Horizon Gold Ltd (HRN) AI Stock Analysis

• Market Cap: AU$86.18M
• Dividend Yield: N/A
• Average Volume (3M): 35.27K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.66
• Revenue Growth: N/A
• EPS Growth: 79.79%
• Country: AU
• Employees: 1
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Gold
• EPS (TTM): >-0.01
• Shares Outstanding: 144,839,920
• 10 Day Avg. Volume: 74,646
• 30 Day Avg. Volume: 35,275
• PEG Ratio: -0.08
• Price to Book (P/B): 1.56
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -7.61
• 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: 36 Underperform
• Price Target: ―

Horizon Gold Ltd's stock score is primarily impacted by its financial struggles, including negative income and cash flow. Despite a strong debt-free position, the ongoing operational challenges are significant. Technical analysis indicates a lack of upward momentum, and valuation metrics show no earnings and no dividend yield, reducing appeal to investors.

Horizon Gold Ltd Business Overview & Revenue Model

Company Description

Horizon Gold Limited engages in the exploration, evaluation, development, and production of gold deposits in Australia. Its flagship project is the Gum Creek gold project covering an area of approximately 668 square kilometers located within the Southern Cross Province of the Youanmi Terrane in Western Australia. The company was incorporated in 2016 and is based in West Perth, Australia. Horizon Gold Limited is a subsidiary of Zeta Resources Limited.

How the Company Makes Money

Horizon Gold Ltd makes money primarily through the exploration and potential development of gold resources. The company's revenue model hinges on discovering economically viable gold deposits, which can then be developed into producing mines. Key revenue streams include the sale of gold extracted from its mining operations, as well as potential joint ventures or partnerships with other mining companies that can provide funding or expertise for project development. Additionally, the company may generate income from the sale or optioning of exploration properties to other mining entities. Significant factors contributing to its earnings include the market price of gold, the success of its exploration activities, and strategic partnerships that enhance project viability and financial support.

Horizon Gold Ltd Financial Statement Overview

Summary

Horizon Gold Ltd faces significant financial challenges. While it benefits from a debt-free balance sheet, persistent losses and negative cash flows highlight operational inefficiencies and the need for strategic improvement to achieve financial sustainability.

Income Statement

The company has consistently experienced negative net income and negative EBIT margins, indicating ongoing operational challenges. Despite a revenue increase from the previous year, the revenue growth is erratic and gross profit margins are unstable, reflecting difficulty in achieving profitability.

Balance Sheet

Horizon Gold Ltd has maintained a strong equity position with no debt, as evidenced by a debt-to-equity ratio of zero. However, the low equity ratio suggests a high level of liabilities relative to assets, which could pose long-term stability risks.

Cash Flow

The company shows negative free cash flow, which has been consistent over the years, indicating a reliance on external financing. The operating cash flow to net income ratio is also negative, illustrating ongoing operational cash flow challenges.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
80.00K	65.00K	135.00K	136.00K	17.00K	30.00K
	Gross Profit
-211.00K	-508.00K	-298.00K	-66.00K	-11.00K	-78.00K
	EBIT
-883.00K	-914.00K	-1.16M	-1.03M	-1.29M	-1.53M
	EBITDA
-406.50K	-1.11M	-1.71M	-282.00K	-1.04M	4.69M
	Net Income Common Stockholders
-571.00K	-1.71M	-2.14M	-487.00K	-1.07M	4.58M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.63M	219.00K	238.00K	211.00K	1.27M	177.00K
	Total Assets
47.02M	44.10M	40.75M	41.97M	36.44M	27.61M
	Total Debt
0.00	0.00	41.00K	40.00K	0.00	618.00K
	Net Debt
-3.63M	-219.00K	-197.00K	-171.00K	-1.27M	441.00K
	Total Liabilities
12.49M	12.15M	11.94M	11.50M	11.56M	11.84M
	Stockholders Equity
34.52M	31.96M	28.80M	30.47M	24.88M	15.77M
Cash Flow		Free Cash Flow
-2.99M	-2.59M	-5.91M	-6.20M	-3.78M	-2.01M
	Operating Cash Flow
-817.00K	-755.00K	-646.00K	-637.00K	-1.25M	-1.20M
	Investing Cash Flow
2.98M	-5.00M	237.00K	-6.37M	-7.03M	-803.00K
	Financing Cash Flow
-38.00K	5.74M	436.00K	5.95M	9.38M	300.00K

Horizon Gold Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:HRN, the sentiment is Positive. The current price of 0.6 is above the 20-day moving average (MA) of 0.54, above the 50-day MA of 0.49, and above the 200-day MA of 0.44, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 72.49 is Negative, neither overbought nor oversold. The STOCH value of 88.18 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:HRN.

Horizon Gold Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$2.03B	-1.27	-21.09%	3.98%	2.91%	-30.50%
HRN	36 Underperform	AU$86.18M	―	-1.69%	―	―	79.79%
NESRF		$20.90B	28.03	11.01%	2.07%	―	―
RMGGF		$788.57M	41.67	-5.02%	―	―	―
CAHPF		$11.89B	26.72	16.97%	1.43%	―	―
RGRNF		$2.48B	―	-0.38%	―	―	―

Horizon Gold Ltd Corporate Events

Horizon Gold Advances Gum Creek Project with Extensive Drilling and Feasibility Studies

Horizon Gold Limited has completed significant geotechnical and drilling activities at its Gum Creek Gold Project to enhance resource confidence and aid in the feasibility study. The work includes geotechnical diamond drilling, infill and extension RC drilling, and various test works, with the aim of potentially extending the project’s mine life and improving its economic viability. The company is optimistic about the project’s potential as a standalone mining operation, particularly with the support of recent high gold prices.

Horizon Gold Secures $2 Million Funding for Gum Creek Project

Horizon Gold Limited has secured a $2 million short-term funding facility from its major shareholder, Zeta Resources Limited. This unsecured loan, with an interest rate of 10.35% per annum, provides Horizon Gold with financial flexibility to advance its Gum Creek Feasibility Study, potentially strengthening its position in the gold exploration sector.

Horizon Gold Appoints Peter Sullivan as Executive Chairman

Horizon Gold Limited has announced the appointment of Peter Sullivan as Executive Chairman, transitioning from his previous role as Non-executive Chairman. This strategic move is intended to bolster the company’s executive capabilities, particularly in corporate development, as it progresses with the Gum Creek Feasibility Study, potentially impacting its operational efficiency and market positioning.

Horizon Gold Limited Releases Interim Financial Report for 2024

Horizon Gold Limited has released its interim financial report for the period ending December 31, 2024, detailing the company’s financial performance and position. The report, presented in Australian dollars, offers insights into the company’s operations and financial health, which are crucial for stakeholders to assess Horizon Gold’s market positioning and future prospects.

Horizon Gold Director Increases Stake

Horizon Gold Limited has announced a change in the director’s interest, specifically concerning James Noel Sullivan. The director has acquired an additional 101,013 fully paid ordinary shares through an on-market trade, increasing his indirect holdings via Sullivans Garage Pty Ltd. This change reflects a strategic move by the director to increase his stake in the company, potentially signaling confidence in the company’s future prospects and stability.

Horizon Gold Reaffirms Commitment to Gum Creek Project

Horizon Gold Ltd’s recent investor presentation has reaffirmed their commitment to the development of the Gum Creek Gold Project, with no new changes to their mineral resource estimates or financial forecasts from previous announcements. The project includes both Indicated and Inferred Mineral Resources, with current assumptions and technical parameters remaining valid. The company highlights that while the Inferred resources contribute to the project, they do not affect its overall viability. This presentation underscores Horizon Gold’s confidence in the project’s economic potential, although it acknowledges inherent risks such as market volatility and regulatory challenges.

Horizon Gold Begins Extensive Drilling at Gum Creek

Horizon Gold Limited has commenced a 10,000m reverse circulation drilling program at its Gum Creek Gold Project to enhance geological and resource confidence across its 2.14 million ounce gold resource. The drilling includes infill and extension work at several prospects, aiming to test high-priority targets and potentially define new resources. A diamond drill program has been completed, continuing with geotechnical and geochemical analysis, with results pending. This initiative is expected to strengthen Horizon Gold’s resource base and potentially improve its market positioning.