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Lycaon Resources Ltd. (AU:SLA)
ASX:SLA
Australian Market

Lycaon Resources Ltd. (SLA) AI Stock Analysis

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AU:SLA

Lycaon Resources Ltd.

(Sydney:SLA)

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Neutral 45 (OpenAI - 5.2)
Rating:45Neutral
Price Target:
AU$0.21
▲(7.89% Upside)
The score is primarily held down by very weak financial performance (minimal revenue, recurring losses, and persistent cash burn). Technicals are relatively neutral and provide limited support, while valuation remains unattractive due to losses and the absence of a dividend yield.
Positive Factors
Balance sheet cushion
Positive shareholders' equity provides a solvency buffer that is durable over months, reducing immediate liquidation risk. For a cash-burning explorer, having equity rather than heavy short-term liabilities buys management time to advance projects or secure financing without imminent solvency pressure.
Low reported financial leverage
Zero reported debt in recent years materially lowers fixed financing costs and covenant risk, preserving strategic flexibility. This structural low-leverage profile makes it easier to raise new capital or weather operational cash outflows without forced asset sales or distress refinancing in the medium term.
Industry exposure
Operating in the precious metals sector offers long-term structural demand and optionality for resource value realization. For a minerals company, this provides enduring strategic upside if projects advance or commodity conditions improve, supporting multi-month to multi-year value creation potential.
Negative Factors
No meaningful revenue
Absence of material revenue over multiple years indicates the business is not generating operating cash inflows and remains development-stage. This undermines self-sufficiency, forcing dependency on external financing and raising execution risk for converting assets into sustainable revenue streams over the coming months.
Persistent negative cash flow
Consistent negative operating and free cash flow signals ongoing cash burn and a structural funding gap. Over a 2–6 month horizon this compels repeated capital raises, diluting existing equity and limiting ability to invest in exploration or development without material financing activity.
Eroding equity and negative returns
Declining equity and persistently negative return on equity reflect value dilution from losses and financing. This structural trend weakens balance sheet resilience and investor confidence, making it harder to fund projects on favorable terms and increasing the probability of dilutive raises over the medium term.

Lycaon Resources Ltd. (SLA) vs. iShares MSCI Australia ETF (EWA)

Lycaon Resources Ltd. Business Overview & Revenue Model

Company DescriptionSolara Minerals Ltd operates as a mineral exploration company in Australia. It primarily explores for gold, nickel, copper, cobalt, Niobium, Lithium, iron oxide, and platinum group elements. Solara Minerals Ltd was formerly known as Lycaon Resources Limited and changed its name to Solara Minerals Ltd in March 2025. Solara Minerals Ltd was incorporated in 2021 and is based in Perth, Australia.
How the Company Makes Money

Lycaon Resources Ltd. Financial Statement Overview

Summary
Overall fundamentals are very weak: the company has had no meaningful revenue across 2022–2025, recurring net losses, and consistently negative operating/free cash flow, implying continued reliance on external funding. Positives include positive equity and currently low reported leverage, but equity is eroding as losses persist.
Income Statement
12
Very Negative
Financial performance remains very weak with no meaningful revenue in the last four annual periods (2022–2025) and persistent operating and net losses (net income: -$0.83M in 2022, -$1.60M in 2023, -$0.78M in 2024, -$1.22M in 2025). Losses improved versus 2023 but widened again in 2025, indicating an uneven cost trajectory. The 2021 profit appears non-recurring given extremely small revenue and subsequent years reverting to losses, limiting confidence in earnings quality.
Balance Sheet
28
Negative
The balance sheet shows some support from positive equity (about $6.8M in 2025 vs. $7.1M in 2024), but it is steadily eroding as losses continue. Reported debt is $0 in 2024–2025 (and 2021), which reduces near-term financial leverage risk; however, prior periods show large reported debt (2022–2023), highlighting historical volatility in capitalization. Returns on equity are consistently negative (about -18% in 2025), reflecting ongoing value dilution rather than compounding.
Cash Flow
15
Very Negative
Cash generation is weak: operating cash flow and free cash flow are negative in every year provided, implying the business requires external funding to sustain operations. Free cash flow remains meaningfully negative (about -$1.24K in 2025 and -$1.53M in 2024), and free cash flow growth is sharply negative in 2025, signaling deterioration versus 2024. While losses sometimes convert to comparatively smaller cash outflows, the overall profile is still cash-consuming and unstable.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue0.000.000.000.000.0012.00
Gross Profit0.000.000.000.000.0044.44M
EBITDA0.000.000.000.000.00-163.63K
Net Income-1.22M-1.22M-776.68K-1.60M-833.38K5.02M
Balance Sheet
Total Assets6.96M6.96M7.21M4.23M171.36M123.57M
Cash, Cash Equivalents and Short-Term Investments3.86M3.86M4.66M2.48M18.60M44.67M
Total Debt0.000.000.0055.31M44.64M16.40M
Total Liabilities187.80K187.80K97.13K331.31K82.08M45.91M
Stockholders Equity6.78M6.78M7.11M3.90M89.31M77.72M
Cash Flow
Free Cash Flow-1.24K-1.24K-1.53M-1.11M-3.78M-10.52M
Operating Cash Flow-553.00-553.00-408.10K-450.91K-743.44K-141.91K
Investing Cash Flow-685.00-685.00-1.13M-661.01K-701.07K-9.64M
Financing Cash Flow446.00446.003.71M3.20M4.69M25.87M

Lycaon Resources Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
50
Neutral
AU$23.46M-4.71-61.72%8.81%
48
Neutral
AU$6.29M-3.58-25.70%-100.00%80.33%
47
Neutral
AU$5.36M-4.19-9.21%54.74%
46
Neutral
AU$6.47M-1.12-135.06%30.99%
45
Neutral
-8.11-17.51%
36
Underperform
AU$7.28M-0.68-145.66%34.61%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:SLA
Lycaon Resources Ltd.
0.18
0.04
24.14%
AU:RCR
Rincon Resources Ltd.
0.02
<0.01
63.64%
AU:ATT
Copper Search Ltd.
0.02
>-0.01
-18.52%
AU:BPM
BPM Minerals Ltd.
0.23
0.17
283.33%
AU:DUN
Dundas Minerals Limited
0.04
<0.01
10.81%
AU:M3M
M3 Mining Ltd.
0.03
-0.01
-25.00%

Lycaon Resources Ltd. Corporate Events

Solara Minerals Announces Change in Company Secretariat
Jan 30, 2026

Solara Minerals Ltd has announced that joint company secretary Ms Anthea Acomb has resigned from her role effective 30 January 2026 as she commences maternity leave. The company confirmed that Ms Melanie Ross will continue as company secretary and retain responsibility for all communications with the ASX, ensuring continuity in corporate governance and regulatory compliance despite the change in the secretariat team.

The most recent analyst rating on (AU:SLA) stock is a Sell with a A$0.20 price target. To see the full list of analyst forecasts on Lycaon Resources Ltd. stock, see the AU:SLA Stock Forecast page.

Solara Advances Bryah Basin Exploration With Degrussa West Drilling and EIS Grant
Jan 30, 2026

Solara Minerals reported that it has completed Stage 1 of a stepped drilling program at its Degrussa West gold-copper project, with assay results due in the coming weeks, and confirmed that recent surface electromagnetic surveying identified a north-dipping conductive feature coincident at depth with a strong magnetic anomaly. The company also secured a A$180,000 Exploration Incentive Scheme grant to test its Degrussa West VTEM/MLEM targets, finalised an UltraFine soil sampling program over the Wilgeena West tenement, signed a heritage agreement for its Bryah Basin portfolio with the Jidi Jidi Aboriginal Corporation, and continues to review acquisition opportunities aligned with its growth strategy, collectively advancing its exploration pipeline and de-risking future work programs in a highly prospective mining district.

The most recent analyst rating on (AU:SLA) stock is a Hold with a A$0.20 price target. To see the full list of analyst forecasts on Lycaon Resources Ltd. stock, see the AU:SLA Stock Forecast page.

Solara Minerals Initiates Drilling at Degrussa West Gold-Copper Project
Dec 10, 2025

Solara Minerals Ltd has commenced drilling at its Degrussa West Project, targeting high-priority gold-copper sites identified through previous exploration activities. The project, supported by a $180,000 Exploration Incentive Scheme funding, aims to explore untested geophysical and geochemical anomalies, potentially enhancing Solara’s position in the mineral exploration industry and offering new opportunities for stakeholders.

Solara Minerals Updates Director’s Interest with New Options
Dec 8, 2025

Solara Minerals Limited has announced a change in the director’s interest notice for Adrian Di Menna. The company issued 2,000,000 unlisted options to Di Menna as part of an incentive component of director remuneration, following shareholder approval at the 2025 Annual General Meeting. This change reflects the company’s strategy to align director incentives with shareholder interests, potentially impacting the company’s governance and operational focus.

Solara Minerals Ltd Issues New Unlisted Options
Dec 8, 2025

Solara Minerals Ltd announced the issuance of 2,000,000 unlisted options, exercisable at $0.30 and expiring on December 8, 2028. This move is part of an employee incentive scheme and reflects the company’s efforts to motivate and retain talent, potentially impacting its operational efficiency and market competitiveness.

Solara Minerals Ltd Issues 6 Million Unlisted Options
Dec 8, 2025

Solara Minerals Ltd announced the issuance of 6,000,000 unlisted options, exercisable at $0.30 and expiring on December 8, 2028. This issuance is part of a previously announced transaction and is not intended to be quoted on the ASX, potentially impacting the company’s capital structure and offering strategic flexibility for future growth.

Lycaon Resources Ltd. Updates Corporate Constitution
Nov 27, 2025

Lycaon Resources Ltd. has released a new constitution detailing various aspects of its corporate governance, including share capital, rights, and securities holdings. This update is likely to impact the company’s operational structure and shareholder relations by formalizing procedures related to share issuance, employee incentives, and electronic transfers, thereby potentially enhancing transparency and efficiency.

Solara Minerals Ltd Successfully Passes All Resolutions at AGM
Nov 27, 2025

Solara Minerals Ltd, a company listed on the Australian Securities Exchange, recently held its annual general meeting where all proposed resolutions were successfully passed. The resolutions included the adoption of the remuneration report, the election and re-election of directors, the ratification of prior issue of consideration shares, approval of an employee incentive securities plan, replacement of the company’s constitution, and approval of a 7.1A mandate. This successful meeting reflects strong shareholder support and positions the company for continued operational and strategic progress.

Solara Minerals Advances Degrussa West Exploration with Heritage Survey Completion
Nov 24, 2025

Solara Minerals Ltd, operating in the mining industry, has completed an Aboriginal Heritage Survey at its Degrussa West Project, a step crucial for its exploration activities. The survey, conducted with the Jidi Jidi Aboriginal Corporation, allows Solara to proceed with drilling plans aimed at exploring gold and copper mineralization, expected to start in December 2025, pending survey results and program approvals.

Solara Minerals Secures Heritage Agreement for Exploration
Nov 4, 2025

Solara Minerals Ltd, an exploration company, has signed a Heritage Agreement with the Nharnuwangga Wajarri and Ngarlawannga peoples, represented by the Jidi Jidi Aboriginal Corporation. This agreement facilitates communication and collaboration for cultural and environmental preservation while allowing Solara to conduct early-stage exploration activities. The agreement specifically covers the Degrussa West, Wilgeena, Wagtail, and Mikhaburra project areas. A heritage survey is planned for the Degrussa West property, where drilling will investigate a promising geophysical and geochemical target.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jan 04, 2026