Heavy Rare Earths Limited (HRE) AI Stock Analysis

• Market Cap: AU$10.82M
• Dividend Yield: N/A
• Average Volume (3M): 611.42K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.58
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): N/A
• Shares Outstanding: 208,033,870
• 10 Day Avg. Volume: 1,407,159
• 30 Day Avg. Volume: 611,424
• PEG Ratio: -0.09
• Price to Book (P/B): 2.91
• Price to Sales (P/S): 59.69
• P/FCF Ratio: -3.74
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: AU$0.06 ▲(52.50% Upside)

The score is held down primarily by weak financial performance (minimal/volatile revenue, widening losses, and ongoing cash burn), partially offset by a debt-free balance sheet. Technicals are supportive with price above major moving averages and positive MACD, but near-term momentum looks extended. Valuation cannot be evaluated due to missing P/E and dividend yield.

Positive Factors

Debt-free balance sheet

A debt-free balance sheet materially lowers financial distress risk and removes interest expense pressure, giving management durable flexibility to time capital raises or fund project development. Over months this preserves runway and strategic optionality despite weak operations.

Improving free cash flow trend

An improving free cash flow trend, even if still negative, signals operating actions or cost control beginning to work. If sustained, it reduces cumulative cash burn and lengthens runway, making the business less reliant on dilutive financing over the medium term.

Reported high gross margin

A strong reported gross margin suggests product-level economics can be attractive once scale and overhead control are achieved. This structural unit-profit potential supports a pathway to durable profitability if management can stabilize revenues and capture operating leverage.

Negative Factors

Severe revenue decline and volatility

A 71% revenue drop and ongoing volatility undermine the company’s ability to cover fixed costs, plan investments, or demonstrate repeatable demand. Structural revenue instability raises execution risk, complicates scaling and makes medium-term forecasting and financing more difficult.

Widening net losses and weak margins

Materially widening losses and deeply negative margins erode shareholder equity and create persistent negative ROE. Over months this pattern necessitates external funding, constrains reinvestment, and signals that core operations are not yet viable at current scale.

Persistent cash burn

Sustained negative operating and free cash flow indicates ongoing cash burn that depletes reserves and forces reliance on financing. This structural cash deficit limits strategic flexibility, increases dilution risk, and heightens the chance of disruptive capital raises within 2-6 months.

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

Income statement and cash flow quality are weak: revenue is very small and highly volatile (down ~71% in FY2025) with widening losses (net loss ~-3.2m) and persistent negative operating/free cash flow (FY2025 OCF and FCF ~-1.43m). The main offsetting strength is the balance sheet’s zero debt, but equity volatility and sharply negative ROE reflect ongoing value destruction.

Income Statement

Revenue remains very small and highly volatile (down ~71% in FY2025 vs FY2024), and profitability is deeply negative. Losses widened materially in FY2025 (net loss ~-3.2m vs ~-1.3m in FY2024) with very weak margins (net margin ~-35.8% and EBIT margin ~-36.3% in FY2025). While reported gross margin is high, the business is not yet demonstrating operating leverage or a stable revenue base.

Balance Sheet

The balance sheet shows no debt across the periods provided, which materially reduces financial risk and preserves flexibility. However, shareholder equity has been volatile (notably lower in FY2024 vs FY2023) and returns on equity are consistently and sharply negative (roughly -0.33 to -1.79 range), reflecting ongoing losses and weak value creation.

Cash Flow

Cash generation is weak with consistently negative operating cash flow and negative free cash flow each year, including a larger burn in FY2025 (operating cash flow ~-1.43m; free cash flow ~-1.43m). Free cash flow did improve versus the prior year (positive growth in FY2025), but cash flow still does not cover earnings in a healthy way given continuing losses and ongoing cash outflows.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	89.73K	89.73K	312.17K	0.00	0.00
Gross Profit	89.73K	89.73K	312.17K	0.00	0.00
EBITDA	0.00	0.00	-1.34M	-1.82M	0.00
Net Income	-3.22M	-3.22M	-1.31M	-1.79M	-355.00K
Balance Sheet
Total Assets	1.99M	1.99M	1.02M	5.56M	960.24K
Cash, Cash Equivalents and Short-Term Investments	1.94M	1.94M	957.59K	2.12M	141.39K
Total Debt	0.00	0.00	0.00	0.00	0.00
Total Liabilities	148.33K	148.33K	290.11K	173.52K	264.53K
Stockholders Equity	1.84M	1.84M	730.53K	5.39M	695.71K
Cash Flow
Free Cash Flow	-1.43M	-1.43M	-1.17M	-3.60M	-768.97K
Operating Cash Flow	-1.43M	-1.43M	-1.17M	-3.60M	-237.62K
Investing Cash Flow	-6.96K	-6.96K	0.00	0.00	-531.35K
Financing Cash Flow	2.41M	2.41M	150.00	5.58M	882.08K

Heavy Rare Earths Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• 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: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 0.05, and below the 200-day MA of 0.04, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 48.14 is Neutral, neither overbought nor oversold. The STOCH value of 25.17 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
HRE	54 Neutral	AU$10.82M	―	―	―	―	―
AR3	50 Neutral	AU$51.15M	-11.33	-15.50%	―	―	3.79%
EVG	49 Neutral	AU$17.33M	-3.13	-42.91%	―	―	-4.35%
REE	47 Neutral	AU$34.66M	-7.91	-84.97%	―	-100.00%	8.51%
INF	46 Neutral	AU$7.67M	-0.40	-119.49%	―	―	-405.06%
VML	41 Neutral	AU$44.97M	-6.76	-5.81%	―	-67.81%	-244.10%

Heavy Rare Earths Limited Corporate Events

Heavy Rare Earths to Release 19 Million Escrowed Shares in January

Heavy Rare Earths Limited will release 19 million fully paid ordinary shares from escrow on 7 January 2026, following their voluntary escrow as part of the acquisition of its interest in South Australian Uranium Projects announced in October 2024. The lifting of escrow increases the company’s freely tradable share base and may influence liquidity and shareholder dynamics as it progresses its uranium and critical minerals exploration portfolio in Australia.

Heavy Rare Earths Director Granted 5 Million Performance Rights

Heavy Rare Earths Limited has disclosed a change in the interests of director Gabriel Chiappini, who has been issued 5,000,000 unlisted performance rights for nil consideration, following shareholder approval at the company’s annual general meeting held on 27 November 2025. After the transaction, Chiappini holds 5,000,000 performance rights directly and maintains an indirect interest in 500,000 fully paid ordinary shares via the Gran Sasso Family account, with the issuance indicating a further alignment of the director’s incentives with shareholder outcomes but no immediate cash impact on the company.

Heavy Rare Earths Issues 10 Million Unquoted Performance Rights Under Incentive Scheme

Heavy Rare Earths Limited has issued 10 million unquoted performance rights under its employee incentive scheme, with the new securities not intended to be quoted on the ASX. The move indicates the company is using equity-based incentives to align staff and management with long-term performance and shareholder value, potentially supporting talent retention and signalling ongoing confidence in its growth trajectory within the critical minerals sector.

Heavy Rare Earths Limited Unveils Promising Assay Results at Radium Hill

Heavy Rare Earths Limited has announced promising assay results from their recent reconnaissance rock chip sampling program at Radium Hill, revealing high-grade scandium, yttrium, and uranium. This discovery strengthens the company’s geological model and highlights the potential for significant critical mineral resources in the area, encouraging further exploration and positioning HRE as a key player in the critical minerals sector.

Heavy Rare Earths Unveils Promising Assay Results at Prospect Hill

Heavy Rare Earths Limited has announced promising historical assay results from its Prospect Hill Project in South Australia, revealing high-grade silver, copper, zinc, and lead alongside previously reported tin mineralization. The company plans to conduct a maiden drilling program to upgrade the South Ridge target to a Mineral Resource Estimate, potentially enhancing its value as a polymetallic deposit. This development could significantly impact the company’s operations and market positioning by expanding its commodity exposure and increasing the project’s value.

Heavy Rare Earths Limited Announces AGM Results with All Resolutions Passed

Heavy Rare Earths Limited announced the results of its annual general meeting held on 27 November 2025, where all resolutions were passed on a poll. Key resolutions included the adoption of the remuneration report, the election and re-election of directors, approval to issue performance rights, and the approval of a 10% placement facility. These decisions are indicative of the company’s strategic direction and governance practices, potentially impacting its operational efficiency and stakeholder confidence.

Heavy Rare Earths Limited Updates AGM Notice with New Director Election

Heavy Rare Earths Limited has issued an addendum to its 2025 Notice of Annual General Meeting, which includes the withdrawal of an existing resolution and the addition of a new resolution regarding the election of Graeme Morissey as a director. This change necessitates the use of a replacement proxy form for voting on the new resolution. The election of Mr. Morissey, who has extensive experience in the mining exploration and development sector, is expected to enhance the company’s governance and strategic direction.

Heavy Rare Earths Limited Appoints New Director

Heavy Rare Earths Limited has announced the appointment of Mr. Graeme Morissey as a director, effective from November 5, 2025. The announcement indicates that Mr. Morissey currently holds no securities or interests in the company, suggesting a neutral impact on the company’s immediate financial operations but potentially influencing its governance and strategic direction.

Heavy Rare Earths Limited Announces Director Departure

Heavy Rare Earths Limited announced the cessation of Mr. Richard Brescianini as a director, effective November 6, 2025. Mr. Brescianini held 4,058,887 fully paid ordinary shares jointly with Mrs. Maria Luisa Brescianini. This change in directorship may impact the company’s governance and strategic direction, potentially affecting stakeholders and market perceptions.

Heavy Rare Earths Limited Announces Board Resignation

Heavy Rare Earths Limited announced the resignation of Mr. Richard Brescianini from its Board of Directors, effective November 6, 2025. The company expressed gratitude for his contributions and noted that a resolution from their Annual General Meeting notice has been withdrawn following his departure. This change in the board may impact the company’s strategic direction and stakeholder relations.

Heavy Rare Earths Limited Strengthens Board with New Appointment

Heavy Rare Earths Limited has announced the appointment of Graeme Morissey as a Non-Executive Director, marking a strategic move to enhance its exploration program. This board transition aligns with the company’s focus on accelerating its exploration efforts in uranium, tin, heavy rare earths, and critical minerals. The addition of Morissey, who brings extensive experience from his role at Warriedar Resources Ltd, is expected to strengthen HRE’s governance and operational capabilities, potentially impacting its market positioning and stakeholder interests positively.

Heavy Rare Earths Limited Advances South Australian Projects with Strategic Acquisition and Board Enhancements

Heavy Rare Earths Limited has announced significant developments in its South Australian mineral projects, particularly the acquisition of all mineral rights to the Prospect Hill Tin Project. This acquisition positions the company as a potential key player in the tin market, a critical mineral sector supported by major governments. The company is leveraging a rich dataset to fast-track exploration and resource estimation at the South Ridge prospect, aiming to establish a maiden mineral resource estimate swiftly. Additionally, strategic corporate changes, including the appointment of new board members, are expected to strengthen the company’s governance and operational capabilities.

Heavy Rare Earths Limited Announces 2025 AGM with Hybrid Format

Heavy Rare Earths Limited has announced its 2025 Annual General Meeting (AGM) scheduled for November 27, 2025, which will be held both in-person in Perth and virtually. Shareholders are encouraged to participate by voting via proxy before the deadline and can engage in the meeting by asking questions and voting on resolutions. This hybrid meeting approach reflects the company’s commitment to accessibility and shareholder engagement, potentially enhancing its operational transparency and stakeholder relations.

Heavy Rare Earths Limited Announces Upcoming AGM with Virtual Participation

Heavy Rare Earths Limited has announced its Annual General Meeting (AGM) scheduled for November 27, 2025, to be held both in-person in Perth and virtually. Shareholders are encouraged to submit proxies early and can participate in the meeting by asking questions and voting on resolutions. The company emphasizes the importance of proxy submissions and provides provisions for virtual attendance, ensuring shareholder engagement and transparency.

Heavy Rare Earths Limited Expands into Tin Market with Prospect Hill Acquisition

Heavy Rare Earths Limited has completed the acquisition of the Prospect Hill Tin Project in South Australia, marking a significant expansion of its mineral rights from uranium-only to all minerals. This acquisition positions HRE as a key player in the tin market, a critical mineral with strong macroeconomic support. The project includes a comprehensive geological database and advanced exploration at the South Ridge prospect, where HRE plans to fast-track a maiden mineral resource estimate. This strategic move diversifies HRE’s commodity mix and enhances its presence in the energy and critical minerals sectors.

Heavy Rare Earths Limited Secures Shareholder Approval for Strategic Joint Venture

Heavy Rare Earths Limited announced the results of its general meeting held on 27 October 2025, where a resolution regarding the approval of an earn-in and joint venture was passed. The resolution received overwhelming support, with 99.95% of votes in favor, indicating strong shareholder backing for the company’s strategic initiatives, which could enhance its operational capabilities and market position.