Hawthorn Resources Limited (HAW) AI Stock Analysis

• Market Cap: AU$36.85M
• Dividend Yield: N/A
• Average Volume (3M): 143.51K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.12
• Revenue Growth: N/A
• EPS Growth: 37.50%
• Country: AU
• Employees: 7
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Gold
• EPS (TTM): >-0.01
• Shares Outstanding: 335,015,630
• 10 Day Avg. Volume: 42,247
• 30 Day Avg. Volume: 143,508
• PEG Ratio: 1.52
• Price to Book (P/B): 1.44
• Price to Sales (P/S): 17.49
• P/FCF Ratio: -52.04
• 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: 47 Neutral
• Price Target: AU$0.12 ▲(18.00% Upside)

The score is held back primarily by volatile financial performance with recent losses and persistently negative free cash flow, despite a strong zero-debt balance sheet. Technically, the stock is in an uptrend versus major moving averages, but extremely overbought indicators raise near-term risk. Valuation is also a drag given the negative P/E and lack of dividend yield data.

Positive Factors

Conservative balance sheet (no debt)

A zero-debt balance sheet lowers refinancing and interest-rate risk and preserves financial optionality over the next several months. This structural strength lets management fund exploration selectively, withstand commodity volatility, and access capital on better terms when needed.

Operating cash flow turned positive in 2025

Return to positive operating cash flow signals an operational inflection that improves near-term funding capacity for project work. Sustained OCF would reduce reliance on dilutive raises and support disciplined exploration spending and project advancement over a medium-term horizon.

Exploration-focused business model

A clear focus on exploration and project development concentrates capital deployment on high optionality assets. This model can deliver asymmetric upside from discoveries while keeping fixed operating overhead low, enabling scalable, milestone-driven investment decisions.

Negative Factors

Volatile revenue and recent decline

Highly volatile and declining revenue undermines predictability of cash flows and makes multi-quarter planning difficult. For an exploration company, inconsistent top-line trends increase the odds of frequent capital raises and constrain the ability to sustain multi-year drill programs without dilution.

Persistent negative free cash flow

Ongoing negative free cash flow indicates the company burns cash after investments, limiting internal funding for exploration and development. Structurally negative FCF raises dependence on external financing, increasing dilution risk and reducing resilience to downside commodity or funding shocks.

Inconsistent profitability and weak shareholder returns

Recurrent losses and negative ROE signal difficulty converting asset base into shareholder value. Over the medium term this erodes investor confidence, pressures management to dilute equity or cut programs, and makes it harder to attract long-term capital for project advancement.

Hawthorn Resources Limited Business Overview & Revenue Model

Company Description

Hawthorn Resources Limited, together with its subsidiaries, operates as a diversified base metals and gold mining and exploration company in Western Australia. It holds an 70% interest in the Trouser Legs project located to the north-east of Kalgoorlie; and 80% interest in the Edjudina project located to the north-east of Kalgoorlie. The company also hold interest in the Mount Bevan iron ore project and Black Raven Mining project. Hawthorn Resources Limited was incorporated in 1985 and is based in Melbourne, Australia.

How the Company Makes Money

Hawthorn Resources Limited generates revenue through the exploration and development of its mineral projects, particularly those focused on gold. The company's revenue model primarily involves discovering mineral deposits and subsequently developing these resources to a stage where they can be sold or partnered with larger mining companies for extraction and production. Revenue streams include the sale of extracted minerals, joint ventures with other mining companies, and the sale of interests in its mineral projects. Additionally, the company may engage in strategic partnerships or raise capital through equity offerings to fund exploration and development activities.

Hawthorn Resources Limited Financial Statement Overview

Summary

Hawthorn Resources Limited is grappling with revenue decline and net losses, affecting profitability. Despite a robust balance sheet with no debt, negative free cash flow and poor cash conversion raise operational and liquidity concerns. The strong cash position provides some financial stability.

Income Statement

The company experienced significant revenue decline over the years, with a sharp decrease from 2020's high. Gross profit margin remains healthy at 100% for 2024 due to revenue matching gross profit, but net profit margin is negative due to consistent net losses. EBIT and EBITDA margins have also been negative, indicating operational inefficiencies.

Balance Sheet

The company maintains a solid equity base with no debt, reflected in a strong equity ratio of approximately 90% in 2024. However, return on equity has been negative recently, highlighting challenges in generating returns for shareholders.

Cash Flow

Free cash flow has been negative, indicating potential liquidity concerns. The operating cash flow to net income ratio is not favorable, suggesting difficulties in converting profits to cash. Despite this, the company has a strong cash position, mitigating some risks.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.11M	1.11M	673.58K	326.46K	5.65M	92.14K
Gross Profit	1.07M	1.07M	673.58K	326.46K	1.82M	90.97K
EBITDA	306.19K	306.19K	-115.00K	374.02K	1.30M	-1.66M
Net Income	-499.92K	-341.64K	-537.00K	84.95K	927.06K	-1.66M
Balance Sheet
Total Assets	15.10M	15.10M	15.53M	16.23M	16.25M	15.84M
Cash, Cash Equivalents and Short-Term Investments	12.59M	12.59M	13.11M	14.07M	13.78M	12.12M
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	1.56M	1.56M	1.64M	1.80M	2.04M	2.55M
Stockholders Equity	13.54M	13.54M	13.89M	14.43M	14.21M	13.28M
Cash Flow
Free Cash Flow	-373.27K	-373.27K	-939.38K	-1.29M	-1.09M	-3.00M
Operating Cash Flow	451.23K	451.23K	-415.43K	-426.76K	123.09K	-1.15M
Investing Cash Flow	-824.51K	-824.51K	-523.95K	732.72K	2.00M	-1.94M
Financing Cash Flow	-154.45K	-154.45K	-17.60K	-10.02K	-459.54K	-13.79M

Hawthorn Resources Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:HAW, the sentiment is Positive. The current price of 0.1 is above the 20-day moving average (MA) of 0.10, above the 50-day MA of 0.09, and above the 200-day MA of 0.06, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 69.57 is Neutral, neither overbought nor oversold. The STOCH value of 45.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:HAW.

Hawthorn 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%
WGR	53 Neutral	AU$58.33M	-14.60	-184.34%	―	―	40.17%
ODY	49 Neutral	AU$38.12M	-13.85	-19.04%	―	―	-4.00%
IR1	48 Neutral	AU$52.15M	-3.51	-30.19%	―	―	9.01%
HAW	47 Neutral	AU$36.85M	-110.00	-2.49%	―	―	37.50%
MVL	47 Neutral	AU$24.13M	-6.54	-77.71%	―	―	―
KZR	45 Neutral	AU$51.99M	-8.64	-20.41%	―	400.00%	21.71%

Hawthorn Resources Limited Corporate Events

Hawthorn Resources Reports High-Grade Gold Results at Anglo Saxon Project

Hawthorn Resources Limited has completed a significant drilling program at its Anglo Saxon Gold Project, yielding high-grade gold results. The program, consisting of 53 holes and 7,846 meters of reverse circulation drilling, aims to update the existing Mineral Resource Estimate. The results indicate strong continuity in gold mineralization, with several intervals showing grades over 30 g/t. These findings, coupled with record gold prices, suggest the potential for expanding the open pit operations as a viable alternative to underground mining. The joint venture has engaged BMGS to update the resource estimate and conduct an open pit optimization study, with plans to negotiate with third parties for development. Hawthorn Resources is well-capitalized to fund the next development stage, positioning itself advantageously in the current market.

Hawthorn Resources Advances Gold and Magnetite Projects

Hawthorn Resources Limited has completed an 8000m RC drilling program at the Anglo-Saxon gold project to enhance the Mineral Resource Estimate and explore open pit development options. The company is also advancing its interests in the Mt Bevan magnetite project, with a revised Mineral Resource Estimate confirmed. These developments could potentially strengthen Hawthorn’s market position and offer new opportunities for stakeholders.