Northern Minerals Limited (NTU) AI Stock Analysis

• Market Cap: $250.71M
• Dividend Yield: N/A
• Average Volume (3M): 4.67M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.81
• Revenue Growth: N/A
• EPS Growth: 3.70%
• Country: AU
• Employees: 36
• Sector: Basic Materials
• Sector Strength: 62
• Industry: Industrial Materials
• EPS (TTM): >-0.01
• Shares Outstanding: 8,361,509,000
• 10 Day Avg. Volume: 3,094,946
• 30 Day Avg. Volume: 4,673,490
• PEG Ratio: 0.72
• Price to Book (P/B): -22.10
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -10.07
• 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: $0.05
• Price Target Upside: 53.54% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 43 Neutral
• Price Target: AU$0.00 ▼(-100.00%Downside)

Northern Minerals Limited scores poorly due to its precarious financial position marked by persistent losses and negative equity, which significantly outweigh the mild positive technical trends. The low valuation score further affects the overall score, as negative earnings and lack of dividend yield reduce attractiveness.

Northern Minerals Limited Business Overview & Revenue Model

Company Description

Northern Minerals Limited engages in the exploration and evaluation of rare earth element mineral interests in Australia. The company explores for dysprosium and other heavy rare earths. Its flagship project is the 100% owned Browns Range Pilot Plant project located to the south east of Halls Creek in northern Western Australia. The company was formerly known as Northern Uranium Limited and changed its name to Northern Minerals Limited in February 2011. Northern Minerals Limited was incorporated in 2006 and is based in West Perth, Australia.

How the Company Makes Money

Northern Minerals Limited generates revenue primarily through the exploration, mining, and sale of rare earth elements extracted from its mining operations. The company focuses on producing heavy rare earth elements, which are in high demand for their use in advanced technologies, including electric vehicles, wind turbines, and other green energy technologies. The revenue model is centered around the extraction and processing of these minerals, which are then sold to manufacturers and technology companies worldwide. Additionally, Northern Minerals may engage in strategic partnerships and off-take agreements with industry players to secure long-term sales and enhance its market position. The company's earnings are influenced by factors such as global demand for rare earth elements, commodity prices, and its ability to efficiently scale production at its mining sites.

Northern Minerals Limited Financial Statement Overview

Summary

Northern Minerals Limited exhibits ongoing financial instability. Despite recent revenue growth, persistent negative net income, EBIT margins, and negative equity highlight operational inefficiencies and financial risk.

Income Statement

Northern Minerals Limited has experienced volatile revenue growth, with a significant increase in the most recent year, yet profitability remains a challenge. The company has consistently reported negative net income and EBIT margins over the years, indicating ongoing operational inefficiencies and cost management issues. Despite recent revenue increases, the persistent losses undermine the financial stability suggested by such growth.

Balance Sheet

The balance sheet reveals a concerning financial structure, with a negative stockholders' equity position, indicating liabilities exceeding assets. The Debt-to-Equity ratio is not calculable due to negative equity, signaling a high-risk financial leverage. The company's equity ratio is negative, further emphasizing the risk of insolvency and the need for financial restructuring.

Cash Flow

Cash flow analysis shows that Northern Minerals Limited faces challenges in generating positive cash flow, with consistently negative free cash flow and operating cash flow figures. While financing cash flow has been positive, primarily from external funding, it raises sustainability concerns given the negative operating cash flow to net income and free cash flow to net income ratios.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
4.47M	4.47M	6.54K	3.90M	0.00	3.07M
	Gross Profit
4.14M	4.47M	-522.62K	3.39M	-1.62M	2.94M
	EBIT
-30.02M	-29.27M	-22.46M	-29.78M	-20.15M	-52.26M
	EBITDA
-30.33M	-29.65M	-20.61M	-16.90M	-16.46M	-27.04M
	Net Income Common Stockholders
-32.35M	-31.59M	-22.29M	-24.36M	-8.53M	-54.33M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
10.59M	8.25M	11.69M	2.86M	19.90M	6.66M
	Total Assets
25.77M	13.94M	17.40M	12.77M	37.77M	42.48M
	Total Debt
514.66K	15.40M	13.36M	247.02K	292.34K	5.85M
	Net Debt
-10.07M	7.15M	1.67M	-2.61M	-19.61M	-806.89K
	Total Liabilities
12.63M	27.95M	23.87M	7.19M	8.77M	30.82M
	Stockholders Equity
13.14M	-14.01M	-6.47M	5.58M	29.00M	11.66M
Cash Flow		Free Cash Flow
-30.77M	-26.50M	-14.20M	-17.42M	-8.52M	-47.60M
	Operating Cash Flow
-30.64M	-26.12M	-14.09M	-16.93M	-885.01K	-31.76M
	Investing Cash Flow
-205.94K	-556.78K	699.56K	-499.80K	-7.65M	-15.84M
	Financing Cash Flow
42.38M	23.24M	22.23M	259.70K	21.82M	46.15M

Northern Minerals Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.03
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:NTU, the sentiment is Positive. The current price of 0.03 is above the 20-day moving average (MA) of 0.03, above the 50-day MA of 0.03, and above the 200-day MA of 0.02, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 56.57 is Neutral, neither overbought nor oversold. The STOCH value of 71.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:NTU.

Northern Minerals Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AGE	51 Neutral	AU$116.21M	―	-5.22%	―	―	―
Sector *	51 Neutral	$2.02B	-1.19	-21.37%	3.64%	2.88%	-30.57%
ASM	48 Neutral	AU$116.96M	―	-15.33%	―	-52.53%	-27.29%
NTU	43 Neutral	$250.71M	―	-428.37%	―	―	3.70%
PKREF		$77.87M	―	-21.89%	―	―	―
ESR	37 Underperform	AU$96.44M	―	-13.69%	―	-100.00%	-88.89%
PSC	36 Underperform	AU$98.37M	―	-26.16%	―	―	-28.93%

Northern Minerals Limited Corporate Events

Northern Minerals Enhances Geological Understanding at Dazzler Deposit

Northern Minerals Limited has completed a successful drilling program at its Dazzler deposit, part of the Browns Range Heavy Rare Earths Project. The program, co-funded by the Exploration Incentive Scheme, involved five diamond drill holes that enhanced the geological understanding of the deposit and identified new volcanic units. These findings are expected to support an update to the Dazzler Mineral Resource estimate and improve exploration targeting. The results demonstrate the potential for further heavy rare earth discoveries in the Browns Range region, aligning with Northern Minerals’ long-term exploration strategy.

The most recent analyst rating on (AU:NTU) stock is a Buy with a A$0.05 price target. To see the full list of analyst forecasts on Northern Minerals Limited stock, see the AU:NTU Stock Forecast page.

Northern Minerals Advances Browns Range Amid Global Rare Earths Tensions

Northern Minerals Limited reported significant progress in advancing its Browns Range Project during the March 2025 quarter. The company completed key feasibility studies and exploration activities, while also securing substantial funding through a share placement. The geopolitical tensions and China’s export restrictions on heavy rare earths underscore the strategic importance of Northern Minerals as a reliable source of these materials, enhancing its position in the critical minerals supply chain.

Northern Minerals Reports Quarterly Cash Flow and Secures Strong Financing

Northern Minerals Limited reported a net cash outflow from operating activities of $5.836 million for the quarter ending March 31, 2025, primarily due to exploration, evaluation, and development costs. Despite these expenses, the company secured $42.484 million in net cash from financing activities year-to-date, indicating strong investor confidence and financial support for its ongoing projects.

Northern Minerals Positioned for Growth Amid China’s Rare Earth Export Restrictions

Northern Minerals Limited is strategically positioned to benefit from China’s newly announced export restrictions on heavy rare earths, which include dysprosium and terbium. As China dominates the global supply of these minerals, the restrictions are expected to prompt governments and private sectors to seek alternative sources. Northern Minerals’ Browns Range Project, with its high-grade deposits, is poised to become a reliable alternative source, enhancing Australia’s critical minerals supply chain. The company’s partnership with Iluka Resources further strengthens its capacity to deliver these essential materials at scale.

Northern Minerals Completes Government-Ordered Share Divestment

Northern Minerals Limited announced the completion of a government-mandated divestment of shares, as required by the Foreign Acquisitions and Takeovers Orders 2024. The divestment involved five shareholders and a total of 613,573,632 shares, representing approximately 10.4% of the company’s issued capital at the time. This completion marks a significant step in aligning with regulatory requirements, potentially impacting the company’s market positioning and stakeholder interests.

Northern Minerals Highlights Compliance and Resource Management at Mining Conference

Northern Minerals Limited presented at the Ord Minnett Mining Conference 2025, providing an update on its operations and compliance with Australian disclosure standards. The company emphasized its adherence to the JORC Code for reporting Mineral Resources and Ore Reserves, ensuring transparency and reliability in its estimates. This presentation underscores Northern Minerals’ commitment to maintaining industry standards and could reinforce stakeholder confidence in its resource management and reporting practices.

Northern Minerals Limited Reports Financial Results and Capital Raising Efforts

Northern Minerals Limited reported a net loss of $15 million for the half-year ending December 31, 2024, compared to a $14.2 million loss in the previous year. The company raised $41.5 million through a placement to investors and an additional $3.85 million via a Share Purchase Plan, indicating a strategic focus on securing financial resources to support its ongoing exploration and feasibility studies.