Strike Resources Limited (SRK) AI Stock Analysis

• Market Cap: AU$9.65M
• Dividend Yield: N/A
• Average Volume (3M): 119.37K
• Price to Earnings (P/E): 7.2
• Beta (1Y): 1.42
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: AU
• Employees: 7
• Sector: Basic Materials
• Sector Strength: 62
• Industry: Industrial Materials
• EPS (TTM): <0.01
• Shares Outstanding: 283,750,000
• 10 Day Avg. Volume: 39,775
• 30 Day Avg. Volume: 119,374
• PEG Ratio: 0.10
• Price to Book (P/B): 1.85
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.07
• 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

Strike Resources Limited scores low due to significant financial challenges, including no revenue growth and erratic cash flows. The technical analysis shows upward momentum but warns of overbought conditions. Although the stock appears undervalued based on P/E, the absence of a dividend yield limits its attractiveness. Improvement in financial performance is crucial for a better outlook.

Strike Resources Limited Business Overview & Revenue Model

Company Description

Strike Resources Limited (SRK) is an Australian-based mining company focused on the exploration and development of iron ore and other minerals. The company's core activities involve the identification, acquisition, and development of mineral resources projects, primarily in Peru and Australia. Strike Resources is committed to leveraging its expertise in mining operations to produce high-quality iron ore suitable for the global steel industry.

How the Company Makes Money

Strike Resources Limited generates revenue primarily through the extraction and sale of iron ore. The company's key revenue stream comes from its flagship projects, such as the Apurimac Iron Ore Project in Peru, which boasts high-grade iron ore deposits. The company also explores and develops other mineral resources that contribute to its earnings. Significant partnerships with local and international stakeholders facilitate the export and sale of these minerals to global markets. Additionally, Strike Resources may enter into joint ventures or strategic alliances to enhance its mining operations and expand its market reach, further contributing to its revenue.

Strike Resources Limited Financial Statement Overview

Summary

Strike Resources Limited faces significant financial challenges. The income statement shows no revenue growth and profitability issues. The balance sheet is stable with no debt but shows a concerning asset reduction. Cash flows are erratic with negative free cash flow, indicating operational inefficiencies. Strategic shifts are needed for revenue generation and operational efficiency improvements.

Income Statement

Strike Resources Limited has displayed consistent revenue challenges, with total revenue at zero for several years and a declining gross profit margin. The net profit margin improved recently due to a positive net income in the latest report, but this is an anomaly in an otherwise loss-making trend. The company has not been able to generate significant revenue, which poses a risk to long-term profitability.

Balance Sheet

The balance sheet shows a strong equity position with a debt-to-equity ratio of zero, which indicates no leverage risk. However, the return on equity is inconsistent, and the equity ratio has been declining, reflecting a shrinking asset base. While the lack of debt is a positive, the company has limited growth without leveraging its financial position.

Cash Flow

Cash flow analysis shows negative free cash flow over multiple periods, indicating ongoing financial constraints. Although the recent increase in cash and equivalents is positive, it may not be sustainable given the fluctuating operating cash flows. The company needs to improve operational efficiency to stabilize cash flows.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
0.00	0.00	0.00	9.64M	0.00	0.00
	Gross Profit
-20.12K	-40.09K	-84.26K	-2.65M	-9.05K	-2.75K
	EBIT
-3.10M	-2.81M	-3.07M	-3.83M	-3.07M	-1.06M
	EBITDA
1.72M	2.36M	-1.37M	-4.17M	4.22M	-1.40M
	Net Income Common Stockholders
1.33M	754.52K	-6.88M	-4.59M	3.86M	-1.40M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.45M	6.72M	2.64M	4.21M	6.69M	3.41M
	Total Assets
6.22M	7.86M	19.61M	21.62M	18.64M	4.49M
	Total Debt
0.00	0.00	11.99M	7.05M	0.00	0.00
	Net Debt
-5.40M	-6.71M	9.35M	2.84M	-6.45M	-3.24M
	Total Liabilities
852.93K	1.15M	13.83M	9.50M	2.16M	254.37K
	Stockholders Equity
5.37M	6.70M	5.78M	12.12M	16.47M	4.24M
Cash Flow		Free Cash Flow
-2.44M	-3.26M	-17.99M	-8.59M	-5.06M	-1.60M
	Operating Cash Flow
-2.86M	―	-2.39M	-1.92M	-4.65M	-1.60M
	Investing Cash Flow
18.00M	19.94M	-4.22M	-6.40M	-407.54K	1.04M
	Financing Cash Flow
-10.29M	-12.99M	5.23M	5.55M	8.54M	2.61M

Strike Resources Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.04
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SRK, the sentiment is Negative. The current price of 0.04 is above the 20-day moving average (MA) of 0.04, above the 50-day MA of 0.03, and above the 200-day MA of 0.03, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 32.01 is Neutral, neither overbought nor oversold. The STOCH value of 35.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:SRK.

Strike Resources Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FMG	76 Outperform	$49.76B	8.41	20.21%	8.48%	-11.33%	-32.11%
RIO	75 Outperform	$164.53B	10.88	21.04%	7.80%	-0.10%	15.50%
BHP	74 Outperform	$194.86B	11.27	26.20%	4.94%	-2.47%	57.01%
MGX	64 Neutral	$353.87M	56.60	-35.86%	―	-39.92%	-249.60%
CIA	61 Neutral	C$2.44B	17.04	9.30%	4.55%	-9.27%	-56.88%
Sector *	49 Neutral	$1.98B	-1.10	-21.24%	3.61%	1.31%	-31.23%
SRK	43 Neutral	AU$9.65M	7.23	27.24%	―	―	―

Strike Resources Limited Corporate Events

Strike Resources Advances Apurimac Project and Strengthens Strategic Partnerships

Strike Resources Limited has made significant strides in advancing its Apurimac Iron Ore Project in Peru during the first quarter of 2025. The company’s senior leadership engaged with Peruvian government officials to discuss their involvement in the Andahuaylas–Marcona Railway Project, a key infrastructure initiative for enhancing iron ore export logistics. Strike is also pursuing a full mining permit for Apurimac and exploring potential expansions of mineral resources. Additionally, Strike’s stake in Lithium Energy Limited could benefit from the recent approval of asset sales and spin-outs, potentially impacting the company’s financial position and strategic focus.

Strike Resources Limited Releases Half-Year Financial Report

Strike Resources Limited has released its half-year report for the period ending 31 December 2024. The report provides financial statements and insights into the company’s performance, highlighting its ongoing commitment to mineral exploration and development. This release is significant for stakeholders as it outlines the company’s financial health and strategic direction, which can impact its market positioning and future operations.

Strike Resources Limited Announces Cessation of 1.85 Million Securities

Strike Resources Limited announced the cessation of 1,850,000 securities due to the expiry of options or convertible securities without exercise or conversion as of February 14, 2025. This cessation could potentially affect the company’s capital structure and liquidity, impacting stakeholders and market perception of the company’s financial health.