Hammer Metals Limited (HMX) AI Stock Analysis

• Market Cap: $31.07M
• Dividend Yield: N/A
• Average Volume (3M): 616.93K
• Price to Earnings (P/E): 6.4
• Beta (1Y): 0.63
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: AU
• Employees: 3
• Sector: Basic Materials
• Sector Strength: 64
• Industry: Other Precious Metals
• EPS (TTM): <0.01
• Shares Outstanding: 887,758,700
• 10 Day Avg. Volume: 770,702
• 30 Day Avg. Volume: 616,929
• PEG Ratio: -0.30
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.61
• 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

• Rating: 60 Neutral
• Price Target: AU$0.00 ▼(-100.00%Downside)

Hammer Metals Limited's stock score is driven by its attractive valuation, with a low P/E ratio indicating potential for appreciation. Technical indicators suggest a moderate bullish sentiment. However, challenges in financial performance, particularly in profitability and cash flow, weigh down the overall score.

Hammer Metals Limited Business Overview & Revenue Model

Company Description

Hammer Metals Limited (HMX) is an Australia-based exploration and mining company primarily engaged in the discovery and development of base and precious metal resources. The company focuses on exploring copper, gold, and cobalt deposits, mainly located in the Mount Isa region and other prospective mining territories within Australia. Hammer Metals' core activities include the acquisition, exploration, and potential development of mineral properties aimed at enhancing shareholder value.

How the Company Makes Money

Hammer Metals Limited generates revenue through the exploration and development of mineral resources, primarily targeting copper, gold, and cobalt. The company typically earns money by advancing its projects to stages where they can attract investment interest or be sold to larger mining companies. Revenue streams include joint venture agreements with other mining entities, which provide financial backing and expertise to progress exploration activities. Additionally, as projects reach feasibility stages or are developed into operational mines, Hammer Metals can earn through the sale of extracted minerals or through royalties and profit-sharing arrangements with operating partners. The company's earnings are significantly influenced by market demand for metals, commodity price fluctuations, and successful exploration outcomes.

Hammer Metals Limited Financial Statement Overview

Summary

Hammer Metals Limited has a mixed financial position. While the balance sheet shows stability with a solid equity base and low debt, the income statement and cash flow reveal operational inefficiencies and difficulties in generating cash. The company's profitability is inconsistent, with past losses and only a recent positive net income.

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
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
114.61K	177.06K	190.97K	214.86K	269.52K	89.91K
	Gross Profit
114.61K	177.06K	90.39K	172.41K	242.61K	89.91K
	EBIT
4.78M	6.18M	-1.35M	-1.06M	-1.14M	-1.09M
	EBITDA
6.29M	-1.60M	-1.18M	-593.04K	-579.71K	-1.09M
	Net Income Common Stockholders
4.90M	6.27M	-1.29M	-645.27K	-611.52K	-1.98M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.73M	5.23M	4.36M	5.19M	9.71M	2.68M
	Total Assets
34.97M	36.74M	29.68M	27.67M	28.06M	17.29M
	Total Debt
122.42K	177.59K	164.59K	233.94K	296.59K	73.51K
	Net Debt
-2.60M	-5.05M	-4.19M	-4.96M	-9.41M	-2.61M
	Total Liabilities
732.82K	838.26K	608.49K	925.50K	1.47M	437.41K
	Stockholders Equity
34.23M	35.90M	29.07M	26.75M	26.60M	16.85M
Cash Flow		Free Cash Flow
-4.84M	-3.41M	-5.80M	-5.93M	-4.49M	-3.18M
	Operating Cash Flow
-1.76M	-1.51M	-982.78K	-1.00M	-619.67K	-806.27K
	Investing Cash Flow
2.80M	2.27M	-3.22M	-3.58M	-2.92M	-2.08M
	Financing Cash Flow
-77.17K	104.62K	3.36M	69.39K	10.56M	4.70M

Hammer Metals Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.04
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:HMX, the sentiment is Positive. The current price of 0.04 is above the 20-day moving average (MA) of 0.03, above the 50-day MA of 0.03, and above the 200-day MA of 0.03, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 55.24 is Neutral, neither overbought nor oversold. The STOCH value of 32.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	60 Neutral	$31.07M	6.36	15.74%	―	―	―
Sector *	51 Neutral	$2.02B	-1.14	-21.36%	3.64%	2.88%	-30.57%
MKR	47 Neutral	AU$35.84M	―	-164.01%	―	-95.22%	40.91%
FRS	46 Neutral	AU$22.98M	―	-44.38%	―	―	48.86%
BMR	38 Underperform	AU$26.51M	―	-18.47%	―	―	-175.00%
LDR	36 Underperform	AU$31.55M	―	-13.51%	―	―	-57.50%

Hammer Metals Limited Corporate Events

Hammer Metals Targets High-Priority Drilling at Yandal Gold Project

Hammer Metals Limited has announced the identification of high-priority drilling targets at its Yandal Gold Project in Western Australia, following a comprehensive exploration review. The company aims to capitalize on the strong gold price environment by focusing on the Bronzewing South Project, which has been under-explored due to past legal disputes and market conditions. The planned drilling program is expected to enhance the project’s value and attract investor interest, leveraging its proximity to the multi-million-ounce Bronzewing orebody.

Hammer Metals Advances Exploration in Key Queensland Projects

Hammer Metals Limited has announced significant progress in its exploration activities across various projects in Queensland. The company is conducting a 1,500m RC drill program at its 100%-owned prospects, including Lex, Mascotte, and Tourist Zone South, targeting copper-gold anomalies. Additionally, the Bullrush Joint Venture with Sumitomo Metal Mining Oceania is nearing completion after weather-related delays, and the Isa Valley Joint Venture with South32 is set to commence drilling soon. These developments are expected to enhance Hammer’s position in the copper-gold exploration sector and potentially increase its resource base, benefiting stakeholders.

Hammer Metals Releases Shares from Voluntary Escrow

Hammer Metals Limited has announced the release of 1,351,351 ordinary shares from voluntary escrow, which were initially issued as part of the Option Payment for the Lady Jenny Mining Leases. This release marks the end of a six-month escrow period, potentially impacting the company’s share liquidity and market dynamics.

Hammer Metals Launches New Drilling Program in Mount Isa

Hammer Metals Ltd has initiated a Reverse Circulation drilling program across three copper-gold targets in the Mount Isa district, aiming to explore highly prospective sites at Lex, Tourist Zone South, and Mascotte. This program, expected to conclude in early May, is part of Hammer’s strategic focus on expanding its exploration footprint and enhancing its resource base. The drilling efforts are anticipated to provide significant insights into the copper and gold potential of these areas, potentially impacting the company’s operational capabilities and market positioning.

Hammer Metals Unveils Promising Gold and Copper Targets in North Queensland

Hammer Metals Limited has announced the discovery of strong new gold and copper targets in North Queensland, following recent electromagnetic and soil surveys. The standout target, ‘Lex,’ identified by a fixed loop electromagnetic survey, shows significant potential with historical rock chip results indicating up to 3.1% copper. Additionally, soil surveys at the Sisters Project area have revealed promising gold-only and copper-gold anomalies, with plans for further exploration and drilling in the coming months. These developments could significantly enhance Hammer Metals’ exploration portfolio and strengthen its position in the mineral-rich Mount Isa region.

Hammer Metals Limited Releases 2024 Interim Financial Report

Hammer Metals Limited has released its interim financial report for the half-year ending December 31, 2024. The report highlights the company’s financial position, with a market capitalization of $24.9 million and cash reserves of $2.7 million. This financial update provides stakeholders with insights into Hammer Metals’ operational status and financial health, which could influence its strategic decisions and market positioning.