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Octava Minerals Ltd. (AU:OCT)
:OCT
Australian Market
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Octava Minerals Ltd. (OCT) AI Stock Analysis

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AU:OCT

Octava Minerals Ltd.

(Sydney:OCT)

Rating:44Neutral
Price Target:
Octava Minerals Ltd. is facing substantial financial challenges, primarily due to unprofitability and negative cash flows. The strong balance sheet provides some security, but the lack of revenue growth and operational efficiency raises concerns. Technical indicators suggest a bearish trend, while the current valuation reflects the company's financial struggles.

Octava Minerals Ltd. (OCT) vs. iShares MSCI Australia ETF (EWA)

Octava Minerals Ltd. Business Overview & Revenue Model

Company DescriptionOctava Minerals Limited engages in the exploration of various mineral properties in the Western Australia. The company focuses on exploring gold, lithium, nickel, and platinum group elements. It's project portfolio include the East Pilbara Talga project that comprises eight granted exploration licenses covering an area of 211 square kilometers located in the northeast of marble bar in the Pilbara region of Western Australia; and the East Kimberly Project comprises two tenements, the Panton North project and the Copernicus North project located in the Halls Creek Orogen. In addition, the company holds interest the Yallalong project consisting of one granted exploration licence covering an area of approximately 63.4 square kilometers located in northeast of Geraldton. Octava Minerals Limited was formerly known as 8 AU limited and changed its name to Octava Minerals Limited in February 2022. The company was incorporated in 2020 and is headquartered in Subiaco, Australia.
How the Company Makes MoneyOctava Minerals Ltd. generates revenue primarily through the exploration and development of mineral resources. The company's key revenue streams include the sale of extracted minerals such as lithium, gold, and base metals to industrial clients and commodity markets. Additionally, Octava Minerals may engage in joint ventures or partnerships with other mining companies to co-develop projects, which can lead to shared revenues or royalties from successful mining operations. The company's earnings are influenced by factors such as mineral prices, exploration success, and operational efficiency.

Octava Minerals Ltd. Financial Statement Overview

Summary
Octava Minerals Ltd. faces significant challenges in profitability and cash flow generation. The income statement shows declining revenue and growing net losses, while cash flows remain negative with no improvement. However, the balance sheet is strong with no debt and solid equity.
Income Statement
40
Negative
Octava Minerals Ltd. shows a declining revenue trend with a significant drop in total revenue from 2023 to 2024. The company has negative EBIT and EBITDA margins, indicating operational inefficiencies. The net loss is growing, which poses a challenge to achieving profitability.
Balance Sheet
60
Neutral
The company maintains a strong equity position with no debt, reflected in a debt-to-equity ratio of zero. However, the return on equity is negative due to continued net losses. The equity ratio is robust, indicating a solid financial structure.
Cash Flow
45
Neutral
Octava Minerals Ltd. has negative free cash flow, with no signs of improvement. Operating cash flows are consistently negative, and there is no financing cash flow growth to support operations. The company relies on past financing activities to maintain liquidity.
BreakdownJun 2024Jun 2023Jun 2022Jun 2021
Income Statement
Total Revenue200.00K400.00K0.000.00
Gross Profit200.00K400.00K0.000.00
EBITDA-797.64K-752.73K-790.29K-316.93K
Net Income-797.64K-752.73K-1.52M-522.21K
Balance Sheet
Total Assets5.14M5.84M336.95K281.27K
Cash, Cash Equivalents and Short-Term Investments1.48M3.36M113.78K24.38K
Total Debt0.000.000.00100.00K
Total Liabilities64.14K106.92K570.90K238.08K
Stockholders Equity5.07M5.73M-233.95K43.19K
Cash Flow
Free Cash Flow-1.87M-2.34M-961.88K-621.02K
Operating Cash Flow-779.60K-855.46K-961.88K-394.20K
Investing Cash Flow-1.09M-1.48M0.00-246.82K
Financing Cash Flow0.005.58M1.05M665.40K

Octava Minerals Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.04
Price Trends
50DMA
0.04
Positive
100DMA
0.04
Positive
200DMA
0.07
Negative
Market Momentum
MACD
<0.01
Negative
RSI
58.23
Neutral
STOCH
61.87
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:OCT, the sentiment is Positive. The current price of 0.04 is above the 20-day moving average (MA) of 0.03, above the 50-day MA of 0.04, and below the 200-day MA of 0.07, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 58.23 is Neutral, neither overbought nor oversold. The STOCH value of 61.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:OCT.

Octava Minerals Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
58
Neutral
$6.30B50.78-33.95%4.54%2.22%-411.10%
52
Neutral
$6.19B23.42-1.04%-65.07%-102.37%
50
Neutral
$246.45M-21.25%-70.50%62.71%
44
Neutral
C$980.66M-6.79-13.68%1.76%17.37%-32.98%
44
Neutral
AU$2.26M-46.53%-126.60%
38
Underperform
$332.72M-4.75%-175.00%
36
Underperform
€2.28B-6.32%3.33%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:OCT
Octava Minerals Ltd.
0.04
-0.01
-20.00%
AU:INR
ioneer Limited
0.13
-0.01
-7.41%
AU:MIN
Mineral Resources Limited
32.32
-21.68
-40.15%
AU:PLS
Pilbara Minerals
1.93
-0.99
-34.08%
AU:LTR
Liontown Resources Limited
0.94
-0.01
-1.05%
AU:CXO
Core Lithium Ltd
0.12
0.02
22.34%

Octava Minerals Ltd. Corporate Events

Octava Minerals Releases Half-Year Financial Report
Mar 13, 2025

Octava Minerals Ltd has released its half-year financial report for the period ending 31 December 2024. This report provides stakeholders with insights into the company’s financial performance and operational progress in its exploration and development projects, which could impact its positioning in the new energy metals market.

Octava Minerals Announces Change in Director’s Interests
Mar 5, 2025

Octava Minerals Ltd has announced a change in the director’s interests, specifically for Managing Director and CEO Bevan Wakelam, who acquired 121,634 ordinary shares at a value of $0.0393 per share. This change in director’s interests could indicate a strategic move to strengthen the company’s leadership stake, potentially impacting investor confidence and the company’s market positioning.

Octava Minerals Reports Promising Antimony Drill Results at Yallalong
Feb 10, 2025

Octava Minerals Ltd has reported promising results from its first Reverse Circulation drilling program at the Discovery antimony target within the Yallalong Project. The drilling, which aimed to explore the lateral and vertical extensions of previously identified high-grade antimony, revealed significant intercepts, including a notable 1m at 9% Sb from a depth of 45m. These results underscore the potential of the Discovery target and the challenges of targeting structurally controlled mineral prospects, which the company plans to address in future exploration efforts.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Apr 23, 2025