Red Hill Iron Limited (RHI) AI Stock Analysis

• Market Cap: AU$300.12M
• Dividend Yield: 2.13%
• Average Volume (3M): 19.12K
• Price to Earnings (P/E): 32.9
• Beta (1Y): 0.45
• Revenue Growth: N/A
• EPS Growth: -94.07%
• Country: AU
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): 0.09
• Shares Outstanding: 64,127,625
• 10 Day Avg. Volume: 29,468
• 30 Day Avg. Volume: 19,124
• PEG Ratio: -0.21
• Price to Book (P/B): 2.12
• Price to Sales (P/S): 11.46
• P/FCF Ratio: -4.85
• 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: 63 Neutral
• Price Target: AU$5.50 ▲(13.40% Upside)

Red Hill Iron Limited's overall stock score is driven primarily by strong financial performance in terms of revenue growth and operational efficiency. However, significant challenges in cash flow management and a high P/E ratio suggest caution. The technical analysis indicates strong bullish momentum, but overbought conditions could lead to short-term volatility.

Positive Factors

Revenue Growth

A 210.82% year-on-year revenue surge signals material demand traction or successful project advancements. Sustained top-line expansion supports scale economies, funds further exploration or development, and strengthens bargaining power with off-takers and JV partners over the medium term.

High Margins

Exceptionally high gross and strong operating margins reflect efficient cost control or favourable project economics. Durable margin advantage boosts resilience to price cycles, enables reinvestment into exploration/development, and creates a competitive buffer versus lower-margin peers.

Low Leverage / Strong Equity

Minimal leverage and a healthy equity ratio give the company financial flexibility to fund development, pursue JV opportunities, and weather commodity cyclicality without costly refinancing. This reduces insolvency risk and supports longer-term project timelines.

Negative Factors

Negative Cash Flows

Persistent negative operating and free cash flows weaken the firm's ability to self-fund mining development and sustain operations. Over months this increases reliance on external financing or dilutive capital raises, which can delay projects and strain execution of long-term plans.

Declining Return on Equity

A falling ROE suggests the company is generating less profit per dollar of shareholder equity, indicating reduced capital efficiency. If persistent, this undermines long-term shareholder returns and signals potential issues in project selection, cost control, or price realization.

Profitability Volatility / EPS Decline

Large swings in net margin and a steep EPS decline point to volatile profitability driven by non-recurring items, cost variability, or pricing exposure. Structural volatility complicates forecasting, capital allocation and investor confidence in sustained earnings power over the medium term.

Red Hill Iron Limited Business Overview & Revenue Model

Company Description

Red Hill Iron Limited engages in the exploration for and development of iron ore, and precious and base/battery metals in Western Australia. It holds 100% interests in the Pannawonica iron ore project; and the RHIOJV tenements covering an area of approximately 1,600 square kilometre in the West Pilbara. The company was incorporated in 2005 and is based in West Perth, Australia.

How the Company Makes Money

Red Hill Iron Limited generates revenue primarily through the exploration and potential mining of iron ore deposits. The company’s revenue model is largely based on the sale of iron ore products, which are sold to steel manufacturers and other industrial clients. Key revenue streams include the extraction and sale of iron ore, royalties from mining operations, and potential joint ventures with larger mining companies that may provide financial backing and operational expertise. Significant partnerships with other mining entities and stakeholders in the region can also enhance RHI’s earning capabilities by facilitating access to additional resources and markets.

Red Hill Iron Limited Financial Statement Overview

Summary

Red Hill Iron Limited shows strong revenue growth and operational efficiency with high margins. However, challenges in cash flow management, with negative cash flows and declining free cash flow growth, are concerning. The balance sheet is solid with low leverage, but declining return on equity suggests potential profitability concerns.

Income Statement

Red Hill Iron Limited has demonstrated impressive revenue growth, particularly in the latest year with a 210.82% increase. The company maintains a strong gross profit margin of 100%, indicating efficient cost management. However, the net profit margin has seen significant fluctuations, suggesting potential volatility in profitability. The EBIT and EBITDA margins are robust, reflecting strong operational performance.

Balance Sheet

The company has a very low debt-to-equity ratio, indicating minimal leverage and financial risk. Return on equity is positive, though it has decreased compared to previous years, suggesting a decline in profitability relative to shareholder equity. The equity ratio is healthy, showing a strong capital structure with a significant portion of assets financed by equity.

Cash Flow

Cash flow analysis reveals challenges, with negative operating and free cash flows in the latest period. The free cash flow growth rate is negative, indicating declining cash generation capabilities. The operating cash flow to net income ratio is also negative, highlighting potential issues in converting income into cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	15.90M	16.04M	282.65K	1.24M	148.33K	1.42K
Gross Profit	11.97M	16.04M	282.65K	971.33K	105.09K	1.42K
EBITDA	13.27M	13.44M	195.72M	-2.05M	195.66M	-1.65M
Net Income	9.13M	9.13M	153.56M	-2.26M	143.59M	-1.66M
Balance Sheet
Total Assets	98.75M	98.75M	242.12M	53.93M	79.62M	10.11M
Cash, Cash Equivalents and Short-Term Investments	64.52M	64.52M	22.45M	39.27M	69.05M	92.03K
Total Debt	328.39K	328.39K	253.78K	277.55K	176.27K	0.00
Total Liabilities	12.23M	12.23M	47.61M	641.02K	13.51M	333.55K
Stockholders Equity	86.52M	86.52M	194.50M	53.29M	66.12M	9.78M
Cash Flow
Free Cash Flow	-37.87M	-37.87M	-3.88M	-16.85M	-42.85M	-559.14K
Operating Cash Flow	-32.86M	-32.86M	399.59K	-13.72M	-42.54M	-559.14K
Investing Cash Flow	192.47M	192.47M	-4.28M	-3.13M	199.69M	0.00
Financing Cash Flow	-117.54M	-117.54M	-12.94M	-12.93M	-87.29M	1.05M

Red Hill Iron Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4.85
• 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:RHI, the sentiment is Neutral. The current price of 4.85 is below the 20-day moving average (MA) of 5.00, above the 50-day MA of 4.61, and above the 200-day MA of 3.68, indicating a neutral trend. The MACD of 0.07 indicates Positive momentum. The RSI at 49.50 is Neutral, neither overbought nor oversold. The STOCH value of 24.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:RHI.

Red Hill Iron Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AIS	69 Neutral	AU$736.26M	12.10	15.33%	―	6.70%	―
OMH	67 Neutral	AU$221.65M	-10.57	-3.24%	1.54%	14.64%	-213.25%
RHI	63 Neutral	AU$300.12M	32.87	6.50%	2.13%	―	-94.07%
FEX	62 Neutral	€327.78M	59.46	3.14%	2.17%	21.95%	-84.84%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
PSC	52 Neutral	AU$292.61M	-28.21	-20.60%	―	―	7.28%
CTM	51 Neutral	AU$349.20M	-14.41	-53.29%	―	―	―

Red Hill Iron Limited Corporate Events

Red Hill Minerals Posts Strong Onslow Iron Royalty Income and Reports Encouraging Exploration Results

Red Hill Minerals reported December quarter royalty revenue of A$7.8 million from the Onslow Iron Project, contributing to A$14.9 million for the half year and underpinning expected full-year FY26 royalty income of about A$28.7 million. The company ended the quarter with a strong cash position of A$61.3 million after paying a fully franked dividend of 6.5 cents per share, meeting tax obligations and funding exploration programs, while its additional Sandstone and Thomson royalty interests continue to provide leveraged exposure to potential resource growth through third-party drilling and study work.

Operationally, Red Hill advanced its Curnamona earn-in joint venture with promising diamond drilling results at the Dementus Broken Hill-style lead-zinc-silver target and the Anabama copper-gold prospect, where assays confirmed broad mineralised zones and extensions at depth. In the West Pilbara, new gold assays at the Barkley target reinforced the presence of gold mineralisation and extensive alteration, collectively highlighting exploration upside that, alongside growing activity on its royalty ground such as Brightstar’s large planned drilling campaign at Sandstone, could enhance the company’s long-term resource base and royalty earnings potential.

The most recent analyst rating on (AU:RHI) stock is a Hold with a A$5.50 price target. To see the full list of analyst forecasts on Red Hill Iron Limited stock, see the AU:RHI Stock Forecast page.

Red Hill Minerals Confirms Deeper Copper-Gold Mineralisation at Anabama Target

Red Hill Minerals reported initial results from its maiden diamond drilling program at the Anabama Copper-Gold Project in South Australia, part of its Curnamona Earn-In Joint Venture with Peel Mining. Assays from the first diamond hole (25ANDD001) confirm copper-gold mineralisation in fresh bedrock along the Anabama-Redan Shear Zone and extend known mineralisation 130 metres below the bottom of a key historic drillhole, with notable intercepts including 20 metres at 0.6% copper, 0.2 g/t gold and 3.0 g/t silver from 313.1 metres, and higher-grade internal intervals up to 1.2% copper. Results from a second drillhole are pending and downhole electromagnetic surveys are planned for both holes, indicating continued exploration momentum that could further define the scale and continuity of the mineral system and potentially enhance the project’s development prospects.

The most recent analyst rating on (AU:RHI) stock is a Hold with a A$5.50 price target. To see the full list of analyst forecasts on Red Hill Iron Limited stock, see the AU:RHI Stock Forecast page.

Red Hill Minerals Intersects Broad Broken Hill Type Mineralisation in Maiden Drill Program

Red Hill Minerals has completed its maiden 3,734-metre diamond drilling program at the Broken Hill Project in New South Wales, returning broad intervals of Broken Hill Type lead-zinc-silver mineralisation, particularly at the Dementus target. The standout hole, 25DMDD001 at Dementus, intersected a 91.1-metre interval grading 0.1% lead and 0.3g/t silver within a more than 250-metre BHT lode package, as well as a deeper 152.6-metre zinc-altered zone grading 0.2% zinc and 1.3g/t silver, while additional drilling at the Woolly, Immortan and K1 targets delivered modest polymetallic intercepts that confirm a fertile system and justify prioritised follow-up exploration, including high-resolution gravity and AMT surveys scheduled to start in February.

The most recent analyst rating on (AU:RHI) stock is a Hold with a A$5.50 price target. To see the full list of analyst forecasts on Red Hill Iron Limited stock, see the AU:RHI Stock Forecast page.

Red Hill Minerals Confirms Extensive Gold Footprint at Barkley Target

Red Hill Minerals has reported new assay results from reverse circulation and diamond drilling at its Barkley gold target within the West Pilbara Gold and Base Metal Project, confirming a mineralised and altered footprint extending over one kilometre in strike and remaining open in several directions. The drilling, including twin diamond holes and re-assayed one-metre RC samples, returned multiple intervals of gold mineralisation up to 9 metres at 2.4 grams per tonne, prompting the start of geological modelling to guide follow-up drilling and potentially enhance the project’s prospectivity for future resource definition and development.

The most recent analyst rating on (AU:RHI) stock is a Hold with a A$5.50 price target. To see the full list of analyst forecasts on Red Hill Iron Limited stock, see the AU:RHI Stock Forecast page.

Red Hill Minerals Limited AGM Resolutions Passed with Strong Support

Red Hill Minerals Limited held its Annual General Meeting on November 21, 2025, where shareholders voted on various resolutions. All resolutions, including the adoption of the remuneration report and the re-election of director Joshua Pitt, were passed by a poll with significant support, indicating strong shareholder confidence in the company’s management and strategic direction.

The most recent analyst rating on (AU:RHI) stock is a Hold with a A$4.00 price target. To see the full list of analyst forecasts on Red Hill Iron Limited stock, see the AU:RHI Stock Forecast page.

Red Hill Minerals Reports Strong Financials and Exploration Progress in Q3 2025

Red Hill Minerals Limited reported strong financial performance in its September 2025 Quarterly Activities Report, with the Onslow Iron Project reaching its nameplate capacity and generating $7 million in royalty revenue. The company declared a fully franked dividend and maintained a robust cash balance, indicating a solid financial position. Additionally, Red Hill is advancing its exploration efforts in the Curnamona Province and West Pilbara, supported by government grants and ongoing drilling programs, which could enhance its resource base and market positioning.

The most recent analyst rating on (AU:RHI) stock is a Hold with a A$4.00 price target. To see the full list of analyst forecasts on Red Hill Iron Limited stock, see the AU:RHI Stock Forecast page.