Red Metal Limited (RDM) AI Stock Analysis

• Market Cap: AU$44.96M
• Dividend Yield: N/A
• Average Volume (3M): 252.59K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.03
• Revenue Growth: N/A
• EPS Growth: -17.92%
• Country: AU
• Employees: 5
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): -0.03
• Shares Outstanding: 359,658,020
• 10 Day Avg. Volume: 333,113
• 30 Day Avg. Volume: 252,594
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: Hold
• Number of Analyst Covering: 1

• Rating: 52 Neutral
• 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 Business Overview & Revenue Model

Company Description

Red Metal Limited acquires and explores for mineral properties in Australia. It primarily explores for copper, gold, silver, lead, zinc, cobalt, and nickel deposits. It holds 100% interest in the Maronan, Gidyea, Corkwood, Pardoo, Nullarbor, Punt Hill and Pernatty Lagoon, Gulf, Sybella, Brunette Downs, and Birthday Well projects located in Australia. The company also holds interests in the Lawn Hill, Mount Skipper, Barton, Three Ways, Mallapunyah, Irindina, and Yarrie projects. Red Metal Limited was incorporated in 2003 and is based in Sydney, Australia.

How the Company Makes Money

Red 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

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

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

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.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	1.83M	2.74M	2.63M	3.37M	4.02M
Gross Profit	1.83M	2.59M	2.51M	3.27M	3.93M
EBITDA	-7.78M	-10.64M	-2.58M	-946.00K	360.17K
Net Income	-5.64M	-6.21M	-2.29M	-1.36M	258.71K
Balance Sheet
Total Assets	13.87M	8.40M	16.66M	4.36M	2.21M
Cash, Cash Equivalents and Short-Term Investments	12.21M	6.65M	14.92M	2.49M	1.34M
Total Debt	533.31K	568.09K	686.52K	135.27K	225.45K
Total Liabilities	2.13M	2.23M	1.20M	1.13M	578.65K
Stockholders Equity	6.37M	3.51M	8.83M	3.23M	1.64M
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	-1.22M	651.09K
Financing Cash Flow	13.02M	-67.52K	13.99M	2.72M	-90.18K

Red Metal Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.12
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 0.12 is below the 20-day moving average (MA) of 0.13, below 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 Positive momentum. The RSI at 47.25 is Neutral, neither overbought nor oversold. The STOCH value of -16.67 is Positive, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	56 Neutral	£2.50B	6.13	-0.23%	47.33%	9.88%	5.42%
RDM	52 Neutral	AU$44.96M	―	-140.50%	―	―	-17.92%
W5E	―	€20.80M	―	-2.73%	―	―	―
GL1	52 Neutral	AU$58.24M	―	-2.83%	―	―	-6.51%
E25	48 Neutral	AU$69.73M	―	-16.88%	―	-67.72%	65.78%
BML	47 Neutral	AU$48.86M	―	-34.02%	―	-48.45%	49.82%
LEL	39 Underperform	AU$41.44M	―	-16.58%	―	―	-131.72%

Red Metal Limited Corporate Events

Red Metal Limited Announces Cessation of Securities

Red Metal Limited has announced the cessation of 2,475,000 securities, specifically options that expired on July 28, 2025, without being exercised or converted. This development may impact the company’s capital structure and could influence investor perceptions regarding the company’s financial strategy and market positioning.

Red Metal Limited Announces Cessation of Securities

Red Metal Limited announced the cessation of 8,250,000 securities due to the expiry of options or other convertible securities without exercise or conversion as of November 30, 2024. This cessation may impact the company’s capital structure and could influence investor perceptions and market positioning.

Red Metal Limited Advances Rare Earth and Gold Projects in Australia

Red Metal Limited’s June 2025 quarterly report highlights significant progress in its Sybella Rare Earth Elements project in Queensland, with successful leach tests indicating potential for large extensions to the Kary Zone. The company also secured a $400,000 grant for copper-gold drilling projects in Queensland and is advancing gold exploration in Western Australia. These developments could enhance Red Metal’s operational capabilities and strengthen its position in the mining sector, potentially benefiting stakeholders through increased resource estimates and exploration successes.

Red Metal Limited’s Financial Overview and Shareholder Structure

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

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

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

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

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.