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Quantum Graphite Ltd (AU:QGL)
ASX:QGL
Australian Market

Quantum Graphite Ltd (QGL) AI Stock Analysis

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AU:QGL

Quantum Graphite Ltd

(Sydney:QGL)

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Neutral 44 (OpenAI - 5.2)
Rating:44Neutral
Price Target:
AU$0.38
▲(12.65% Upside)
The score is primarily constrained by weak financial performance (pre-revenue with recurring losses and negative cash flow), partially offset by an equity-supported balance sheet and improving (but still negative) free cash burn. Technicals remain below key longer-term moving averages, and valuation support is limited given a negative P/E and no dividend yield.
Positive Factors
Equity-backed balance sheet
A meaningful equity base relative to debt provides a solvency cushion that extends runway and reduces near-term liquidation risk. This structural capital buffer supports continued development and funding flexibility over the next several months, aiding project execution.
Moderate leverage ratio
Debt-to-equity around 0.35 limits fixed financing burden and preserves borrowing capacity, improving ability to access additional capital if needed. Moderate leverage supports strategic optionality and lowers interest drag relative to highly leveraged peers over a multi-month horizon.
Improving free cash burn
Reduction in free cash burn year-over-year indicates improving cost control and operational discipline. If sustained, this trend materially reduces dependence on external funding, extending runway and enabling more time to reach commercialization or secure strategic financing.
Negative Factors
Pre-revenue status
Zero reported revenue across multiple years signifies the company has not achieved commercial sales or product-market fit. This structural absence of operating income forces reliance on financing and makes long-term viability contingent on successful commercialization, a material execution risk.
Consistent operating cash outflows
Persistent negative operating cash flow depletes reserves and necessitates recurrent external funding. Over the medium term, continued negative OCF constrains strategic choices, increases dilution or leverage risk, and weakens resilience to market or funding shocks.
Widening losses and negative returns
Rising net losses and deeply negative ROE indicate capital erosion and inability to generate returns on equity. If this trend persists it will eat into the equity cushion, raise funding costs, and limit investment capacity, impairing long-term sustainability absent a revenue inflection.

Quantum Graphite Ltd (QGL) vs. iShares MSCI Australia ETF (EWA)

Quantum Graphite Ltd Business Overview & Revenue Model

Company DescriptionQuantum Graphite Limited engages in the exploration, mining, processing, manufacture, and sale of flake graphite and related products in Australia and internationally. Its flagship project is the Uley graphite project that includes five contiguous mining tenements located on the Eyre Peninsula, South Australia. The company also offers Li-ion electrical based batteries and long duration deep energy storage batteries utilizing the thermal energy storage technologies. The company was formerly known as Valence Industries Limited and changed its name to Quantum Graphite Limited in November 2016. The company was incorporated in 1986 and is headquartered in Melbourne, Australia.
How the Company Makes MoneyQuantum Graphite Ltd generates revenue primarily through the sale of graphite extracted from its mining operations. The company mines graphite and processes it to meet the specifications required by different industrial applications. Key revenue streams include sales to manufacturers in sectors such as energy storage, electronics, and metallurgical industries, where graphite is used in products like lithium-ion batteries and steelmaking. Significant partnerships with technology companies and manufacturing firms enhance its market reach and enable QGL to secure long-term supply contracts, contributing to its earnings. Additionally, the company may invest in research and development initiatives to improve extraction and processing technologies, further boosting its profitability and market competitiveness.

Quantum Graphite Ltd Financial Statement Overview

Summary
Overall fundamentals are weak: revenue is zero across 2020–2025 and gross profit is negative each year, with losses widening again in 2025. The balance sheet has an equity cushion (equity ~14.8m vs debt ~5.2m), but leverage has risen and ROE remains deeply negative. Cash flow is consistently negative, though free cash burn improved in 2025 versus 2024.
Income Statement
12
Very Negative
Operating fundamentals remain weak: the company has reported zero revenue across all provided annual periods (2020–2025), while gross profit is negative each year. Losses have widened again in 2025 (net loss of ~-4.9m vs ~-4.4m in 2024), and operating losses are consistently large, indicating the cost base is not yet supported by commercial sales. A modest positive is that the 2024 loss was smaller than 2023, but the overall trajectory still reflects a pre-revenue, loss-making profile.
Balance Sheet
44
Neutral
The balance sheet shows a meaningful equity base (stockholders’ equity ~14.8m in 2025) relative to total debt (~5.2m), with moderate leverage (debt-to-equity ~0.35 in 2025). However, leverage has increased materially from 2022–2023 levels, and negative returns on equity persist (about -33% in 2025), reflecting ongoing losses that can erode capital over time. Overall, solvency looks acceptable today, but the rising debt trend and continued losses elevate risk.
Cash Flow
28
Negative
Cash generation is negative: operating cash flow is outflowing every year (about -1.24m in 2025), and free cash flow is also negative throughout. The burn rate improved in 2025 versus 2024 (free cash flow roughly -1.24m vs about -2.21m), which is a constructive sign of tighter cash use. Still, cash flow remains dependent on external funding given persistent operating outflows and ongoing net losses.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue0.000.000.000.000.000.00
Gross Profit-26.16K-26.16K-29.64K-32.80K-56.11K-47.27K
EBITDA-498.42K-4.83M-4.01M-5.36M-2.29M-2.23M
Net Income-557.47K-4.91M-4.37M-5.16M-2.25M-2.07M
Balance Sheet
Total Assets22.87M22.87M22.60M20.92M19.89M19.15M
Cash, Cash Equivalents and Short-Term Investments1.58M1.58M1.44M974.45K1.00M1.24M
Total Debt5.19M5.19M4.21M1.30M1.29M0.00
Total Liabilities8.09M8.09M8.99M3.27M3.04M1.62M
Stockholders Equity14.78M14.78M13.62M17.65M16.85M17.53M
Cash Flow
Free Cash Flow-1.24M-1.24M-2.21M-4.55M-2.35M-1.20M
Operating Cash Flow-1.24M-1.24M-1.39M-3.67M-1.38M-1.15M
Investing Cash Flow-659.47K-659.47K-847.32K-678.05K-971.57K-53.10K
Financing Cash Flow2.05M2.05M2.70M4.32M2.12M2.42M

Quantum Graphite Ltd Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.34
Price Trends
50DMA
0.39
Positive
100DMA
0.43
Negative
200DMA
0.45
Negative
Market Momentum
MACD
<0.01
Negative
RSI
56.18
Neutral
STOCH
58.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:QGL, the sentiment is Positive. The current price of 0.34 is below the 20-day moving average (MA) of 0.37, below the 50-day MA of 0.39, and below the 200-day MA of 0.45, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 56.18 is Neutral, neither overbought nor oversold. The STOCH value of 58.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:QGL.

Quantum Graphite Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
AU$736.26M13.1715.33%6.70%
63
Neutral
AU$216.25M121.431.08%
62
Neutral
AU$154.94M12.188.79%15.32%10.05%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
44
Neutral
AU$140.23M-28.17-34.62%-10.08%
44
Neutral
AU$160.47M-32.50-39.06%25.00%
41
Neutral
AU$175.39M-34.55-10.16%12.70%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:QGL
Quantum Graphite Ltd
0.40
-0.10
-20.00%
AU:EGR
EcoGraf
0.38
0.29
304.26%
AU:AIS
Aeris Resources Limited
0.62
0.48
339.29%
AU:MLG
MLG Oz Ltd
1.00
0.41
68.07%
AU:RNU
Renascor Resources Limited
0.09
0.03
57.41%
AU:ZEO
Zeotech Limited
0.08
0.03
50.00%

Quantum Graphite Ltd Corporate Events

Quantum Graphite Updates Director Sal Catalano’s Securities Holdings
Dec 23, 2025

Quantum Graphite Limited has reported a change in director Sal Catalano’s indirect interests in the company’s securities, reflecting movements across several associated investment vehicles. The adjustment arises from the exercise of existing employee incentive options and the grant of new nil‑exercise‑price incentive options as part of his 2025 director services, resulting in a modest net increase in his total indirect shareholding and an updated options position, signalling continued alignment between the director’s remuneration and shareholder value.

Quantum Graphite Updates Director’s Shareholding and Incentive Options
Dec 23, 2025

Quantum Graphite Limited has disclosed a change in director Bruno Ruggiero’s interests, reflecting the exercise of existing employee incentive options and the grant of new nil‑exercise‑price options as part of his 2025 director services remuneration. Following these transactions, Ruggiero’s indirect and direct holdings of fully paid ordinary shares increased modestly to a total of 20,579,744 shares, while his new incentive options now extend to 154,835 options expiring in December 2031, signalling continued alignment of director incentives with long-term shareholder value.

Quantum Graphite Updates Director Michael Wyer’s Equity Holdings
Dec 23, 2025

Quantum Graphite Ltd has disclosed a change in director Michael Wyer’s equity interests, reflecting routine adjustment under the company’s incentive arrangements. Wyer exercised 96,000 nil‑exercise‑price employee incentive options, receiving fully paid ordinary shares as part of his 2025 director services, and was granted 103,225 new nil‑exercise‑price options expiring in 2031, raising his direct shareholding to 493,700 shares and updating his option holdings, in line with approvals from the November 2025 AGM and without any trades during a closed period.

Quantum Graphite Updates Director David Trimboli’s Equity Holdings
Dec 23, 2025

Quantum Graphite Limited has disclosed a change in the interests of director David Trimboli, reflecting movements in his indirect holdings through Seefeld Pty Ltd. The adjustment arises from the exercise of existing employee incentive options into fully paid ordinary shares and the concurrent grant of new nil‑exercise‑price options in line with shareholder approvals at the November 25, 2025 AGM, marginally increasing Trimboli’s overall equity exposure and reinforcing the company’s use of equity-based remuneration to align director incentives with shareholder outcomes.

Quantum Graphite Plans Placement of Over 1.15 Million New Shares
Dec 23, 2025

Quantum Graphite Limited has lodged an Appendix 3B with the ASX outlining a proposed placement of up to 1,150,747 new fully paid ordinary shares. The securities are scheduled for issue on 23 December 2025, signalling a move to raise additional equity capital that may be used to support the company’s ongoing operations and development activities, potentially strengthening its balance sheet and funding capacity in a competitive graphite and energy materials market.

Quantum Graphite Issues Unquoted Nil-Exercise Options Under Employee Incentive Scheme
Dec 22, 2025

Quantum Graphite Limited has notified the market of the issuance of 619,345 unquoted options under its employee incentive scheme, each with a nil exercise price and expiring on 21 December 2031. The long-dated, zero-cost options, which will not be quoted on the ASX, are designed to align employee incentives with shareholder interests and support the company’s ability to attract and retain key staff as it advances its graphite-focused operations.

Quantum Graphite Seeks ASX Quotation for 576,000 New Shares
Dec 22, 2025

Quantum Graphite Limited has applied for quotation on the ASX of 576,000 new fully paid ordinary shares, with an issue date of 22 December 2025. The modest increase in quoted securities reflects ongoing capital management and may marginally expand the company’s free float, providing additional funding flexibility as it advances its graphite projects and positions itself within the broader graphite and energy materials supply chain.

Quantum Graphite Issues 576,000 New Ordinary Shares
Dec 22, 2025

Quantum Graphite Limited has notified the market of the issue of 576,000 new ordinary fully paid shares, as recorded in an Appendix 3G filing with the ASX dated 22 December 2025. The additional unquoted equity securities increase the company’s share capital base, a move that may marginally dilute existing shareholders while potentially supporting future corporate or operational initiatives, although no specific use of proceeds or strategic rationale was disclosed in the notice.

Quantum Graphite Seeks ASX Quotation for 4.48 Million New Shares
Dec 22, 2025

Quantum Graphite Limited has lodged an application with the ASX for the quotation of 4,477,500 ordinary fully paid shares, with an issue date of 20 December 2024. The move formalises the listing of these previously issued securities, modestly increasing the company’s free float and potentially enhancing liquidity for shareholders as the additional shares become tradable on the market.

Quantum Graphite Issues 1.15 Million New Shares on Option Conversion
Dec 22, 2025

Quantum Graphite Limited has issued 1,152,000 new fully paid ordinary shares following the exercise or conversion of previously unquoted options or other convertible securities. The additional equity, notified via an Appendix 3G filing to the ASX, modestly expands the company’s share base and reflects the crystallisation of earlier equity-linked incentives or funding arrangements, resulting in increased quoted capital for existing and prospective shareholders.

Quantum Graphite Secures 21-Year Lease Renewal for Uley 2 Graphite Project
Dec 19, 2025

Quantum Graphite Limited has secured a 21‑year renewal of its Uley 2 mineral leases (ML5561 and ML5562) from the South Australian Department of Energy and Mining, underpinning an extended operating life that will encompass both the Uley 2 and Uley 3 deposits. Supported by extensive recent drilling and geophysical work and the grant of additional exploration tenure, the company now controls what it describes as the largest flake graphite mineralisation in the Southern Eyre Peninsula, with the broader Uley mines hosting a potential resource exceeding five million tonnes of natural flake graphite—equivalent to around 15 times annual global flake graphite production—positioning Quantum to supply Australian and Western markets with more than 50 years of high‑grade graphite and reinforcing its ambition to become a dominant non‑Chinese supplier to key battery and industrial sectors.

Quantum Graphite Plans Placement of Up to 864,866 New Shares
Dec 19, 2025

Quantum Graphite Limited has notified the ASX of a proposed placement of up to 864,866 fully paid ordinary shares, with an expected issue date of 22 December 2025. The additional equity will modestly expand the company’s share base and provide further funding flexibility, signalling continued capital market support for its graphite-focused operations and ongoing project development.

Quantum Graphite and Sunlands Energy Showcase Innovations at Singapore Conference
Dec 17, 2025

Quantum Graphite Ltd and its joint venture partner, Sunlands Energy Co., participated in the 2025 Singapore Scientific Conference, highlighting their advancements in thermal energy storage technology. Their presentation emphasized the potential of TES Graphite Cells to improve energy generation and support renewable energy, positioning the companies as key players in sustainable energy solutions.

Quantum Graphite Limited Successfully Concludes 2025 AGM with Key Resolutions Passed
Nov 28, 2025

Quantum Graphite Limited held its Annual General Meeting on November 28, 2025, where all resolutions were passed by a poll. Key resolutions included the election of directors, approval of share issues, and the issuance of options under the company’s option plan. These decisions are expected to support the company’s ongoing projects and strategic initiatives, potentially enhancing its market position and operational capabilities.

Quantum Graphite Advances Graphite Hub and Uley 2 Project
Oct 31, 2025

Quantum Graphite Ltd has identified potential sites for the development of the Quantum-Sunlands Eyre Peninsula Graphite Hub, with the assistance of the Port Lincoln City Council. This hub aims to support the production of TES Graphite Cells by Sunlands Energy Co. The company is also advancing the financing of its Uley 2 Project, with a focus on integrating all downstream activities to improve efficiency and competitiveness. Additionally, Quantum Graphite has released a new geological model for the Uley site and is shifting its joint venture research focus towards thermal storage media. These developments are expected to strengthen the company’s market position and enhance its operational capabilities.

Quantum Graphite Ltd Announces 2025 AGM and Key Resolutions
Oct 28, 2025

Quantum Graphite Ltd has announced its 2025 Annual General Meeting, detailing several key resolutions to be considered by shareholders. These include the adoption of the remuneration report, election of directors, approval of share issues, and the issuance of options under the company’s option plan. The resolutions aim to enhance the company’s operational capacity and governance structure, potentially impacting its market positioning and shareholder value.

Quantum Graphite Ltd Releases Corporate Governance Statement for FY2025
Oct 20, 2025

Quantum Graphite Ltd has released its corporate governance statement for the financial year ending June 2025, which has been approved by the board and is available on their website. The statement outlines the company’s adherence to the ASX Corporate Governance Council’s principles and recommendations, highlighting their commitment to maintaining transparency and accountability in their operations. This move is likely to enhance stakeholder confidence and align the company with industry best practices.

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 15, 2026