Quantum Graphite Ltd (QGL) AI Stock Analysis

• Market Cap: AU$165.59M
• Dividend Yield: N/A
• Average Volume (3M): 16.25K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.36
• Revenue Growth: N/A
• EPS Growth: -92.59%
• Country: AU
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Industrial Materials
• EPS (TTM): -0.02
• Shares Outstanding: 344,988,620
• 10 Day Avg. Volume: 15,690
• 30 Day Avg. Volume: 16,251
• PEG Ratio: N/A
• Price to Book (P/B): 10.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -70.74K
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Quantum Graphite Ltd's overall stock score is severely impacted by its poor financial health, characterized by a lack of revenue, persistent losses, and increasing debt levels. The technical analysis shows some short-term positive momentum, but this is overshadowed by the negative financial and valuation metrics. The absence of earnings calls or significant corporate events leaves these factors unchanged in the evaluation.

Quantum Graphite Ltd Business Overview & Revenue Model

Company Description

Quantum 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 Money

Quantum 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

Quantum Graphite Ltd is facing significant financial challenges characterized by a lack of revenue, persistent losses, and increasing debt levels. Without revenue generation, the company's ability to sustain operations is highly questionable, and reliance on external financing is not a sustainable long-term strategy. Immediate strategic changes are needed to improve financial health.

Income Statement

Quantum Graphite Ltd has consistently reported zero revenue over the years, resulting in negative gross profit and net income. The company's inability to generate revenue is a significant concern, reflected in negative EBIT and EBITDA margins. This lack of income indicates severe operational challenges and an unsustainable business model without revenue inflows.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, but the increase in total debt over the recent year is concerning. The equity ratio is declining as liabilities rise, indicating increasing leverage and potential financial instability. Although stockholders' equity is still positive, the company's assets are not being effectively utilized to generate returns.

Cash Flow

The company has negative free cash flow, which has worsened over the years, indicating a lack of adequate cash to cover operational needs. The operating cash flow to net income ratio is negative, consistent with operating losses, and reflects poor cash management. Financing cash flows are positive, suggesting reliance on external funding to manage operations.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00	0.00
	Gross Profit
-15.39K	-29.64K	-32.80K	-56.11K	-47.27K	-55.77K
	EBIT
―	-4.09M	-5.61M	-2.28M	-2.36M	-1.50M
	EBITDA
-2.92M	-4.01M	-4.87M	-2.10M	-2.23M	-1.06M
	Net Income Common Stockholders
―	-4.37M	-5.16M	-2.25M	-2.07M	-960.53K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.07M	1.44M	974.45K	1.00M	1.24M	13.44K
	Total Assets
23.58M	22.60M	20.92M	19.89M	19.15M	17.12M
	Total Debt
4.96M	4.21M	1.30M	1.29M	0.00	0.00
	Net Debt
2.89M	2.77M	325.98K	285.05K	-1.24M	-13.44K
	Total Liabilities
8.19M	8.99M	3.27M	3.04M	1.62M	1.73M
	Stockholders Equity
15.38M	13.62M	17.65M	16.85M	17.53M	15.40M
Cash Flow		Free Cash Flow
―	-2.21M	-4.55M	-2.35M	-1.20M	-552.06K
	Operating Cash Flow
―	-1.39M	-3.67M	-1.38M	-1.15M	-287.09K
	Investing Cash Flow
―	-847.32K	-678.05K	-971.57K	-53.10K	-99.97K
	Financing Cash Flow
3.45K	2.70M	4.32M	2.12M	2.42M	0.00

Quantum Graphite Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 0.48 is above the 20-day moving average (MA) of 0.48, above the 50-day MA of 0.48, and below the 200-day MA of 0.51, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 52.77 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	50 Neutral	$1.98B	-1.08	-21.29%	3.61%	1.96%	-30.59%
RNU	46 Neutral	AU$190.73M	107.14	1.05%	―	―	―
LML	39 Underperform	AU$8.41M	―	-48.27%	―	―	28.00%
QGL	37 Underperform	AU$165.59M	―	-44.88%	―	―	-92.59%

Quantum Graphite Ltd Corporate Events

Quantum Graphite Secures Major Project Status and Advances Financing for Graphite Hub

Quantum Graphite Ltd has been granted Major Project Status by the Australian Government for its Quantum-Sunlands Eyre Peninsula Graphite Hub, a significant development in the graphite supply chain involving mining, processing, and refining operations. This status is expected to enhance the company’s efforts to secure a US$300 million financing proposal from the US EXIM Bank, facilitating the delivery of high purity graphite to the market by 2027. Additionally, Sunlands Energy Co., a joint venture partner, received an Australian patent for its thermal energy storage technology, underscoring the venture’s potential in the rapidly growing global energy storage market.

Quantum Graphite’s Eyre Peninsula Hub Gains Major Project Status

Quantum Graphite Ltd and its joint venture partner, Sunlands Energy Co., have been granted Major Project Status by the Australian Federal Government for their Eyre Peninsula Graphite Hub (EPG Hub). This recognition underscores the national significance of the project, which aligns with Australia’s Critical Minerals and Battery Storage Strategies. The EPG Hub will process and refine flake graphite, supporting a supply chain between Australia and the USA. The status is expected to accelerate financing efforts and help meet objectives to deliver high purity graphite to the market by 2027.

Quantum Graphite Reports Increased Losses Despite Revenue Growth

Quantum Graphite Ltd reported a significant financial downturn for the period ending December 2024, with a 172% increase in net loss compared to the previous period. Despite a 93% increase in total revenue from ordinary activities, the company did not declare or pay any dividends, reflecting ongoing financial challenges.

Quantum Graphite’s Eyre Peninsula Hub Gains Major Project Status

Quantum Graphite Ltd and Sunlands Energy Co. have announced that their Quantum-Sunlands Eyre Peninsula Graphite Hub has been granted Major Project Status by the Australian Government. This recognition underscores the project’s national significance and alignment with Australia’s Critical Minerals Strategy and Battery Storage Strategy. The Hub, centered around the Uley 2 project, aims to create a comprehensive Australia-USA graphite supply chain, enhancing the company’s industry positioning and offering significant economic benefits, including job creation and local skill development. The Major Project Status will also support efforts to secure financing and meet market demands for high-purity graphite.

Quantum Graphite Settles Legal Dispute with Former Auditors

Quantum Graphite Ltd has settled its legal proceedings against former auditors Grant Thornton, who issued a disclaimer on the company’s 2020 financial statements, leading to a suspension of its securities. The settlement resolves the dispute, allowing Quantum Graphite to focus on its operations and maintain industry compliance, potentially improving stakeholder confidence.

Quantum Graphite’s Joint Venture Secures Australian Patent for Thermal Battery Technology

Quantum Graphite Ltd, in partnership with Sunlands Energy Co., has announced that Sunlands has been granted an Australian patent for its thermal battery technology. This development follows similar patent grants in the USA and South Africa and bolsters the joint venture’s position in the rapidly growing global energy storage market. The patented technology, which utilizes Quantum Graphite’s Uley 2 coarse graphite, is pivotal in enabling emissions-free electricity generation, offering significant potential for retrofitting coal-fired generators. This positions the company strategically within the energy storage sector, which is anticipated to expand substantially, driven by international policy mandates and incentives.

Quantum Graphite Ltd to Establish U.S.-Centric Graphite Supply Chain

Quantum Graphite Ltd is focusing on establishing a new supply chain for natural graphite, emphasizing a U.S.-centric approach. This initiative aims to deliver purified graphite and anode precursor material at a global scale, combining Australian raw material supply with U.S. processing and refining, which could significantly impact the company’s market position and operational capabilities.