Red Hill Iron Limited (RHI) AI Stock Analysis

• Market Cap: AU$221.88M
• Dividend Yield: 9.54%
• Average Volume (3M): 12.42K
• Price to Earnings (P/E): 1.4
• Beta (1Y): 0.30
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: AU
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 55
• Industry: Industrial Materials
• EPS (TTM): 2.48
• Shares Outstanding: 64,127,625
• 10 Day Avg. Volume: 16,044
• 30 Day Avg. Volume: 12,423
• PEG Ratio: 0.40
• Price to Book (P/B): 2.55
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.84
• 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: AU$3.50
• Price Target Upside: 0.00%
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 66 Neutral
• Price Target: AU$3.50 ▲(0.00%Upside)

The stock's overall score is driven by strong valuation metrics and a solid financial foundation, but tempered by operational and cash flow challenges. Technical analysis suggests caution due to potential price corrections.

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 involvement in the Red Hill Iron Ore Joint Venture. The company's revenue model includes the exploration and development of its mineral resources, with a focus on iron ore. RHI earns income by partnering with major mining companies to develop and extract these resources, often through joint venture agreements where it may receive a share of the profits or royalties from the sale of extracted minerals. These partnerships are crucial in providing the necessary capital investment and technical expertise required for large-scale mining operations. Additionally, fluctuations in global iron ore prices and demand significantly impact the company's earnings, making market conditions a critical factor in its revenue generation.

Red Hill Iron Limited Financial Statement Overview

Summary

Red Hill Iron Limited shows strong net income recovery and a robust equity position. However, negative operational margins, inconsistent revenue growth, and cash flow challenges indicate potential financial 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	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	1.37M	1.24M	148.33K	1.42K	3.72K
Gross Profit	1.37M	971.33K	105.09K	1.42K	3.72K
EBITDA	-5.55M	-2.07M	195.66M	-1.67M	-464.92K
Net Income	153.56M	-2.26M	143.59M	-1.66M	-497.73K
Balance Sheet
Total Assets	242.12M	53.93M	79.62M	10.11M	10.68M
Cash, Cash Equivalents and Short-Term Investments	22.45M	39.27M	69.05M	92.03K	651.17K
Total Debt	253.78K	277.55K	176.27K	0.00	0.00
Total Liabilities	47.61M	641.02K	13.51M	333.55K	39.74K
Stockholders Equity	194.50M	53.29M	66.12M	9.78M	10.64M
Cash Flow
Free Cash Flow	-3.88M	-16.85M	-42.85M	-559.14K	-521.75K
Operating Cash Flow	399.59K	-13.72M	-42.54M	-559.14K	-521.75K
Investing Cash Flow	-4.28M	-3.13M	199.69M	0.00	-521.75K
Financing Cash Flow	-12.94M	-12.93M	-87.29M	1.05M	1.05M

Red Hill Iron Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 3.5 is above the 20-day moving average (MA) of 3.38, above the 50-day MA of 3.27, and below the 200-day MA of 3.59, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 59.21 is Neutral, neither overbought nor oversold. The STOCH value of 47.63 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	66 Neutral	AU$221.88M	1.40	257.93%	9.54%	―	―
OMH	64 Neutral	AU$229.30M	16.22	2.22%	1.33%	11.90%	-49.32%
Sector *	44 Neutral	AU$1.44B	-5.94	-41.97%	4.24%	-2.74%	-41.29%
4ER	―	€121.92M	13.31	8.27%	―	―	―
AIS	55 Neutral	AU$183.98M	7.63	8.30%	―	-7.16%	―
CTM	―	AU$196.20M	―	-40.70%	―	―	―
PSC	36 Underperform	AU$122.60M	―	-26.16%	―	―	-28.93%

Red Hill Iron Limited Corporate Events

Red Hill Minerals Reports Strong Quarterly Performance and Strategic Expansions

Red Hill Minerals Limited reported strong financial performance for the quarter ending June 2025, with royalty revenue of $4.79 million from the Onslow Iron Project and a cash balance of $64.5 million. The company is on track to increase its iron ore shipments to 35 million tonnes per annum by Q1 FY26. Additionally, Red Hill has expanded its portfolio by acquiring royalties over the Sandstone Gold Project and the Thomson Gold-Copper Project, while also advancing exploration activities in South Australia and the West Pilbara region.

Red Hill Minerals Uncovers 4KM Strike Potential at Anabama Project

Red Hill Minerals Limited has completed an Induced Polarisation survey at its Anabama Project in South Australia, revealing a promising 4-kilometer strike potential for copper-gold mineralization along the Anabama-Redan Shear Zone. The survey results indicate significant chargeability and resistivity anomalies, with the highest chargeability areas yet to be drill tested. The company has finalized a Native Title Agreement with the Wilyakali Native Title Aboriginal Corporation, paving the way for upcoming drilling activities.

Red Hill Minerals Expands Gold and Base Metal Prospects with Promising Drilling Results

Red Hill Minerals Limited has announced promising results from its recent RC drilling program in the West Pilbara Gold and Base Metal Project. The drilling has identified elevated gold and base metal intercepts across multiple targets, including Barkley Gold, Jubilee South, and S-Bend. These findings suggest potential for significant mineralization, which could enhance the company’s operational prospects and industry standing. The results, particularly from the Barkley Gold target, highlight the project’s potential, with further assay results pending and additional exploration supported by the Exploration Incentive Scheme grant.

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.