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Petratherm Ltd (AU:PTR)
ASX:PTR
Australian Market

Petratherm Ltd (PTR) AI Stock Analysis

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AU

Petratherm Ltd

(Sydney:PTR)

Rating:38Underperform
Price Target:
Petratherm Ltd's stock is rated low due to significant financial challenges, including a lack of revenue, consistent losses, and declining equity and assets. While the debt-free status is a positive, the persistent negative cash flows are concerning. Technical indicators show mixed signals with potential short-term weakness, and the valuation is hampered by a negative P/E ratio and no dividend yield. These factors collectively contribute to a low overall score.

Petratherm Ltd (PTR) vs. iShares MSCI Australia ETF (EWA)

Petratherm Ltd Business Overview & Revenue Model

Company DescriptionPetratherm Limited, together with its subsidiaries, engages in the mineral exploration activities. It explores for gold, copper, and rare earth minerals. The company holds 100% interest in the Comet project covering area approximately 1,195 square kilometers; the Muckanippie Rare Earth project covers approximately 178 square kilometers located in Northern Gawler Craton of South Australia; and the Wommera project comprising an area of 209 square kilometers located in South Australia. In addition, it holds interest in the Mabel Creek Ridge project that covers approximately 2852 square kilometers located in Northeast of Coober Pedy, South Australia; and the Gina project comprise an exploration license covering an area of 934 square kilometers. The company was incorporated in 2003 and is headquartered in Dulwich, Australia.
How the Company Makes MoneyPetratherm Ltd generates revenue primarily through the development and commercialization of geothermal energy projects. The company makes money by securing exploration permits, conducting feasibility studies, and eventually developing geothermal power plants that produce electricity. Revenue streams may include the sale of electricity generated from its geothermal projects to the grid or through power purchase agreements with utilities and other large energy consumers. Additionally, Petratherm may engage in partnerships or collaborations with government bodies and other energy companies to secure funding and share technological expertise, which can further support its revenue generation.

Petratherm Ltd Financial Statement Overview

Summary
Petratherm Ltd faces significant financial challenges, evidenced by its inability to generate revenue and consistent losses. While the company maintains a debt-free balance sheet, its declining equity and asset base are concerning. Persistent negative cash flows further exacerbate the company's financial struggles, highlighting the need for strategic shifts to improve revenue and cash generation.
Income Statement
15
Very Negative
Petratherm Ltd has consistently reported zero revenue over the years, indicating challenges in its revenue-generating capability. The company has negative gross and net profit margins due to its inability to generate income against its costs. This trend is a significant concern for financial health and sustainability. Despite a one-time positive net income in 2021 due to an unusual item, the overall profitability is weak.
Balance Sheet
45
Neutral
The company's balance sheet exhibits stability with no debt, resulting in a favorable debt-to-equity ratio. Despite this, the equity ratio has been declining, reflecting a decrease in shareholder equity relative to total assets. The consistent decrease in total assets and stockholders' equity over the years suggests potential risks in asset management and equity preservation.
Cash Flow
30
Negative
Petratherm Ltd's cash flow from operations is consistently negative, which poses a risk to liquidity and operational sustainability. The company has not demonstrated positive free cash flow growth, and the operating cash flow to net income ratio is unfavorable. The lack of financing cash flow in recent years indicates limited external funding, which could constrain cash flow improvements.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
0.000.000.000.0031.79K66.99K
Gross Profit
-288.26K-288.26K-5.15K-2.11K28.78K29.50K
EBIT
66.56K-982.84K-865.88K-765.61K-667.37K-551.69K
EBITDA
-1.19M-1.04M-863.17K-765.74K17.86M-417.24K
Net Income Common Stockholders
-1.15M-1.05M-778.97K-764.82K17.87M-455.01K
Balance SheetCash, Cash Equivalents and Short-Term Investments
2.52M906.74K2.44M4.69M3.10M2.44M
Total Assets
7.95M5.77M6.84M7.57M5.15M3.43M
Total Debt
0.000.000.000.000.000.00
Net Debt
-2.52M-406.74K-1.24M-4.69M-3.10M-2.44M
Total Liabilities
305.15K298.49K383.80K345.44K98.92K118.85K
Stockholders Equity
7.65M5.47M6.46M7.22M5.05M3.31M
Cash FlowFree Cash Flow
-2.06M-1.68M-2.28M-1.31M-1.86M-1.45M
Operating Cash Flow
-1.01M-946.27K-727.31K-460.79K-698.13K-618.76K
Investing Cash Flow
440.72K113.54K-2.71M-849.31K-1.17M-828.06K
Financing Cash Flow
2.67M0.00-16.64K2.90M2.52M0.00

Petratherm Ltd Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.29
Price Trends
50DMA
0.27
Positive
100DMA
0.29
Negative
200DMA
0.21
Positive
Market Momentum
MACD
<0.01
Positive
RSI
52.21
Neutral
STOCH
31.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:PTR, the sentiment is Positive. The current price of 0.29 is below the 20-day moving average (MA) of 0.29, above the 50-day MA of 0.27, and above the 200-day MA of 0.21, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 52.21 is Neutral, neither overbought nor oversold. The STOCH value of 31.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:PTR.

Petratherm Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
51
Neutral
$2.02B-1.19-21.37%3.64%2.88%-30.57%
AUPTR
38
Underperform
AU$100.23M-16.72%-28.95%
$1.97B32.002.70%3.83%
$11.84B12.6214.75%5.52%
$13.89B11.677.94%5.31%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:PTR
Petratherm Ltd
0.29
0.27
1350.00%
BEPTF
Beach Energy
0.86
-0.11
-11.34%
OGFGF
Origin Energy Limited
6.88
0.27
4.08%
STOSF
Santos Limited
4.16
-0.56
-11.86%

Petratherm Ltd Corporate Events

Petratherm Ltd Appoints New Director with No Initial Securities Interest
May 1, 2025

Petratherm Ltd has announced the appointment of Rob Sennitt as a new director, effective from May 1, 2025. The initial director’s interest notice reveals that Mr. Sennitt currently holds no relevant interests in securities, either as a registered holder or through contracts, indicating a neutral starting position in terms of financial interests within the company.

Petratherm Advances Muckanippie Titanium Project with New Discoveries and Funding Boost
Apr 30, 2025

Petratherm Limited has reported significant progress in its Muckanippie Project, with initial analyses confirming the presence of high-value titanium minerals over a 15 square kilometer area at the Rosewood Prospect. The company has completed a substantial drill program and secured $8.1 million in funding to expedite the project’s development, indicating a promising future for its titanium operations.

Petratherm Appoints Experienced Executive Director to Drive Mineral Sands Project
Apr 28, 2025

Petratherm Limited has appointed Rob Sennitt as an Executive Director, effective May 1, 2025. With over 30 years of experience in the resources sector, including leadership roles at Mineral Deposits Limited and Alicanto Minerals, Sennitt is expected to bring valuable expertise to Petratherm. His appointment comes as the company focuses on advancing its potentially world-class Titanium Rich HMS Muckanippie Project. Sennitt’s extensive experience in mineral sands and strategic leadership is anticipated to guide Petratherm forward, potentially impacting its operations and market positioning.

Petratherm Advances Rosewood Titanium Discovery with Successful Phase 2 Drilling
Apr 17, 2025

Petratherm Limited has successfully completed Phase 2 of its drilling program at the Rosewood Titanium Discovery, part of the Muckanippie Project in South Australia. The program involved 128 drill holes, extending the known mineralisation area and collecting a 1-tonne bulk sample for metallurgical testing. The results are expected to enhance mineral recovery processes and inform future exploration phases. The project has received strong support from local Traditional Owners, facilitating further drilling expansions.

Petratherm Secures Shareholder Approval for Strategic Resolutions
Mar 20, 2025

Petratherm Limited announced the successful approval of all resolutions during its Extraordinary General Meeting held on March 20, 2025. The resolutions included the approval of a Performance Rights Plan and the issuance of Zero Exercise Price Options to several Non-Executive Directors. This outcome reflects shareholder support for the company’s strategic initiatives, potentially enhancing its governance and incentivizing leadership, which could positively impact its operations and market positioning.

Petratherm Launches Phase 2 Drilling at Muckanippie Project
Mar 18, 2025

Petratherm Limited has commenced its Phase 2 drilling program at the Rosewood Titanium Discovery within the Muckanippie Project in South Australia. This 6,000-meter air core drilling initiative aims to extend the known mineralization and gather bulk samples for metallurgical testing, following successful Phase 1 results and a recent $8.1 million placement. The program will also explore other promising titanium prospects in the area, potentially enhancing the company’s market position and offering significant opportunities for stakeholders.

Acorn Capital Increases Stake in Petratherm Ltd
Mar 18, 2025

Petratherm Ltd has announced a change in the substantial holding of its voting shares. Acorn Capital Limited, acting as an investment manager for various funds and portfolios, has increased its voting power in Petratherm Ltd from 5.62% to 8.15%. This change reflects a significant shift in the control and influence over the company, indicating Acorn Capital’s growing interest and potential strategic influence in Petratherm’s future operations.

Petratherm Ltd Announces Quotation of New Securities
Mar 13, 2025

Petratherm Ltd announced the quotation of 35,818,181 ordinary fully paid securities on the Australian Securities Exchange as of March 14, 2025. This move is part of previously announced transactions and is expected to impact the company’s market presence by potentially increasing its capital base and enhancing its investment appeal.

Petratherm Limited Releases Interim Report for 2024
Mar 11, 2025

Petratherm Limited has released its interim report for the half-year ending December 31, 2024. The report details the company’s operational and financial activities during this period, reflecting its ongoing efforts in the geothermal energy sector. This release may impact stakeholders by providing insights into the company’s performance and strategic direction.

Petratherm Advances Rosewood Project with Positive Mineral Sizing Results
Mar 5, 2025

Petratherm Ltd has announced significant progress in its Rosewood Project with the results of heavy mineral sizing analysis. The analysis confirms that 90% of the heavy mineral concentrate is coarse-grained, making it highly suitable for conventional gravity spiral processing techniques. This advancement supports the project’s potential for high-grade mineral recovery and positions the company to continue its exploration and metallurgical studies. The ongoing work, including further drilling and mineral separation studies, aims to expand the mineralized area and optimize processing, indicating promising prospects for stakeholders.

Petratherm Ltd Initiates Trading Halt Ahead of Capital Raising Announcement
Mar 4, 2025

Petratherm Ltd, a company listed on the Australian Stock Exchange (ASX), has requested a trading halt on its securities pending an announcement related to capital raising initiatives. The trading halt is expected to remain in effect until the company releases the announcement or until normal trading resumes on March 7, 2025. This move indicates that Petratherm is likely preparing for significant financial activities, which could impact its market positioning and stakeholder interests.

Petratherm Unveils Promising Titanium Discoveries at Muckanippie Project
Feb 19, 2025

Petratherm Limited announced significant findings from their Muckanippie Project, revealing large concentrations of titanium-rich heavy mineral sands over an area of at least 15 square kilometers. This discovery, which remains open for further exploration, indicates high-value titanium ores, such as rutile, offering exceptional potential for expanding their titanium deposit portfolio.

Petratherm Unveils New High-Grade Titanium Discovery at Muckanippie
Feb 19, 2025

Petratherm Ltd announced the discovery of a new style of high-grade titanium mineralization at the Muckanippie Project in South Australia. The exploration drilling revealed significant titanium-rich heavy mineral deposits in saprolite clay, with promising results indicating the potential for extensive mineralization along a 16-kilometer trend. This discovery positions the project as a potential large-scale supplier of titanium, a critical mineral for Australia, with implications for boosting domestic supply and contributing to national security.

Petratherm Ltd Lists 600,000 New Securities on ASX
Feb 17, 2025

Petratherm Ltd announced the quotation of 600,000 fully paid ordinary securities on the Australian Securities Exchange (ASX) as of February 17, 2025. This move reflects the company’s strategic efforts to enhance its market presence and operational capabilities, potentially benefiting its stakeholders by increasing liquidity and providing additional capital for future growth initiatives.

Petratherm Limited Plans Extraordinary General Meeting to Discuss Incentive Schemes
Feb 11, 2025

Petratherm Limited has scheduled an Extraordinary General Meeting to discuss and approve several key resolutions related to their employee incentive schemes. The proposed resolutions include the approval of a Performance Rights Plan, the previous issue of performance rights, and the issuance of zero exercise price options to non-executive directors Derek Carter and Donald Stephens. These measures aim to enhance employee engagement and align the interests of directors and employees with company performance, potentially impacting the company’s operational strategy and stakeholder interests.

Petratherm Unveils Promising Titanium Drilling Results at Rosewood
Feb 5, 2025

Petratherm Limited has announced promising results from its maiden exploration drilling at the Rosewood Heavy Mineral Sand Prospect, revealing a substantial area of titanium-rich mineralisation. The drilling confirmed heavy mineral sand mineralisation extending over at least 15 square kilometres and open in multiple directions, indicating substantial potential for expansion. The high-value mineral content, primarily composed of titanium ores, strengthens the project’s commercial prospects and positions Petratherm favorably in the mineral sands industry.

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.