S2 Resources (S2R) AI Stock Analysis

• Market Cap: AU$41.97M
• Dividend Yield: N/A
• Average Volume (3M): 757.42K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.18
• 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: 45 Neutral
• Price Target: AU$0.09 ▲(34.29% Upside)

S2 Resources faces significant challenges in profitability and cash flow, which are the most impactful factors on its overall score. While the technical analysis shows some positive trends, the negative P/E ratio and lack of dividend yield further weigh down the stock's attractiveness.

Positive Factors

Revenue Growth

The company's strong revenue growth rate indicates a potential for future expansion and increased market presence, which is crucial for long-term success in the mineral exploration industry.

Balance Sheet Health

A low debt-to-equity ratio suggests financial stability and low leverage, providing the company with flexibility to invest in growth opportunities without significant financial strain.

Strategic Partnerships

Strategic partnerships with larger mining firms can enhance financial stability and provide access to resources and expertise, supporting long-term project development and revenue generation.

Negative Factors

Profitability Challenges

Persistent profitability challenges, indicated by negative margins, highlight operational inefficiencies and pose risks to sustainable growth and shareholder returns.

Cash Flow Issues

Declining cash generation capabilities can limit the company's ability to fund operations and growth initiatives, affecting long-term financial health and stability.

Operational Inefficiencies

Negative operating cash flow to net income ratio suggests inefficiencies in converting income into cash, which can hinder the company's ability to sustain operations and invest in future growth.

S2 Resources Business Overview & Revenue Model

Company Description

S2 Resources (S2R) is a mineral exploration company focused on discovering and developing high-quality mineral resources, primarily in Australia and Scandinavia. The company operates in the mining sector, concentrating on gold and base metals, leveraging advanced geological techniques and innovative exploration strategies to identify promising targets. S2R is committed to sustainable practices and aims to generate shareholder value through the successful development of its mineral projects while adhering to environmental and social responsibilities.

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

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 0.08, below the 50-day MA of 0.09, and below the 200-day MA of 0.09, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 38.27 is Neutral, neither overbought nor oversold. The STOCH value of 6.26 is Positive, 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$130.87M	-34.01	-2.30%	―	―	12.50%
ARD	48 Neutral	AU$58.81M	-18.42	-100.11%	―	―	-26.67%
S2R	45 Neutral	AU$41.97M	―	-102.03%	―	―	69.84%
LEL	39 Underperform	AU$41.44M	―	-13.86%	―	―	-12.34%
GCM	34 Underperform	AU$46.06M	-12.31	-18.16%	―	―	-18.18%
BKT	32 Underperform	AU$38.66M	-2.65	-15.13%	―	―	23.60%

S2 Resources Corporate Events

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.

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.

S2 Resources Begins Drilling at Warraweena Project

S2 Resources Ltd has commenced its initial drilling program at the Warraweena project in northern New South Wales, targeting six selected gold and base metal anomalies. The drilling, expected to take two months, aims to identify the rock types causing these anomalies to guide future exploration efforts. This initiative, along with a nearly completed gravity survey, is part of S2’s strategy to enhance its stake in the project, which could reach up to 80% in collaboration with Oxley Resources. The outcomes of this exploration could significantly impact S2’s operations and its positioning within the mining industry, potentially offering new opportunities for mineral extraction.

S2 Resources Expands Jillewarra Holdings and Completes Key Drilling Projects

S2 Resources has expanded its exploration efforts by acquiring additional ground at the Jillewarra project, increasing its coverage of the Karbah Shear Zone by 40%. This strategic move enhances their position in a highly prospective gold region, potentially increasing their resource base. The company also completed drilling at the West Murchison project, where assays are pending, and received assay results from Glenlogan, which showed no significant intercepts. These developments indicate S2 Resources’ commitment to advancing its exploration projects and strengthening its presence in key gold-bearing regions.

S2 Resources Commences Exploration at Promising Warraweena Project

S2 Resources Ltd has commenced exploration activities at its Warraweena project in northern New South Wales, where it aims to earn a significant interest in the area held by Oxley Resources. The project is considered highly prospective due to unexplained gravity and magnetic anomalies, which suggest potential for valuable mineral deposits. A follow-up gravity survey is currently underway, and drilling is expected to begin in 2-3 weeks. The area is largely unexplored, with historical drilling failing to penetrate the cover and reach the basement geology, which may host extensions of known mineral-rich regions. This exploration could significantly impact S2 Resources’ operations by potentially expanding their resource base and enhancing their industry positioning.

S2 Resources Emphasizes Commitment to Corporate Governance

S2 Resources Limited has released its corporate governance statement for the financial year ending June 30, 2025, emphasizing its commitment to high governance standards. The company acknowledges that while it does not fully comply with all ASX recommendations due to its operational scale, it has alternative governance practices in place. The Board of Directors regularly reviews these practices to ensure they remain appropriate, highlighting the company’s dedication to transparency and effective management.

S2 Resources Ltd Releases 2025 Financial Report

S2 Resources Ltd has released its financial report for the year ending June 30, 2025. The report includes various financial statements such as the consolidated statement of profit or loss, financial position, changes in equity, and cash flows. This release provides stakeholders with a comprehensive overview of the company’s financial performance and position, which is crucial for assessing its operational efficiency and future prospects.