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Heavy Rare Earths Limited (AU:HRE)
ASX:HRE
Australian Market
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Heavy Rare Earths Limited (HRE) AI Stock Analysis

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AU:HRE

Heavy Rare Earths Limited

(Sydney:HRE)

Rating:40Underperform
Price Target:
Heavy Rare Earths Limited is currently facing significant financial challenges, with persistent losses and negative cash flows as major concerns. The technical analysis shows a bearish trend, although the stock appears to be nearing oversold levels. Valuation remains speculative due to the lack of earnings and dividends. Overall, the company needs to demonstrate improved operational efficiency and revenue generation to enhance its financial health and investor appeal.

Heavy Rare Earths Limited (HRE) vs. iShares MSCI Australia ETF (EWA)

Heavy Rare Earths Limited Business Overview & Revenue Model

Company DescriptionHeavy Rare Earths Limited (HRE) is a company that specializes in the exploration, development, and production of heavy rare earth elements. These elements are critical components in various high-tech and green technologies, including electronics, renewable energy systems, and advanced defense systems. HRE operates within the mining sector, focusing on sustainable and environmentally responsible extraction processes to supply these essential materials to global markets.
How the Company Makes MoneyHeavy Rare Earths Limited generates revenue primarily through the extraction and sale of heavy rare earth elements. The company's key revenue streams include the sale of raw rare earth materials to manufacturers in the electronics, renewable energy, and defense industries. Additionally, HRE may engage in strategic partnerships and joint ventures with technology companies and governments seeking reliable sources of rare earth elements. The company's earnings are influenced by global demand for these elements, commodity prices, and its ability to efficiently and sustainably mine and process rare earth deposits.

Heavy Rare Earths Limited Financial Statement Overview

Summary
Heavy Rare Earths Limited faces significant challenges in achieving profitability and positive cash flow. While the balance sheet shows a strong equity position with no debt, the income statement and cash flow statement highlight persistent losses and negative cash flows. The company may need to improve operational efficiency and revenue generation to enhance financial health.
Income Statement
20
Very Negative
Heavy Rare Earths Limited has struggled to generate revenue consistently, with only a small amount reported in the recent periods. The company has negative EBIT and net income, leading to negative profit margins. There is no sign of revenue growth, and the financials show significant losses, indicating challenges in achieving profitability.
Balance Sheet
45
Neutral
The company maintains a strong equity position with no debt, suggesting low financial leverage and potential stability. The equity ratio is high, indicating reliance on equity financing. However, the return on equity is negative due to sustained losses, suggesting inefficiencies in generating returns on shareholder investment.
Cash Flow
30
Negative
Operating cash flow is negative, reflecting ongoing operational challenges. The company has managed to maintain cash reserves, primarily through financing activities. Free cash flow is consistently negative, which could hinder growth and investment capabilities if not addressed.
BreakdownJun 2024Jun 2023Jun 2022
Income Statement
Total Revenue312.17K0.000.00
Gross Profit312.17K0.000.00
EBITDA-1.34M-1.82M0.00
Net Income-1.31M-1.79M-355.00K
Balance Sheet
Total Assets1.02M5.56M960.24K
Cash, Cash Equivalents and Short-Term Investments957.59K2.12M141.39K
Total Debt0.000.000.00
Total Liabilities290.11K173.52K264.53K
Stockholders Equity730.53K5.39M695.71K
Cash Flow
Free Cash Flow-1.17M-768.97K
Operating Cash Flow-1.17M-237.62K
Investing Cash Flow0.00-2.43M-531.35K
Financing Cash Flow150.005.58M882.08K

Heavy Rare Earths Limited Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.04
Price Trends
50DMA
0.04
Negative
100DMA
0.03
Positive
200DMA
0.03
Positive
Market Momentum
MACD
>-0.01
Positive
RSI
41.42
Neutral
STOCH
-26.98
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:HRE, the sentiment is Neutral. The current price of 0.04 is below the 20-day moving average (MA) of 0.05, below the 50-day MA of 0.04, and above the 200-day MA of 0.03, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 41.42 is Neutral, neither overbought nor oversold. The STOCH value of -26.98 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:HRE.

Heavy Rare Earths 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
81
Outperform
$2.21B9.5110.39%1.54%-9.35%-32.77%
65
Neutral
AU$10.11B198.712.27%-20.07%-74.91%
52
Neutral
$259.07M-428.37%3.70%
47
Neutral
AU$121.83M-15.33%-52.53%-27.29%
46
Neutral
$431.26M-33.33%65.19%
44
Neutral
C$848.76M-6.71-16.27%2.80%16.46%-27.75%
40
Underperform
AU$8.95M
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:HRE
Heavy Rare Earths Limited
0.04
0.01
33.33%
AU:ILU
Iluka Resources Limited
5.21
-0.50
-8.72%
AU:LYC
Lynas Rare Earths
10.81
4.70
76.92%
AU:NTU
Northern Minerals Limited
0.03
<0.01
6.67%
AU:ARU
Arafura Resources
0.18
<0.01
6.06%
AU:ASM
Australian Strategic Materials Ltd
0.54
-0.02
-3.57%

Heavy Rare Earths Limited Corporate Events

Heavy Rare Earths Expands Uranium Exploration in South Australia
Apr 30, 2025

Heavy Rare Earths Limited has completed the acquisition of uranium exploration assets in South Australia from Havilah Resources Limited, marking a significant expansion in its exploration portfolio. The company has conducted passive seismic surveys and a high-resolution airborne geophysical survey to map uranium-bearing structures, with analysis underway to guide future drilling activities. This strategic move positions HRE to potentially capitalize on the uranium resources in the region, which could enhance its industry standing and provide opportunities for stakeholders.

Heavy Rare Earths Limited Releases Half-Year Financial Report
Mar 13, 2025

Heavy Rare Earths Limited has released its half-year financial report for the period ending December 31, 2024. The report provides insights into the company’s financial performance, including statements of profit or loss, financial position, changes in equity, and cash flows. This release is crucial for stakeholders to assess the company’s operational efficiency and financial health, which could influence its market positioning and investor confidence.

Heavy Rare Earths Limited Advances Uranium Exploration in South Australia
Mar 10, 2025

Heavy Rare Earths Limited has provided an update on its uranium exploration projects in South Australia, with geophysical surveys nearing completion on two key sites. The company is preparing for a detailed magnetic-radiometric survey and aims to generate drilling targets for the second half of 2025, pending necessary permits and clearances. These efforts are part of HRE’s strategy to enhance its exploration portfolio and strengthen its position in the uranium market.

Heavy Rare Earths Limited Highlights Uranium Portfolio in South Australia
Feb 26, 2025

Heavy Rare Earths Limited has released a document to provide background information on its proposals and objectives, emphasizing that it is not an offer for securities. The document highlights the company’s uranium portfolio in South Australia and advises recipients to conduct their own due diligence. The release underscores the importance of independent verification and investigation of the company’s assets and operations, as the information provided is not independently verified.

Heavy Rare Earths Limited Issues 12.5 Million Unquoted Securities
Feb 26, 2025

Heavy Rare Earths Limited announced the issuance of 12,500,000 unquoted securities, marking a significant development in its financial strategy. This move is likely to impact the company’s capital structure and could influence its market positioning by enhancing its financial resources, potentially benefiting stakeholders by supporting future growth initiatives.

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: Apr 22, 2025