Korab Resources Limited (KOR) AI Stock Analysis

• Market Cap: AU$2.94M
• Dividend Yield: N/A
• Average Volume (3M): 2.53M
• Price to Earnings (P/E): ―
• Beta (1Y): 4.81
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: AU
• Employees: 3
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): N/A
• Shares Outstanding: 367,050,000
• 10 Day Avg. Volume: 2,529,047
• 30 Day Avg. Volume: 2,529,047
• PEG Ratio: 0.10
• Price to Book (P/B): 18.86
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -18.84
• 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: 40 Underperform
• Price Target: ―

Korab Resources Limited struggles with financial instability, reflected in persistent losses and high leverage. The company's inability to generate revenue growth or improve cash flows is concerning. Technical analysis suggests a stagnant stock price without significant momentum, and valuation metrics highlight potential overvaluation. These factors combine to suggest a cautious outlook for the stock.

Positive Factors

Strategic Divestment

The sale of the Ukrainian subsidiary allows Korab to streamline operations and focus on core assets, potentially improving operational efficiency and financial stability.

Debt Reduction

Retiring debt through strategic divestment can enhance financial health by reducing leverage, thus improving the company's balance sheet and reducing financial risk.

Focused Exploration

Focusing resources on the Rum Jungle Project could lead to successful exploration outcomes, potentially unlocking new revenue streams and enhancing long-term growth prospects.

Negative Factors

Financial Instability

Ongoing financial instability, marked by persistent losses and high leverage, poses a risk to long-term viability, requiring strategic financial restructuring to ensure sustainability.

Negative Cash Flow

Negative cash flow indicates cash management issues, limiting the company's ability to invest in growth opportunities and potentially affecting operational continuity.

Lack of Revenue Growth

The lack of revenue growth and increasing net losses highlight operational challenges, necessitating a focus on improving revenue streams to achieve financial sustainability.

Korab Resources Limited Business Overview & Revenue Model

Company Description

Korab Resources Limited engages in the exploration and evaluation of mineral properties. The company explores for gold, silver, phosphate rock, magnesium, tin, iron ore, copper, nickel, cobalt, lead, zinc, lithium, and rare earth metals, as well as scandium, palladium, and platinum. Its projects include the Bobrikovo project located in Ukraine; the Winchester magnesium carbonate and the Geolsec Phosphate projects located in Darwin, Northern Territory; the Batchelor and the Green Alligator projects located in Batchelor, Northern Territory; and the Mt. Elephant project located in Western Australia. Korab Resources Limited was incorporated in 1998 and is based in West Perth, Australia.

How the Company Makes Money

Korab Resources Limited makes money through the exploration and development of its mineral assets, ultimately aiming to sell extracted minerals commercially. The company's revenue model is centered around discovering mineral deposits and advancing these projects to production stages or selling them to other mining entities. Key revenue streams include the potential sale of mined minerals like gold and silver, along with potential joint ventures or partnerships with other mining companies. Additionally, Korab Resources may engage in strategic alliances or agreements that provide financial support and shared expertise to advance its projects. However, as an exploration company, its earnings are significantly influenced by market conditions, exploration success, and the realization of its mineral assets' commercial potential.

Korab Resources Limited Financial Statement Overview

Summary

Korab Resources Limited faces significant financial challenges, highlighted by persistent losses, high leverage, and negative cash flows. The company needs to address its operational inefficiencies and improve its capital structure to ensure long-term viability.

Income Statement

Korab Resources Limited has shown a lack of revenue and significant net losses over the years, with a recent increase in net losses from -611,654 to -932,096 AUD. The EBIT and EBITDA margins are both negative and have deteriorated, reflecting ongoing operational challenges. The absence of revenue growth further highlights this financial strain.

Balance Sheet

The company is heavily leveraged with a rising debt-to-equity ratio reaching 27.53, indicating heightened financial risk. Stockholders' equity has significantly decreased, suggesting potential solvency issues. The equity ratio has also declined, reflecting a lower proportion of assets financed by equity.

Cash Flow

Operating cash flow remains negative, although there is slight improvement, accompanied by negative free cash flow, indicating cash management issues. The operating cash flow to net income ratio is unfavorable, suggesting inefficiency in converting income to cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	36.50K	0.00	0.00	36.36K	364.88K	230.00K
Gross Profit	36.50K	0.00	-20.66K	36.36K	364.88K	230.00K
EBITDA	79.09K	-495.00K	-353.41K	-294.00K	194.70K	-36.30K
Net Income	-932.00K	-932.00K	-1.36M	-612.00K	-531.00K	-261.00K
Balance Sheet
Total Assets	4.69M	4.69M	4.59M	5.45M	4.36M	4.50M
Cash, Cash Equivalents and Short-Term Investments	93.35K	93.35K	112.38K	815.78K	93.31K	163.84K
Total Debt	4.29M	4.29M	3.31M	2.83M	2.73M	2.24M
Total Liabilities	4.53M	4.53M	3.50M	3.00M	3.11M	2.72M
Stockholders Equity	155.70K	155.70K	1.09M	2.45M	1.25M	1.78M
Cash Flow
Free Cash Flow	-155.84K	-155.84K	-447.80K	-515.45K	67.88K	-234.35K
Operating Cash Flow	-86.11K	-86.11K	-92.84K	-171.56K	208.31K	-85.38K
Investing Cash Flow	-69.73K	-69.73K	-354.96K	-343.89K	-70.89K	45.35K
Financing Cash Flow	136.81K	136.81K	-255.60K	1.24M	-207.94K	121.15K

Korab Resources 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%
CPM	53 Neutral	AU$5.25M	-8.70	-5.47%	―	14.85%	65.47%
ADC	48 Neutral	AU$3.97M	―	―	―	―	―
M2R	47 Neutral	AU$4.53M	―	-16.88%	―	―	73.55%
AOA	44 Neutral	AU$3.57M	―	-65.57%	―	―	-200.00%
FUN	42 Neutral	AU$22.67M	-0.92	-53.33%	―	―	-488.00%
KOR	40 Underperform	AU$2.94M	―	―	―	―	―

Korab Resources Limited Corporate Events

Korab Resources Limited Reports Positive Quarterly Cash Flow

Korab Resources Limited reported its quarterly cash flow, highlighting a net cash inflow from operating activities of $10,000 for the current quarter, despite a year-to-date outflow of $72,000. The company also saw a positive cash flow from investing activities, primarily due to proceeds from the disposal of tenements, and a net cash inflow from financing activities, driven by borrowings. This financial update indicates a cautious yet positive cash position, which may support ongoing exploration efforts and potentially enhance stakeholder confidence.

Korab Resources Reports Promising Gold Finds at Rum Jungle Project

Korab Resources Limited has released its quarterly activities report for the period ending December 31, 2024, detailing the exploration activities at its Rum Jungle Project in the Northern Territory. The company conducted extensive reviews of historical drilling programs and sampling efforts, focusing on the potential for gold, silver, copper, lead, and zinc. Notably, the Sundance Prospect within the Rum Jungle Project showed promising gold mineralization, with significant gold intervals intercepted in diamond drilling. However, further drilling is needed to ascertain the continuity and extent of the mineralization. The company is also exploring various development options for its assets and engaging in discussions with potential partners and buyers, indicating a proactive approach to advancing its projects and enhancing shareholder value.

Korab Resources Advances Exploration at Rum Jungle Project

Korab Resources Limited has released its quarterly activities report for the period ending September 30, 2024, detailing significant progress in its Rum Jungle Project in the Northern Territory. The company conducted multi-stage high-resolution ground gravity surveys and reviewed historical data to explore various development options. Preliminary results from these surveys were shared with the market, indicating ongoing efforts to advance exploration and potential partnerships. This activity underscores Korab’s commitment to enhancing its mineral exploration capabilities and strengthening its market position.