Rincon Resources Ltd. (RCR) AI Stock Analysis

• Market Cap: AU$3.51M
• Dividend Yield: N/A
• Average Volume (3M): 551.49K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.95
• Revenue Growth: N/A
• EPS Growth: 60.71%
• Country: AU
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 68
• Industry: Other Precious Metals
• EPS (TTM): >-0.01
• Shares Outstanding: 292,562,440
• 10 Day Avg. Volume: 1,042,572
• 30 Day Avg. Volume: 551,487
• PEG Ratio: 0.10
• Price to Book (P/B): 0.56
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.48
• 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

• Rating: 42 Neutral
• Price Target: ―

Rincon Resources Ltd. is currently facing significant financial challenges, with continuous losses and negative cash flow impacting its performance. While the balance sheet shows low debt levels, the lack of revenue growth and profitability is concerning. Technical indicators suggest bearish momentum, and the stock's valuation metrics highlight its unattractiveness due to a negative P/E ratio and no dividend yield.

Rincon Resources Ltd. Business Overview & Revenue Model

Company Description

Rincon Resources Limited operates as a gold and base metals exploration company. It has interests in copper and gold projects in Western Australia. The company holds 100% interests in the South Telfer project that consists of six exploration licenses and two prospecting licenses covering approximately 540 square kilometers; and the Kiwirrkurra project, which includes 4 granted exploration licenses covering approximately 200 square kilometers located in West Arunta Region of Western Australia. It also holds interest in the Laverton project that consists of two exploration licenses covering approximately 41 square kilometers located to the west of the Laverton township. The company was incorporated in 2018 and is based in Subiaco, Australia.

How the Company Makes Money

Rincon Resources Ltd. generates revenue by advancing its mineral exploration projects to the point where they become attractive for joint ventures, sales, or development. The company's key revenue streams include the sale of mineral rights or interests in its projects to larger mining companies, as well as potential royalties from productive mining operations that result from their exploration activities. Rincon Resources may also enter into strategic partnerships or joint ventures with established mining companies to co-develop projects, thereby sharing both the costs and profits associated with mining operations. Additionally, the company may raise capital through equity financing to fund its exploration activities and maintain operational liquidity.

Rincon Resources Ltd. Financial Statement Overview

Summary

Rincon Resources Ltd. faces significant financial challenges, with continuous losses impacting income and cash flow. The balance sheet shows a low level of debt, suggesting some financial stability, but the persistent lack of revenue growth and profitability raises concerns about the company's future financial performance.

Income Statement

Rincon Resources Ltd. has experienced volatile revenue with no consistent trend, including several periods of zero revenue. The company has negative gross profit and net income, leading to negative profit margins. The absence of revenue growth and negative EBIT and EBITDA margins indicate significant challenges in achieving profitability.

Balance Sheet

The balance sheet shows a strong equity position with a low debt-to-equity ratio, reflecting low leverage and potential stability. However, the high proportion of equity relative to total assets highlights a lack of financial flexibility. The company's return on equity is negative due to consistent losses, but the equity ratio remains strong.

Cash Flow

Cash flow analysis reveals negative operating and free cash flows, indicating cash usage in operations and investments. The free cash flow to net income ratio is negative, and the operating cash flow to net income ratio is unfavorable, pointing to inefficiencies and potential liquidity issues despite strong financing cash inflows.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
146.25K	0.00	17.31K	62.10K	0.00	100.00K
	Gross Profit
90.12K	-53.19K	-39.45K	26.15K	-926.00	100.00K
	EBIT
-1.58M	-1.50M	-1.24M	-1.30M	-1.17M	-180.42K
	EBITDA
-1.61M	-1.47M	-1.16M	-1.26M	-1.17M	0.00
	Net Income Common Stockholders
-1.60M	-1.53M	-1.22M	-1.30M	-1.17M	12.54K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.34M	6.02M	227.90K	1.15M	4.43M	6.21M
	Total Assets
13.82M	14.34M	5.59M	5.17M	6.23M	6.80M
	Total Debt
1.43K	22.65K	62.75K	66.08K	0.00	80.77K
	Net Debt
-3.34M	-6.00M	-165.16K	-1.08M	-4.43M	-6.13M
	Total Liabilities
124.51K	414.23K	238.30K	198.96K	202.43K	307.53K
	Stockholders Equity
13.70M	13.93M	5.35M	4.97M	6.03M	6.49M
Cash Flow		Free Cash Flow
-5.19M	-3.91M	-2.01M	-3.25M	-2.08M	-33.98K
	Operating Cash Flow
-1.43M	-1.24M	-749.02K	-1.10M	-968.24K	78.97K
	Investing Cash Flow
-4.80M	-2.67M	-1.26M	-2.17M	-1.12M	-112.96K
	Financing Cash Flow
7.15M	9.70M	1.09M	-14.25K	6.28M	269.06K

Rincon Resources Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:RCR, the sentiment is Negative. The current price of 0.01 is above the 20-day moving average (MA) of <0.01, below the 50-day MA of 0.01, and below the 200-day MA of 0.01, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 46.56 is Neutral, neither overbought nor oversold. The STOCH value of -33.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:RCR.

Rincon Resources Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$2.04B	-1.15	-21.24%	3.95%	2.91%	-30.44%
RCR	42 Neutral	AU$3.51M	―	-14.99%	―	―	60.71%
HMRRF		$20.17M	8.33	15.74%	―	―	―
LSMLF		$1.45M	―	-428.63%	―	―	―
AYR			―		―	―	―
MEU	35 Underperform	AU$48.31M	―	-2.31%	―	―	-33.33%
GTR		AU$12.00M	―	-6.64%	―	―	―

Rincon Resources Ltd. Corporate Events

Rincon Resources Advances Exploration with Maiden Resource Estimation and Strategic Drilling Plans

Rincon Resources Ltd. has completed a maiden mineral resource estimation for its South Telfer Gold-Copper Project, indicating potential for expansion in the Hasties Main Zone and Hasties Southeast Deposits. The company plans further drilling to explore these extensions. Additionally, Rincon is advancing its Laverton Project with site visits and planning for a drone magnetic survey to refine drilling targets. No exploration activity occurred at West Arunta this quarter, but the company is reviewing past work to determine future steps. These efforts underline Rincon’s commitment to building a robust gold exploration company.

Rincon Resources to Expand South Telfer Gold Project with New Drilling Plans

Rincon Resources Ltd. has announced plans to drill extensions of its Hasties gold deposits at the South Telfer Gold Project, aiming to expand the existing Mineral Resource Estimate (MRE) and assess rock density and metallurgical recovery for gold and copper. The drilling program is strategically significant due to its potential to enhance the project’s robustness, especially in light of the recent gold price surge and Greatland Gold’s acquisition of the nearby Telfer Gold-Copper mine. The company is preparing to conduct a drone magnetic survey and secure necessary permits to commence drilling, which could significantly impact its operations and industry positioning.

Rincon Resources Announces Cessation of 2.5 Million Securities

Rincon Resources Limited has announced the cessation of 2,500,000 securities due to the expiry of options that were not exercised or converted by the deadline of March 30, 2025. This cessation of securities could impact the company’s capital structure and may influence investor perceptions regarding the company’s future financial strategies.

Rincon Resources Releases Half-Year Financial Report

Rincon Resources Limited has released its half-year financial report for the period ending December 31, 2024. The report includes various financial statements and declarations, highlighting the company’s financial position and performance over the period. This release provides stakeholders with insights into the company’s operations and financial health, potentially impacting its industry positioning and stakeholder decisions.

Rincon Resources Advances Maiden Gold Resource Estimation at Telfer South

Rincon Resources Ltd. is progressing with its maiden mineral resource estimation for the Hasties Main and Hasties Southeast deposits at its Telfer South project, with results expected by the end of February. These developments coincide with a favorable gold price environment and successful nearby acquisitions, positioning Rincon to determine future exploration strategies and potentially expand its resource portfolio. The company is also looking forward to advancing the Pokali Copper project towards similar resource assessments.