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Frontier Energy Limited (AU:FHE)
ASX:FHE
Australian Market

Frontier Energy Limited (FHE) AI Stock Analysis

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AU

Frontier Energy Limited

(Sydney:FHE)

Rating:55Neutral
Price Target:
Frontier Energy's financial performance is a significant concern due to zero revenue and ongoing losses, contributing to a low overall score. Despite positive technical indicators suggesting upward momentum, the stock may be overbought. Valuation metrics emphasize profitability issues, resulting in a cautious outlook. Strategic improvements in revenue generation are essential for enhancing financial health and stock performance.

Frontier Energy Limited (FHE) vs. iShares MSCI Australia ETF (EWA)

Frontier Energy Limited Business Overview & Revenue Model

Company DescriptionFrontier Energy Limited operates as a clean energy company. It develops the Bristol Springs solar project to produce approximately 114 MW of electricity located in the southeast of Perth, Western Australia. The company was formerly known as Superior Lake Resources Limited and changed its name to Frontier Energy Limited in January 2022. Frontier Energy Limited was incorporated in 2009 and is based in Perth, Australia.
How the Company Makes MoneyFrontier Energy Limited makes money primarily through the sale of oil and gas extracted from its exploration and production activities. The company's revenue streams include the sale of crude oil, natural gas, and related by-products to refineries, utilities, and other industrial customers. Additionally, FHE may engage in strategic partnerships and joint ventures with other energy firms to enhance exploration capabilities and share operational risks. Revenue is also supplemented by the development of infrastructure projects and potential investments in renewable energy ventures, aiming to diversify its income sources while adhering to evolving market demands and regulatory requirements.

Frontier Energy Limited Financial Statement Overview

Summary
Frontier Energy Limited faces significant financial challenges, primarily due to the absence of revenue and consistent losses. While the balance sheet reflects low leverage, the company's inability to generate revenue or positive cash flow limits its financial health and growth prospects. The overall analysis underscores the need for strategic changes to improve revenue generation and profitability.
Income Statement
10
Very Negative
Frontier Energy Limited has consistently reported zero revenue over the years, leading to negative EBIT and net income figures. The lack of revenue and persistent losses indicate significant challenges in achieving profitability. These factors contribute to a low score for the income statement.
Balance Sheet
65
Positive
The company has managed to maintain a positive stockholders' equity, and its debt levels are very low, resulting in a favorable debt-to-equity ratio. However, the equity ratio has been volatile, highlighting potential instability in asset management. Overall, the balance sheet shows relative stability but with notable risks.
Cash Flow
50
Neutral
Frontier Energy has experienced negative free cash flow, although there has been some improvement in operating cash flow relative to net income. Despite a strong cash position, the company has not generated positive free cash flow, impacting its financial flexibility and cash flow score.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
0.000.000.000.001.27K
Gross Profit
0.00-86.36K-76.68K-3.00K-1.19K
EBIT
-18.66M-4.18M-6.12M-3.14M-2.48M
EBITDA
-18.50M3.04M-6.04M-3.15M-2.48M
Net Income Common Stockholders
-18.13M2.05M-5.52M-2.49M-2.62M
Balance SheetCash, Cash Equivalents and Short-Term Investments
14.33M11.57M13.46M541.35K822.21K
Total Assets
83.41M89.08M31.94M3.16M2.89M
Total Debt
57.72K95.36K175.28K0.000.00
Net Debt
-14.28M-11.48M-13.28M-541.35K-822.21K
Total Liabilities
2.14M5.64M5.35M1.02M164.80K
Stockholders Equity
81.99M84.16M23.35M1.60M4.24M
Cash FlowFree Cash Flow
-13.02M-9.66M-8.87M-2.28M-2.40M
Operating Cash Flow
-2.77M-2.56M-4.87M-2.14M-1.81M
Investing Cash Flow
-10.07M-9.33M-3.69M-145.41K-581.53K
Financing Cash Flow
15.59M10.17M21.49M2.11M2.46M

Frontier Energy Limited Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.19
Price Trends
50DMA
0.19
Positive
100DMA
0.15
Positive
200DMA
0.16
Positive
Market Momentum
MACD
>-0.01
Positive
RSI
42.80
Neutral
STOCH
16.67
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:FHE, the sentiment is Neutral. The current price of 0.19 is below the 20-day moving average (MA) of 0.21, above the 50-day MA of 0.19, and above the 200-day MA of 0.16, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.80 is Neutral, neither overbought nor oversold. The STOCH value of 16.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:FHE.

Frontier Energy 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
AUFHE
55
Neutral
AU$97.86M-21.82%-525.27%
51
Neutral
$2.04B-1.15-21.24%3.95%2.91%-30.44%
$2.82B22.94-1.04%
$5.69B154.472.27%
$127.41M-17.81%
$34.34M-19.25%
$3.16B43.31-33.95%4.54%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:FHE
Frontier Energy Limited
0.19
-0.25
-56.82%
PILBF
Pilbara Minerals
0.92
-1.25
-57.60%
LYSCF
Lynas Rare Earths
5.72
1.68
41.58%
SYAXF
Sayona Mining
0.01
-0.01
-50.00%
LLKKF
Lake Resources N.L.
0.02
-0.02
-50.00%
MALRF
Mineral Resources Limited
15.50
-26.38
-62.99%

Frontier Energy Limited Corporate Events

Frontier Energy Advances Waroona Project with Government Support
Apr 30, 2025

Frontier Energy Limited announced significant progress in securing financing for the Waroona Renewable Energy Project, as it was selected for the Australian Government’s Capacity Investment Scheme (CIS). This selection enhances Frontier’s financing prospects by providing a guaranteed revenue floor for up to 15 years, positioning the company favorably in the renewable energy sector. Additionally, the company has received multiple non-binding indicative offers for investment at the project level, indicating strong interest in the project’s expansion beyond Stage One. The appointment of Guy Chalkley as Non-executive Chairman, with his extensive energy sector experience, further strengthens Frontier’s leadership team.

Frontier Energy Limited Announces 2025 Annual General Meeting
Apr 28, 2025

Frontier Energy Limited has announced its Annual General Meeting (AGM) for shareholders, scheduled to take place on May 28, 2025, in Perth, Western Australia. Shareholders are encouraged to submit questions in advance and are provided with options to lodge their proxies online or by mail. The company emphasizes the importance of reviewing the Notice of Meeting in its entirety and advises consulting professional advisers if needed.

Frontier Energy Sets Date for 2025 AGM and Director Nominations
Apr 2, 2025

Frontier Energy Limited has announced the date for its 2025 Annual General Meeting (AGM), which will take place on May 28, 2025. The company has also set April 11, 2025, as the deadline for director nominations. This announcement is part of the company’s compliance with ASX Listing Rules and signals its ongoing governance processes, potentially impacting its leadership structure and strategic direction.

Frontier Energy’s Waroona Project: A Step Towards Sustainable Solutions in Western Australia
Apr 1, 2025

Frontier Energy Limited has announced a non-deal roadshow in April 2025 to promote its Waroona Renewable Energy Project in Western Australia. This initiative highlights the company’s commitment to delivering near-term energy solutions in the region’s industrial heartland, potentially enhancing its market position and offering significant benefits to stakeholders by addressing local energy demands.

Frontier Energy Advances Strategic Investor Process for Waroona Project
Mar 26, 2025

Frontier Energy Limited has advanced to the second stage of its strategic investor process for the Waroona Renewable Energy Project, following multiple non-binding indicative offers. The company has shortlisted potential investors who are interested in participating in both the initial stage and future expansions of the project. This process is vital for Frontier as it seeks to minimize equity dilution and secure favorable financing terms, leveraging the Australian Government’s Capacity Investment Scheme to enhance funding opportunities.

Frontier Energy’s Waroona Project Secures Government Support
Mar 25, 2025

Frontier Energy Limited announced that its Waroona Renewable Energy Project has been selected by the Australian Government to receive support under the Capacity Investment Scheme. This recognition is expected to enhance the project’s development and strengthen Frontier Energy’s position in the renewable energy sector, potentially benefiting stakeholders by advancing sustainable energy infrastructure in Western Australia.

Frontier Energy Limited Initiates Trading Halt Pending Key Project Announcement
Mar 20, 2025

Frontier Energy Limited has requested a trading halt on its securities pending an announcement regarding the Waroona Renewable Energy Project’s tender outcome under the Australian Government’s Capacity Investment Scheme. This move indicates a significant development in the company’s operations, potentially impacting its market position and stakeholders as it aligns with national renewable energy goals.

Frontier Energy Limited Releases FY2024 Corporate Governance Statement
Feb 28, 2025

Frontier Energy Limited has released its Corporate Governance Statement for FY2024, outlining its commitment to high standards of corporate governance. The company has established a comprehensive governance framework, which includes policies, procedures, and charters, to ensure compliance with Australian laws and ASX Listing Rules. This framework is regularly reviewed and updated to reflect changes in law, corporate governance developments, and business changes. The statement highlights the company’s adherence to the ASX Corporate Governance Council’s Principles and Recommendations, ensuring transparency and accountability in its operations.

Frontier Energy Faces Significant Financial Losses in 2024
Feb 28, 2025

Frontier Energy Limited reported a significant financial downturn for the year ending December 31, 2024, with a 983% increase in losses attributable to its owners, totaling $18,128,707. The company did not declare any dividends for the current or previous financial year, and its net tangible assets per ordinary share decreased from 18.7 cents to 15.8 cents, indicating a challenging financial position that may impact its market standing and stakeholder confidence.

Frontier Energy Limited Announces Cessation of 20 Million Securities
Feb 24, 2025

Frontier Energy Limited has announced the cessation of 20,000,000 securities due to the expiry of options or other convertible securities without exercise or conversion as of February 23, 2025. This move reflects the company’s ongoing management of its capital structure and may influence its market positioning and stakeholder interests.

Frontier Energy Limited Issues 3 Million Unquoted Options
Feb 18, 2025

Frontier Energy Limited announced the issuance of 3,000,000 unquoted options, exercisable at $0.25 each, which are set to expire on February 18, 2028. This strategic move may impact the company’s financial structure and market positioning by potentially increasing capital and offering flexibility for future growth opportunities.

Frontier Energy Appoints New Director with Share Options
Feb 18, 2025

Frontier Energy Limited has announced the appointment of Guy Chalkley as a director, effective February 18, 2025. As part of his appointment, Chalkley has been granted 3,000,000 unlisted options to acquire ordinary shares of the company at an exercise price of $0.25, with an expiration date of February 18, 2028. This move is expected to strengthen the company’s leadership team and align the director’s interests with the company’s performance goals.

Frontier Energy Expands Market Presence with New Securities Quotation
Feb 13, 2025

Frontier Energy Limited has announced the quotation of 4,550 new ordinary fully paid securities on the Australian Securities Exchange (ASX). This move follows the exercise of options or conversion of other convertible securities and indicates a step forward in expanding the company’s market presence and enhancing its operational capabilities.

Frontier Energy Limited Issues Unquoted Equity Securities
Feb 12, 2025

Frontier Energy Limited has announced the issuance of unquoted equity securities in the form of options, with expiration dates in December 2026 and December 2028. This move is part of an employee incentive scheme and reflects Frontier Energy’s strategic efforts to enhance its operational capabilities and market positioning through innovative financial structuring.

Frontier Energy Issues New Employee Incentive Options
Feb 12, 2025

Frontier Energy Limited has announced the issuance of unquoted equity securities as part of an employee incentive scheme. The company is issuing 6,995,000 short-term incentive options expiring in December 2027 and 11,076,000 options expiring in December 2029, both with a zero exercise price, reflecting its strategy to align employee interests with long-term company goals.

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.