Heavy Rare Earths Limited (HRE) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: N/A
• Average Volume (3M): 790.64K
• Price to Earnings (P/E): ―
• Beta (1Y): -1.48
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: AU
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Industrial Materials
• EPS (TTM): N/A
• Shares Outstanding: 208,033,870
• 10 Day Avg. Volume: 437,915
• 30 Day Avg. Volume: 790,638
• PEG Ratio: 0.00
• Price to Book (P/B): 1.93
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.74
• 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: 40 Underperform
• 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 Business Overview & Revenue Model

Company Description

Heavy Rare Earths Limited, a rare earth exploration company, focuses on the exploration projects in Western Australia and the Northern Territory. The company has an option to acquire the Cowalinya project covering an area of 230 square kilometers located in the south-east of Norseman, Western Australia. It also holds 100% interest in the Duke project consisting of two exploration licenses covering an area of 255 square kilometers located in the north-west of Tennant Creek, the Northern Territory. The company was incorporated in 2021 and is headquartered in Melbourne, Australia.

How the Company Makes Money

Heavy 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

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

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

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.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022
Income Statement		Total Revenue
312.17K	312.17K	0.00	0.00
	Gross Profit
312.17K	312.17K	0.00	0.00
	EBIT
-1.66M	-1.34M	-1.65M	-268.00K
	EBITDA
0.00	-1.34M	-1.82M	0.00
	Net Income Common Stockholders
-1.64M	-1.31M	-1.79M	-355.00K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.78M	957.59K	2.12M	141.39K
	Total Assets
2.84M	1.02M	5.56M	960.24K
	Total Debt
0.00	0.00	0.00	0.00
	Net Debt
-2.78M	-957.59K	-2.12M	-141.39K
	Total Liabilities
321.06K	290.11K	173.52K	264.53K
	Stockholders Equity
2.52M	730.53K	5.39M	695.71K
Cash Flow		Free Cash Flow
-931.58K	-1.17M	―	-768.97K
	Operating Cash Flow
-1.34M	-1.17M	―	-237.62K
	Investing Cash Flow
409.06K	0.00	-2.43M	-531.35K
	Financing Cash Flow
2.41M	150.00	5.58M	882.08K

Heavy Rare Earths Limited Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:HRE, the sentiment is Positive. The current price of 0.04 is below the 20-day moving average (MA) of 0.04, above the 50-day MA of 0.03, and above the 200-day MA of 0.03, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 90.94 is Negative, neither overbought nor oversold. The STOCH value of 80.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:HRE.

Heavy Rare Earths Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
REE	52 Neutral	AU$20.24M	―	-111.05%	―	-100.00%	33.33%
Sector *	51 Neutral	$1.99B	-1.26	-21.11%	5.30%	2.92%	-30.46%
VML	43 Neutral	AU$11.79M	25.00	-4.50%	―	―	95.18%
HRE	40 Underperform		―		―	―	―
INF	39 Underperform	AU$7.56M	―	-8.43%	―	―	48.86%
AR3	35 Underperform	AU$11.45M	―	-15.31%	―	―	7.62%
EVG	34 Underperform	AU$6.52M	―	-44.85%	―	―	-77.78%

Heavy Rare Earths Limited Corporate Events

Heavy Rare Earths Expands Uranium Exploration in South Australia

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

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

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

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

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.