Red Metal Limited (RDM) AI Stock Analysis

• Market Cap: AU$44.96M
• Dividend Yield: N/A
• Average Volume (3M): 318.80K
• Price to Earnings (P/E): ―
• Beta (1Y): <0.01
• Revenue Growth: N/A
• EPS Growth: -17.92%
• Country: AU
• Employees: 5
• Sector: Basic Materials
• Sector Strength: 70
• Industry: Industrial Materials
• EPS (TTM): -0.03
• Shares Outstanding: 359,658,020
• 10 Day Avg. Volume: 116,346
• 30 Day Avg. Volume: 318,798
• PEG Ratio: -0.02
• Price to Book (P/B): 4.62
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.94
• 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

• Rating: 46 Neutral
• Price Target: AU$0.00 ▼(-100.00%Downside)

Red Metal Limited's overall stock score is primarily impacted by its weak financial performance and unattractive valuation. Despite having a strong cash position, the company struggles with declining revenues and profitability, reflected in its negative P/E ratio. Technical analysis provides some stability, but these factors cannot outweigh the financial challenges.

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 makes money primarily through the sale of extracted and processed metals. The company generates revenue by mining copper and other metals, refining them to meet industry standards, and selling the finished products to manufacturers and other industrial clients. Key revenue streams include long-term supply contracts with major industrial consumers, spot market sales, and partnerships with smelting and refining companies that help in enhancing the value of the raw materials. RDM also benefits from strategic partnerships with technology firms and green energy companies, providing metals that are crucial for renewable energy solutions and electronic manufacturing.

Red Metal Limited Financial Statement Overview

Summary

Red Metal Limited faces significant financial challenges, with declining revenues, negative profitability, and weak cash flows. While the company has a strong cash position relative to its debt, operational inefficiencies and a lack of consistent revenue growth pose risks. The balance sheet remains somewhat stable, but the negative return on equity underscores the need for improved financial performance and 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	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	1.49M	1.83M	2.74M	2.63M	3.37M	4.02M
Gross Profit	1.35M	1.83M	2.59M	2.51M	3.27M	3.93M
EBITDA	-13.09M	-7.78M	-10.64M	-2.58M	-946.00K	360.17K
Net Income	-8.95M	-5.64M	-6.21M	-2.29M	-1.36M	258.71K
Balance Sheet
Total Assets	12.29M	13.87M	8.40M	16.66M	4.36M	2.21M
Cash, Cash Equivalents and Short-Term Investments	10.80M	12.21M	6.65M	14.92M	2.49M	1.34M
Total Debt	341.73K	533.31K	568.09K	686.52K	135.27K	225.45K
Total Liabilities	2.14M	2.13M	2.23M	1.20M	1.13M	578.65K
Stockholders Equity	7.54M	6.37M	3.51M	8.83M	3.23M	1.64M
Cash Flow
Free Cash Flow	-9.40M	-7.47M	-8.36M	-2.17M	-1.57M	-530.69K
Operating Cash Flow	-14.73M	-7.46M	-562.70K	-411.36K	-348.22K	-138.09K
Investing Cash Flow	5.31M	-7.97K	-7.64M	-1.15M	-1.22M	651.09K
Financing Cash Flow	6.05M	13.02M	-67.52K	13.99M	2.72M	-90.18K

Red Metal Limited Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:RDM, the sentiment is Positive. The current price of 0.12 is above the 20-day moving average (MA) of 0.12, above the 50-day MA of 0.11, and above the 200-day MA of 0.11, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 52.38 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 Positive sentiment for AU:RDM.

Red Metal Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RDM	46 Neutral	AU$44.96M	―	-140.50%	―	―	-17.92%
Sector *	43 Neutral	AU$1.42B	-6.13	-40.62%	4.05%	-4.78%	-42.91%
W5E		€23.26M	―	-2.73%	―	―	―
GL1	46 Neutral	AU$44.49M	―	-2.83%	―	―	-6.51%
E25	46 Neutral	AU$51.44M	―	-16.88%	―	-67.72%	65.78%
BML	45 Neutral	AU$40.49M	―	-34.02%	―	-48.45%	49.82%
LEL	39 Underperform	AU$41.44M	―	-16.58%	―	―	-131.72%

Red Metal Limited Corporate Events

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.

Red Metal Limited Advances Rare Earth and Gold Projects in 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.