Ionic Rare Earths Limited (IXR) AI Stock Analysis

• Market Cap: AU$42.14M
• Dividend Yield: N/A
• Average Volume (3M): 4.19M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.69
• Revenue Growth: N/A
• EPS Growth: 39.13%
• Country: AU
• Employees: 34
• Sector: Basic Materials
• Sector Strength: 67
• Industry: Gold
• EPS (TTM): >-0.01
• Shares Outstanding: 5,267,426,000
• 10 Day Avg. Volume: 4,366,471
• 30 Day Avg. Volume: 4,193,854
• PEG Ratio: -0.06
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.79
• 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: ―

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 Business Overview & Revenue Model

Company Description

Ionic 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 Money

Ionic 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

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

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

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
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
2.29M	2.21M	2.76M	220.43K	213.95K	0.00
	Gross Profit
2.29M	2.21M	2.19M	159.78K	213.95K	0.00
	EBIT
-10.10M	-17.71M	-11.56M	-4.87M	-2.40M	-1.49M
	EBITDA
-12.34M	-19.10M	-7.96M	-4.58M	0.00	-1.48M
	Net Income Common Stockholders
-13.67M	-21.20M	-8.54M	-4.64M	-2.38M	-1.49M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.49M	4.94M	11.12M	26.76M	11.06M	829.93K
	Total Assets
36.44M	37.57M	44.52M	48.97M	18.08M	3.84M
	Total Debt
428.74K	489.35K	143.72K	171.37K	136.40K	136.40K
	Net Debt
-2.06M	-1.54M	-10.97M	-26.59M	-10.92M	-693.53K
	Total Liabilities
1.45M	1.06M	961.26K	816.96K	531.10K	474.38K
	Stockholders Equity
34.99M	36.51M	43.56M	48.15M	17.55M	3.37M
Cash Flow		Free 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
2.40M	270.55K	-5.51M	-10.60M	-4.12M	-1.56M
	Financing Cash Flow
10.05M	13.86M	1.35M	29.89M	15.68M	2.51M

Ionic Rare Earths Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LYC	60 Neutral	$7.46B	151.29	2.27%	―	-20.07%	-74.91%
Sector *	51 Neutral	$2.02B	-1.12	-21.36%	3.65%	2.87%	-30.54%
ARU	46 Neutral	$406.61M	―	-33.33%	―	―	65.19%
ASM	45 Neutral	AU$89.76M	―	-15.33%	―	-52.53%	-27.29%
NTU	43 Neutral	$217.29M	―	-428.37%	―	―	3.70%
IXR	40 Underperform	AU$42.14M	―	-39.07%	―	―	39.13%
HAS	33 Underperform	AU$57.60M	―	-86.77%	―	―	-879.59%

Ionic Rare Earths Limited Corporate Events

Ionic Rare Earths Announces Proposed Securities Issue

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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.