RareX Limited (REE) AI Stock Analysis

• Market Cap: AU$21.83M
• Dividend Yield: N/A
• Average Volume (3M): 9.51M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.53
• Revenue Growth: -100.00%
• EPS Growth: 8.51%
• Country: AU
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): >-0.01
• Shares Outstanding: 1,212,800,400
• 10 Day Avg. Volume: 2,977,051
• 30 Day Avg. Volume: 9,512,576
• PEG Ratio: 0.46
• Price to Book (P/B): 3.67
• Price to Sales (P/S): 13.78
• P/FCF Ratio: -5.11
• 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: 41 Neutral
• Price Target: AU$0.02 ▼(-10.00% Downside)
• Action: Reiterated Date: 03/12/26
• Date: Action: Reiterated 03/12/26

The score is driven primarily by weak financial performance (small/volatile revenue, deeply negative margins, and ongoing cash burn), with low leverage providing only limited offset. Technical indicators also lean bearish (negative MACD and price below key moving averages). Valuation is not supportive given negative earnings (negative P/E) and no dividend yield provided.

Positive Factors

Low leverage / minimal debt

Very low debt materially reduces financial risk and preserves flexibility to fund exploration or withstand project delays. Over a multi-month horizon this gives management optionality to pursue drilling or partner transactions without immediate refinancing pressure, improving strategic durability.

Narrowing operating losses

A trend of narrowing losses indicates improving cost control or progress toward commercial milestones. If sustained, this reduces future funding needs and increases the chance cash burn will moderate, supporting a clearer path toward eventual project-level economics over several quarters.

Positioned in critical minerals / rare earths

Exposure to rare earths and battery/critical minerals aligns the company with long-term secular demand from electrification and supply-chain diversification. Structural policy and industrial demand increases potential partner interest, offtake opportunities, and strategic project value beyond short-term market swings.

Negative Factors

Persistent negative cash flow

Consistent negative operating and free cash flow erodes reserves and forces reliance on external funding. Over a multi-month horizon this constrains the ability to advance exploration, increases dilution or debt risk if markets tighten, and reduces strategic flexibility for project development.

Very small, volatile revenue and negative margins

Tiny, inconsistent revenue and persistently negative gross profit mean the business cannot self-fund operations or de-risk projects through operating cash. This revenue profile undermines predictability, raises execution risk for project scaling, and increases dependence on capital markets for months ahead.

Eroding shareholder equity

Declining equity reflects cumulative losses and reduces the capital buffer available for shocks or project setbacks. Over 2–6 months this heightens funding vulnerability, makes non-dilutive financing harder, and increases the likelihood of dilution or constrained project activity if cash burn continues.

RareX Limited Business Overview & Revenue Model

Company Description

RareX Limited explores for and develops mineral properties in Australia. The company primarily explores for nickel, cobalt, copper, gold, and rare earths deposits. Its flagship project is the 100% owned Cummins Range Rare Earths project located in the East Kimbley region of Western Australia. The company was formerly known as Sagon Resources Limited and changed its name to RareX Limited in December 2019. RareX Limited was incorporated in 2003 and is based in Subiaco, Australia.

How the Company Makes Money

RareX Limited does not have sufficient publicly available information in this context to describe a recurring operating revenue model (e.g., product sales) with certainty; null.

RareX Limited Financial Statement Overview

Summary

Financials are weak overall: revenue is very small and volatile, gross profit is negative, and the company is deeply unprofitable (FY2025 EBIT ~-A$2.6m; net income ~-A$3.5m). Cash flow is persistently negative with ongoing burn (FY2025 operating cash flow ~-A$2.7m). The main offset is low leverage (debt-to-equity ~0.2%) and some improvement in losses versus FY2022–FY2023, but declining equity remains a key risk.

Income Statement

Revenue remains very small and volatile (FY2025 ~A$1.0m vs FY2024 ~A$0.04m, following multiple years of near-zero revenue), with the latest year also showing a sharply negative revenue growth rate. Profitability is consistently weak: gross profit is negative across the period and operating losses are large (FY2025 EBIT about -A$2.6m; net income about -A$3.5m), resulting in deeply negative margins. The main positive is that losses have narrowed meaningfully versus FY2022–FY2023, but the company still lacks a clear path to sustainable profitability based on the numbers provided.

Balance Sheet

Leverage is very low (debt-to-equity roughly ~0.2% in FY2024–FY2025), which reduces financial risk and gives the company balance-sheet flexibility. However, equity has trended down from prior years (from ~A$9.6m in FY2022 to ~A$3.8m in FY2025), consistent with ongoing losses eroding the capital base. Returns on equity are materially negative each year, indicating the balance sheet is being used unprofitably despite the low debt load.

Cash Flow

Cash generation is persistently negative, with operating cash flow and free cash flow both below zero every year (FY2025 operating cash flow about -A$2.7m). Cash burn improved versus FY2023–FY2024, but the business still requires funding to cover ongoing outflows. Free cash flow roughly tracks net losses (free cash flow to net income ~1x), which suggests limited non-cash cushioning—losses are translating into real cash consumption.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	0.00	1.01M	43.33K	0.00	2.00M	0.00
Gross Profit	-955.48K	-620.18K	-1.42M	-136.75K	-1.50M	-48.86K
EBITDA	-5.23M	-2.64M	-3.99M	-10.75M	-10.61M	-5.33M
Net Income	-2.41M	-3.50M	-3.28M	-9.32M	-11.23M	-5.39M
Balance Sheet
Total Assets	6.34M	4.48M	5.48M	7.66M	11.83M	9.36M
Cash, Cash Equivalents and Short-Term Investments	1.51M	1.75M	1.94M	4.31M	8.23M	4.48M
Total Debt	0.00	8.64K	9.43K	240.12K	323.13K	385.28K
Total Liabilities	771.55K	700.81K	1.01M	2.14M	2.26M	1.13M
Stockholders Equity	5.57M	3.78M	4.47M	5.52M	9.56M	8.24M
Cash Flow
Free Cash Flow	-2.67M	-2.71M	-4.18M	-7.58M	-6.54M	-4.19M
Operating Cash Flow	-2.67M	-2.71M	-4.18M	-7.39M	-6.48M	-3.42M
Investing Cash Flow	499.15K	0.00	-1.01K	-211.47K	-50.78K	-1.46M
Financing Cash Flow	1.93M	2.56M	1.75M	3.68M	10.28M	5.94M

RareX Limited Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:REE, the sentiment is Negative. The current price of 0.02 is below the 20-day moving average (MA) of 0.03, below the 50-day MA of 0.03, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 23.47 is Positive, neither overbought nor oversold. The STOCH value of -12.96 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:REE.

RareX 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%
EVG	48 Neutral	AU$14.44M	-8.00	-23.61%	―	―	-4.35%
VRC	48 Neutral	AU$28.34M	-12.76	-11.53%	―	―	40.00%
AR3	46 Neutral	AU$35.77M	-4.34	-19.53%	―	―	3.79%
REE	41 Neutral	AU$21.83M	-7.09	-51.58%	―	-100.00%	8.51%
VML	41 Neutral	AU$31.95M	-2.58	-5.94%	―	-67.81%	-244.10%

RareX Limited Corporate Events

RareX advances Cummins Range as mining lease granted and loss narrows

RareX Limited reported a reduced half-year loss of $931,148 as it continued to advance the Cummins Range Rare Earths and Phosphate Project in Western Australia. The company carried out technical evaluations, metallurgical testwork and processing flowsheet refinement to better define the project’s rare earth, phosphate and gallium potential and support future development planning.

RareX also progressed preparatory work on its consortium proposal with Iluka Resources for the Mrima Hill Project in Kenya, while maintaining engagement with potential strategic and downstream partners in the critical minerals supply chain. After the reporting period, the Cummins Range Project was granted a mining lease, moving it beyond exploration and tenure risk, alongside new equity and options issuance and board changes that further position the group for potential project development.

The most recent analyst rating on (AU:REE) stock is a Hold with a A$0.02 price target. To see the full list of analyst forecasts on RareX Limited stock, see the AU:REE Stock Forecast page.

RareX Issues Cleansing Notice for 181.8 Million New Shares

RareX has lodged a cleansing notice after issuing 181.8 million ordinary shares without a disclosure document, confirming ongoing compliance with Australia’s Corporations Act and stating no excluded information remains undisclosed, a step that preserves share liquidity and signals governance discipline amid its portfolio build-out in critical minerals.

The most recent analyst rating on (AU:REE) stock is a Sell with a A$0.02 price target. To see the full list of analyst forecasts on RareX Limited stock, see the AU:REE Stock Forecast page.

RareX Seeks ASX Quotation for 181.8 Million New Shares

RareX Limited has applied to the ASX for quotation of 181,818,182 new fully paid ordinary shares, issued under the company’s existing capital management or transactional programs previously flagged to the market. The substantial new share issuance expands RareX’s quoted capital base, signalling an ongoing effort to strengthen its funding position and potentially support future operational or strategic initiatives, though the announcement itself provides no further detail on use of proceeds or project deployment.

The most recent analyst rating on (AU:REE) stock is a Sell with a A$0.02 price target. To see the full list of analyst forecasts on RareX Limited stock, see the AU:REE Stock Forecast page.

RareX secures A$5m placement to accelerate critical minerals portfolio

RareX Limited has secured firm commitments to raise A$5 million through a share placement to institutional, sophisticated and professional investors at A$0.0275 per share, with approximately 181.8 million new shares to be issued under existing placement capacity and accompanied by free-attaching options subject to shareholder approval. The oversubscribed raising, priced at a discount to the recent VWAP but a premium to the company’s last capital raise, strengthens RareX’s funding position to advance exploration drilling at its Khaleesi project, progress project development and feasibility work at the newly permitted Cummins Range operation, and continue pursuing the Mrima Hill carbonatite proposal with Iluka Resources, marking what management describes as an inflection point in de‑risking and commercialising its growing portfolio of critical mineral assets.

The most recent analyst rating on (AU:REE) stock is a Hold with a A$0.03 price target. To see the full list of analyst forecasts on RareX Limited stock, see the AU:REE Stock Forecast page.

RareX Requests ASX Trading Halt Ahead of Capital Raising Announcement

RareX Limited has requested an immediate trading halt in its securities on the ASX as it prepares an announcement regarding a planned capital raising. The halt, granted by ASX Compliance, will remain in place until either the capital-raising announcement is released or normal trading commences on Wednesday, 28 January 2026, signalling that the company is moving to secure additional funding that could influence its financial position and future project development plans.

The most recent analyst rating on (AU:REE) stock is a Hold with a A$0.03 price target. To see the full list of analyst forecasts on RareX Limited stock, see the AU:REE Stock Forecast page.

RareX Strengthens Executive Ranks with East Africa Specialist Glen Edwards

RareX Limited has appointed veteran economic geologist Glen Edwards as General Manager – Business Development, bringing more than 35 years’ global experience in exploration, discovery and corporate growth, with particular depth in Africa and East Africa. His appointment is timed to support RareX’s progressing proposal for the Mrima Hill critical minerals project in Kenya, as well as to drive broader business development, exploration at Khaleesi and other assets, and strategic oversight of the Cummins Range project as it advances through metallurgical optimisation and development planning following its recent mining lease approval, strengthening the company’s positioning in critical minerals growth markets.

The most recent analyst rating on (AU:REE) stock is a Hold with a A$0.03 price target. To see the full list of analyst forecasts on RareX Limited stock, see the AU:REE Stock Forecast page.

RareX Wins Key Mining Lease for Flagship Cummins Range Critical Minerals Project

RareX Limited has secured a key Mining Lease for its 100%-owned Cummins Range Project in Western Australia, a multi-commodity critical minerals asset hosting rare earths, gallium, scandium and phosphate. The grant, considered one of the most complex approvals in the state, materially de-risks the project by confirming RareX’s statutory right to develop a mining operation and shifting remaining approvals to the operational and environmental domain. With tenure risk largely removed, the company plans to concentrate on metallurgical optimisation, process flowsheet design and value maximisation across multiple mineral streams, paving the way for detailed mine planning, financing discussions and potential strategic partnerships as it advances what it describes as Australia’s largest undeveloped rare earths project.

The most recent analyst rating on (AU:REE) stock is a Hold with a A$0.02 price target. To see the full list of analyst forecasts on RareX Limited stock, see the AU:REE Stock Forecast page.

RareX Issues 3 Million Unquoted Options Under Employee Incentive Scheme

RareX Limited has notified the ASX of the issue of 3 million unquoted options under an employee incentive scheme, comprising 2 million options expiring on 13 October 2028 with an exercise price of $0.046 and a further 1 million options with an exercise price of $0.045, all issued on 7 January 2026. The move strengthens RareX’s equity-based remuneration structure, aiming to align staff incentives with long-term shareholder value and support talent retention as the company advances its projects in the competitive critical minerals space.

The most recent analyst rating on (AU:REE) stock is a Hold with a A$0.02 price target. To see the full list of analyst forecasts on RareX Limited stock, see the AU:REE Stock Forecast page.

RareX Issues 4 Million New Shares as It Advances Critical Minerals Portfolio

RareX Limited has issued 4,000,000 new ordinary shares, advising that the shares were issued without a prospectus under the Corporations Act and confirming its ongoing compliance with financial reporting and continuous disclosure obligations. The company also stated there is no excluded information relevant to the new share issue, signalling a routine capital management step that supports its ongoing development and optimisation of a portfolio centred on the Cummins Range rare earths and phosphate project and other carbonatite-hosted critical mineral assets.

The most recent analyst rating on (AU:REE) stock is a Hold with a A$0.02 price target. To see the full list of analyst forecasts on RareX Limited stock, see the AU:REE Stock Forecast page.

RareX Appoints New Director With No Initial Securities Interest

RareX Limited has notified the ASX of the initial interests of newly appointed director Selina Hayes, effective 1 January 2026. The filing confirms that Hayes holds no relevant interests in RareX securities, either directly or indirectly, and has no interests in any related contracts, signalling a neutral starting position in terms of equity alignment and potential conflicts of interest as she joins the board.

The most recent analyst rating on (AU:REE) stock is a Hold with a A$0.02 price target. To see the full list of analyst forecasts on RareX Limited stock, see the AU:REE Stock Forecast page.

RareX Seeks ASX Quotation for 4 Million Newly Issued Shares

RareX Limited has applied for quotation on the ASX of 4,000,000 new ordinary fully paid shares, effective 7 January 2026, under an immediate issue of shares following a shareholder resolution. The additional securities expand the company’s quoted capital base, potentially supporting its funding capacity and market liquidity for existing and new investors.

The most recent analyst rating on (AU:REE) stock is a Hold with a A$0.02 price target. To see the full list of analyst forecasts on RareX Limited stock, see the AU:REE Stock Forecast page.