S2 Resources (S2R) AI Stock Analysis

• Market Cap: AU$39.87M
• Dividend Yield: N/A
• Average Volume (3M): 757.42K
• Price to Earnings (P/E): ―
• Beta (1Y): <0.01
• Revenue Growth: N/A
• EPS Growth: 69.84%
• Country: US
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): -0.01
• Shares Outstanding: 531,586,360
• 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: 43 Neutral
• Price Target: AU$0.07 ▲(1.43% Upside)

The score is held down primarily by weak profitability and negative/declining cash flow despite strong revenue growth and very low leverage. Technicals are mixed with neutral momentum but a weaker longer-term trend, while valuation is constrained by losses and no dividend support.

Positive Factors

Revenue Growth

Sustained 33.4% revenue growth signals expanding business activity and market traction for S2 Resources. Over the next 2-6 months this trend supports project validation, improves bargaining power for JV/financing talks, and increases the runway to translate exploration into commercial outcomes.

Low Leverage / Balance Sheet Strength

Extremely low debt provides durable financial flexibility, reducing insolvency risk and enabling the company to pursue capital-intensive exploration or development without large interest burdens. This structural strength supports resilience through commodity cycles and funding negotiations.

Positive Gross Margin

A positive gross margin indicates the core project economics can cover direct production or project costs before overhead. If management controls operating expenses, this underlying margin can be scaled into sustainable profitability as exploration converts to revenue-generating assets.

Negative Factors

Negative Profitability

Ongoing negative EBIT and net margins reflect persistent operating losses that reduce reinvestment capacity and require external funding. Over months this undermines ability to reach cash-flow break-even and delays realization of project economics for shareholders.

Weak Cash Generation

Declining and negative free cash flow shows the company struggles to convert revenues into cash. Structurally, this increases reliance on external financing, raises dilution or refinancing risk, and constrains the pace of project advancement and capital allocation choices.

Negative Return on Equity

A negative ROE indicates shareholders' capital is not generating returns and highlights value destruction. Persisting negative ROE over months warns that project investments haven't produced profitable outcomes, pressuring long-term investor returns and capital-raising terms.

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

Revenue grew 33.4%, but profitability remains weak with negative EBIT and net profit margins. Balance sheet leverage is very low (debt-to-equity 0.006), yet negative ROE and weak/declining free cash flow point to ongoing operating and cash-generation challenges.

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: Negative
• Last Price: 0.07
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:S2R, the sentiment is Negative. The current price of 0.07 is below the 20-day moving average (MA) of 0.07, below the 50-day MA of 0.07, and below the 200-day MA of 0.09, indicating a bearish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 46.40 is Neutral, neither overbought nor oversold. The STOCH value of 84.44 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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$146.57M	-36.73	-2.30%	―	―	12.50%
BKT	52 Neutral	AU$40.81M	-2.79	-15.13%	―	―	23.60%
ARD	50 Neutral	AU$81.17M	-27.89	-100.11%	―	―	-26.67%
S2R	43 Neutral	AU$39.87M	-13.16	-102.03%	―	―	69.84%
LEL	43 Neutral	AU$41.44M	-6.89	-13.86%	―	―	-12.34%
GCM	41 Neutral	AU$40.48M	-10.77	-18.16%	―	―	-18.18%

S2 Resources Corporate Events

S2 Resources Bolsters Cash Reserves and Exploration Pipeline With Agnico Deal and Project Advances

S2 Resources has strengthened its balance sheet and strategic partnerships during the December 2025 quarter, selling its Fosterville exploration licence to Agnico Eagle for A$17 million in cash and completing a A$3 million private placement with Agnico, which now holds 5.6% of the company. The miner ended the period with a robust cash position of A$22.79 million and a A$5.95 million stake in Valkea Resources, while continuing early-stage exploration at its Warraweena project, expanding ground and gravity surveys, and securing new earn-in and 100%-owned ground at the multi-commodity Loch Lilly project, positioning the company for increased exploration activity and potential growth in coming quarters.

The most recent analyst rating on (AU:S2R) stock is a Hold with a A$0.07 price target. To see the full list of analyst forecasts on S2 Resources stock, see the AU:S2R Stock Forecast page.

S2 Resources Director Mark Bennett Increases Shareholding via On‑Market Purchase

S2 Resources has disclosed a change in the shareholding of director Mark Bennett, in line with ASX requirements for director interest notices. The filing shows Bennett increased his direct holding by 324,528 fully paid ordinary shares via an on‑market purchase valued at $22,392.43, taking his direct ownership to 5.5 million shares, alongside a substantial portfolio of unlisted options and indirect interests, underscoring continued insider exposure to the company’s equity and aligning board interests with those of shareholders.

The most recent analyst rating on (AU:S2R) stock is a Sell with a A$0.07 price target. To see the full list of analyst forecasts on S2 Resources stock, see the AU:S2R Stock Forecast page.

S2 Resources Issues New Shares Under Earn-In Agreement and Confirms Disclosure Compliance

S2 Resources has issued 373,134 fully paid ordinary shares as consideration under an Earn In Agreement, with the new securities forming part of its existing class of quoted ordinary shares on the ASX. The company confirmed that the shares were issued without a prospectus under applicable Corporations Act exemptions, and affirmed its compliance with continuous disclosure and financial reporting obligations, signalling that no additional material information is required for investors to assess the company or the rights attached to the new shares.

The most recent analyst rating on (AU:S2R) stock is a Hold with a A$0.07 price target. To see the full list of analyst forecasts on S2 Resources stock, see the AU:S2R Stock Forecast page.

S2 Resources Issues Shares for Loch Lilly Earn-In Deal

S2 Resources has applied for quotation on the ASX of 373,134 new fully paid ordinary shares, issued as consideration to the vendor under an Earn-In Agreement for the Loch Lilly Exploration Project in New South Wales. The share issuance formalises S2 Resources’ entry into the Loch Lilly project, signalling an expansion of its exploration portfolio in a key Australian jurisdiction and potentially strengthening its strategic position in the mineral exploration sector.

The most recent analyst rating on (AU:S2R) stock is a Hold with a A$0.07 price target. To see the full list of analyst forecasts on S2 Resources stock, see the AU:S2R Stock Forecast page.

S2 Resources Plans Modest Share Placement to Raise New Equity

S2 Resources Ltd has notified the ASX of a proposed issue of up to 373,134 fully paid ordinary shares via a placement or similar capital-raising mechanism, with the new securities expected to be issued on 12 January 2026. The move signals a modest equity raising that may support the company’s exploration and development activities, with implications for existing shareholders through potential dilution but also the prospect of additional funding for ongoing projects and strategic initiatives within the resource exploration sector.

The most recent analyst rating on (AU:S2R) stock is a Hold with a A$0.07 price target. To see the full list of analyst forecasts on S2 Resources stock, see the AU:S2R Stock Forecast page.

S2 Resources Secures Major Earn-In to Underexplored Loch Lilly Multi-Commodity Project

S2 Resources has struck a deal to earn up to a 75% interest in the Loch Lilly-Kars project in far‑western New South Wales, securing exposure to a 955 square kilometre, largely concealed greenfields belt considered prospective for polymetallic volcanogenic massive sulphide, porphyry copper-gold, orogenic gold and magmatic nickel-copper deposits. Partnering with San Antonio Exploration, a company linked to renowned geologist Professor Tony Crawford, S2 will explore the underdrilled Loch Lilly-Kars Belt using targeted geophysics and follow-up drilling, positioning itself for potential tier-one discoveries in a geological setting likened to Tasmania’s Mt Read and Victoria’s Stavely volcanic belts, which host several world-class base and precious metal deposits.

The most recent analyst rating on (AU:S2R) stock is a Hold with a A$0.07 price target. To see the full list of analyst forecasts on S2 Resources stock, see the AU:S2R Stock Forecast page.

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.