Rey Resources Ltd (REY) AI Stock Analysis

• Market Cap: AU$5.71M
• Dividend Yield: N/A
• Average Volume (3M): 210.00
• Price to Earnings (P/E): ―
• Beta (1Y): -0.59
• Revenue Growth: N/A
• EPS Growth: -308.85%
• Country: AU
• Employees: N/A
• Sector: Energy
• Sector Strength: 48
• Industry: Coal
• EPS (TTM): -0.05
• Shares Outstanding: 211,560,900
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 210
• PEG Ratio: -0.71
• Price to Book (P/B): 1.84
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -28.42K
• 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: 33 Underperform
• Price Target: ―

Rey Resources Ltd is facing severe financial difficulties, with no revenue and escalating losses that significantly impact its financial performance score. The technical analysis indicates bearish trends, and the valuation metrics are unattractive due to ongoing losses and lack of dividends. Urgent operational and financial restructuring is needed to improve the situation.

Rey Resources Ltd Business Overview & Revenue Model

Company Description

Rey Resources Limited engages in exploring for and developing energy resources in Western Australia. The company holds a 100% interest in the Derby Block EP487; and a 20% interest in the Canning Basin petroleum permits EP457 and EP458 (Fitzroy Blocks). It also holds a 100% interest in the Lennard Shelf Blocks, which comprises a petroleum exploration license EP104, a retention license R1, and one production license L15 in the Canning Basin. In addition, the company holds 100% interests in the Duchess Paradise Coal Project located in the Canning Basin. Further, it holds 20% interest in 7 conventional gas production licenses in Surat Gas Project located in Surat Basin, Queensland. The company was incorporated in 2004 and is based in Sydney, Australia.

How the Company Makes Money

Rey Resources Ltd generates revenue primarily through the exploration, development, and potential sale of its energy and mineral resources. The company's revenue streams are largely dependent on the successful exploration and extraction of oil, gas, and coal deposits. Additionally, Rey Resources may engage in joint ventures or partnerships with other companies to share the financial burden of exploration activities and to leverage expertise. Revenue is also derived from the sale of extracted resources to various markets, although the company's earnings can be significantly influenced by commodity prices and market demand.

Rey Resources Ltd Financial Statement Overview

Summary

Rey Resources Ltd exhibits significant financial distress with no revenue generation and escalating losses. The balance sheet shows increasing leverage and declining equity, raising concerns about solvency. Operating and free cash flows remain negative, indicating liquidity issues. The overall financial position is precarious, necessitating urgent operational improvements and financial restructuring to prevent further deterioration.

Income Statement

The company has consistently reported no revenue over the years, with significant net losses increasing from -$2.3 million in 2021 to -$9.4 million in 2024. Negative EBIT and EBITDA margins indicate operational challenges and inefficiencies. The absence of revenue growth and deteriorating profitability metrics highlight significant financial distress.

Balance Sheet

The company's debt-to-equity ratio has been increasing, indicating rising leverage with a shift from $5.5 million total debt in 2019 to $19.9 million in 2024. Stockholders' equity has markedly declined from $27.5 million in 2019 to $10.7 million in 2024, further stressing financial health. The equity ratio is declining, pointing to a weakening financial position and potential solvency risks.

Cash Flow

Operating and free cash flows are consistently negative, reflecting ongoing cash outflows and financial strain. While financing cash flow is positive, indicating reliance on external funding, the lack of free cash flow growth further underscores liquidity challenges. The company struggles to convert net income into cash flow, highlighting operational cash flow issues.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00	0.00
	Gross Profit
0.00	0.00	0.00	-1.00K	0.00	-1.00K
	EBIT
-393.36K	-7.27M	-508.00K	-406.00K	-315.00K	-1.17M
	EBITDA
-384.88K	-451.00K	-508.00K	-404.00K	-315.00K	-1.17M
	Net Income Common Stockholders
-1.62M	-9.40M	-2.23M	-1.80M	-2.31M	-2.81M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
276.19K	268.00K	240.00K	172.00K	36.00K	175.00K
	Total Assets
30.81M	34.10M	40.18M	39.31M	38.02M	36.63M
	Total Debt
21.46M	19.89M	16.36M	12.94M	10.41M	7.70M
	Net Debt
21.19M	19.62M	16.12M	12.77M	10.38M	7.53M
	Total Liabilities
21.69M	23.36M	20.03M	16.89M	13.81M	11.04M
	Stockholders Equity
9.12M	10.74M	20.15M	22.41M	24.21M	25.59M
Cash Flow		Free Cash Flow
-1.51M	-1.36M	―	-1.23K	-1.09K	-1.57K
	Operating Cash Flow
-1.50M	-311.00K	-526.00	-349.00	-343.00	-691.00
	Investing Cash Flow
52.63K	-1.04M	-779.00	-950.00	-1.45K	-614.00
	Financing Cash Flow
1.46M	1.38M	1.37K	1.44K	1.65K	1.45K

Rey Resources Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.03
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:REY, the sentiment is Negative. The current price of 0.03 is below the 20-day moving average (MA) of 0.03, below the 50-day MA of 0.03, and below the 200-day MA of 0.04, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 2.84 is Positive, neither overbought nor oversold. The STOCH value of 46.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:REY.

Rey Resources Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	58 Neutral	$7.37B	3.39	-4.49%	10.01%	0.82%	-49.15%
REY	33 Underperform	AU$5.71M	―	-69.70%	―	―	-308.85%
DGMLF		$3.85B	―	-0.68%	―	―	―
TLSMF		$21.17M	―	-20.67%	―	―	―
GML	56 Neutral	AU$12.67M	4.92	8.76%	―	―	―
VML	43 Neutral	AU$11.79M	25.00	-4.50%	―	―	95.18%

Rey Resources Ltd Corporate Events

Rey Resources Ltd Reports Quarterly Cash Flow Results

Rey Resources Ltd reported its quarterly cash flow results, indicating a net cash outflow from operating activities of $728,000 for the current quarter and $2,331,000 year-to-date. The company experienced a net cash outflow from investing activities of $196,000 for the quarter, while financing activities provided a net cash inflow of $700,000. These financial movements reflect the company’s ongoing exploration efforts and reliance on financing to support its operations.

Dongming Ye Acquires Significant Stake in Rey Resources Ltd

Rey Resources Ltd has announced that Dongming Ye has become a substantial holder in the company, acquiring a significant voting power of 11.942% through the purchase of 25,264,286 fully paid ordinary shares. This acquisition marks a notable shift in the company’s shareholder structure, potentially impacting its strategic direction and stakeholder interests.

Rey Resources Ltd Announces Change in Substantial Holders

Rey Resources Ltd has announced a change in its substantial holders, with Merchant Central Limited ceasing to be a substantial holder as of April 9, 2025. This change involves the transfer of 25,114,286 ordinary fully paid shares, impacting the company’s voting securities. The announcement signifies a shift in the ownership structure of Rey Resources Ltd, potentially affecting its market positioning and stakeholder interests.

Rey Resources Ltd Releases Interim Financial Report for 2024

Rey Resources Ltd has released its consolidated interim financial report for the six months ending December 31, 2024. This report provides stakeholders with insights into the company’s financial performance and operational status during this period, which could influence its market positioning and strategic decisions.