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Resources & Energy Group Limited (AU:REZ)
ASX:REZ
Australian Market

Resources & Energy Group Limited (REZ) AI Stock Analysis

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AU:REZ

Resources & Energy Group Limited

(Sydney:REZ)

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Neutral 45 (OpenAI - 5.2)
Rating:45Neutral
Price Target:
AU$0.02
▲(60.00% Upside)
The score is held down primarily by weak financial performance—ongoing net losses and negative operating/free cash flow—despite the benefit of a near debt-free balance sheet. Technicals are mildly negative with price below key moving averages and a negative MACD, while valuation is constrained by a negative P/E and no dividend yield data.
Positive Factors
Very low leverage / near‑debt free balance sheet
Zero reported debt materially reduces solvency and rollover risk for an exploration company, preserving optionality to raise capital on better terms. This structural balance sheet strength supports continued project development or partnerships without immediate debt servicing constraints.
Historical ability to generate positive operating cash flow
A prior year of material positive operating and free cash flow demonstrates the business can generate cash under favorable conditions or from one-off transactions. This shows a pathway to self-funding potential and supports the view that cash generation is achievable, not purely theoretical.
Lean operating structure (very small headcount)
A minimal employee base limits fixed overhead and preserves flexibility during exploration cycles, enabling the company to conserve cash and scale project activity via contractors or partners. Structurally this reduces ongoing burn relative to larger peers.
Negative Factors
Persistent negative operating and free cash flow
Sustained negative operating and free cash flow indicates the company is burning cash to sustain activities, reducing runway and forcing external financing or asset sales. This structural cash deficit undermines long-term funding autonomy and increases dilution or funding risk.
Weak and inconsistent profitability
Low revenue paired with large net losses shows the current business model cannot cover costs at present scale. Without durable improvement in commercial output or cost structure, profitability is unlikely to be sustainable, limiting value creation for shareholders.
Poor returns on equity and fluctuating equity base
A materially negative ROE and volatile equity reflect repeated losses that erode shareholder capital. Persistently negative returns constrain reinvestment economics, hinder market credibility for funding, and signal structural challenges in generating long‑term investor value.

Resources & Energy Group Limited (REZ) vs. iShares MSCI Australia ETF (EWA)

Resources & Energy Group Limited Business Overview & Revenue Model

Company DescriptionResources & Energy Group Limited explores for, develops, and produces gold and silver deposits in Australia. Its flagship project is the East Menzies Gold project that consists of 50 tenements covering an area of 103 square kilometers located in the north of Kalgoorlie, Western Australia. The company was incorporated in 2004 and is based in Sydney, Australia.
How the Company Makes MoneyResources & Energy Group Limited generates revenue through the exploration, development, and eventual production of mineral resources, primarily gold. The company invests in identifying and developing mining projects that have the potential to yield valuable minerals. Once these projects are operational, REZ earns money by extracting and selling the metals. The company's key revenue streams include the sale of mined gold and other by-products. Additionally, REZ may enter into joint ventures or partnerships with other mining companies to share resources and risks, thereby enhancing its revenue potential. The company's earnings are influenced by factors such as commodity prices, exploration success, and operational efficiency.

Resources & Energy Group Limited Financial Statement Overview

Summary
Resources & Energy Group Limited faces significant operational and financial challenges with no revenue generation and consistent losses. Although the company maintains a debt-free balance sheet, the lack of operational cash flow and continued financial strain highlight the need for strategic adjustments to improve overall financial health.
Income Statement
Resources & Energy Group Limited has consistently reported zero revenue over the years, indicating operational challenges in generating sales. The company faces significant losses with negative EBIT and EBITDA margins, as well as a deteriorating net income, reflecting poor profitability and financial strain.
Balance Sheet
The balance sheet shows a relatively strong equity position with no debt, leading to a stable equity ratio. However, the absence of revenue and consistent net losses raise concerns about the sustainability of the company's equity position in the long term.
Cash Flow
The company has consistently reported negative operating and free cash flows, indicating that it struggles to generate cash from its operations. Despite occasional financing activities, the lack of positive cash flow from operations is a significant concern.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue153.44K153.44K0.000.000.000.00
Gross Profit-752.22K-750.33K-1.77K-1.33K-1.24M-1.04K
EBITDA-2.12M-2.12M-1.24M-3.12M-1.80M-1.47M
Net Income-2.15M-2.15M-1.24M-3.12M163.79K-1.47M
Balance Sheet
Total Assets11.04M11.04M11.81M10.77M13.75M10.07M
Cash, Cash Equivalents and Short-Term Investments17.35K17.35K1.06M704.98K3.86M1.02M
Total Debt0.000.000.000.000.000.00
Total Liabilities2.36M2.36M1.48M1.09M1.02M863.59K
Stockholders Equity8.76M8.76M7.97M7.32M10.37M6.84M
Cash Flow
Free Cash Flow-161.32K-1.53M-1.08M-3.13M283.14K-3.69M
Operating Cash Flow-1.24M-1.24M-534.44K-1.11M2.29M-1.48M
Investing Cash Flow-295.44K-295.44K-545.81K-2.02M-2.00M-1.80M
Financing Cash Flow488.49K488.49K1.43M0.002.54M2.95M

Resources & Energy Group Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.01
Price Trends
50DMA
0.02
Positive
100DMA
0.02
Negative
200DMA
0.02
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
55.61
Neutral
STOCH
160.00
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:REZ, the sentiment is Positive. The current price of 0.01 is below the 20-day moving average (MA) of 0.02, below the 50-day MA of 0.02, and below the 200-day MA of 0.02, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 55.61 is Neutral, neither overbought nor oversold. The STOCH value of 160.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:REZ.

Resources & Energy Group Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
48
Neutral
AU$12.29M-1.60-34.50%-421.43%
45
Neutral
AU$15.57M-5.31-25.75%-33.33%
45
Neutral
AU$23.25M-8.79-12.57%88.21%
44
Neutral
AU$13.98M-4.75-74.55%28.24%
43
Neutral
AU$15.22M-1.94-241.11%48.90%
41
Neutral
AU$9.57M-4.78-12.69%12.08%46.51%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:REZ
Resources & Energy Group Limited
0.02
-0.01
-39.29%
AU:NAG
Nagambie Resources Limited
0.01
>-0.01
-42.11%
AU:KAL
Kalgoorlie Gold Mining Limited
0.05
0.03
183.33%
AU:OZM
OzAurum Resources Ltd.
0.06
0.03
123.08%
AU:HMG
Hamelin Gold Limited
0.07
0.01
16.67%
AU:FG1
Flynn Gold Ltd.
0.03
<0.01
12.50%

Resources & Energy Group Limited Corporate Events

Resources & Energy Group Raises Capital Through Share Placement
Dec 24, 2025

Resources & Energy Group Limited has completed a placement of 142,857,140 new ordinary shares at 1.4 cents per share to investors, strengthening its capital position. The company confirmed that the placement was conducted without the need for a prospectus under Australian corporations law and stated it remains compliant with its financial reporting and continuous disclosure obligations, with no undisclosed price-sensitive information, providing assurance to shareholders and the market regarding regulatory transparency.

Resources & Energy Group Major Shareholder Ceases to Be Substantial Holder After Placement
Dec 23, 2025

Resources & Energy Group Limited has disclosed a change in its substantial shareholding structure, with Carl Charalambous and associated entity Kyriaco Barber Pty Ltd ceasing to be substantial holders following dilution of their stake due to a placement. The reduction in this major holding alters the company’s shareholder profile and may have implications for control dynamics and future capital management, as ownership becomes more dispersed among new and existing investors.

Resources & Energy Group Completes Share Placement and Confirms Regulatory Compliance
Dec 23, 2025

Resources & Energy Group Limited has completed a placement of 142,857,140 new ordinary shares at 1.2 cents each to investors, expanding its issued capital base and securing additional funding. The company confirmed the placement was conducted without a disclosure document under the Corporations Act but stated it is fully compliant with its continuous disclosure and financial reporting obligations and that there is no excluded information requiring disclosure, providing regulatory assurance to shareholders regarding the capital raising.

Resources & Energy Group Seeks ASX Quotation for 142.9 Million New Shares
Dec 22, 2025

Resources & Energy Group Limited has applied to the ASX for quotation of 142,857,140 new fully paid ordinary shares under its issuer code REZ. The new securities, issued on 22 December 2025 following a previously announced transaction, will significantly increase the company’s quoted share base and may affect its capital structure and liquidity profile for existing and prospective investors.

Resources & Energy Group Limited Announces Proposed Securities Issue
Dec 17, 2025

Resources & Energy Group Limited has announced a proposed issue of securities, including 71,428,570 options expiring on June 25, 2027, and 142,857,140 fully paid ordinary shares. This strategic move is aimed at raising capital to support the company’s ongoing projects and enhance its market position within the resources and energy sector.

Resources & Energy Group Limited Resumes Trading Post Capital Raising Announcement
Dec 16, 2025

Resources & Energy Group Limited (REZ) has announced that the suspension of trading in its securities will be lifted following a new capital raising announcement. This development is expected to impact the company’s operations by potentially enhancing its financial position and market activities, which could have implications for stakeholders and its industry positioning.

Resources & Energy Group Limited Announces Proposed Securities Issue
Dec 16, 2025

Resources & Energy Group Limited has announced a proposed issue of securities, including 5,357,142 options expiring on June 25, 2027, and 10,714,285 fully paid ordinary shares. This move is part of a strategic placement to potentially enhance the company’s capital structure and support its ongoing operations and growth initiatives. The proposed issue date is set for February 25, 2026, and is expected to impact the company’s market positioning by providing additional financial resources.

Resources & Energy Group Limited Announces Proposed Securities Issuance
Dec 16, 2025

Resources & Energy Group Limited has announced a proposed issuance of securities, including options and ordinary shares, scheduled for December 22, 2025. This move aims to enhance the company’s financial position and support its operational strategies, potentially impacting its market presence and offering opportunities for stakeholders.

Resources & Energy Group Secures $2M for East Menzies Gold Project Expansion
Dec 16, 2025

Resources & Energy Group Limited has successfully raised $2 million through a share placement to fund the advancement of its East Menzies Gold Project. This capital injection will support drilling, resource expansion, and near-term production growth, following significant milestones achieved in 2025, including gold pours and processing approvals. The company is transitioning to full-scale gold production, with plans for a significant drill program in early 2026, and is exploring long-term growth through a modular gold mill.

Resources & Energy Group Limited Requests Suspension for Capital Raising Announcement
Dec 15, 2025

Resources & Energy Group Limited has requested a voluntary suspension of its securities from the Australian Securities Exchange as it prepares an announcement regarding a capital raising effort. This suspension is intended to provide the company with additional time to finalize its announcement, which is expected to impact its financial strategy and market operations.

Resources & Energy Group Requests Trading Halt for Capital Raising
Dec 11, 2025

Resources & Energy Group Limited has requested a trading halt on its securities pending an announcement related to a capital raising. This move is aimed at facilitating the capital raising process and ensuring orderly trading once the announcement is made, with the halt expected to last until December 15, 2025, unless the announcement is released earlier.

Resources & Energy Group Limited Highlights East Menzies Gold Project at AGM
Nov 28, 2025

Resources & Energy Group Limited held its Annual General Meeting, providing updates on its operations and projects. The meeting highlighted the company’s ongoing focus on the East Menzies gold project, which is expected to enhance its position in the mining sector and potentially benefit stakeholders through increased gold production.

Resources & Energy Group Targets Significant Gold Potential at Gigante Grande
Nov 12, 2025

Resources & Energy Group Limited has announced a JORC compliant Global Exploration Target for the Gigante Grande Central Domain, estimating between 4 to 5 million tonnes of gold at grades of 1.3g to 3g per tonne, translating to 160,000 to 500,000 ounces of gold. This target highlights the potential scale of the Gigante prospect, with only 14% of the total strike explored so far. The company plans an 8,750-meter drilling program beginning in early 2026 to further investigate the potential. The Gigante Grande prospect, part of the East Menzies Goldfield Project, shows promise due to its location along the Moriarty Shear Zone, a significant geological feature known for gold deposits. The announcement underscores the prospect’s potential impact on the company’s operations and its strategic positioning within the gold mining industry.

Resources & Energy Group Announces 2025 AGM Amid Promising Exploration Results
Oct 30, 2025

Resources & Energy Group Limited has announced its 2025 Annual General Meeting, scheduled for 28 November 2025 in Sydney. The meeting will address various operational areas, including the East Menzies project, which has shown promising exploration results for nickel, cobalt, copper, and platinum group elements, potentially impacting the company’s strategic positioning in the mining industry.

Resources & Energy Group Commences Soil Sampling at East Menzies Gold Project
Oct 17, 2025

Resources & Energy Group Limited has initiated a soil sampling program at its East Menzies Gold Project in Western Australia, targeting underexplored areas to refine exploration targets. This program, involving the collection of approximately 1,500 samples, aims to enhance the existing dataset and support further drilling plans at Gigante Grande and Goodenough, with approvals expected soon. The initiative is part of REZ’s strategy to expand its exploration footprint and build a robust pipeline of drilling targets, positioning the company for growth driven by new discoveries.

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: Jan 07, 2026