Reach Resources Limited (RR1) AI Stock Analysis

• Market Cap: AU$12.24M
• Dividend Yield: N/A
• Average Volume (3M): 2.77M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.44
• Revenue Growth: N/A
• EPS Growth: -136.67%
• Country: AU
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Gold
• EPS (TTM): >-0.01
• Shares Outstanding: 874,431,340
• 10 Day Avg. Volume: 2,774,501
• 30 Day Avg. Volume: 2,767,016
• PEG Ratio: 0.05
• Price to Book (P/B): 0.50
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.55
• 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: 49 Neutral
• Price Target: AU$0.02 ▲(50.00% Upside)

The score is held down primarily by weak financial performance driven by volatile results and persistently negative operating/free cash flow, implying ongoing funding reliance. Technicals are comparatively supportive with the price above key moving averages and positive momentum, but signals appear stretched. Valuation is not compelling given a negative P/E and no dividend yield data.

Positive Factors

Conservative balance sheet / zero debt

Zero reported debt and materially expanded equity provide durable financial flexibility for an exploration company: reduces insolvency risk, improves ability to fund sequential drilling cycles or farm-outs, and supports strategic optionality through commodity cycles over months.

Proved ability to deliver profitability (2024)

A standalone profitable year demonstrates the company can convert exploration outcomes into positive operating results. If management can replicate the drivers (project successes, cost control, or transactions), this underpins a path to sustainable earnings over the medium term.

Improving free cash outflow trend

Reduction in free cash outflow year-over-year indicates progress in capital efficiency or timing of expenditures. If sustained, this trend can materially lower future funding needs and dilution risk, improving the company's runway to advance high-priority exploration targets.

Negative Factors

Chronic negative operating and free cash flow

Persistent negative operating and free cash flow is a structural weakness for an explorer: it forces repeated external funding, increases dilution risk, and constrains ability to consistently progress projects, elevating long-term execution and financing uncertainty.

Revenue collapse and volatility

A revenue stream that collapses to zero after a single strong year highlights unstable receipts from operations or one-off transactions. This volatility undermines multi-period planning, weakens credit access, and complicates project development and long-term cashflow visibility.

Unstable earnings quality and margin sustainability

Large swings between losses and a solitary profitable year indicate earnings are driven by episodic events rather than steady operations. This reduces confidence in sustainable margins, making it harder to assess project economics and predict durable returns for shareholders.

Reach Resources Limited Business Overview & Revenue Model

Company Description

Reach Resources Limited engages in the exploration and evaluation of mineral resource projects in Australia. The company primarily explores for gold, as well as for nickel, cobalt, copper, and base metals. It holds interests in the Primrose gold project located in the northeast of Perth. The company was formerly known as Cervantes Corporation Limited. Reach Resources Limited was incorporated in 2001 and is headquartered in Perth, Australia.

How the Company Makes Money

Reach Resources Limited makes money through the exploration and development of mineral resources, with the primary revenue streams coming from the sale of mineral products extracted from their projects. The company undertakes exploration activities to identify viable mineral deposits, which are then developed into operational mines. Revenue is generated from the sale of minerals extracted from these sites. Additionally, Reach Resources Limited may engage in partnerships or joint ventures with other mining companies to leverage expertise and share costs, potentially enhancing revenue through shared profits or royalties. The company's financial performance is influenced by factors such as mineral prices, exploration success, and the efficiency of mining operations.

Reach Resources Limited Financial Statement Overview

Summary

Overall financial profile is weak: earnings and revenue are highly inconsistent (including revenue falling to zero in 2025 after a profitable 2024), and cash generation is a major concern with negative operating cash flow and deeply negative free cash flow every year shown. The balance sheet is a relative positive with zero debt and improved equity, but profitability remains unstable.

Income Statement

Earnings quality and consistency are weak. Revenue is highly volatile, including a collapse to zero in 2025 (annual), following a strong 2024 where the company reported high profitability. The business has swung between sizable losses (2021–2023 and 2025) and a single standout profitable year (2024), which reduces confidence in sustainable margins and repeatable operating performance.

Balance Sheet

Balance sheet leverage looks conservative with total debt at zero in 2024–2025, and equity has expanded materially versus earlier years, supporting a stronger capital base. However, returns on equity are inconsistent—positive in 2024 but negative again in 2025—indicating profitability is not yet stable despite improved capitalization.

Cash Flow

Cash generation is a key pressure point: operating cash flow is negative in every year shown (2020–2025), and free cash flow is deeply negative throughout, including a large outflow in 2024 and still significant burn in 2025. While free cash outflow improved versus 2024, ongoing negative operating cash flow suggests continued reliance on funding rather than self-sustaining operations.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	0.00	0.00	3.20M	0.00	100.00K	29.65K
Gross Profit	-11.98K	-11.98K	3.20M	0.00	100.00K	29.65K
EBITDA	-1.15M	-1.15M	1.92M	-943.87K	-451.49K	-323.00K
Net Income	-950.30K	-950.30K	1.94M	-2.66M	-451.00K	-343.00K
Balance Sheet
Total Assets	14.23M	14.23M	15.02M	6.55M	6.08M	3.95M
Cash, Cash Equivalents and Short-Term Investments	3.27M	3.27M	6.01M	1.23M	1.13M	2.04M
Total Debt	0.00	0.00	0.00	450.00K	450.00K	450.00K
Total Liabilities	249.15K	249.15K	338.86K	524.55K	555.45K	489.65K
Stockholders Equity	13.98M	13.98M	14.69M	6.03M	5.53M	3.46M
Cash Flow
Free Cash Flow	-2.74M	-2.74M	-4.77M	-1.61M	-1.34M	-934.79K
Operating Cash Flow	-786.07K	-786.07K	-950.79K	-867.37K	-489.48K	-728.89K
Investing Cash Flow	-1.95M	-1.95M	-617.16K	-881.34K	-2.62M	154.43K
Financing Cash Flow	-4.17K	-4.17K	6.35M	1.84M	2.21M	2.46M

Reach Resources Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
RR1	49 Neutral	AU$12.24M	-13.64	-6.63%	―	―	-136.67%
VKA	45 Neutral	AU$20.40M	-5.22	-41.19%	―	―	14.81%
KTA	45 Neutral	AU$11.81M	-2.61	-141.03%	―	-100.00%	36.11%
FAU	37 Underperform	AU$28.84M	-27.50	-32.90%	―	―	42.86%

Reach Resources Limited Corporate Events

Reach Resources Secures Second Mining Lease to Expand Murchison South Gold Project

Reach Resources has secured a second mining lease, M59/786, at its Murchison South Gold Project, consolidating the East Daffodil gold deposit with the existing Pansy Pit lease and adjacent historic Daffodil open pit. The new tenure strengthens the company’s dominant position along the Primrose Fault, enhances development flexibility by combining several high-grade, shallow gold zones on granted mining leases, and provides significant exploration upside given limited historical drilling at East Daffodil. With strong regional infrastructure, including proximity to highway access, accommodation, an RFDS airstrip and a nearby toll treatment plant under refurbishment, the grant is expected to materially increase the project’s scale and optionality, complementing Blue Heaven as the near-term development focus and underpinning upcoming metallurgy, drilling and rock-chip results that may support a future resource update and scoping study.

The most recent analyst rating on (AU:RR1) stock is a Hold with a A$0.01 price target. To see the full list of analyst forecasts on Reach Resources Limited stock, see the AU:RR1 Stock Forecast page.

Reach Resources Completes RC Drilling at Murchison South Gold Project

Reach Resources Limited has completed a 48-hole, 5,281-metre reverse circulation drilling program at its 100%-owned Murchison South Gold Project, targeting areas within and adjacent to four conceptual open-pit designs. The campaign is aimed at upgrading portions of the existing Inferred Mineral Resource to the higher-confidence Indicated category to support potential open-pit development, while a concurrent rock-chip sampling program at Blue Heaven, Jacamar, Pansy, Shamrock and East Daffodil is assessing additional gold mineralisation along strike. All samples are now en route to Perth laboratories, with assay and metallurgical results expected in February, which the company says will underpin key decisions on the project’s next phase of work in 2026.

Reach Resources Secures New Mining Lease at Murchison South Gold Project

Reach Resources Limited has announced the granting of a new mining lease, M59/790, at its Murchison South Gold Project. This lease covers the Jacamar gold deposit, which is strategically located between the Blue Heaven and Pansy Pit deposits. The lease enhances the potential for significant mining operations in the area, with historical drilling indicating promising gold grades. The company is conducting rock chip sampling to assess surface gold and quartz vein exposure, which could further bolster its mining prospects.

Reach Resources Limited Announces AGM Results and Strategic Decisions

Reach Resources Limited announced the results of its Annual General Meeting held on November 13, 2025, where all resolutions were decided by a poll. Key outcomes included the adoption of the remuneration report, re-election of director Matthew O’Kane, and the approval to issue securities under an employee incentive plan, while the approval of the 7.1A mandate and replacement of the constitution were not carried. These decisions reflect the company’s strategic direction and governance priorities, impacting its operational framework and stakeholder engagement.

Reach Resources Launches Drilling at Murchison South Gold Project

Reach Resources Limited has commenced a 5,000-meter reverse circulation drilling program at its Murchison South Gold Project in Western Australia. The program aims to upgrade resource classifications from inferred to indicated and explore new mineralization zones, potentially enhancing the project’s resource inventory and strengthening the company’s position in the gold mining sector.

Reach Resources Advances Murchison South Gold Project with Promising Developments

Reach Resources Limited has made significant progress in its Murchison South Gold Project during the September 2025 quarter. The company has completed essential environmental and heritage surveys, with no significant impediments found for future mine development. They are advancing their scoping study, which includes pit optimization and metallurgical test work, showing promising gold recovery rates. The company plans to commence a 5,000-meter infill drilling program in mid-November to increase resource confidence and reduce project risk. This progress positions Reach Resources favorably in the mining sector, potentially enhancing their operational capabilities and stakeholder confidence.