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Hammer Metals Limited (AU:HMX)
ASX:HMX
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Hammer Metals Limited (HMX) AI Stock Analysis

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AU:HMX

Hammer Metals Limited

(Sydney:HMX)

Rating:48Neutral
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 (HMX) vs. iShares MSCI Australia ETF (EWA)

Hammer Metals Limited Business Overview & Revenue Model

Company DescriptionHammer 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 MoneyHammer 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
30
Negative
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
55
Neutral
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
40
Negative
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.
BreakdownJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue177.06K190.97K214.86K269.52K89.91K
Gross Profit177.06K90.39K172.41K242.61K89.91K
EBITDA-1.60M-1.18M-593.04K-579.71K-1.09M
Net Income6.27M-1.29M-645.27K-611.52K-1.98M
Balance Sheet
Total Assets36.74M29.68M27.67M28.06M17.29M
Cash, Cash Equivalents and Short-Term Investments5.23M4.36M5.19M9.71M2.68M
Total Debt177.59K164.59K233.94K296.59K73.51K
Total Liabilities838.26K608.49K925.50K1.47M437.41K
Stockholders Equity35.90M29.07M26.75M26.60M16.85M
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 Flow2.27M-3.22M-3.58M-2.92M-2.08M
Financing Cash Flow104.62K3.36M69.39K10.56M4.70M

Hammer Metals Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.03
Price Trends
50DMA
0.03
Negative
100DMA
0.03
Negative
200DMA
0.03
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
46.72
Neutral
STOCH
55.56
Neutral
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 0.03 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 46.72 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
48
Neutral
$25.75M5.0915.74%
46
Neutral
AU$45.10M-44.38%48.86%
44
Neutral
AU$1.48B-6.11-41.37%4.14%-3.52%-43.04%
43
Neutral
AU$45.85M-164.01%-95.22%41.09%
38
Underperform
AU$35.35M-18.47%-175.00%
36
Underperform
AU$22.65M-13.51%-57.50%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:HMX
Hammer Metals Limited
0.03
>-0.01
-23.08%
AU:LDR
Lode Resources Ltd
0.14
0.05
55.56%
AU:MKR
Manuka Resources Ltd
0.04
0.01
33.33%
AU:BMR
Ballymore Resources Limited
0.20
0.07
53.85%
AU:FRS
Forrestania Resources Limited
0.14
0.11
366.67%

Hammer Metals Limited Corporate Events

Hammer Metals Expands Exploration Efforts with New Drilling Programs and Joint Ventures
Jul 31, 2025

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
Jul 25, 2025

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
Jul 18, 2025

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
Jul 9, 2025

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
Jul 1, 2025

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
Jun 17, 2025

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.

Hammer Metals Targets High-Priority Drilling at Yandal Gold Project
Apr 30, 2025

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.

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.Date of analysis: Jul 18, 2025