A$0.04 price target. To see the full list of analyst forecasts on Leaf Resources Limited stock, see the AU:FGH Stock Forecast page.

Foresta Group Director Russell Allen Sees Expiry of 210 Million Unlisted Options

Foresta Group Holdings Limited has disclosed a change in director Russell Allen’s interests in the company’s securities, as required under ASX listing rules. The filing shows that 210 million unlisted options held indirectly via SWAT7D Pty Ltd, where Allen is sole director, have expired without consideration, leaving his substantial direct and indirect shareholdings and convertible notes unchanged, a move that slightly reduces potential future equity dilution without affecting his existing ownership stake.

The most recent analyst rating on (AU:FGH) stock is a Hold with a A$0.04 price target. To see the full list of analyst forecasts on Leaf Resources Limited stock, see the AU:FGH Stock Forecast page.

Foresta Group Director’s 42 Million Options Expire Without Exercise

Foresta Group Holdings has reported a change in director Maurizio (Maurice) Fabiani’s relevant interests in the company’s securities, following the expiry of a large tranche of unlisted options. Through his superannuation vehicle Dr FAB Super Pty Ltd , Fabiani held 42 million unlisted options that expired on 31 December 2025 without being exercised, leaving that entity with 42 million ordinary shares and no options, while his interests via Formosa Executive Pty Ltd remain unchanged at 25 million ordinary shares and 10 million unlisted options. The transaction involved no consideration, did not occur during a closed period, and reflects a simplification of the director’s derivative exposure rather than an active on-market trade, signalling no immediate cash injection or dilution for existing shareholders.

The most recent analyst rating on (AU:FGH) stock is a Hold with a A$0.04 price target. To see the full list of analyst forecasts on Leaf Resources Limited stock, see the AU:FGH Stock Forecast page.

Foresta Group Options Lapse After Conditions Go Unsatisfied

Foresta Group Holdings Limited has confirmed the lapse of 252 million options (FGHAAI), which were exercisable at $0.045 and due to expire on 31 December 2025, after the conditions attached to these options were not, or could no longer be, satisfied. The cessation of these options reduces the company’s pool of potential future equity issuance, slightly simplifying its capital structure and removing a source of potential dilution for existing shareholders.

The most recent analyst rating on (AU:FGH) stock is a Hold with a A$0.04 price target. To see the full list of analyst forecasts on Leaf Resources Limited stock, see the AU:FGH Stock Forecast page.

Foresta Group Extends E3 Carbon Technology Licence to 2027 for Australasian Biocarbon Push

Foresta Group Holdings has extended and amended its exclusive technology licence agreement with E3 Carbon, pushing the deadline for satisfying key conditions from 31 December 2025 to 31 December 2027 and solidifying its rights to use E3 Carbon’s advanced torrefaction technology in Australia and New Zealand. The revised deal requires E3 Carbon to deliver a comprehensive intellectual property strategy, including patent coverage in both markets, confirms Foresta’s exclusive licence as unconditional until the end of 2027, and outlines a pathway for converting the licence into a perpetual, irrevocable, exclusive and royalty-bearing arrangement once further conditions, such as an equipment supply agreement with Ceramic Drying Systems, are met, thereby providing a more certain framework for Foresta’s biocarbon strategy in the Australasian region.

Foresta Group Holdings Announces Cessation of Securities

Foresta Group Holdings Limited announced the cessation of 10,000,000 securities due to the lapse of conditional rights as the conditions were not met. This development may impact the company’s capital structure and investor relations, as it reflects the company’s current inability to satisfy certain conditions tied to these securities.

Foresta Group Advances Towards Binding Lease with Conditional Payment Agreement

Foresta Group Holdings Limited has entered into a conditional payment agreement with The Putauaki Trust, agreeing to pay NZD$100,000 plus GST to support costs incurred by the Trust as they work towards a binding lease agreement. This payment, which will be offset against future rental obligations, underscores Foresta’s commitment to developing the Kawerau Stage 1 site. If the lease does not proceed, the payment will be refunded. This agreement marks a significant step in Foresta’s strategic efforts to expand its operations and strengthen its position in the renewable resources industry.

Foresta Group Holdings Shifts Share Registry Management to Boardroom Pty Ltd

Foresta Group Holdings Limited announced a change in their share registry management services, transitioning from MUFG Corporate Markets to Boardroom Pty Ltd, effective from December 8, 2025. This change is part of Foresta’s strategic efforts to streamline operations and potentially enhance stakeholder engagement, reflecting the company’s ongoing commitment to operational excellence and industry leadership.

Foresta Group Holdings Director Alters Securities Portfolio

Foresta Group Holdings Limited has announced a change in the interests of its director, Russell Allen. The change involves the exercise of options by NZBN 9429031608061 PTY LTD, where 51,739,726 unlisted options were converted into ordinary shares at a value of $0.02 per share. This adjustment reflects a strategic move in the director’s portfolio, potentially impacting the company’s stock distribution and market perception.

Foresta Group Expands Market Presence with New Share Issuance

Foresta Group Holdings Limited has issued 51,739,726 fully paid ordinary shares without disclosure to investors, in compliance with the Corporations Act 2001. This strategic move is part of the company’s efforts to strengthen its position in the global market for natural and renewable pine chemicals and biomass pellets, potentially impacting its operational capabilities and stakeholder interests.