Magmatic Resources Ltd. (MAG) AI Stock Analysis

• Market Cap: AU$23.00M
• Dividend Yield: N/A
• Average Volume (3M): 473.51K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.13
• Revenue Growth: N/A
• EPS Growth: 73.82%
• Country: AU
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 70
• Industry: Gold
• EPS (TTM): >-0.01
• Shares Outstanding: 442,250,700
• 10 Day Avg. Volume: 492,969
• 30 Day Avg. Volume: 473,509
• PEG Ratio: -0.02
• Price to Book (P/B): 5.69
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.67
• 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: 45 Neutral
• Price Target: ―

Magmatic Resources Ltd. shows strong revenue growth but is hampered by significant profitability and cash flow challenges, reflected in a low financial performance score. The technical analysis suggests a bearish trend with potential oversold conditions. Valuation concerns due to negative earnings further impact the stock's appeal. The overall score reflects these challenges, highlighting the need for operational improvements.

Magmatic Resources Ltd. Business Overview & Revenue Model

Company Description

Magmatic Resources Limited engages in the development and exploration of mineral properties in Australia. The company explores for gold and copper deposits. It holds 100% interests in the Myall, Parkes, and Wellington North projects located in the East Lachlan region, New South Wales. The company was incorporated in 2016 and is headquartered in Nedlands, Australia.

How the Company Makes Money

Magmatic Resources Ltd. generates revenue primarily through the exploration and development of mineral resources, particularly gold and copper. The company aims to increase its value by discovering economically viable mineral deposits that can attract potential investors or partners for further development. Revenue streams may include selling exploration rights, entering into joint ventures or partnerships with larger mining companies, and eventually, if successful in their exploration efforts, mining and selling the extracted minerals. Additionally, Magmatic Resources could enter into royalty agreements or farm-out deals where they allow another company to explore and develop their properties in exchange for payments or a share of the profits. The company’s financial success is heavily dependent on the outcomes of its exploration activities, market conditions for gold and copper, and its ability to manage operational costs effectively.

Magmatic Resources Ltd. Financial Statement Overview

Summary

Overall, Magmatic Resources Ltd. demonstrates promising revenue growth but struggles with profitability and cash flow generation. The balance sheet remains strong, supported by high equity levels and low leverage, yet the company needs to address operational inefficiencies to enhance profitability and shareholder value.

Income Statement

Magmatic Resources Ltd. experienced a significant revenue growth of 66% from 2023 to 2024, indicating strong top-line expansion. However, the company continues to face profitability challenges with a negative EBIT margin of -3820% and a negative net profit margin of -3767% in 2024, reflecting high operating costs relative to revenue.

Balance Sheet

The company maintains a robust equity position with an equity ratio of 89% in 2024, showcasing financial stability. The debt-to-equity ratio is low at 0.06, which minimizes financial risk. However, the return on equity is negative due to ongoing losses, suggesting inefficiencies in generating shareholder returns.

Cash Flow

Magmatic Resources Ltd. shows improvement in cash flow with a significant reduction in negative free cash flow growth rate compared to the previous year. Despite a negative operating cash flow to net income ratio, indicating challenges in converting operations into cash, substantial financing cash flow suggests strong external funding support.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	146.17K	89.77K	54.10K	58.40K	32.17K	0.00
Gross Profit	146.17K	89.77K	-11.14K	-16.28K	-40.29K	-84.53K
EBITDA	-2.21M	-3.39M	-7.43M	-2.94M	1.26M	-4.22M
Net Income	-2.10M	-3.38M	-7.49M	-3.02M	1.19M	-4.32M
Balance Sheet
Total Assets	9.12M	10.41M	4.83M	7.13M	8.59M	6.23M
Cash, Cash Equivalents and Short-Term Investments	6.01M	6.34M	2.86M	5.02M	6.12M	4.23M
Total Debt	540.17K	580.43K	0.00	22.61K	70.64K	115.52K
Total Liabilities	1.75M	1.11M	488.75K	397.62K	1.07M	420.16K
Stockholders Equity	7.37M	9.30M	4.34M	6.73M	7.52M	5.81M
Cash Flow
Free Cash Flow	-1.37M	-3.04M	-6.73M	-3.57M	-3.21M	-3.08M
Operating Cash Flow	-1.28M	-3.03M	-6.71M	-3.56M	-3.21M	-2.99M
Investing Cash Flow	-35.11K	15.91K	-61.82K	-14.94K	22.00K	-91.64K
Financing Cash Flow	6.48M	6.50M	4.61M	2.47M	5.07M	7.08M

Magmatic Resources Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.06
• 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:MAG, the sentiment is Positive. The current price of 0.06 is above the 20-day moving average (MA) of 0.04, above the 50-day MA of 0.04, and above the 200-day MA of 0.04, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 80.68 is Negative, neither overbought nor oversold. The STOCH value of 87.78 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:MAG.

Magmatic Resources Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$10.29B	9.96	-0.15%	2.86%	2.14%	-32.15%
ICL	47 Neutral	AU$21.97M	―	-5.25%	―	―	11.54%
MAG	45 Neutral	AU$23.00M	―	-42.24%	―	―	73.82%
ODQ		€11.05M	―	-18.08%	―	―	―
KZR	55 Neutral	AU$20.18M	―	-19.74%	―	―	-24.88%
WGR	34 Underperform	AU$20.24M	―	-217.17%	―	―	26.13%
IR1	31 Underperform	AU$17.45M	―	-13.37%	―	―	24.06%

Magmatic Resources Ltd. Corporate Events

Magmatic Resources Expands Drilling at Myall Project with Promising Results

Magmatic Resources Ltd. announced the expansion of its drilling program at the Myall Project in collaboration with Fortescue, aiming to target high-grade copper-gold porphyry deposits. The initial results have opened a new area for exploration, potentially enhancing the company’s resource base and industry positioning. The company remains financially stable with $5.723 million in cash, supporting its ongoing exploration activities.

Magmatic Resources Resumes Drilling at Promising Myall Project

Magmatic Resources Ltd. has recommenced its diamond drilling program at the Myall Project in New South Wales, in collaboration with Fortescue Metals Group. The drilling aims to further explore the Calais target, which showed promising copper-gold mineralization in previous drilling. This phase includes five diamond holes, with one specifically designed to follow up on the mineralization found in the initial hole. The project is strategically positioned near the Northparkes copper-gold mine, enhancing its potential for significant discoveries. The drilling program is expected to impact the company’s operations by potentially expanding its resource base and strengthening its position in the copper-gold mining sector.

Magmatic Resources Unveils Promising Copper-Gold Discovery at Myall Project

Magmatic Resources Ltd. announced a potential new copper-gold discovery at its Myall FJVA Project, with promising drilling results at the Calais and Corvette sites. The discovery opens a second major exploration front, enhancing the project’s potential to deliver significant copper-gold porphyry deposits, similar to the nearby Northparkes mine. The ongoing drilling program, in collaboration with Fortescue, aims to further explore and expand these mineral-rich areas, potentially impacting the company’s industry positioning and offering new opportunities for stakeholders.

Magmatic Resources Releases Half-Year Financial Report

Magmatic Resources Limited has released its half-year financial report for the period ending December 31, 2024. The report includes various financial statements and declarations, providing insights into the company’s financial position and performance over the past six months. This release is crucial for stakeholders as it offers a comprehensive overview of the company’s financial health and operational efficiency, which can influence investor confidence and strategic decisions.

Magmatic Resources Eyes Major Copper-Gold Discovery in Australia

Magmatic Resources Ltd. presented at the RIU Explorers Conference in Fremantle, WA, detailing their targeted approach for discovering major copper-gold deposits in Australia. The release, while not a formal disclosure document, emphasizes the potential risks and uncertainties involved in mining exploration and operations, impacting their strategic positioning and stakeholder interests.