S2 Resources (S2R) AI Stock Analysis

• Market Cap: AU$34.53M
• Dividend Yield: N/A
• Average Volume (3M): 757.42K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.06
• Revenue Growth: N/A
• EPS Growth: 69.84%
• Country: AU
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): -0.01
• Shares Outstanding: 531,213,260
• 10 Day Avg. Volume: 731,834
• 30 Day Avg. Volume: 757,420
• PEG Ratio: -0.43
• Price to Book (P/B): 1.03
• Price to Sales (P/S): 46.51
• P/FCF Ratio: -1.81
• 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): -0.02
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: AU$0.07 ▼(-4.29% Downside)

The score is held down primarily by weak profitability and deteriorating cash flow despite strong revenue growth, plus bearish technical signals (below key moving averages and negative MACD). Valuation also screens poorly due to a negative P/E tied to losses, while the low leverage provides only partial support.

Positive Factors

Low Leverage / Strong Capital Structure

Extremely low debt-to-equity provides durable financial flexibility for an exploration company, reducing interest burden and insolvency risk. This strengthens S2R's ability to fund staged exploration or await favorable JV/partner terms without urgent refinancing pressure.

Robust Revenue Growth

Sustained 33.4% revenue growth signals improving project monetisation or successful deal activity. Over a multi-month horizon, higher top-line traction can support stronger partner negotiation leverage and justify continued investment into high-return targets.

Geographic & Technical Diversification

Presence across Australia and Scandinavia and use of advanced exploration methods diversify geological and regulatory risk and increase probability of discovery. Diversified project locations and technical capability support more consistent long-term project pipelines.

Negative Factors

Negative Profitability and Returns

Persistent negative EBIT and net margins alongside a negative ROE indicate the business is not converting revenue into sustainable profits or shareholder returns. Over months, this undermines reinvestment capacity and heightens reliance on external funding or dilution.

Deteriorating Cash Generation

Declining free cash flow and negative OCF-to-income point to weak cash conversion and operational cash deficits. This structural weakness increases the probability of future capital raises, restricts project financing ability, and pressures long-term development timelines.

Exploration-Stage Revenue Reliance

Revenue model dependent on rights sales, JVs and grants means cash flows are lumpy and contingent on deal execution or project advancement. Until production is achieved, this structural dependency raises execution and funding risk over the coming months.

S2 Resources Business Overview & Revenue Model

Company Description

S2 Resources Ltd engages in the exploration and evaluation of mineral properties. The company primarily explores for gold, nickel, copper, and platinum-group elements deposits. It holds interests in the Jillewarra, West Murchison, Three Springs, Koonenberry, Fraser Range, Greater Fosterville, Berkshire, Nerramyne, and Polar Bear projects located in Australia. The company also holds a portfolio of properties located in Central Lapland Greenstone Belt, Finland. S2 Resources Ltd was incorporated in 2015 and is based in Melbourne, Australia.

How the Company Makes Money

S2 Resources generates revenue primarily through the exploration and development of mineral resources. The company earns money through various avenues, including the sale of mineral rights, joint venture agreements with other mining companies, and potentially through the production of minerals if its projects reach production stage. Key revenue streams include strategic partnerships with larger mining firms that provide funding for exploration in exchange for future revenue sharing or ownership stakes. Additionally, S2R may benefit from government grants or incentives aimed at promoting mineral exploration and development, which can further enhance its financial position.

S2 Resources Financial Statement Overview

Summary

S2 Resources shows revenue growth but faces significant profitability and cash flow challenges. The balance sheet is strong with low leverage, but negative returns and cash flow issues highlight operational inefficiencies and risks.

Income Statement

S2 Resources has shown a positive revenue growth rate of 33.4% in the latest year, indicating potential for future growth. However, the company is struggling with profitability, as evidenced by negative net profit and EBIT margins. The gross profit margin is positive, but the high negative EBIT and net profit margins suggest significant operational challenges.

Balance Sheet

The company's balance sheet shows a low debt-to-equity ratio of 0.006, indicating low leverage and financial stability. However, the return on equity is negative, reflecting ongoing losses and challenges in generating returns for shareholders. The equity ratio is relatively healthy, suggesting a strong capital structure.

Cash Flow

S2 Resources has a negative free cash flow growth rate, indicating declining cash generation capabilities. The operating cash flow to net income ratio is negative, suggesting inefficiencies in converting income into cash. The free cash flow to net income ratio is close to 1, indicating that cash flow is closely aligned with net income, albeit both are negative.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	201.68K	201.68K	469.04K	129.55K	166.91K	56.31K
Gross Profit	201.68K	201.68K	469.04K	-18.18K	27.88K	-95.53K
EBITDA	-6.14M	-6.14M	-7.47M	-6.06M	-7.21M	-7.62M
Net Income	-2.59M	-2.59M	-8.19M	-6.76M	-7.37M	-7.23M
Balance Sheet
Total Assets	10.07M	10.07M	8.99M	9.69M	10.51M	16.66M
Cash, Cash Equivalents and Short-Term Investments	3.83M	3.83M	5.80M	6.86M	7.83M	13.89M
Total Debt	56.92K	56.92K	90.22K	159.81K	228.59K	176.92K
Total Liabilities	948.84K	948.84K	898.06K	804.74K	572.35K	1.03M
Stockholders Equity	9.12M	9.12M	8.09M	8.88M	9.94M	15.64M
Cash Flow
Free Cash Flow	-5.17M	-5.17M	-7.08M	-6.01M	-6.58M	-5.93M
Operating Cash Flow	-5.17M	-5.17M	-6.96M	-5.94M	-6.54M	-5.83M
Investing Cash Flow	851.04K	851.04K	70.80K	329.56K	109.68K	-105.98K
Financing Cash Flow	2.77M	2.77M	6.45M	5.91M	4.56M	7.14M

S2 Resources Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.07
• 50DMA: Negative
• 100DMA: Negative
• 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:S2R, the sentiment is Neutral. The current price of 0.07 is above the 20-day moving average (MA) of 0.07, below the 50-day MA of 0.08, and below the 200-day MA of 0.09, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 46.53 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:S2R.

S2 Resources 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%
GL1	52 Neutral	AU$167.51M	-44.90	-2.30%	―	―	12.50%
BKT	52 Neutral	AU$36.51M	-3.09	-15.13%	―	―	23.60%
ARD	50 Neutral	AU$72.43M	-22.11	-100.11%	―	―	-26.67%
LEL	43 Neutral	AU$41.44M	-6.89	-13.86%	―	―	-12.34%
S2R	41 Neutral	AU$34.53M	-12.28	-102.03%	―	―	69.84%
GCM	41 Neutral	AU$40.30M	-11.54	-18.16%	―	―	-18.18%

S2 Resources Corporate Events

S2 Resources Flags Macquarie Arc-Style Potential at Warraweena After Maiden Drilling

S2 Resources has completed a maiden seven-hole reconnaissance diamond drilling program and extended its regional gravity survey at the Warraweena copper-gold exploration project in northern New South Wales, where it is earning up to 70%–80% interest alongside ground it already holds outright. The initial drilling intersected extensive calc-alkaline andesitic to basaltic volcanic and volcanoclastic rocks, dubbed the Warraweena volcanics, with geochemistry closely resembling the Macquarie Arc, a prolific copper-gold province that hosts several tier-one operations, and returned elevated copper values and minor native copper in several holes; the company has also secured a new tenement and is planning further geophysical work, positioning Warraweena as an emerging target area despite the program not yet resolving the source of key magnetic anomalies.

The most recent analyst rating on (AU:S2R) stock is a Hold with a A$0.09 price target. To see the full list of analyst forecasts on S2 Resources stock, see the AU:S2R Stock Forecast page.

S2 Resources Banks $17m From Fosterville Sale to Fund Exploration Push

S2 Resources has completed the sale of its Fosterville exploration licence EL007795 in Victoria to a subsidiary of Agnico Eagle Mines for A$17 million, boosting its total cash holdings to more than A$21.5 million. The strengthened balance sheet leaves S2 well funded to accelerate exploration without near-term equity dilution, including initial reconnaissance drilling of geophysical anomalies at its Warraweena project in northern New South Wales and advancing access negotiations with traditional owners at the Jillewarra gold joint venture in Western Australia, while it continues to assess further exploration opportunities in Australia and overseas.

The most recent analyst rating on (AU:S2R) stock is a Hold with a A$0.09 price target. To see the full list of analyst forecasts on S2 Resources stock, see the AU:S2R Stock Forecast page.

S2 Resources Announces Cessation of Securities

S2 Resources Ltd announced the cessation of 250,000 securities due to the lapse of conditional rights, as the conditions for these securities were not met or became incapable of being satisfied. This development may impact the company’s capital structure and could have implications for its financial strategy and stakeholder interests.

The most recent analyst rating on (AU:S2R) stock is a Hold with a A$0.08 price target. To see the full list of analyst forecasts on S2 Resources stock, see the AU:S2R Stock Forecast page.

S2 Resources Announces Director’s Change in Securities Holdings

S2 Resources Ltd has announced a change in the director’s interest, specifically concerning Mark Bennett. The change involves the expiration of 4,000,000 unlisted options that were exercisable at $0.29 and set to expire on November 11, 2025. This adjustment in securities holdings reflects a decrease in Bennett’s direct interests, potentially impacting his influence or stake within the company.

S2 Resources Raises $3 Million Through Share Issuance

S2 Resources Limited has issued 29,744,200 fully paid ordinary shares to Agnico Eagle Mines Limited at a price of $0.10086 per share, raising $3 million. This transaction, announced on October 30, 2025, is part of the company’s strategic financial maneuvers to bolster its capital, potentially enhancing its operational capabilities and market position.

S2 Resources Ltd Announces Quotation of New Securities on ASX

S2 Resources Ltd announced the quotation of 29,744,200 ordinary fully paid securities on the ASX, effective November 5, 2025. This move is part of previously announced transactions and is expected to enhance the company’s market presence and liquidity, potentially impacting its operational capabilities and stakeholder interests positively.

S2 Resources Announces Proposed Issue of Securities to Boost Exploration Efforts

S2 Resources Ltd has announced a proposed issue of 29,744,200 ordinary fully paid securities, with the issue date set for November 5, 2025. This strategic move is aimed at raising capital to support the company’s exploration and development activities, potentially strengthening its market position and providing growth opportunities for stakeholders.

S2 Resources Sells Fosterville License to Agnico Eagle, Boosts Exploration Funding

S2 Resources has entered into agreements to sell its Fosterville exploration license to Agnico Eagle for A$17 million and undertake a strategic placement of shares to raise an additional A$3 million. This transaction will make Agnico Eagle, the world’s second-largest gold producer, a significant shareholder in S2 with a 5.6% stake. The deal positions S2 with a robust cash reserve of A$23.1 million, enabling it to pursue exploration opportunities without immediate equity funding needs. The company plans to focus on drilling geophysical targets at the Warraweena project and negotiating with traditional owners for exploration rights at the Jillewarra Joint Venture.

S2 Resources Announces 2025 Annual General Meeting Details

S2 Resources Limited has announced its Annual General Meeting (AGM) scheduled for November 28, 2025, at the offices of Consilium Corporate in Perth, Western Australia. The company will not be sending physical copies of the meeting notice, encouraging shareholders to access it online. Shareholders are urged to participate in the voting process by submitting proxy forms if they cannot attend in person, with a deadline for submission set for November 26, 2025. This approach reflects a shift towards digital communication and emphasizes the importance of shareholder engagement in corporate governance.

S2 Resources Ltd Announces Key Resolutions for Upcoming AGM

S2 Resources Ltd has announced its Annual General Meeting, scheduled for November 28, 2025, in Perth, Australia. The meeting will address several key resolutions, including the adoption of the remuneration report, the re-election of Director Mark Bennett, the approval of an employee share option plan, and a mandate to issue equity securities. These resolutions are crucial for the company’s governance and strategic direction, potentially impacting shareholder value and the company’s ability to attract and retain talent.

S2 Resources Reports Quarterly Activities and Financial Position

S2 Resources has released its September 2025 quarterly activities report, highlighting key developments across its exploration projects and corporate activities. The company has initiated reconnaissance drilling at Warraweena and expanded its gravity survey, while additional ground has been pegged at both Warraweena and Jillewarra. Despite receiving assay results from Glenlogan and West Murchison, no significant mineral anomalies were found. On the corporate front, S2 Resources completed a tranche 2 private placement and a share purchase plan, raising a total of A$0.61 million. The company ended the quarter with a cash balance of A$3.1 million and holds a significant investment in Valkea Resources valued at A$5.5 million. Planned cash outflows for the next quarter are forecasted to be approximately A$1.6 million.

S2 Resources Sets Date for AGM and Director Nominations

S2 Resources Limited has announced that its Annual General Meeting (AGM) will be held on November 28, 2025, with the deadline for director nominations set for October 17, 2025. This announcement is significant for stakeholders as it outlines the timeline for governance activities, potentially impacting the company’s strategic direction and leadership structure.