Eastern Metals Limited (RAP) AI Stock Analysis

• Market Cap: AU$21.85M
• Dividend Yield: N/A
• Average Volume (3M): 0.00
• Price to Earnings (P/E): ―
• Beta (1Y): -0.42
• Revenue Growth: N/A
• EPS Growth: 32.44%
• Country: AU
• Employees: 500
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Medical - Healthcare Information Services
• EPS (TTM): >-0.01
• Shares Outstanding: 352,403,900
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: 0.00
• Price to Book (P/B): -450.48
• Price to Sales (P/S): 198334.39
• P/FCF Ratio: -81.94
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: AU$0.06 ▲(180.00% Upside)

The score is held back primarily by persistent losses and ongoing cash burn, which imply continued funding risk despite revenue growth. Technicals are supportive in trend terms (price above key moving averages and positive MACD) but are heavily overbought, tempering the near-term outlook. Valuation is also constrained by negative earnings and no stated dividend yield.

Positive Factors

Very low leverage (zero debt)

A zero-debt capital structure materially reduces financial distress and interest expense risk, preserving optionality while the business scales. Over the next 2–6 months this lowers insolvency odds and gives management flexibility to focus on execution rather than debt servicing.

Material revenue growth in 2025

A materially higher top line in 2025 indicates growing customer traction and demand for the offering. If sustained, this revenue expansion creates a pathway to scale, improved operating leverage, and potential margin recovery over several quarters as fixed costs are absorbed.

Very high gross margins recently

Consistently reported 100% gross margins imply strong unit economics or low variable cost delivery, offering substantial upside to operating margins once scale and SG&A discipline are achieved. This structural cost advantage supports long-term profitability potential.

Negative Factors

Persistent operating and net losses

Ongoing multi-year operating and net losses erode equity and constrain reinvestment. Over a multi-quarter horizon this trend increases reliance on external capital, slows strategic initiatives, and delays the company’s ability to convert revenue growth into sustainable profitability.

Consistent negative operating and free cash flow

Persistent cash burn and worsening free cash flow indicate the business is consuming capital rather than generating it. This structural weakness forces repeated funding rounds or dilution, constrains investment in growth, and elevates medium-term financing and execution risk.

Shrinking equity/assets and negative returns

Declining equity and assets alongside negative ROE reduce the company’s capital cushion and signal value destruction. Over several quarters this increases probability of dilutive capital raises, weakens creditor confidence, and limits strategic flexibility to pursue growth or M&A.

Eastern Metals Limited Business Overview & Revenue Model

Company Description

ResApp Health Limited develops digital healthcare solutions to assist doctors and allow patients to diagnose and manage respiratory disease. The company offers ResAppDx, a smartphone-based acute respiratory disease diagnostic test; and SleepCheckRx, a smartphone application for at-home sleep apnoea screening. Its technology uses mathematical features for the diagnosis of pneumonia, asthma, and chronic obstructive pulmonary disease. The company was formerly known as Narhex Life Sciences Limited. ResApp Health Limited was incorporated in 2000 and is headquartered in Brisbane, Australia. As of September 15, 2022, ResApp Health Limited operates as a subsidiary of Pfizer Australia Holdings Pty Limited.

How the Company Makes Money

Eastern Metals Limited generates revenue through the exploration, extraction, and sale of various mineral resources. The primary revenue streams include the sale of mined metals such as copper, gold, and nickel to industrial and commercial clients. Significant partnerships with smelting companies and metal traders contribute to its earnings by facilitating the processing and distribution of its raw materials. Additionally, EMS may engage in joint ventures or strategic alliances with other mining firms to optimize resource extraction and share operational costs, thus impacting its overall profitability.

Eastern Metals Limited Financial Statement Overview

Summary

Income statement and cash flow are very weak (persistent operating/net losses and consistently negative operating/free cash flow, with deterioration in 2025 vs 2024), partially offset by a low-risk capital structure (zero debt in recent years). The shrinking equity/assets and negative returns highlight ongoing funding/dilution risk despite rising revenue off a small base.

Income Statement

Revenue is rising sharply off a very small base (2025 revenue up materially versus prior years), but profitability remains very weak. The company continues to post sizeable operating losses and net losses in every year shown (2021–2025), with deeply negative net margins despite a reported 100% gross margin in the last two years. Overall, the trajectory shows improving top-line activity but no clear progress toward breakeven.

Balance Sheet

Leverage is very low with total debt at zero in the last four years, which reduces financial risk. However, the balance sheet has been shrinking, with equity and assets declining meaningfully from 2022 to 2025, reflecting ongoing losses and/or cash burn. Return on equity is consistently negative in recent years, indicating the company is not generating returns on shareholders’ capital despite the cleaner capital structure.

Cash Flow

Cash generation is a key weakness: operating cash flow and free cash flow are negative each year shown, indicating the business is consuming cash rather than producing it. Free cash flow deterioration in 2025 versus 2024 adds pressure, even though free cash flow broadly tracks net losses (i.e., losses are translating into real cash burn rather than being purely non-cash accounting). This profile suggests continued reliance on external funding to sustain operations.

Breakdown	TTM	Dec 2021	Dec 2020	Dec 2019	Dec 2018	Dec 2017
Income Statement
Total Revenue	432.39K	2.51M	69.73K	0.00	0.00	0.00
Gross Profit	432.39K	2.51M	69.73K	0.00	0.00	0.00
EBITDA	-1.79M	-6.64M	-6.62M	-8.36M	-5.30M	-6.39M
Net Income	-1.80M	-7.10M	-6.77M	-8.47M	-5.44M	-6.53M
Balance Sheet
Total Assets	1.23M	5.82M	9.44M	8.85M	9.41M	6.45M
Cash, Cash Equivalents and Short-Term Investments	276.07K	2.40M	6.59M	5.78M	5.52M	3.40M
Total Debt	0.00	38.92K	191.00K	328.89K	0.00	0.00
Total Liabilities	317.26K	5.13M	1.83M	1.86M	1.72M	910.36K
Stockholders Equity	911.37K	689.56K	7.60M	7.00M	7.69M	5.54M
Cash Flow
Free Cash Flow	-1.93M	-7.26M	-46.13K	-9.75K	-36.13K	0.00
Operating Cash Flow	-1.92M	-7.10M	0.00	0.00	0.00	0.00
Investing Cash Flow	462.10K	-167.82K	-46.13K	-4.20M	-4.85M	-5.15M
Financing Cash Flow	686.60K	-114.28K	6.52M	4.57M	7.01M	-6.35K

Eastern Metals Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.02
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:RAP, the sentiment is Positive. The current price of 0.02 is below the 20-day moving average (MA) of 0.04, below the 50-day MA of 0.03, and below the 200-day MA of 0.02, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 82.08 is Negative, neither overbought nor oversold. The STOCH value of 96.03 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:RAP.

Eastern Metals Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
AS2	51 Neutral	AU$10.79M	-0.34	-93.45%	―	―	27.01%
RAP	50 Neutral	AU$21.85M	-2.04	-125.70%	―	―	32.44%
BPM	48 Neutral	AU$26.82M	-5.52	-61.72%	―	―	8.81%
DUN	48 Neutral	AU$6.79M	-3.87	-25.70%	―	-100.00%	80.33%
M3M	46 Neutral	AU$6.68M	-1.12	-135.06%	―	―	30.99%
ATT	36 Underperform	AU$8.67M	-0.77	-145.66%	―	―	34.61%