Red Hill Iron Limited (RHI) AI Stock Analysis

• Market Cap: AU$209.70M
• Dividend Yield: 1.83%
• Average Volume (3M): 11.68K
• Price to Earnings (P/E): 1.3
• Beta (1Y): 0.13
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: AU
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 68
• Industry: Industrial Materials
• EPS (TTM): 2.48
• Shares Outstanding: 64,127,625
• 10 Day Avg. Volume: 3,047
• 30 Day Avg. Volume: 11,683
• PEG Ratio: -9.63
• Price to Book (P/B): 1.09
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -19.70
• 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: 63 Neutral
• Price Target: AU$3.50 ▲(7.03%Upside)

Red Hill Iron Limited's stock score reflects a solid valuation with a low P/E ratio and reasonable dividend yield, indicating potential value. However, financial performance is challenged by operational inefficiencies and cash flow issues. Technical analysis suggests mixed momentum, adding uncertainty to the stock's short-term outlook.

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 makes money primarily through its participation in the Red Hill Iron Ore Joint Venture (RHIOJV), where it holds a stake in the exploration and potential production of iron ore. The company generates revenue through its interest in the sales of iron ore produced from the joint venture, benefitting from the profits derived from the mining operations. Additionally, the company may engage in strategic partnerships or agreements with larger mining companies to finance and facilitate the development of its projects. These partnerships can include royalty agreements, where Red Hill Iron Limited receives a percentage of sales revenue from the iron ore produced.

Red Hill Iron Limited Financial Statement Overview

Summary

Red Hill Iron Limited has demonstrated strong net income and a robust equity base, which is promising for growth. However, the company faces operational inefficiencies with negative EBIT and EBITDA margins, inconsistent revenue growth, and cash flow challenges that pose liquidity risks.

Income Statement

Red Hill Iron Limited shows strong net income in the most recent year, remarkably reversing from a net loss in the previous period, suggesting improved profitability. However, the EBIT and EBITDA margins are negative, indicating operational inefficiencies. The gross profit margin is high at 100% due to relatively low revenue and cost structure, but revenue growth has been inconsistent, which could pose risks.

Balance Sheet

The company maintains a strong equity position with a high equity ratio of 80.34%, indicating financial stability and low leverage. The debt-to-equity ratio is minimal at 0.0013, reflecting prudent financial management. However, the return on equity is exceptionally high at 78.96%, driven by substantial net income, which may not be sustainable.

Cash Flow

The cash flow statement reveals challenges with negative free cash flow, although there has been substantial improvement in operating cash flow from the previous year. The operating cash flow to net income ratio is low at 0.0026, indicating low cash conversion efficiency. Financing cash flows are negative, reflecting potential cash constraints.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
3.79M	1.37M	1.24M	148.33K	1.42K	3.72K
	Gross Profit
3.65M	1.37M	971.33K	105.09K	1.42K	3.72K
	EBIT
-1.53M	-4.61M	-3.60M	-3.38M	-1.67M	-464.92K
	EBITDA
199.58M	-5.55M	-2.07M	195.66M	-1.67M	-464.92K
	Net Income Common Stockholders
158.29M	153.56M	-2.26M	143.59M	-1.66M	-497.73K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
64.04M	22.45M	39.27M	69.05M	92.03K	651.17K
	Total Assets
89.75M	242.12M	53.93M	79.62M	10.11M	10.68M
	Total Debt
164.74K	253.78K	277.55K	176.27K	0.00	0.00
	Net Debt
-63.88M	-22.20M	-38.99M	-68.87M	-92.03K	-651.17K
	Total Liabilities
6.90M	47.61M	641.02K	13.51M	333.55K	39.74K
	Stockholders Equity
82.85M	194.50M	53.29M	66.12M	9.78M	10.64M
Cash Flow		Free Cash Flow
-43.56M	-3.88M	-16.85M	-42.85M	-559.14K	-521.75K
	Operating Cash Flow
-38.57M	399.59K	-13.72M	-42.54M	-559.14K	-521.75K
	Investing Cash Flow
195.01M	-4.28M	-3.13M	199.69M	0.00	-521.75K
	Financing Cash Flow
-115.61M	-12.94M	-12.93M	-87.29M	1.05M	1.05M

Red Hill Iron Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.27
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:RHI, the sentiment is Negative. The current price of 3.27 is below the 20-day moving average (MA) of 3.36, below the 50-day MA of 3.29, and below the 200-day MA of 3.59, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 43.50 is Neutral, neither overbought nor oversold. The STOCH value of 19.23 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
FMG	76 Outperform	$48.19B	8.18	20.21%	6.39%	-11.33%	-32.11%
BHP	75 Outperform	$198.17B	11.46	26.20%	3.91%	-2.47%	57.01%
RHI	63 Neutral	AU$209.70M	1.31	257.93%	1.83%	―	―
CIA	61 Neutral	C$2.39B	14.86	10.03%	5.12%	-9.27%	-56.88%
MGX	61 Neutral	AU$318.48M	56.60	-35.86%	―	-39.92%	-249.60%
MIN	59 Neutral	AU$4.62B	50.78	-33.95%	4.54%	2.22%	-411.10%
Sector *	51 Neutral	$2.04B	-1.23	-21.09%	3.96%	2.90%	-30.45%

Red Hill Iron Limited Corporate Events

Red Hill Minerals Launches Diamond Drilling at Barkley Gold Target

Red Hill Minerals Limited has announced the commencement of a diamond drilling program at the Barkley Gold target within its West Pilbara Gold and Base Metal Project. This initiative, funded in part by the Western Australian State Government’s Exploration Incentive Scheme, aims to enhance geological understanding and assess the mineralization potential along the Deepdale Fault system. The drilling program is expected to provide critical insights into the region’s gold and base metal prospectivity, potentially expanding Red Hill’s exploration efforts.

Eastern Metals Sells Thomson Project Royalty to Red Hill Minerals

Eastern Metals Ltd, a company listed on the ASX, has entered into a binding agreement to sell its 1.5% net smelter royalty from the Thomson Project to Red Hill Minerals Ltd for $220,000. This transaction follows Eastern Metals’ previous divestment of the Thomson Project to Legacy Minerals Holdings Ltd, which included the grant of this royalty. The sale is contingent upon Red Hill completing due diligence and executing necessary deeds, with exclusivity rights held by Red Hill until completion.

Red Hill Minerals Reports Strong Quarterly Performance and Strategic Expansion

Red Hill Minerals Limited reported a strong financial performance for the March 2025 quarter, with a royalty revenue of $3.35 million from the Onslow Iron Project and a cash balance of $66.1 million. The company announced a dividend of $0.03 per share and executed an agreement to acquire a 2% royalty over the Sandstone Gold Project. Operationally, Red Hill completed several surveys and preparations for drilling in its West Pilbara and Curnamona joint venture projects, indicating a strategic focus on expanding its exploration footprint and enhancing its resource base.

Red Hill Minerals Expands Portfolio with Sandstone Gold Project Royalty Acquisition

Red Hill Minerals Limited has announced its acquisition of a 2% Gross Revenue Royalty over the Sandstone Gold Project tenements, which are part of Brightstar Resources Limited’s project. This strategic purchase aligns with Red Hill’s goal to diversify its royalty portfolio. The Sandstone Gold Project covers approximately 443 km2 and contains significant mineral resources, with Brightstar planning an extensive exploration program. The acquisition involves a $4 million cash payment and additional contingent payments based on future production royalties. This move is expected to enhance Red Hill’s market position and stakeholder value by tapping into the potential of the Sandstone Gold Project.

Red Hill Minerals Announces Dividend Distribution for H2 2024

Red Hill Minerals Limited has announced a dividend distribution of AUD 0.03 per share for its ordinary fully paid securities, covering the six-month period ending December 31, 2024. The ex-dividend date is set for April 29, 2025, with a record date of April 30, 2025, and payment scheduled for May 14, 2025. This announcement reflects the company’s financial performance and commitment to returning value to its shareholders, potentially impacting investor sentiment and market positioning.

Red Hill Minerals Announces Dividend and New Policy

Red Hill Minerals Limited has announced a dividend payment of $0.03 per ordinary share, fully franked at 25%, for the half year ending December 2024. The company has also adopted a new dividend policy targeting semi-annual payments, with 50% of the royalties from the Onslow Iron Project allocated for dividends. This policy aims to balance shareholder returns with funding for exploration and potential value-adding opportunities.