Red Hill Iron Limited (RHI) AI Stock Analysis

• Market Cap: AU$319.22M
• Dividend Yield: 2.13%
• Average Volume (3M): 19.12K
• Price to Earnings (P/E): 7.3
• Beta (1Y): 0.39
• Revenue Growth: N/A
• EPS Growth: -94.07%
• Country: AU
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): 0.17
• Shares Outstanding: 64,229,020
• 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)
• Action: Reiterated Date: 11/28/25
• Date: Action: Reiterated 11/28/25

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

Strong revenue growth

A 210.82% year increase indicates durable demand expansion and successful commercial execution. Sustained high top-line growth supports scale economies, reinvestment capacity and longer-term market share gains in industrial materials, improving resilience over 2-6 months.

Very high gross profit margin

A reported 100% gross margin suggests strong pricing power or exceptionally low direct costs, enabling durable operating leverage. High gross profitability provides a structural buffer against input cost swings and underpins sustainable operating margins over the medium term.

Low leverage and strong equity base

Minimal leverage and a healthy equity ratio reduce solvency risk and preserve financial flexibility. This structural balance sheet strength supports funding of capex or working capital needs, and lowers default risk across business cycles over the coming months.

Negative Factors

Negative operating and free cash flow

Negative operating and free cash flows indicate the company is not converting accounting profits into cash, constraining internal funding for capex, debt servicing or dividends. Persistent cash conversion issues create structural financing risk and may require external capital over months.

Declining ROE and volatile net margins

A decreasing ROE coupled with volatile net margins signals weakening effectiveness at generating returns from equity and inconsistent profitability. This undermines long-term shareholder return predictability and may reflect operational or pricing pressures that persist structurally.

Severely negative EPS growth

An almost 90% decline in EPS points to material earnings deterioration from prior periods. Such a steep structural drop reduces retained earnings and managerial flexibility, increasing reliance on external funding and making sustained margin recovery more challenging.

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

null

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	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	12.11M	16.04M	282.65K	1.24M	148.33K	1.42K
Gross Profit	11.94M	16.04M	282.65K	971.33K	105.09K	1.42K
EBITDA	9.41M	13.44M	195.72M	-2.05M	195.66M	-1.65M
Net Income	16.13M	9.13M	153.56M	-2.26M	143.59M	-1.66M
Balance Sheet
Total Assets	103.27M	98.75M	242.12M	53.93M	79.62M	10.11M
Cash, Cash Equivalents and Short-Term Investments	61.27M	64.52M	22.45M	39.27M	69.05M	92.03K
Total Debt	225.33K	328.39K	253.78K	277.55K	176.27K	0.00
Total Liabilities	10.26M	12.23M	47.61M	641.02K	13.51M	333.55K
Stockholders Equity	93.00M	86.52M	194.50M	53.29M	66.12M	9.78M
Cash Flow
Free Cash Flow	12.79M	-37.87M	-3.88M	-16.85M	-42.85M	-559.14K
Operating Cash Flow	14.59M	-32.86M	399.59K	-13.72M	-42.54M	-559.14K
Investing Cash Flow	-11.07M	192.47M	-4.28M	-3.13M	199.69M	0.00
Financing Cash Flow	-6.29M	-117.54M	-12.94M	-12.93M	-87.29M	1.05M

Red Hill Iron Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 4.85 is below the 20-day moving average (MA) of 4.95, below the 50-day MA of 4.88, and above the 200-day MA of 3.84, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 52.85 is Neutral, neither overbought nor oversold. The STOCH value of 57.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
RHI	63 Neutral	AU$319.22M	7.29	17.97%	2.13%	―	-94.07%
FEX	62 Neutral	€253.29M	9.29	7.38%	2.17%	21.95%	-84.84%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
AIS	61 Neutral	AU$502.81M	3.21	15.33%	―	6.70%	―
PSC	52 Neutral	AU$272.60M	-8.28	-20.47%	―	―	7.28%
CTM	51 Neutral	AU$288.18M	-4.82	-53.29%	―	―	―
OMH	41 Neutral	AU$198.72M	55.21	0.70%	1.54%	14.64%	-213.25%

Red Hill Iron Limited Corporate Events

Red Hill Minerals Seeks ASX Quotation for Additional Ordinary Shares

Red Hill Minerals Limited has applied to the ASX for quotation of 101,394 new ordinary fully paid shares, to be traded under its existing ticker RHI. The shares, issued on 9 March 2026 following the exercise of options or conversion of other securities, modestly expand the company’s quoted capital base and slightly dilute existing holders while providing additional equity funding flexibility.

The new securities arise from the exercise or conversion of previously issued instruments, indicating some investor uptake of outstanding options or convertible securities. While the volume is relatively small in the context of typical market capitalisations, the move reflects routine capital management and may signal underlying confidence from holders choosing to convert into ordinary equity.

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 Announces Interim Dividend of AUD 0.116 per Share

Red Hill Minerals Limited has declared a cash distribution of AUD 0.116 per ordinary fully paid share for the six-month period ended 31 December 2025, reinforcing its capacity to return capital to investors. The dividend will trade ex on 9 March 2026, with a record date of 10 March 2026 and payment scheduled for 24 March 2026, signalling ongoing cash generation that may support investor confidence in the miner’s financial position and capital management strategy.

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 Boosts Profit on Onslow Royalties, Lifts Payouts Amid Exploration Push

Red Hill Minerals reported a strong half-year to 31 December 2025, lifting statutory profit before tax to $15.2 million from $5.3 million a year earlier, underpinned by $14.9 million in royalty revenue from the Onslow Iron Ore Project running at full capacity. The board declared an interim fully franked dividend of 11.6 cents per share for FY26, following a $4.2 million fully franked payout in September, while maintaining a solid cash and receivables position of $69.9 million despite $4.6 million in exploration spending and completing a $2.0 million cash payment for the Sandstone Royalty.

Management highlighted stabilisation and growth in its royalty portfolio and continued drill-focused work across its gold and base metal assets, signalling an intent to leverage strong cash flows from Onslow to fund exploration-led growth. The combination of rising profits, sustained dividend payments and active project advancement suggests improving financial resilience and potential upside for shareholders as Red Hill balances income from royalties with longer-term resource 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 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.