Hammer Metals Limited (HMX) AI Stock Analysis

• Market Cap: $22.19M
• Dividend Yield: N/A
• Average Volume (3M): 716.61K
• Price to Earnings (P/E): 4.5
• Beta (1Y): 0.72
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: AU
• Employees: 3
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Other Precious Metals
• EPS (TTM): >-0.01
• Shares Outstanding: 887,758,700
• 10 Day Avg. Volume: 176,209
• 30 Day Avg. Volume: 716,614
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.20
• Enterprise Value/Revenue: 232.90
• Enterprise Value/Gross Profit: 232.90
• Enterprise Value/Ebitda: 4.24
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 48 Neutral
• Price Target: AU$0.00 ▼(-100.00% Downside)

Hammer Metals Limited's stock is rated below average due to its mixed financial performance and bearish technical indicators. While the valuation is relatively attractive with a low P/E ratio, the company's profitability and cash flow challenges, along with negative market momentum, weigh heavily on its overall score.

Hammer Metals Limited Business Overview & Revenue Model

Company Description

Hammer Metals Limited (HMX) is an Australian exploration company focused on identifying and developing mineral resources. The company operates primarily in the mining sector, with a special emphasis on exploring and developing copper and gold projects. Its core projects are located in the Mount Isa region of Queensland, Australia, which is known for its rich mineral deposits. Hammer Metals leverages its expertise in geology and exploration to advance its projects from early-stage exploration to potential mining operations.

How the Company Makes Money

Hammer Metals Limited generates revenue primarily through the exploration and development of mineral resources. The company's revenue model is based on identifying promising mineral deposits and enhancing their value through exploration and development activities. Key revenue streams include the sale of mineral rights, partnerships, and joint ventures with other mining companies, and potential future mining operations. Hammer Metals may also earn income from royalties or the sale of its projects to larger mining corporations. Strategic partnerships and collaborations with industry players are significant factors that can contribute to its earnings, providing both financial support and technical expertise. Additionally, the company may raise funds through equity financing to support its exploration and development activities.

Hammer Metals Limited Financial Statement Overview

Summary

Hammer Metals Limited has a mixed financial position with a solid equity base and low debt but struggles with profitability and cash flow generation. The income statement shows volatility and inconsistent margins, while cash flow challenges indicate sustainability issues.

Income Statement

Hammer Metals Limited shows a volatile income statement with weak revenue growth and net income performance over the years. The gross profit margin is low, and the company has faced significant losses in previous years, despite a surprising positive net income in the latest year. The EBIT and EBITDA margins are inconsistent and show a lack of operational efficiency.

Balance Sheet

The balance sheet of Hammer Metals Limited indicates a solid equity base with a low debt-to-equity ratio, suggesting financial stability. However, the return on equity is not impressive due to past net losses. The company maintains a good equity ratio, indicating a strong asset base relative to liabilities.

Cash Flow

The company has struggled with negative free cash flow over the years, indicating challenges in generating cash from operations. The operating cash flow to net income ratio is unfavorable, suggesting difficulties in converting income into cash. However, there have been improvements in financing activities and capital management.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	177.06K	190.97K	214.86K	269.52K	89.91K
Gross Profit	177.06K	90.39K	172.41K	242.61K	89.91K
EBITDA	-1.60M	-1.18M	-593.04K	-579.71K	-1.09M
Net Income	6.27M	-1.29M	-645.27K	-611.52K	-1.98M
Balance Sheet
Total Assets	36.74M	29.68M	27.67M	28.06M	17.29M
Cash, Cash Equivalents and Short-Term Investments	5.23M	4.36M	5.19M	9.71M	2.68M
Total Debt	177.59K	164.59K	233.94K	296.59K	73.51K
Total Liabilities	838.26K	608.49K	925.50K	1.47M	437.41K
Stockholders Equity	35.90M	29.07M	26.75M	26.60M	16.85M
Cash Flow
Free Cash Flow	-3.41M	-5.80M	-5.93M	-4.49M	-3.18M
Operating Cash Flow	-1.51M	-982.78K	-1.00M	-619.67K	-806.27K
Investing Cash Flow	2.27M	-3.22M	-3.58M	-2.92M	-2.08M
Financing Cash Flow	104.62K	3.36M	69.39K	10.56M	4.70M

Hammer Metals Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:HMX, the sentiment is Negative. The current price of 0.02 is below the 20-day moving average (MA) of 0.03, below the 50-day MA of 0.03, and below the 200-day MA of 0.03, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 38.11 is Neutral, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:HMX.

Hammer Metals Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HMX	48 Neutral	$22.19M	4.55	15.74%	―	―	―
FRS	46 Neutral	AU$54.29M	―	-44.38%	―	―	48.86%
Sector *	44 Neutral	AU$1.54B	-7.19	-27.94%	4.41%	-2.95%	-36.41%
MKR	43 Neutral	AU$44.75M	―	-164.01%	―	-95.22%	41.09%
BMR	38 Underperform	AU$29.16M	―	-18.47%	―	―	-175.00%
LDR	36 Underperform	AU$21.84M	―	-13.51%	―	―	-57.50%

Hammer Metals Limited Corporate Events

Hammer Metals Expands Exploration Efforts with New Drilling Programs and Joint Ventures

Hammer Metals Limited has announced a series of developments in its exploration projects. The company is set to commence a drilling program at Yandal Gold, targeting new gold prospects, and has expanded its exploration footprint with new license applications. At Mount Isa, significant copper and gold intercepts have been reported, and ongoing geochemical reviews aim to enhance exploration outcomes. Joint ventures at Bullrush and Isa Valley are progressing with promising mineralization findings and upcoming drilling activities. The company maintains a stable financial position with a cash balance of $2.6 million and additional liquid assets.

Hammer Metals Director Increases Shareholding

Hammer Metals Limited has announced a change in the director’s interest notice, specifically concerning Russell Davis. The notice details that Davis, through indirect interests, has acquired an additional 1,000,000 ordinary shares at a price of $0.028 per share, increasing his holdings in the Davis Family Investment Trust to 3,000,000 shares. This acquisition reflects a strategic move to strengthen his position within the company, potentially impacting the company’s governance and stakeholder confidence.

Hammer Metals Limited Announces Change in Substantial Holding Due to Capital Raise

Hammer Metals Limited has announced a change in its substantial holding status due to a capital raise, resulting in a dilution of shares. This change reflects the company’s strategic efforts to strengthen its financial position and support its ongoing exploration and development projects, potentially impacting its market standing and shareholder value.

Hammer Metals’ Bullrush Drilling Unveils Promising IOCG Potential

Hammer Metals Limited, in collaboration with Sumitomo Metal Mining Oceania Pty Ltd, has completed a maiden drilling program at the Bullrush Joint Venture in the Mt Isa district of NW Queensland. The program, which involved four holes totaling 2,262 meters, aimed to test IOCG targets and has detected favorable alteration systems indicative of a large-scale IOCG system. The drilling revealed copper mineralization and favorable geological conditions, supporting the potential for significant mineral deposits. The company plans to refine its geophysical methods and conduct further surveys to enhance future drill targeting, which could impact its exploration strategy and stakeholder interests.

Hammer Metals Expands Yandal Gold Project with New Exploration Tenures

Hammer Metals Ltd has expanded its Yandal Gold Project by securing five new exploration applications covering approximately 420 square kilometers in Western Australia’s Yandal Gold Belt. This expansion includes areas near significant gold deposits such as Northern Star Resources’ Thunderbox and Julius deposits. The newly acquired tenures, previously explored for nickel by BHP, are believed to hold significant untapped gold potential. The company plans to conduct first-pass sampling programs and commence drilling at the Bronzewing South Project soon, which could enhance its position in the gold mining sector.

Hammer Metals Unveils Significant Copper-Gold Discovery at Tourist Zone

Hammer Metals Ltd has announced the discovery of a broad copper-gold system at the Tourist Zone in the Mount Isa district, following a Reverse Circulation drilling program. The drilling results indicate significant copper and gold mineralization across a 600m strike, with the potential for higher-grade zones. This discovery enhances Hammer’s portfolio in a region with few new discoveries and declining copper grades, offering promising opportunities for future exploration and development.