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Paterson Resources (AU:PSL)
ASX:PSL

Paterson Resources (PSL) AI Stock Analysis

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AU:PSL

Paterson Resources

(Sydney:PSL)

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Neutral 48 (OpenAI - 5.2)
Rating:48Neutral
Price Target:
AU$0.04
▲(10.00% Upside)
The score is primarily held back by weak fundamentals—no revenue, persistent losses, and ongoing cash burn with declining equity—despite a low-risk capital structure with zero debt. Technicals add some support from positive momentum, but overbought signals temper that benefit, and valuation remains unattractive due to loss-making earnings and no dividend.
Positive Factors
Low leverage / no debt
A debt-free balance sheet materially reduces fixed financial obligations and interest burden, giving the company flexibility to fund operations or pursue restructuring without near-term default risk. Over 2-6 months this preserves optionality to access capital or reallocate cash to priority areas.
Improving loss trajectory
Sequentially smaller net losses indicate the company is cutting costs or eliminating one-off charges, which lengthens runway and demonstrates management action. If sustained, this improvement reduces the pace of equity erosion and strengthens the path toward break-even when revenue initiatives commence.
Narrowing cash burn
Reduced free cash outflow shows operational cash discipline and a smaller funding gap. Over a medium horizon this improves funding flexibility, lowers near-term dilution risk, and makes it more feasible to bridge to revenue generation or secure targeted financing on better terms.
Negative Factors
No revenue / unproven business model
Zero reported revenue is a structural weakness: the core business model is unproven and there is no demonstrated product-market fit. Without recurring revenues, long-term profitability and margin sustainability cannot be assessed, forcing reliance on financing or asset sales to continue operations.
Persistent negative cash flow
Consistent negative operating and free cash flow signals structural cash burn that requires external funding. Over months this increases dilution or financing cost risk, constrains investment in commercialization, and limits the firm's ability to scale once revenues are targeted.
Declining shareholder equity
Material equity erosion over multiple years reflects cumulative losses and reduces the balance sheet's shock-absorbing capacity. This weakens long-term financial resilience, narrows strategic options, and can impede future capital raises or credit access even though leverage is currently low.

Paterson Resources (PSL) vs. iShares MSCI Australia ETF (EWA)

Paterson Resources Business Overview & Revenue Model

Company DescriptionPaterson Resources Ltd, a mineral resources company, focuses on the exploration and development of gold and copper projects in Australia. It holds 100% interest in the Grace project that covers an area of approximately 350 square kilometers located in the Paterson province in Western Australia; the Burraga project comprising 4 exploration licenses that covers an area of approximately 2 kilometers located in south of the village of Burraga; and the Pilbara gold project consisting of four exploration licenses located in Western Australia. The company was formerly known as Hardey Resources Limited and changed its name to Paterson Resources Ltd in December 2019. Paterson Resources Ltd was incorporated in 2005 and is based in Subiaco, Australia.
How the Company Makes MoneyPaterson Resources makes money through the exploration and development of mineral properties, primarily targeting gold and copper deposits. The company generates revenue by advancing its exploration projects to a stage where they can attract investment or be sold to larger mining companies. This process involves identifying prospective mineral deposits, conducting geological surveys, drilling, and feasibility studies to determine the viability of mining operations. Additionally, Paterson Resources may form joint ventures or partnerships with other mining companies to share the costs and risks associated with exploration while retaining a stake in potential future profits. The company may also earn revenue from the sale of its developed mineral assets or from royalties on mineral production if the properties are successfully developed into operational mines.

Paterson Resources Financial Statement Overview

Summary
Financials are constrained by zero revenue, ongoing net losses, and consistently negative operating/free cash flow. While losses and cash burn narrowed in 2025, equity has declined materially over multiple years, indicating continued value erosion despite having no debt.
Income Statement
8
Very Negative
The company reports no revenue across all periods, with losses continuing each year. Net losses improved materially in 2025 (net loss of ~A$0.47M vs ~A$1.67M in 2024 and ~A$5.66M in 2023), indicating better cost control or fewer one-off charges, but the business still lacks a demonstrated revenue base and remains structurally unprofitable.
Balance Sheet
58
Neutral
The balance sheet shows no debt, which meaningfully reduces financial risk and provides flexibility. However, equity has fallen sharply over time (from ~A$20.5M in 2021 to ~A$6.6M in 2025), reflecting cumulative losses, and returns on equity remain negative—signaling ongoing value erosion despite low leverage.
Cash Flow
12
Very Negative
Cash generation is weak: operating cash flow and free cash flow are negative every year, implying ongoing cash burn to sustain operations. Free cash outflow narrowed in 2025 (free cash flow ~-A$1.01M vs ~-A$1.58M in 2024), but the company still relies on funding sources outside operations until it can establish durable inflows.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue286.58K0.000.000.000.000.00
Gross Profit286.58K0.00-6.81K-24.38K-16.25K-6.95K
EBITDA-154.86K-470.65K-981.69K-5.63M-10.61M-886.57K
Net Income-470.64K-470.64K-1.67M-5.66M-10.63M-903.63K
Balance Sheet
Total Assets6.61M6.61M7.72M7.33M11.35M20.83M
Cash, Cash Equivalents and Short-Term Investments1.92M1.92M475.51K586.64K1.38M2.21M
Total Debt0.000.000.000.000.000.00
Total Liabilities40.72K40.72K687.06K213.91K240.78K338.09K
Stockholders Equity6.57M6.57M7.04M7.12M11.11M20.49M
Cash Flow
Free Cash Flow-886.44K-1.01M-1.58M-2.42M-2.03M-2.11M
Operating Cash Flow-707.22K-1.01M-685.42K-901.34K-715.94K-921.44K
Investing Cash Flow2.47M2.45M-898.25K-1.52M-1.31M-1.18M
Financing Cash Flow0.000.001.47M1.63M1.20M2.36M

Paterson Resources Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.04
Price Trends
50DMA
0.03
Positive
100DMA
0.03
Positive
200DMA
Market Momentum
MACD
<0.01
Negative
RSI
66.01
Neutral
STOCH
68.59
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:PSL, the sentiment is Positive. The current price of 0.04 is above the 20-day moving average (MA) of 0.04, above the 50-day MA of 0.03, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 66.01 is Neutral, neither overbought nor oversold. The STOCH value of 68.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:PSL.

Paterson Resources Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
53
Neutral
AU$23.60M-9.47-11.09%36.67%
48
Neutral
AU$23.58M-43.00-6.91%72.22%
47
Neutral
AU$4.88M-0.65-126.15%24.09%
44
Neutral
AU$7.23M50.00%
43
Neutral
AU$8.53M-2.27-90.56%-178.00%
43
Neutral
AU$15.10M-2.14-45.16%-563.16%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:PSL
Paterson Resources
0.04
0.03
330.00%
AU:ALB
Albion Resources Ltd.
0.06
0.02
57.50%
AU:MTL
Caeneus Minerals Limited
AU:C29
C29 Metals Limited
0.03
-0.02
-39.53%
AU:CAZ
Cazaly Resources Limited
0.03
0.02
170.00%
AU:PVT
Rafaella Resources Ltd.
0.02
<0.01
80.00%

Paterson Resources Corporate Events

Paterson Resources Completes First Phase of Drilling at Grace Gold-Copper Project
Jan 30, 2026

Paterson Resources has completed Phase I of its 8,500m reverse circulation drilling campaign at the Grace Gold-Copper Project, finishing 18 drill holes for about 2,500m on time and within budget, with all samples dispatched to SGS Australia in Perth for assay results expected in early February. The program is designed to extend known mineralisation, infill resource areas to upgrade the current 1.59Mt at 1.35g/t Au (69,000oz) Inferred resource to an Indicated JORC 2012 classification, and test extensions to a high-grade parallel lode, supporting the company’s goal of delivering an Indicated resource in the first half of 2026 to feed into a scoping study, while a recent rights issue raised $752,000 to fund this ongoing work and potentially advance a simple, shallow oxide processing concept at Grace.

The most recent analyst rating on (AU:PSL) stock is a Hold with a A$0.04 price target. To see the full list of analyst forecasts on Paterson Resources stock, see the AU:PSL Stock Forecast page.

Paterson Resources Denies Undisclosed News Behind Share Price Surge
Jan 29, 2026

Paterson Resources has responded to an ASX price and volume query after its shares moved from A$0.038 to A$0.045 on unusually high trading activity. The company said it is not aware of any undisclosed, price-sensitive information that could explain the trading and has no other explanation for the volatility, while noting that results from its drilling program at the Grace Project are expected in early February. Paterson confirmed it remains in full compliance with ASX Listing Rules, including its continuous disclosure obligations, and that the response to the exchange has been authorised by its board, indicating the company is formally distancing itself from any suggestion of insider-driven trading ahead of the pending drill results.

The most recent analyst rating on (AU:PSL) stock is a Hold with a A$0.04 price target. To see the full list of analyst forecasts on Paterson Resources stock, see the AU:PSL Stock Forecast page.

Paterson Resources Director Ken Banks Steps Down With No Shareholdings Declared
Jan 28, 2026

Paterson Resources Limited has announced that director Ken Banks ceased to be a director on 28 January 2026, as disclosed in a final director’s interest notice lodged with the ASX. The filing confirms that Banks holds no relevant interests in the company’s securities, either directly or indirectly, and has no interests in any related contracts, suggesting his departure is not associated with changes in ownership structure or control and is unlikely to have an immediate impact on the company’s capital base.

The most recent analyst rating on (AU:PSL) stock is a Hold with a A$0.04 price target. To see the full list of analyst forecasts on Paterson Resources stock, see the AU:PSL Stock Forecast page.

Paterson Resources Appoints John Kay to Board With No Current Equity Interest
Jan 28, 2026

Paterson Resources has appointed John Kay as a director, effective 28 January 2026. According to the initial director’s interest notice filed with the ASX, Kay holds no securities in the company, either directly or indirectly, and has no interests in any related contracts, indicating he joins the board without an existing equity stake or contractual exposure to the company.

The most recent analyst rating on (AU:PSL) stock is a Hold with a A$0.04 price target. To see the full list of analyst forecasts on Paterson Resources stock, see the AU:PSL Stock Forecast page.

Paterson Resources Names John Kay as New Non-Executive Chairman
Jan 28, 2026

Paterson Resources has announced a leadership change, appointing experienced corporate lawyer and adviser John Kay as its new non-executive chairman. Kay brings over 18 years of experience in equity capital markets, mergers and acquisitions, and the resources sector across Australia and the UK, and currently serves as a non-executive director of Tusker Minerals. He replaces Ken Banks, who has resigned as non-executive director and chairman with immediate effect, marking a governance and strategic shift that may influence Paterson’s capital markets engagement and corporate direction.

The most recent analyst rating on (AU:PSL) stock is a Hold with a A$0.04 price target. To see the full list of analyst forecasts on Paterson Resources stock, see the AU:PSL Stock Forecast page.

Paterson Resources Director Increases Stake Through Share Placement
Jan 2, 2026

Paterson Resources has disclosed a change in director Matthew Bull’s holdings following his participation in a recent capital raising. Bull acquired 22,222,222 fully paid ordinary shares at $0.018 each and received 22,222,222 free attaching unlisted options exercisable at $0.028, increasing his stake to 44,521,331 shares and 24,699,901 such options, alongside existing options and performance rights. The transaction, part of a placement approved by shareholders in November 2025, signals strong insider support for the company’s equity raising efforts and may be viewed by investors as a vote of confidence in Paterson Resources’ strategic direction and future prospects.

The most recent analyst rating on (AU:PSL) stock is a Hold with a A$0.04 price target. To see the full list of analyst forecasts on Paterson Resources stock, see the AU:PSL Stock Forecast page.

Paterson Resources Confirms Compliance on Newly Issued ASX-Quoted Shares
Dec 28, 2025

Paterson Resources has notified the market that shares referenced in its Appendix 2A lodged on 24 December 2025 form part of an existing class of ASX-quoted securities and were issued without a disclosure document under the Corporations Act’s fundraising provisions. The company confirmed it is fully compliant with its financial reporting and continuous disclosure obligations and stated there is no excluded or undisclosed information relevant to these securities, signalling to investors that the new shares may be freely tradeable and that regulatory and transparency requirements are being met.

Paterson Resources Seeks Quotation for Additional Ordinary Shares on ASX
Dec 28, 2025

Paterson Resources Ltd has applied to the ASX for quotation of 2,155 new fully paid ordinary shares under its issuer code PSL, with an issue date of 24 December 2025. The small share issue, arising from the exercise or conversion of existing securities, marginally increases the company’s quoted capital base and reflects ongoing utilisation of equity-linked instruments by shareholders, though it is not expected to have a material impact on the company’s overall capital structure or market position.

Paterson Resources Issues 22.2 Million Unquoted Options Expiring 2028
Dec 28, 2025

Paterson Resources Ltd has notified the market of the issue of 22,222,222 unquoted options, exercisable at $0.028 and expiring on 30 October 2028. The options, which are not intended to be quoted on the ASX, arise from previously announced transactions and reflect the company’s ongoing use of equity-based instruments to support funding, incentivisation or strategic agreements, with potential future dilution for existing shareholders if exercised.

Paterson Resources Seeks ASX Quotation for 22.2 Million New Shares
Dec 28, 2025

Paterson Resources Ltd has applied to the ASX for quotation of 22,222,222 new fully paid ordinary shares, to trade under its existing code PSL from 24 December 2025. The issuance, tied to previously announced transactions, modestly expands the company’s quoted share capital and may provide additional funding flexibility, with potential dilution for existing shareholders depending on the terms of the prior deal.

Paterson Resources Completes Phase I Drilling at Grace Project
Dec 16, 2025

Paterson Resources has successfully completed Phase I of its 8,500-meter drilling campaign at the Grace Gold-Copper Project, achieving 18 drill-holes totaling approximately 2,600 meters. The campaign aims to extend known mineralization, infill resource drilling, and explore potential extensions of a high-grade gold lode. The company plans to deliver a JORC compliant Indicated Mineral Resource Estimate in the first half of 2026, which will contribute to a Scoping Study. The results of the drilling are expected to create significant value for shareholders and enhance Paterson’s position in the industry.

Paterson Resources Aligns Director Incentives with Performance Milestones
Dec 2, 2025

Paterson Resources Ltd has announced a change in the interests of its director, Matthew Bull, with the acquisition of 10,000,000 Performance Rights. These rights are subject to milestone achievements and were approved by shareholders at the recent AGM. This change reflects a strategic move by the company to align director incentives with company performance, potentially impacting the company’s operational focus and stakeholder interests.

Paterson Resources Issues 10 Million Performance Rights
Dec 2, 2025

Paterson Resources Ltd announced the issuance of 10,000,000 performance rights subject to milestones, marking a significant move in its strategic operations. This issuance of unquoted equity securities is expected to impact the company’s operational capabilities and potentially enhance its market positioning.

Paterson Resources Issues Unquoted Securities
Dec 2, 2025

Paterson Resources Ltd has announced the issuance of 58,035,714 unquoted securities, specifically options expiring on November 24, 2026, with an exercise price of $0.05. This issuance is part of a transaction previously announced and is not intended to be quoted on the ASX, reflecting the company’s strategic financial maneuvers to potentially strengthen its capital structure.

Paterson Resources AGM Results Highlight Shareholder Decisions
Nov 28, 2025

Paterson Resources Limited has announced the results of its Annual General Meeting held on November 28, 2025. The meeting included several resolutions, most of which were carried, reflecting a strong shareholder support for the company’s strategic decisions. However, two resolutions regarding the issuance of Director Performance Rights were not carried, indicating some shareholder dissent. This outcome may impact the company’s governance and future strategic initiatives.

Paterson Resources Launches Extensive Drilling Campaign at Grace Gold Project
Nov 26, 2025

Paterson Resources Limited has commenced an 8,500-meter Reverse Circulation drilling campaign at its flagship Grace Gold Project in the Paterson Province. The campaign aims to extend known mineralization and potentially upgrade the current JORC compliant Inferred Mineral Resource Estimate to an Indicated level, which could enhance shareholder value and contribute to ongoing scoping studies.

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: Jan 30, 2026