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Red Metal Limited (AU:RDM)
:RDM
Australian Market
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Red Metal Limited (RDM) AI Stock Analysis

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AU:RDM

Red Metal Limited

(Sydney:RDM)

Rating:52Neutral
Price Target:
AU$0.00
▼(-100.00%Downside)
The overall stock score is driven by significant financial performance challenges and unfavorable valuation metrics. The company's financials reflect declining revenues and negative profitability, which weigh heavily on the score. While technical analysis indicates positive momentum, the potential for overvaluation and lack of income through dividends detract from the stock's attractiveness.

Red Metal Limited (RDM) vs. iShares MSCI Australia ETF (EWA)

Red Metal Limited Business Overview & Revenue Model

Company DescriptionRed Metal Limited (RDM) is a leading company in the mining and metals industry, specializing in the extraction, processing, and sale of copper and other metal resources. With operations spanning multiple countries, RDM is dedicated to supplying high-grade metal products to various sectors, including construction, electronics, and transportation. The company is committed to sustainable mining practices and innovation in metal processing technologies.
How the Company Makes MoneyRed Metal Limited generates revenue through the extraction and sale of copper and other metals. The company's key revenue streams include the sale of raw and processed metal products to industries such as construction, electronics, and automotive. RDM's earnings are bolstered by strategic partnerships with major industrial manufacturers who require a steady supply of high-quality metals. Additionally, the company benefits from long-term contracts and spot market sales, which provide flexibility and stability in pricing. Factors such as global demand for copper, commodity prices, and efficient mining operations significantly contribute to RDM's financial performance.

Red Metal Limited Financial Statement Overview

Summary
Red Metal Limited faces significant financial challenges, with declining revenues, negative profitability, and weak cash flows. Despite a strong cash position relative to debt, operational inefficiencies and inconsistent revenue growth pose risks. The balance sheet is somewhat stable, but negative return on equity underscores the need for strategic adjustments to enhance profitability and cash flow generation.
Income Statement
45
Neutral
Red Metal Limited's income statement shows declining revenue over the past year, with a significant drop from 2023 to 2024. The company reported negative EBIT and EBITDA margins, indicating operational inefficiencies. Gross profit margin remains high, suggesting good cost management. However, the net profit margin is deeply negative, highlighting profitability challenges. Revenue growth has been inconsistent, posing a risk to future performance.
Balance Sheet
40
Negative
The balance sheet reveals a strong cash position with a substantial amount of cash and short-term investments relative to total debt, resulting in low net debt. However, the debt-to-equity ratio has increased slightly, indicating rising leverage. The return on equity remains negative due to persistent net losses, which undermines shareholder value. The equity ratio is moderate, reflecting a balanced capital structure.
Cash Flow
50
Neutral
Cash flow analysis indicates substantial negative free cash flow, driven by significant operating cash outflows. While financing activities have provided liquidity, the free cash flow to net income ratio is negative, which raises concerns about cash generation capabilities. The operating cash flow to net income ratio is also unfavorable, suggesting that earnings are not being effectively converted into cash, potentially impacting future investments.
BreakdownJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue1.83M2.74M2.63M3.37M4.02M
Gross Profit1.83M2.59M2.51M3.27M3.93M
EBITDA-7.78M-10.64M-2.58M-946.00K360.17K
Net Income-5.64M-6.21M-2.29M-1.36M258.71K
Balance Sheet
Total Assets13.87M8.40M16.66M4.36M2.21M
Cash, Cash Equivalents and Short-Term Investments12.21M6.65M14.92M2.49M1.34M
Total Debt533.31K568.09K686.52K135.27K225.45K
Total Liabilities2.13M2.23M1.20M1.13M578.65K
Stockholders Equity6.37M3.51M8.83M3.23M1.64M
Cash Flow
Free Cash Flow-7.47M-8.36M-2.17M-1.57M-530.69K
Operating Cash Flow-7.46M-562.70K-411.36K-348.22K-138.09K
Investing Cash Flow-7.97K-7.64M-1.15M-1.22M651.09K
Financing Cash Flow13.02M-67.52K13.99M2.72M-90.18K

Red Metal Limited Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.13
Price Trends
50DMA
0.12
Positive
100DMA
0.12
Positive
200DMA
0.11
Positive
Market Momentum
MACD
<0.01
Negative
RSI
48.50
Neutral
STOCH
66.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:RDM, the sentiment is Neutral. The current price of 0.13 is above the 20-day moving average (MA) of 0.12, above the 50-day MA of 0.12, and above the 200-day MA of 0.11, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 48.50 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:RDM.

Red Metal Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
54
Neutral
AU$55.85M-34.02%-48.45%49.82%
52
Neutral
AU$46.76M-140.50%-17.92%
49
Neutral
AU$61.51M-2.83%-6.51%
48
Neutral
AU$58.30M-16.88%-67.72%65.78%
44
Neutral
AU$1.51B-6.22-41.37%3.85%-3.52%-43.04%
40
Neutral
€38.35M-2.73%-168.42%
39
Underperform
AU$41.44M-16.58%-131.72%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:RDM
Red Metal Limited
0.12
-0.03
-20.00%
AU:PEX
Peel Mining Limited
0.07
-0.07
-51.11%
AU:BML
Boab Metals Ltd
0.20
0.11
122.22%
AU:GL1
Global Lithium Resources Ltd.
0.23
-0.03
-11.54%
AU:E25
Element 25 Limited
0.28
0.07
33.33%
AU:LEL
Lithium Energy Ltd.
0.37
0.01
2.78%

Red Metal Limited Corporate Events

Red Metal Limited’s Financial Overview and Shareholder Structure
Jul 23, 2025

Red Metal Limited, listed on the ASX under the code RDM, has a market capitalization of $43 million and a share price of 12 cents as of July 23, 2025. The company has 359,658,006 shares on issue and reported cash holdings of $4.9 million as of June 2025. The substantial shareholders include directors and management, Freeport Minerals, and others. The announcement highlights the company’s financial snapshot and shareholder structure, which may impact investor perceptions and strategic decisions. This information provides stakeholders with insights into the company’s financial health and market positioning.

Red Metal Limited Prepares for Drilling at Pardoo Project
Jul 21, 2025

Red Metal Limited has announced the finalization of access preparations for a proof-of-concept drill program at its Pardoo project in the Pilbara Craton, a region known for significant gold and lithium deposits. The program aims to test three magnetic targets within the Hemi structural corridor, with drilling expected to commence in August 2025, potentially impacting the company’s exploration success and industry positioning.

Red Metal Limited Secures Government Grants for Copper Exploration in Queensland
Jun 4, 2025

Red Metal Limited has secured two Collaborative Drilling Grants totaling $400,000 from the Queensland Government to conduct proof-of-concept drill tests on its Gulf and Three Ways copper and gold projects. These projects, located in Northwest Queensland, aim to explore significant geophysical targets for potential copper mineral systems. The Gulf project will focus on a large gravity feature comparable to the Oak Dam discovery, while the Three Ways project will test a magnetic target for sedimentary-hosted copper mineralization. Drilling is anticipated to begin in August 2025, following heritage surveys in June.

Red Metal Limited Optimizes Low-Cost Processing at Sybella Discovery
May 19, 2025

Red Metal Limited has announced successful optimization leach tests at its Sybella Rare Earths Discovery, highlighting the potential for low-cost processing using weaker acid strengths than previously indicated. The tests have shown strong rare earth extractions and the potential for naturally cleansing iron impurities, which could significantly reduce downstream processing costs. This development enhances the economic potential of the Sybella deposit and supports the feasibility of heap leach processing as an economic development option. The company plans to commence definitive column leach tests to further validate these findings and provide data for early-stage mine scoping studies.

Red Metal Limited Updates Investor Presentation, Retracts Peer Comparisons
May 9, 2025

Red Metal Limited has updated its investor presentation by inserting necessary cross-references and retracting peer comparison comments that were not in strict accordance with ASX guidance. The company advises investors not to rely on the previous peer comparisons for making investment decisions, indicating a commitment to compliance and transparency.

Red Metal Limited Advances Rare Earth and Gold Projects in 2025
Apr 30, 2025

Red Metal Limited’s March 2025 quarterly report highlights significant progress in their Sybella rare earth elements project in Queensland, confirming strong continuity of mineralization and advancing towards a Mine Scoping Study. The company also reports promising developments in their Lawn Hill base metals and Pardoo gold projects, supported by government grants and tax refunds, which enhance their operational capabilities and market positioning.

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: Jul 10, 2025