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Stellar Resources Limited (AU:SRZ)
ASX:SRZ

Stellar Resources Limited (SRZ) AI Stock Analysis

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AU:SRZ

Stellar Resources Limited

(Sydney:SRZ)

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Neutral 50 (OpenAI - 5.2)
Rating:50Neutral
Price Target:
AU$0.04
▲(20.00% Upside)
The score is held back primarily by weak financial performance (minimal revenue, widening losses, and accelerating cash burn). Technicals provide partial offset with positive trend and momentum signals, while valuation is constrained by negative earnings and no indicated dividend support.
Positive Factors
Low leverage / minimal debt
The company has essentially no debt as of FY2025, which materially lowers bankruptcy and interest-rate risk. For an exploration-stage miner reliant on funding rounds, low leverage preserves strategic flexibility to negotiate JV/farm-out deals or raise capital without debt overhang.
Explicit monetisation pathways from exploration
Stellar’s stated business model emphasizes exploration success and multiple monetisation routes (project sale, farm-out/JV, royalties). These structural exit options provide durable avenues to realise value without immediate mine construction, improving the odds of value capture if resources are delineated.
Multi-commodity base metals focus
A portfolio emphasis on zinc, lead and silver offers commodity optionality and multiple potential offtake or partner interests. For an explorer, diversified base-metal targets can increase strategic flexibility to pursue the most viable project path or attract third-party funding across different metal markets.
Negative Factors
Accelerating operating cash burn
Operating cash burn surged materially in FY2025, a durable concern because sustained negative operating cash flow forces dependency on external capital. Persistent burn increases dilution risk, constrains program continuity, and raises execution risk for multi‑year exploration and permitting work.
Minimal/no operating revenue and wider losses
The company generates effectively no operating revenue while losses widened sharply in FY2025. This structural lack of revenue means the business cannot self-fund project advancement, leaving outcomes tied to exploration milestones and external financing rather than recurring cash generation.
Contracting equity and modest asset base
Material erosion of equity and a small asset base reduce balance-sheet headroom. This weakens the company's ability to secure non-dilutive financing or collateralised debt, making future funding rounds likelier and increasing dilution and execution risk when advancing capital‑intensive exploration projects.

Stellar Resources Limited (SRZ) vs. iShares MSCI Australia ETF (EWA)

Stellar Resources Limited Business Overview & Revenue Model

Company DescriptionStellar Resources Limited (SRZ) is an Australian-based mining company primarily focused on the exploration and development of mineral resources. The company is engaged in the extraction and processing of tin deposits, with its flagship project being the Heemskirk Tin Project located in Tasmania. Stellar Resources aims to become a significant player in the tin market by leveraging its high-quality resource base and employing sustainable mining practices.
How the Company Makes MoneyStellar Resources Limited generates revenue primarily through the exploration and eventual extraction of tin from its mining projects. The company's primary revenue stream is the sale of tin concentrate, which is extracted from its deposits and processed to meet market specifications. SRZ's earnings are heavily influenced by the global demand and pricing for tin, which is used in various applications including electronics, soldering, and plating. The company may also engage in strategic partnerships and joint ventures to optimize resource development and share operational costs. Additionally, Stellar Resources might secure funding through capital raising activities to support its exploration and development initiatives.

Stellar Resources Limited Financial Statement Overview

Summary
Financial profile is weak: minimal/zero revenue, sharply wider losses in FY2025, and accelerating operating cash burn, indicating heavy reliance on external funding. The main positive is very low leverage, but equity has materially declined, reducing flexibility.
Income Statement
12
Very Negative
Operating performance is weak and volatile. Revenue remains minimal (A$70k in FY2024, A$0 in FY2025), while losses have widened sharply in FY2025 (net loss about A$8.0m vs. A$2.3m in FY2024). Profitability is consistently negative, indicating the business is not yet operating at scale and earnings are highly dependent on funding and project progress rather than recurring sales.
Balance Sheet
58
Neutral
Leverage is very low, with essentially no debt in FY2025 and only small debt levels in prior years, which reduces financial risk. However, equity has contracted materially (about A$10.7m in FY2024 to A$5.5m in FY2025) and returns on equity are deeply negative, reflecting ongoing losses and dilution/erosion of the capital base. Asset levels are modest (about A$6.7m in FY2025), and continued losses could further weaken balance sheet flexibility.
Cash Flow
18
Very Negative
Cash generation is consistently negative, with operating cash flow outflows every year and a significant step-up in FY2025 (about -A$6.7m vs. -A$2.3m in FY2024). Free cash flow is also persistently negative, implying the company must rely on external funding to sustain operations. While free cash flow to net income is near 1.0 in recent years (losses largely mirrored by cash burn), the absolute level of cash burn and its acceleration in FY2025 are key concerns.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue0.000.0070.00K55.00K0.000.00
Gross Profit-41.16K-41.16K70.00K-40.10K-6.26K-11.46K
EBITDA-8.31M-8.31M-2.21M-3.29M-3.39M-708.64K
Net Income-8.04M-8.04M-2.25M-3.33M-3.40M-720.48K
Balance Sheet
Total Assets6.72M6.72M10.91M2.07M17.02M17.09M
Cash, Cash Equivalents and Short-Term Investments6.14M6.14M10.42M1.56M2.47M5.41M
Total Debt0.000.0015.41K25.17K44.01K5.88K
Total Liabilities1.24M1.24M251.24K331.25K350.56K231.98K
Stockholders Equity5.48M5.48M10.66M1.74M16.67M16.86M
Cash Flow
Free Cash Flow-6.76M-6.76M-2.31M-3.19M-6.22M-894.88K
Operating Cash Flow-6.74M-6.74M-2.31M-3.19M-3.38M-643.29K
Investing Cash Flow-2.96M-2.96M9.00K-462.00-2.36M37.94K
Financing Cash Flow2.43M2.43M11.16M2.28M31.62K5.49M

Stellar Resources Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.03
Price Trends
50DMA
0.03
Positive
100DMA
0.03
Positive
200DMA
0.02
Positive
Market Momentum
MACD
<0.01
Positive
RSI
58.28
Neutral
STOCH
34.55
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SRZ, the sentiment is Positive. The current price of 0.03 is below the 20-day moving average (MA) of 0.04, below the 50-day MA of 0.03, and above the 200-day MA of 0.02, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 58.28 is Neutral, neither overbought nor oversold. The STOCH value of 34.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:SRZ.

Stellar Resources Limited 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%
52
Neutral
AU$45.85M-28.81-10.97%71.63%
51
Neutral
AU$139.45M-41.41-9.25%-52.31%
50
Neutral
AU$102.87M-9.74-96.79%-116.67%
47
Neutral
AU$181.07M-12.38-49.01%-100.00%19.53%
47
Neutral
AU$126.86M-3.90-32.57%-100.00%-477.06%
42
Neutral
AU$64.18M-10.34-16.71%-18.92%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:SRZ
Stellar Resources Limited
0.04
0.02
153.33%
AU:ELT
Elementos Limited
0.41
0.35
572.13%
AU:DEV
DevEx Resources Ltd
0.26
0.17
214.81%
AU:EMC
Everest Metals Corporation Limited
0.17
0.02
9.68%
AU:CRS
Caprice Resources Ltd.
0.09
0.07
355.00%
AU:WR1
Winsome Resources Limited
0.52
0.08
16.85%

Stellar Resources Limited Corporate Events

Stellar Resources Grants 11.8 Million Unquoted Performance Rights Under Incentive Scheme
Jan 14, 2026

Stellar Resources Limited has issued 11.8 million unquoted performance rights under its employee incentive scheme, effective 14 January 2026. The move underscores the company’s continued use of equity-based incentives to align staff interests with shareholder value, though the securities will not be quoted on the ASX, concentrating their impact on internal retention and motivation rather than immediate market liquidity.

The most recent analyst rating on (AU:SRZ) stock is a Hold with a A$0.03 price target. To see the full list of analyst forecasts on Stellar Resources Limited stock, see the AU:SRZ Stock Forecast page.

Stellar Advances Heemskirk Tin Study as High-Grade Drilling and Metallurgy Boost Project Outlook
Jan 14, 2026

Stellar Resources’ quarterly report for the period ended 31 December 2025 highlights solid progress on the Prefeasibility Study for its Heemskirk Tin Project, with ongoing resource drilling, metallurgical test work and assessment of existing regional mine infrastructure. Infill and extensional diamond drilling at the Severn deposit delivered further high-grade tin intercepts, reinforcing the potential to upgrade and expand the 2023 Mineral Resource Estimate, while metallurgical results from Severn showed strong recoveries and clean concentrate, enhancing the project’s appeal as a future source of quality tin concentrate. The company expects to update mineral resources at Queen Hill and Severn in early 2026 and aims to complete the Prefeasibility Study in the first half of 2026, and it has begun non-binding discussions with potential offtake partners following interest at the Asia Tin Conference. At the East Renison Project, follow-up surface grab sampling returned spectacularly high-grade silver, antimony, gold, lead, zinc, copper and tin assays, underscoring additional exploration upside within Stellar’s broader Tasmanian portfolio.

The most recent analyst rating on (AU:SRZ) stock is a Hold with a A$0.03 price target. To see the full list of analyst forecasts on Stellar Resources Limited stock, see the AU:SRZ Stock Forecast page.

Stellar Resources Director Andrew Boyd Granted 16.6m Additional Performance Rights
Dec 19, 2025

Stellar Resources Limited has reported a change in the interests of director Andrew Boyd, who has been issued 16.6 million additional performance rights following shareholder approval at the company’s annual general meeting on 26 November 2025, taking his and his related parties’ total holding to 32.64 million performance rights alongside existing ordinary shares. The nil-consideration issuance, which materially increases Boyd’s exposure to equity-based incentives, aligns his interests more closely with shareholders and underscores the company’s continued use of performance rights as a key component of director remuneration and long-term incentive structures.

Stellar Resources Director Simon Taylor Granted 21.8 Million Additional Performance Rights
Dec 19, 2025

Stellar Resources Limited has disclosed a change in director Simon Taylor’s relevant interests in the company’s securities, lodged with the ASX under listing rule 3.19A.2. Taylor, through his indirect holdings in Jimzbal Pty Ltd and Jimbzal Pty Ltd, received an additional 21.8 million performance rights at no consideration, increasing his total performance rights from 20.38 million to 42.18 million, while his fully paid ordinary shareholding remains at 34.88 million shares. The new performance rights were issued following shareholder approval at the company’s annual general meeting on 26 November 2025, underscoring an incentive-based alignment of the director’s interests with long-term company performance and providing stakeholders with updated transparency on board-level equity exposure.

Stellar Resources to Issue 38.4 Million Unquoted Performance Rights
Dec 19, 2025

Stellar Resources Limited has notified the market that it will issue 38.4 million unquoted performance rights under the ASX code SRZAM, effective 19 December 2025. The move significantly expands the company’s pool of performance-based equity instruments, which may impact capital structure and align management or employee incentives with future corporate performance, though specific terms and conditions of the rights were not disclosed in the filing.

Stellar Resources Reports Major Tin Discovery at Heemskirk Project
Dec 17, 2025

Stellar Resources Limited has announced significant progress in its Heemskirk Tin Project with a notable 51m wide zone of tin mineralization intersected in their latest drilling at the Severn prospect. This finding, which includes high-grade tin intervals, is expected to bolster resource estimates and support the upgrade of mineral classifications, enhancing the project’s value to stakeholders and reinforcing the company’s positioning in the global tin market.

Stellar Resources Reports Positive Metallurgical Results for Heemskirk Tin Project
Dec 8, 2025

Stellar Resources Limited announced positive metallurgical results from its Severn Deposit within the Heemskirk Tin Project, indicating strong tin recoveries and high-grade, low-impurity concentrates. The results, overseen by a former Chief Metallurgist from a nearby tin mine, suggest a robust process flowsheet and potential commercial advantages due to low smelter penalties. The company has initiated preliminary discussions with potential offtake partners, highlighting the project’s strategic advantage in a tightening global tin market.

Stellar Resources Secures Shareholder Approval at AGM
Nov 26, 2025

Stellar Resources Limited announced that all resolutions presented at its Annual General Meeting were approved by the required majority. This outcome reflects strong shareholder support for the company’s strategic decisions and governance, potentially strengthening its position in the mining sector and enhancing stakeholder confidence.

Stellar Resources Issues New Shares, Ensures Regulatory Compliance
Nov 17, 2025

Stellar Resources Limited has announced the issuance of 22,727,273 new fully paid ordinary shares at a price of $0.022 per share. This move was made without disclosure to investors under the Corporations Act, and the company confirms compliance with relevant legal provisions, indicating transparency and adherence to regulatory standards.

Stellar Resources Limited Announces Quotation of New Securities on ASX
Nov 17, 2025

Stellar Resources Limited announced the quotation of 22,727,273 fully paid ordinary securities on the Australian Securities Exchange (ASX) under the code SRZ. This move is part of a previously announced transaction, potentially enhancing the company’s liquidity and market presence, which could have positive implications for its stakeholders and future operations.

Stellar Resources Issues Over 400 Million New Shares
Nov 17, 2025

Stellar Resources Limited has issued 409,090,909 new fully paid ordinary shares at an issue price of $0.022 per share. This issuance was conducted without disclosure to investors under specific provisions of the Corporations Act, and the company confirms compliance with relevant legal requirements, ensuring transparency and adherence to regulations.

Stellar Resources Announces Proposed Securities Issue
Nov 13, 2025

Stellar Resources Limited has announced a proposed issue of 22,727,273 ordinary fully paid securities, scheduled for issuance on November 17, 2025. This move is part of a placement or other type of issue, aimed at raising capital to support the company’s ongoing operations and strategic initiatives. The issuance is expected to have implications for the company’s market positioning by potentially enhancing its financial stability and enabling further development of its mineral projects.

Stellar Resources Secures Additional Funding for Heemskirk Tin Project
Nov 13, 2025

Stellar Resources Limited has announced an additional equity placement of A$500,000 to an existing substantial shareholder, adding to the A$9 million raised earlier. This brings the total funds raised to A$12.4 million, which will be used for the development and exploration of the Heemskirk Tin Project, as well as for general working capital. The strong investor interest is supported by high tin prices, driven by demand in electronics and renewable energy, and supply disruptions in key regions.

Stellar Resources Limited Announces Major Securities Issuance
Nov 11, 2025

Stellar Resources Limited has announced a proposed issuance of 409,090,909 ordinary fully paid securities, with the issuance date set for November 17, 2025. This strategic move is expected to enhance the company’s capital base, potentially strengthening its position in the mining sector and providing additional resources for its ongoing and future projects.

Stellar Resources Secures $9 Million to Advance Heemskirk Tin Project
Nov 11, 2025

Stellar Resources Limited has successfully raised $9 million through a placement to fund development and exploration at their Heemskirk Tin Project and East Renison Project in Tasmania. This funding, combined with recent option conversions, strengthens the company’s financial position and supports its goal to become a top 10 global tin producer. The placement was well-received by investors, reflecting confidence in the project’s potential amid strong tin prices and global supply constraints.

Stellar Resources Initiates Trading Halt for Capital Raise Announcement
Nov 7, 2025

Stellar Resources Limited has requested a trading halt on its securities on the ASX to prepare for a significant market announcement regarding a capital raise. The halt is expected to remain in place until the announcement is made or normal trading resumes on November 11, 2025, allowing the company to manage its disclosure obligations effectively.

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 29, 2026