Reach Resources Limited (RR1) AI Stock Analysis

• Market Cap: AU$11.37M
• Dividend Yield: N/A
• Average Volume (3M): 2.77M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.07
• 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: 45 Neutral
• Price Target: AU$0.02 ▲(50.00% Upside)
• Action: Reiterated Date: 03/06/26
• Date: Action: Reiterated 03/06/26

The score is held down primarily by weak and inconsistent financial performance—especially recurring losses and persistently negative operating/free cash flow—despite a low-debt, improved equity balance sheet. Technicals are mixed with subdued momentum, and valuation is challenged by a negative P/E and no dividend yield data.

Positive Factors

Balance sheet strength

Zero reported debt combined with materially expanded equity provides durable financial flexibility, lowering solvency risk and enabling the company to fund exploration or pursue deals without near-term debt pressure. This conservative structure supports optionality during multi-year exploration cycles.

Asset-based exploration model

Owning tenements and running geochemical, geophysical and drilling programs builds a portfolio of tangible geological assets. Tenement ownership creates long-lived upside via discoveries, joint ventures or asset sales, giving the company structural optionality beyond short-term revenue swings.

Demonstrated profit potential

Achieving profitability in 2024 shows the company can convert exploration outcomes into positive earnings under the right conditions. This provides a proof point that projects and management execution can generate returns, offering a structural path to repeatable profit if exploration success continues.

Negative Factors

Persistent cash burn

Consistently negative operating and free cash flow across multiple years signals structural cash burn. The company must continually raise external capital or enter funding partnerships to sustain exploration, which dilutes shareholders and limits the firm's ability to self-fund value-creating programs long term.

Revenue volatility

Highly volatile revenue and earnings, including a drop to zero in 2025, reduce predictability of project monetization and hinder long-term planning. Such swings make it harder to secure stable financing, forecast returns, and sustain margins across the multi-year exploration and development cycle.

Inconsistent returns

ROE swinging from positive to negative year-to-year indicates unstable profitability and uneven value extraction from assets. This inconsistency weakens confidence in internal capital allocation, increases reliance on external funding, and raises the risk that shareholder value accumulation will be intermittent.

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’s revenue model is not reliably available from the information provided here. null

Reach Resources Limited Financial Statement Overview

Summary

Financial quality is weak overall: revenue and profitability are highly volatile (including revenue dropping to zero in 2025), losses recur outside of 2024, and operating/free cash flow are negative across all years shown—indicating ongoing funding reliance. The main support is a conservative balance sheet with zero debt and improved equity, but returns remain inconsistent.

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	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	0.00	3.20M	0.00	100.00K	29.65K
Gross Profit	-11.98K	3.20M	0.00	100.00K	29.65K
EBITDA	-1.15M	1.92M	-943.87K	-451.49K	-323.00K
Net Income	-950.30K	1.94M	-2.66M	-451.00K	-343.00K
Balance Sheet
Total Assets	14.23M	15.02M	6.55M	6.08M	3.95M
Cash, Cash Equivalents and Short-Term Investments	3.27M	6.01M	1.23M	1.13M	2.04M
Total Debt	0.00	0.00	450.00K	450.00K	450.00K
Total Liabilities	249.15K	338.86K	524.55K	555.45K	489.65K
Stockholders Equity	13.98M	14.69M	6.03M	5.53M	3.46M
Cash Flow
Free Cash Flow	-2.74M	-4.77M	-1.61M	-1.34M	-934.79K
Operating Cash Flow	-786.07K	-950.79K	-867.37K	-489.48K	-728.89K
Investing Cash Flow	-1.95M	-617.16K	-881.34K	-2.62M	154.43K
Financing Cash Flow	-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%
VKA	49 Neutral	AU$43.63M	-2.31	-37.39%	―	―	14.81%
RR1	45 Neutral	AU$11.37M	-4.07	-6.72%	―	―	-136.67%
KTA	45 Neutral	AU$8.49M	-0.53	-135.78%	―	-100.00%	36.11%
FAU	37 Underperform	AU$50.28M	-8.77	-32.90%	―	―	42.86%

Reach Resources Limited Corporate Events

Reach Resources releases interim half-year financial report

Reach Resources Ltd has released its interim financial report for the half-year ended 31 December 2025, covering the parent company and its controlled entities. The report includes the directors’ report, consolidated profit or loss and comprehensive income, financial position, changes in equity, cash flow, and accompanying notes, providing stakeholders with an overview of the group’s half-year financial performance and position.

The publication of these interim statements offers investors and regulators updated visibility into Reach Resources’ financial health and compliance with reporting obligations. However, the document excerpt contains only the contents list, so detailed figures, performance trends, and specific operational impacts over the period are not disclosed in the provided text.

The most recent analyst rating on (AU:RR1) stock is a Sell 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 flags high‑grade rock chips and expansion potential at Murchison South

Reach Resources has reported high‑grade rock chip assay results from an exploratory sampling program at its Murchison South Gold Project in Western Australia, including grades up to 31 grams per tonne gold outside the current mineral resource. The work targeted geophysically defined faults, mapped quartz veins and historic workings across three mining leases, aiming to refine drill targets where soil sampling is ineffective due to past disturbance.

The program collected 284 rock chip samples in late 2025 and defined anomalous gold values above 0.24 parts per million, outlining five standout anomalous zones around the Jacamar, Shamrock and Pansy areas and in the north‑west and central parts of one key lease. Management says the alignment of structural controls with robust assays strengthens the case for resource expansion at Murchison South, creating multiple drill‑ready targets that could enhance the scale and value of the project for shareholders.

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 drills high-grade extensions at Murchison South gold project

Reach Resources has reported strong assay results from a 48-hole reverse circulation drilling campaign at its Blue Heaven deposit within the Murchison South Gold Project in Western Australia. The program, completed in December 2025, targeted both infill and extensional areas in and around existing conceptual pit designs and confirmed that gold mineralisation continues along strike, at depth and beneath historic workings.

The drilling delivered multiple new high-grade gold lodes, with several intercepts showing attractive grades and thicknesses both inside and outside current pit shells, enhancing the project’s resource growth potential. Management says the results support a significant opportunity to expand the mineral resource across the broader project area and strengthen the case for developing not only the proposed Roadhouse Project Zone but also additional zones on the southern mining leases, with updated resource estimates and mine planning work to follow.

The most recent analyst rating on (AU:RR1) stock is a Sell with a A$0.02 price target. To see the full list of analyst forecasts on Reach Resources Limited stock, see the AU:RR1 Stock Forecast page.

Reach Resources Metallurgy Boosts Toll Milling Case for Murchison South Gold

Reach Resources has reported strong initial metallurgical testwork from its Murchison South Gold Project, showing the ore is free-milling, relatively soft and amenable to conventional gravity and cyanide leach processing with high gold recoveries above 95%. The results, achieved under conditions aligned with nearby toll and ore-purchase facilities and using site water, indicate low reagent consumption, rapid leach kinetics, minimal grind sensitivity and favourable crushing and rheological characteristics, underpinning the potential for cost-effective third-party toll treatment and supporting ongoing evaluation of processing options.

The company engaged JT Metallurgical Services and Bureau Veritas Labs to design and execute a comprehensive program covering comminution, rheology, gravity and leach testing, as well as environmental and acid mine drainage work, using core and RC chip composites representing oxide, transitional and fresh ore. These outcomes provide technical confidence for planning early-stage production scenarios based on trucking ore to existing mills, although Reach stressed that its broader Scoping Study remains in progress and that no economic conclusions should yet be inferred from the metallurgical work alone.

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 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.