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Ionic Rare Earths Limited (AU:IXR)
:IXR

Ionic Rare Earths Limited (IXR) AI Stock Analysis

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AU

Ionic Rare Earths Limited

(Sydney:IXR)

Rating:40Underperform
Price Target:
Ionic Rare Earths Limited is struggling with financial instability due to declining revenues and persistent net losses, which significantly impact its overall score. The lack of technical indicators and a negative P/E ratio further contribute to a cautious outlook. The company needs substantial operational improvements to enhance its financial health and attractiveness.

Ionic Rare Earths Limited (IXR) vs. iShares MSCI Australia ETF (EWA)

Ionic Rare Earths Limited Business Overview & Revenue Model

Company DescriptionIonic Rare Earths Limited operates as a mineral exploration company. Its flagship project is the Makuutu rare earths project that comprises six licenses covering an area of approximately 298 square kilometers located in the eastern Uganda. The company was incorporated in 1998 and is based in West Perth, Australia.
How the Company Makes MoneyIonic Rare Earths Limited generates revenue through the exploration, development, and potential sale or joint venture of rare earth element projects. The company's primary revenue streams involve the value addition from its exploration activities, leading to increased project valuation and potential partnerships or sales. Key factors contributing to its earnings include successful resource estimation, securing mining licenses, and establishing strategic partnerships or off-take agreements with global companies interested in securing a supply of rare earth elements. Additionally, Ionic Rare Earths may engage in fundraising activities, such as issuing shares or securing investment from institutional investors, to finance its exploration and development activities.

Ionic Rare Earths Limited Financial Statement Overview

Summary
Ionic Rare Earths Limited faces significant financial challenges. The company shows declining revenues and persistent net losses, impacting profitability and cash flows. While it maintains a strong equity base with limited debt, its operational performance needs substantial improvement to ensure financial stability and growth.
Income Statement
35
Negative
Ionic Rare Earths Limited has experienced declining revenue from 2023 to 2024, with a significant drop in total revenue. The gross profit margin remains positive, but the company is facing substantial net losses, resulting in negative net profit margins. EBIT and EBITDA margins are deeply negative, indicating operational challenges and inefficiencies.
Balance Sheet
40
Negative
The company maintains a strong equity position with a high equity ratio, reflecting low leverage. However, the consistent net losses have eroded stockholders' equity over the years. The debt-to-equity ratio is low, indicating minimal reliance on debt, but the declining asset base may pose future challenges.
Cash Flow
30
Negative
Cash flow from operations is negative, highlighting ongoing operational cash burn. Free cash flow is also negative, indicating that the company is struggling to generate sufficient cash to cover its capital expenditures. The company's reliance on financing cash flows to support operations is evident.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
2.29M2.21M2.76M220.43K213.95K0.00
Gross Profit
2.29M2.21M2.19M159.78K213.95K0.00
EBIT
-10.10M-17.71M-11.56M-4.87M-2.40M-1.49M
EBITDA
-12.34M-19.10M-7.96M-4.58M0.00-1.48M
Net Income Common Stockholders
-13.67M-21.20M-8.54M-4.64M-2.38M-1.49M
Balance SheetCash, Cash Equivalents and Short-Term Investments
2.49M4.94M11.12M26.76M11.06M829.93K
Total Assets
36.44M37.57M44.52M48.97M18.08M3.84M
Total Debt
428.74K489.35K143.72K171.37K136.40K136.40K
Net Debt
-2.06M-1.54M-10.97M-26.59M-10.92M-693.53K
Total Liabilities
1.45M1.06M961.26K816.96K531.10K474.38K
Stockholders Equity
34.99M36.51M43.56M48.15M17.55M3.37M
Cash FlowFree Cash Flow
-15.00M-24.58M-14.24M-12.73M-4.50M-1.34M
Operating Cash Flow
-14.45M-23.22M-11.66M-3.58M-1.33M-810.90K
Investing Cash Flow
2.40M270.55K-5.51M-10.60M-4.12M-1.56M
Financing Cash Flow
10.05M13.86M1.35M29.89M15.68M2.51M

Ionic Rare Earths Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AULYC
60
Neutral
$7.46B151.292.27%-20.07%-74.91%
51
Neutral
$2.02B-1.12-21.36%3.65%2.87%-30.54%
AUARU
46
Neutral
$406.61M-33.33%65.19%
AUASM
45
Neutral
AU$89.76M-15.33%-52.53%-27.29%
AUNTU
43
Neutral
$217.29M-428.37%3.70%
AUIXR
40
Underperform
AU$42.14M-39.07%39.13%
AUHAS
33
Underperform
AU$57.60M-86.77%-879.59%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:IXR
Ionic Rare Earths Limited
0.01
0.00
0.00%
AU:LYC
Lynas Rare Earths
9.26
2.63
39.67%
AU:NTU
Northern Minerals Limited
0.03
-0.02
-35.56%
AU:ARU
Arafura Resources
0.18
>-0.01
-2.78%
AU:ASM
Australian Strategic Materials Ltd
0.51
-0.42
-45.16%
AU:HAS
Hastings Technology Metals Limited
0.31
0.10
47.62%

Ionic Rare Earths Limited Corporate Events

Ionic Rare Earths Announces Proposed Securities Issue
May 29, 2025

Ionic Rare Earths Limited announced a proposed issue of securities, including convertible notes and options, set to be issued on July 7, 2025. This move is likely aimed at raising capital to support the company’s operations and strategic initiatives, potentially enhancing its market position and offering new opportunities for stakeholders.

Ionic Rare Earths Corrects Options Issuance and Secures $3 Million Capital Raising
May 29, 2025

Ionic Rare Earths Limited announced a correction in the number of options to be issued to convertible notes investors, adjusting the figure from 166,666,667 to 214,285,714. Additionally, the company has secured commitments to raise $3.0 million through convertible notes, with the funds intended for working capital and project development. The capital raising is subject to shareholder approval, and if not obtained, any interim funds will be repayable with interest. This move positions IonicRE to strengthen its financial standing and support its strategic projects, potentially impacting its market positioning and stakeholder interests.

Ionic Rare Earths Secures $3 Million for Global Project Expansion
May 29, 2025

Ionic Rare Earths Limited has successfully raised $3.0 million through the issuance of convertible notes, pending shareholder approval. The funds will support working capital and project developments in the UK, USA, Brazil, and Makuutu. This capital raising is part of IonicRE’s strategy to strengthen its position in the rare earths industry, focusing on sustainable and traceable products crucial for electric vehicles, wind turbines, and defense applications.

Ionic Rare Earths Partners with EMR to Revolutionize Magnet Recycling
May 26, 2025

Ionic Rare Earths Limited has signed a non-binding Memorandum of Understanding with EMR, a leader in sustainable materials, to develop a circular supply chain for rare earth magnets. This collaboration aims to optimize the recycling of end-of-life magnets and secure materials necessary for the green transition, significantly impacting the company’s operations and positioning in the market. The agreement is a major step forward in the development of IonicRE’s Belfast-based recycling facility, with potential benefits for UK manufacturers and a reduction in carbon emissions.

Ionic Rare Earths Director Increases Stake, Aligning with Growth Strategy
May 23, 2025

Ionic Rare Earths Limited announced a change in the director’s interest, with Mr. Brett Lynch acquiring additional securities, including fully paid ordinary shares, options, and performance rights. This change, approved at a recent shareholder meeting, reflects the company’s strategic moves to align its leadership’s interests with its growth objectives, potentially impacting its market positioning and stakeholder confidence.

Ionic Rare Earths Limited Issues New Shares in Compliance with Corporations Act
May 22, 2025

Ionic Rare Earths Limited has issued 2,425,993 ordinary shares without disclosure under Part 6D.2 of the Corporations Act 2001, complying with relevant legal provisions. This move signifies the company’s adherence to regulatory standards, potentially impacting its market operations and stakeholder confidence positively.

Ionic Rare Earths Limited Announces Quotation of New Securities on ASX
May 22, 2025

Ionic Rare Earths Limited has announced the quotation of 2,425,993 fully paid ordinary securities on the Australian Securities Exchange (ASX) under the code IXR. This move is part of a previously announced transaction, potentially enhancing the company’s liquidity and market presence. The issuance of these securities could strengthen Ionic Rare Earths Limited’s financial position, supporting its strategic initiatives in the rare earths sector and potentially benefiting stakeholders by aligning with the increasing demand for rare earth elements.

Ionic Rare Earths Issues Unquoted Equity Securities to Bolster Growth
May 22, 2025

Ionic Rare Earths Limited has announced the issuance of 13,285,713 unquoted equity securities, specifically options expiring on December 15, 2027, with an exercise price of $0.011. This move is part of previously announced transactions and reflects the company’s ongoing financial strategies to support its operations and growth in the rare earths sector, potentially impacting its market positioning and stakeholder interests.

Ionic Rare Earths Issues New Shares to Strengthen Market Position
May 22, 2025

Ionic Rare Earths Limited announced the issuance of 26,571,426 ordinary shares without disclosure under Part 6D.2 of the Corporations Act 2001. This move indicates the company’s compliance with relevant legislative provisions and suggests a strategic effort to bolster its financial standing, potentially impacting its operational capabilities and market positioning.

Ionic Rare Earths Limited Announces Quotation of New Securities on ASX
May 22, 2025

Ionic Rare Earths Limited has announced the quotation of 26,571,426 ordinary fully paid securities on the Australian Securities Exchange (ASX) under the code IXR. This move is part of a previously announced transaction and is expected to enhance the company’s financial flexibility and market presence, potentially impacting its operational capabilities and stakeholder interests positively.

Ionic Rare Earths Limited Announces Proposed Securities Issue
May 21, 2025

Ionic Rare Earths Limited has announced a proposed issue of 2,425,993 ordinary fully paid securities, with the issue date set for May 22, 2025. This move is part of the company’s strategy to raise capital, potentially impacting its market position and providing resources for further development and expansion in the rare earths sector.

Ionic Rare Earths Secures Shareholder Approval for Key Resolutions
May 16, 2025

Ionic Rare Earths Limited announced that all resolutions presented at their General Meeting were successfully passed by poll. This outcome reflects strong shareholder support for the company’s strategic initiatives, potentially enhancing its operational capabilities and market position in the rare earths sector.

Ionic Rare Earths Advances Magnet Recycling and Heavy Rare Earth Projects Amid Global Demand
Apr 30, 2025

Ionic Rare Earths Limited has made significant advancements in its magnet recycling and heavy rare earths projects, crucial for the global energy transition and advanced manufacturing. The company’s recent activities include a peer-reviewed Life Cycle Analysis indicating a 61% reduction in CO2 emissions from its magnet recycling process, the launch of the MagNetZero supply chain initiative, and a memorandum of understanding with South Korea’s DNA Link. Additionally, the company is in discussions with the UK government and other stakeholders to support the commercial plant capital requirements for its Belfast facility, while also exploring opportunities for global expansion in key markets such as the USA. The Makuutu Heavy Rare Earths Project in Uganda is gaining attention due to China’s export restrictions, highlighting the need for new supply sources. IonicRE is also pursuing a joint venture in Brazil for refining and recycling, and has reported a reduced net loss in its half-year financial report.

Ionic Rare Earths Announces General Meeting to Address Key Resolutions
Apr 16, 2025

Ionic Rare Earths Limited has announced a General Meeting to be held on May 16, 2025, where shareholders will vote on several resolutions. These include the ratification of prior issues of shares and options under a placement and a share purchase plan, as well as approvals for issuing shares and options to specific individuals. These resolutions are significant for the company’s capital structure and could impact its financial strategy and stakeholder interests.

Ionic Rare Earths Advances Makuutu Project Amid China’s Export Controls
Apr 8, 2025

Ionic Rare Earths Limited is advancing its Makuutu Heavy Rare Earth Project in Uganda, as China’s new export restrictions on rare earths highlight the need for alternative supply sources. The Makuutu project, a significant ionic adsorption clay deposit, is strategically important for its high content of medium and heavy rare earths, essential for producing permanent magnets used in EVs and wind turbines. With a mining license already secured and initial production underway, IonicRE is engaging with potential partners to accelerate development, positioning itself as a key player in the global rare earth supply chain.

Ionic Rare Earths Addresses Late Lodgement of Director’s Interest Notice
Mar 19, 2025

Ionic Rare Earths Limited announced a late lodgement of Appendix 3Y for directors Timothy Harrison and Maxwell McGarvie due to an administrative oversight. The company promptly addressed the issue and considers it an isolated incident, reaffirming its commitment to compliance with ASX Listing Rules.

Ionic Rare Earths Achieves Major CO2 Reduction in Magnet Recycling
Mar 12, 2025

Ionic Rare Earths Limited announced that a peer-reviewed study by Minviro has confirmed significant reductions in CO2 emissions from its magnet recycling process, with up to 61% lower emissions compared to traditional mining sources. This positions the company as a leader in sustainable rare earth supply chains, particularly benefiting OEMs in the defense, advanced manufacturing, and renewable sectors by offering a more environmentally friendly alternative to conventional REO production.

Ionic Rare Earths Limited Releases Half-Year Financial Report
Mar 12, 2025

Ionic 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 profit or loss, cash flows, and changes in equity. This release is crucial for stakeholders as it highlights the company’s financial health and operational progress, which can impact its market positioning and future strategic decisions.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.