Focus Minerals Ltd (FML) AI Stock Analysis

• Market Cap: AU$1.15B
• Dividend Yield: N/A
• Average Volume (3M): 628.64K
• Price to Earnings (P/E): 26.6
• Beta (1Y): 0.90
• Revenue Growth: 117.95%
• EPS Growth: N/A
• Country: AU
• Employees: 5
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Gold
• EPS (TTM): 0.05
• Shares Outstanding: 286,558,650
• 10 Day Avg. Volume: 554,380
• 30 Day Avg. Volume: 628,641
• PEG Ratio: -0.08
• Price to Book (P/B): 0.51
• Price to Sales (P/S): 0.42
• P/FCF Ratio: -1.46
• 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: 64 Neutral
• Price Target: AU$4.50 ▲(50.00% Upside)

The score is driven primarily by strong revenue growth but is held back by weak cash flow and higher leverage. Technicals are supportive with a clear uptrend, though momentum is overbought. Valuation is a moderate headwind given the P/E relative to current profitability and no dividend yield data.

Positive Factors

Rapid Revenue Growth

Sustained 247.86% revenue growth in 2024 signals rapid scale expansion and stronger market penetration. Over the next 2–6 months this supports better absorption of fixed costs, potential operating leverage, and gives management options to reinvest in production, reserves or deleverage if cash conversion improves.

Very High Gross Margin

An extremely high gross margin (99.22%) indicates very strong unit economics or pricing power at the production level. This durable margin buffer can absorb higher operating or input costs, support long-term profitability if overheads are controlled, and provide room for reinvestment or project financing.

Growing Asset Base

Growth in total assets suggests investment in production capacity, reserves or infrastructure that can underpin higher future output. A larger asset base supports sustained revenue potential and competitive position over months, provided these assets are operated efficiently and financed sustainably.

Negative Factors

Weak Cash Generation

Zero operating cash flow and persistent negative free cash flow (-$33.35M) indicate the business is not self-funding. Over 2–6 months this necessitates ongoing external financing for capex and working capital, reducing strategic flexibility and raising liquidity and refinancing risk if cash conversion does not improve.

Elevated Financial Leverage

A debt-to-equity ratio of 1.67 reflects elevated leverage that limits financial flexibility. Over time high leverage increases interest burdens and vulnerability to commodity or cost shocks, potentially forcing austerity on investment or requiring asset disposals if earnings or cash flow cannot cover servicing needs.

Low Net Margin Despite Sales

Net margin of just 2.61% despite strong revenue growth shows limited conversion of sales into earnings. This structural profitability weakness suggests high operating, financing, or one-off costs that can persist and constrain free cash generation and shareholder returns unless margins are materially improved.

Focus Minerals Ltd Business Overview & Revenue Model

Company Description

Focus Minerals Ltd (FML) is an Australian gold mining company primarily engaged in the exploration, development, and production of gold resources. The company operates in the mineral resources sector, focusing on mining projects located in Australia, particularly the Coolgardie Gold Project. FML's core products consist of gold and related minerals, which are extracted and processed for sale in the global market.

How the Company Makes Money

Focus Minerals generates revenue primarily through the extraction and sale of gold. The company operates mining projects where it extracts gold ore, which is then processed to produce gold bars for sale. Key revenue streams include the sale of gold bullion and any by-products derived from the mining process. The company may also engage in strategic partnerships or joint ventures with other mining companies or stakeholders to enhance operational efficiency and broaden its market reach. Additionally, commodity price fluctuations and operational cost management are significant factors that can impact the company's earnings.

Focus Minerals Ltd Financial Statement Overview

Summary

Strong top-line momentum (revenue up 247.86% in 2024) and very high gross margin (99.22%) are positives, but overall quality is constrained by low net margin (2.61%), higher leverage (debt-to-equity 1.67), and weak cash generation (operating cash flow at 0 and free cash flow -$33.35M).

Income Statement

Focus Minerals Ltd has shown impressive revenue growth, with a significant increase in total revenue from $33.08M in 2023 to $115.14M in 2024, marking a growth rate of 247.86%. The gross profit margin is high at 99.22% for 2024, indicating strong operational efficiency. However, the net profit margin remains low at 2.61% due to minimal net income, suggesting that profitability is still a challenge despite the revenue growth. The lack of EBIT in 2024 suggests potential volatility in operational income.

Balance Sheet

The company's debt-to-equity ratio increased to 1.67 in 2024, indicating higher financial leverage. While total assets have grown, stockholders' equity, although stable, has not increased proportionally. The equity ratio is 29.57%, showing a balanced but slightly leveraged capital structure. This suggests potential risks associated with high debt levels, despite the company's ability to grow its asset base.

Cash Flow

Free cash flow remains negative at -$33.35M in 2024, although improved from -$71.74M in 2023. The operating cash flow is zero in 2024, indicating that operations are not generating cash, which is a concern for sustainability. The reliance on financing cash flow suggests dependence on external funding to support operations and capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	151.65M	115.14M	33.08M	16.55M	97.00K	433.00K
Gross Profit	79.08M	114.25M	5.35M	-296.00K	-778.00K	-843.00K
EBITDA	52.99M	27.30M	1.93M	-1.22M	-4.97M	-6.74M
Net Income	250.29M	3.01M	-2.80M	-4.14M	-6.71M	-7.86M
Balance Sheet
Total Assets	372.68M	323.61M	246.79M	174.43M	151.06M	130.45M
Cash, Cash Equivalents and Short-Term Investments	74.19M	16.50M	1.20M	18.90M	27.25M	19.89M
Total Debt	6.75M	160.14M	98.44M	35.57M	20.21M	20.13M
Total Liabilities	55.65M	227.99M	154.17M	79.01M	51.51M	50.14M
Stockholders Equity	317.02M	95.63M	92.62M	95.42M	99.56M	80.31M
Cash Flow
Free Cash Flow	8.49M	-33.35M	-71.73M	-23.53M	-18.03M	-14.11M
Operating Cash Flow	30.45M	29.44M	-1.37M	-4.13M	-4.83M	-4.06M
Investing Cash Flow	159.95M	-63.43M	-75.74M	-19.51M	-1.12M	-22.18M
Financing Cash Flow	-122.79M	49.29M	59.50M	14.97M	25.40M	20.10M

Focus Minerals Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:FML, the sentiment is Positive. The current price of 3 is below the 20-day moving average (MA) of 3.63, below the 50-day MA of 3.29, and above the 200-day MA of 1.43, indicating a bullish trend. The MACD of 0.24 indicates Negative momentum. The RSI at 70.86 is Negative, neither overbought nor oversold. The STOCH value of 89.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:FML.

Focus Minerals Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RND	80 Outperform	AU$159.25M	12.34	13.04%	4.01%	24.48%	97.18%
FML	64 Neutral	AU$1.15B	26.64	22.29%	―	117.95%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
KAU	54 Neutral	AU$208.74M	-6.84	-43.66%	―	46.74%	-47.98%
BCN	52 Neutral	AU$487.22M	-32.30	-20.84%	―	11.43%	-238.93%
HRZ	49 Neutral	AU$283.58M	-6.22	―	―	―	―
TGM	48 Neutral	AU$219.78M	-17.21	-454.45%	―	―	15.86%