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Peak Rare Earths Limited (AU:PEK)
:PEK

Peak Rare Earths Limited (PEK) AI Stock Analysis

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Peak Rare Earths Limited

(OTC:PEK)

Rating:34Underperform
Price Target:
Peak Rare Earths Limited's stock score is primarily impacted by its weak financial performance, with zero revenue and consistent losses raising sustainability concerns. Despite some positive technical indicators, the lack of profitability and negative valuation metrics suggest caution. The absence of earnings call insights or corporate events further limits positive influence on the score.

Peak Rare Earths Limited (PEK) vs. iShares MSCI Australia ETF (EWA)

Peak Rare Earths Limited Business Overview & Revenue Model

Company DescriptionPeak Rare Earths Limited (PEK) is an Australian-based mineral exploration and development company focused on the mining and production of rare earth elements. The company is primarily engaged in the exploration, development, and potential production of rare earth projects, with its flagship project being the Ngualla Rare Earth Project located in Tanzania. Peak Rare Earths aims to become a leading supplier of rare earth materials critical for high-tech and clean energy industries.
How the Company Makes MoneyPeak Rare Earths Limited generates revenue through the exploration, development, and anticipated production and sale of rare earth elements, which are essential components in various high-tech applications, including electronics, renewable energy technologies, and electric vehicles. The company's primary source of potential revenue is the Ngualla Rare Earth Project. By extracting and processing rare earth minerals, Peak Rare Earths aims to supply these materials to industries globally. Significant partnerships, such as off-take agreements with end-users and strategic investors, also play a crucial role in facilitating project development and ensuring a consistent revenue stream once production commences. The company may also engage in joint ventures and collaborations to enhance its project development capabilities and market reach.

Peak Rare Earths Limited Financial Statement Overview

Summary
Overall, Peak Rare Earths Limited is facing significant financial challenges, primarily due to zero revenue and consistent losses. Despite a strong equity base, the company's inability to generate positive cash flow or profit highlights operational inefficiencies and raises concerns about future sustainability.
Income Statement
10
Very Negative
Peak Rare Earths Limited has consistently reported zero revenue over the past years, indicating lack of sales or operational inefficiencies. The company has sustained significant losses, reflected by negative gross profit and net income figures. This trend suggests challenges in achieving profitability.
Balance Sheet
30
Negative
The company maintains a relatively strong equity position with a high equity ratio, indicating reliance on equity rather than debt financing. However, the persistent losses impact stockholders' equity negatively, and the debt-to-equity ratio remains low due to minimal debt.
Cash Flow
20
Very Negative
Operating cash flow is consistently negative, reflecting cash outflows from operations. Free cash flow remains negative as well, indicating potential liquidity issues. The lack of revenue compounds cash flow challenges, impacting the overall financial health.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
82.77K0.000.000.000.000.00
Gross Profit
82.77K-8.69M-320.21K-199.07K-23.05K-16.90K
EBIT
-7.11M-18.61M-33.48M-14.71M-4.56M-4.00M
EBITDA
-6.58M-18.55M-33.05M-14.66M-4.42M-3.81M
Net Income Common Stockholders
-12.49M-17.28M-29.39M-22.73M-4.77M7.65M
Balance SheetCash, Cash Equivalents and Short-Term Investments
4.78M7.63M25.85M9.48M2.68M2.55M
Total Assets
75.30M72.59M91.48M73.72M61.59M62.38M
Total Debt
326.43K574.76K279.26K316.64K5.69M5.86M
Net Debt
-4.45M-7.05M-25.57M-9.16M3.01M3.31M
Total Liabilities
2.29M2.51M2.60M2.86M6.29M6.51M
Stockholders Equity
55.78M53.19M71.11M70.86M55.29M55.87M
Cash FlowFree Cash Flow
-7.16M-18.21M-9.60M-12.37M-4.47M-3.09M
Operating Cash Flow
-7.14M-17.45M-9.22M-12.13M-4.47M-2.99M
Investing Cash Flow
-23.27K-760.47K-370.34K-239.50K286.00-729.68K
Financing Cash Flow
4.34M-221.29K25.94M19.22M4.63M4.17M

Peak Rare Earths Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.28
Price Trends
50DMA
0.16
Positive
100DMA
0.13
Positive
200DMA
0.14
Positive
Market Momentum
MACD
0.03
Positive
RSI
73.43
Negative
STOCH
91.67
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:PEK, the sentiment is Positive. The current price of 0.28 is above the 20-day moving average (MA) of 0.24, above the 50-day MA of 0.16, and above the 200-day MA of 0.14, indicating a bullish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 73.43 is Negative, neither overbought nor oversold. The STOCH value of 91.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:PEK.

Peak Rare Earths Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUALK
67
Neutral
$457.18M24.755.86%10.37%-39.24%
AULYC
60
Neutral
$8.56B168.202.27%-20.07%-74.91%
51
Neutral
$2.02B-1.19-21.37%3.64%2.88%-30.57%
AUARU
46
Neutral
$431.26M-33.33%65.19%
AUNTU
43
Neutral
$250.71M-428.37%3.70%
AUPEK
34
Underperform
AU$119.57M-21.89%71.67%
AUHAS
33
Underperform
AU$55.72M-86.77%-879.59%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:PEK
Peak Rare Earths Limited
0.28
0.07
35.92%
AU:ALK
Alkane Resources Ltd
0.76
0.21
39.81%
AU:LYC
Lynas Rare Earths
9.15
2.59
39.48%
AU:NTU
Northern Minerals Limited
0.03
>-0.01
-20.93%
AU:ARU
Arafura Resources
0.18
0.00
0.00%
AU:HAS
Hastings Technology Metals Limited
0.30
0.02
7.14%

Peak Rare Earths Limited Corporate Events

Peak Rare Earths Advances Ngualla Project Amid Strategic Developments
Apr 29, 2025

Peak Rare Earths Limited has made significant progress in the development of its Ngualla Rare Earth Project during the March 2025 quarter. Key developments include advancing negotiations with Shenghe Resources Holding Co., Ltd. regarding a potential transaction, raising additional capital, and progressing the sale of its Teesside site. The company also received approval for land compensation in Tanzania and continued its community support initiatives. These efforts are positioned to enhance Peak’s operational capabilities and market presence, especially amid regulatory changes in China’s rare earth sector and increasing global demand for electric vehicles.

Peak Rare Earths Updates Registered Office Address
Apr 6, 2025

Peak Rare Earths Limited has announced a change in its registered and principal administrative office address to Suite 5, Level 3, 220 St Georges Terrace, Perth, WA 6000. This change is part of the company’s administrative updates, with all other contact details remaining the same, ensuring continued operations without disruption.

Peak Rare Earths Limited Releases Half-Year Financial Report
Mar 14, 2025

Peak Rare Earths 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 announcement is crucial for stakeholders as it reflects the company’s financial health and operational efficiency, potentially impacting its market positioning and investor confidence.

Director Change at Peak Rare Earths Limited
Mar 12, 2025

Peak Rare Earths Limited announced the cessation of Ian Douglas Chambers as a director, effective March 12, 2025. The notice details Chambers’ interests in securities, including performance rights and fully paid ordinary shares, both as a registered holder and through trusts. This change in directorship may impact the company’s governance and strategic direction, potentially affecting its stakeholders and market positioning.

Peak Rare Earths Announces Director Resignation Amid Project Focus
Mar 12, 2025

Peak Rare Earths Limited announced the resignation of Mr. Ian Chambers as a Non-Executive Director, effective immediately. Mr. Chambers, who served as Chair of the Audit, Risk and Sustainability Committee, cited personal reasons for his departure but expressed his intention to remain a supportive shareholder. The resignation comes as the company continues to focus on the development of its Ngualla Rare Earths Project in Tanzania, a key asset in its portfolio.

Peak Rare Earths Director Alters Securities Holdings
Feb 13, 2025

Peak Rare Earths Limited announced a change in Director Nicholas Ronald Bowen’s interest in securities, involving the acquisition of 90,000 ordinary shares and the disposal of 90,000 performance rights. This transaction was executed through the exercise of vested Performance Rights under a shareholder-approved Employee Incentive Rights Plan, reflecting the company’s strategic focus on aligning management interests with shareholder value.

Peak Rare Earths Expands ASX Presence with New Securities Quotation
Feb 13, 2025

Peak Rare Earths Limited has announced the quotation of 90,000 fully paid ordinary securities on the Australian Securities Exchange (ASX) as of February 13, 2025. This move could potentially enhance the company’s liquidity and investor base, strengthening its financial position and market presence. The issuance of new securities is a strategic step that could impact stakeholders by potentially improving capital resources and supporting its growth initiatives within the rare earths market.

Peak Rare Earths Announces Director’s Interest Change
Feb 10, 2025

Peak Rare Earths Limited announced a change in the director’s interest as Ian Douglas Chambers exercised 75,000 Performance Rights to acquire the same number of Ordinary Shares. This change reflects a reallocation of securities within the company, with Mr. Chambers now holding 75,000 Ordinary Shares directly and a reduced number of Performance Rights. The transaction was executed under a shareholder-approved Employee Incentive Rights Plan, which may impact the company’s internal equity distribution and stakeholders’ perception of executive alignment with shareholder interests.

Peak Rare Earths Lists New Securities on ASX
Feb 10, 2025

Peak Rare Earths Limited has announced the quotation of 331,711 fully paid ordinary securities on the Australian Securities Exchange (ASX), effective February 7, 2025. This move is part of their strategic efforts to enhance liquidity and expand their market presence, potentially impacting their operational capabilities and offering increased opportunities for investors.

Peak Rare Earths Announces Director’s Change in Interest
Feb 9, 2025

Peak Rare Earths Limited announced a change in the director’s interest notice for Abdullah Mwinyi, with a lapse of 42,500 performance rights. The change reflects the expiration of performance rights without acquisition, leaving Mwinyi with 17,543 performance rights and 106,623 ordinary shares, potentially affecting the company’s governance and stakeholder interests.

Peak Rare Earths Reports Lapse of Performance Rights
Feb 6, 2025

Peak Rare Earths Limited announced the lapse of 1,536,250 performance rights due to unfulfilled conditions, impacting their issued capital structure. This cessation may influence the company’s financial strategies and stakeholder confidence as they navigate the competitive landscape of rare earth mineral production.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.