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Sunstone Metals Limited (AU:STM)
ASX:STM

Sunstone Metals Limited (STM) AI Stock Analysis

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Sunstone Metals Limited

(Sydney:STM)

Rating:45Neutral
Price Target:
Sunstone Metals Limited is facing substantial financial hurdles, with no revenue and consistent losses, despite a strong equity position. The lack of momentum and valuation challenges further impede its attractiveness. These factors, compounded by the absence of earnings and corporate event data, result in a low overall stock score.

Sunstone Metals Limited (STM) vs. iShares MSCI Australia ETF (EWA)

Sunstone Metals Limited Business Overview & Revenue Model

Company DescriptionSunstone Metals Limited engages in the exploration and evaluation of gold and copper properties. It holds 87.5% interests in the Bramaderos project covering 4,959 hectares located in Loja Province, southern Ecuador; and 70% interests in the El Palmar project comprising 800 hectares situated in the Imbabura Province, northern Ecuador. The company was formerly known as Avalon Minerals Limited. Sunstone Metals Limited was incorporated in 2006 and is headquartered in Milton, Australia.
How the Company Makes MoneySunstone Metals Limited generates revenue primarily through the exploration and development of mineral resources, particularly gold and copper. The company identifies and acquires promising mineral properties, conducts extensive exploration activities to assess the potential of these properties, and seeks to increase their value through successful resource delineation. Revenue is further generated through the sale or joint venture of these properties with larger mining companies, who may have the resources to bring projects into production. Additionally, Sunstone Metals may earn income from royalties or equity stakes in projects they have developed. Strategic partnerships and collaborations with other mining and exploration companies can also play a significant role in funding exploration activities and advancing projects towards commercialization.

Sunstone Metals Limited Financial Statement Overview

Summary
Sunstone Metals Limited faces significant financial challenges with no revenue generation and consistent net losses. While the balance sheet shows strong equity and low leverage, the negative cash flows and lack of profitability raise concerns about the company's ability to sustain operations and finance its activities without external funding.
Income Statement
30
Negative
Sunstone Metals Limited has consistently reported zero total revenue over the years, indicating no income from operations. The net income has been negative in recent years, highlighting ongoing losses, with the most recent net loss at -$2.29 million. The absence of revenue and persistent losses demonstrate significant challenges in achieving profitability.
Balance Sheet
55
Neutral
The company's balance sheet shows a strong equity position with stockholders' equity standing at $83 million, contributing to a favorable equity ratio of approximately 96.57%. However, despite minimal debt, the lack of revenue and profitability raises concerns about long-term sustainability. The debt-to-equity ratio remains low, indicating low leverage risk.
Cash Flow
40
Negative
The free cash flow has been negative, most recently at -$15.87 million, reflecting high capital expenditures without corresponding inflows from operations. Operating cash flow is also negative, indicating that the company is not generating cash from its core activities, which poses a risk to liquidity.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
13.15K0.000.000.000.000.00
Gross Profit
-27.34K-78.53K-76.06K-68.82K-66.92K-56.72K
EBIT
-1.14M-2.15M-2.60M-2.60M-1.71M-1.76M
EBITDA
-1.14M-2.19M-1.79M-2.79M2.96M-1.67M
Net Income Common Stockholders
-1.18M-2.29M-1.88M-2.87M3.23M4.56M
Balance SheetCash, Cash Equivalents and Short-Term Investments
2.33M2.78M10.59M25.70M12.17M3.69M
Total Assets
96.34M85.99M80.05M68.81M44.13M42.75M
Total Debt
0.0078.40K32.58K72.48K108.38K30.12K
Net Debt
-2.27M-2.59M-10.27M-23.92M-12.06M-3.66M
Total Liabilities
1.16M2.07M1.91M2.44M796.48K745.87K
Stockholders Equity
94.30M83.04M77.27M65.50M42.46M41.12M
Cash FlowFree Cash Flow
-6.94M-15.87M-26.85M-15.69M-8.50M-9.82M
Operating Cash Flow
-1.60M-1.41M-1.75M3.03M-1.31M-1.37M
Investing Cash Flow
-5.34M-14.45M-23.19M-12.51M9.83M-5.30M
Financing Cash Flow
10.00M8.24M11.31M21.30M-30.91K8.48M

Sunstone Metals Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUFHE
55
Neutral
AU$103.01M-21.82%-525.27%
AUAGE
51
Neutral
AU$116.21M-5.22%
51
Neutral
$2.02B-1.19-21.37%3.64%2.88%-30.57%
AUASM
48
Neutral
AU$116.96M-15.33%-52.53%-27.29%
AUSTM
45
Neutral
€109.05M-2.97%-20.00%
AUEQR
44
Neutral
AU$104.41M-141.59%562.03%-336.00%
AUAUE
40
Underperform
AU$115.27M-13.94%38.19%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:STM
Sunstone Metals Limited
0.02
<0.01
80.00%
AU:EQR
EQ Resources Limited
0.04
0.00
0.00%
AU:AGE
Alligator Energy Ltd
0.03
-0.02
-40.00%
AU:ASM
Australian Strategic Materials Ltd
0.64
-0.25
-28.09%
AU:FHE
Frontier Energy Limited
0.20
-0.24
-54.55%
AU:AUE
Aurum Resources Limited
0.50
0.10
25.00%

Sunstone Metals Limited Corporate Events

Sunstone Metals Advances Corporate Transactions for Ecuadorian Gold-Copper Projects
Apr 30, 2025

Sunstone Metals Limited has been actively pursuing corporate transactions to enhance the value of its major copper-gold discoveries in Ecuador, with ongoing due diligence and site visits planned for the Bramaderos and El Palmar projects. The company has reported a maiden mineral resource estimate at El Palmar and a significant exploration target at Bramaderos, highlighting the potential for large-scale open-pit operations. Financially, Sunstone raised $4.0 million through an institutional share placement and reduced its expenditure by 24% from the previous quarter. The company is also exploring partnership opportunities, including joint ventures and corporate transactions, to combine its assets with complementary development projects, though the outcomes remain uncertain.

Sunstone Metals to Quote 13.1 Million New Securities on ASX
Apr 22, 2025

Sunstone Metals Limited has announced the issuance of 13,100,000 fully paid ordinary securities, which are set to be quoted on the Australian Securities Exchange (ASX) under the code STM. This move is part of the company’s strategy to leverage options being exercised or convertible securities being converted, potentially impacting its financial standing and offering new opportunities for stakeholders.

Sunstone Metals Announces Quotation of New Securities on ASX
Apr 14, 2025

Sunstone Metals Limited has announced the application for the quotation of 300,000 ordinary fully paid securities on the Australian Securities Exchange (ASX), with the issue date set for April 11, 2025. This move is indicative of the company’s ongoing efforts to enhance its market presence and potentially increase its capital base, which could have significant implications for its operational capabilities and stakeholder interests.

Sunstone Metals Issues New Securities for ASX Quotation
Apr 7, 2025

Sunstone Metals Limited has announced the issuance of 2,250,000 fully paid ordinary securities, which will be quoted on the Australian Securities Exchange (ASX) under the code STM. This move is part of the company’s strategy to leverage convertible securities, potentially enhancing its financial flexibility and market presence.

Sunstone Metals to Quote 2.1 Million New Shares on ASX
Apr 4, 2025

Sunstone Metals Limited has announced the issuance of 2,100,000 fully paid ordinary shares, which are set to be quoted on the Australian Securities Exchange (ASX) as of April 4, 2025. This move is part of the company’s strategic efforts to enhance its capital structure and potentially increase its market presence, providing opportunities for stakeholders to engage with the company’s growth trajectory.

Sunstone Metals Sees Change in Substantial Holder’s Voting Power
Apr 4, 2025

Sunstone Metals Limited has experienced a change in the interests of a substantial holder, Mason Stevens Limited, in its voting securities. The voting power of Mason Stevens Limited has decreased from 5.9798% to 4.3589%, indicating a reduction in their influence over company decisions. This change could have implications for the company’s governance and decision-making processes.

Ilwella Pty Ltd Acquires Substantial Stake in Sunstone Metals
Apr 3, 2025

Ilwella Pty Ltd has become a substantial holder in Sunstone Metals Limited, acquiring a 5.53% voting power through direct holdings in ordinary shares. This development signifies a significant stake in the company, potentially influencing its strategic decisions and operations, and reflects investor confidence in Sunstone Metals’ prospects.

Sunstone Metals Responds to ASX Inquiry Amid Partnership Talks
Apr 3, 2025

Sunstone Metals Limited has responded to an ASX inquiry regarding recent changes in its stock price and trading volume. The company attributes the activity to ongoing discussions with potential partners for joint ventures and corporate transactions related to its gold and copper assets. Additionally, a recent share placement has increased liquidity. While Sunstone is exploring several opportunities, including a potential combination with a privately owned gold development asset, no binding agreements have been finalized, and confidentiality remains intact.

Sunstone Metals to Quote 800 Million New Securities on ASX
Apr 2, 2025

Sunstone Metals Limited has announced the application for the quotation of 800,000,000 fully paid ordinary securities on the Australian Securities Exchange (ASX), with the issue date set for April 2, 2025. This move is part of a previously announced transaction and is expected to enhance the company’s capital structure, potentially impacting its market positioning and offering new opportunities for stakeholders.

Sunstone Metals Announces Director’s Interest Change
Apr 1, 2025

Sunstone Metals Limited has announced a change in the director’s interest, specifically involving Stephen Stroud. The change reflects a reduction in indirect shareholding due to the cessation of a related party’s involvement, impacting the total number of shares held by the director. This adjustment in shareholding may influence the company’s governance dynamics and shareholder relations, although it does not involve any cash consideration.

Sunstone Metals Announces Major Securities Issue
Mar 27, 2025

Sunstone Metals Limited has announced a proposed issue of 800 million fully paid ordinary securities, set to be issued on April 2, 2025. This move is part of a placement or other type of issue, potentially impacting the company’s capital structure and market position by increasing its available securities for trading on the ASX.

Sunstone Metals Secures $4M to Advance Strategic Discussions
Mar 27, 2025

Sunstone Metals Limited has successfully raised $4 million through an oversubscribed share placement to support its ongoing corporate discussions and potential business transactions. The funds will provide working capital as Sunstone advances discussions for a possible non-binding offer and explores a material business transaction that could combine a privately owned gold development asset with its existing gold-copper assets. The placement was managed by Morgans Corporate Limited and Canaccord Genuity, with new shares issued at a discount to recent trading prices.

Sunstone Metals Initiates Trading Halt for Pending Capital Raising Announcement
Mar 26, 2025

Sunstone Metals Limited has requested a trading halt on its securities, pending an announcement about a proposed capital raising. This halt will remain in effect until the company releases the announcement or until normal trading resumes on 28 March 2025. The trading halt is part of Sunstone’s strategic financial management, potentially impacting its market positioning and stakeholder interests.

Sunstone Metals Pursues Strategic Partnerships for Asset Development
Mar 26, 2025

Sunstone Metals Limited has been actively seeking partnerships to enhance the value of its gold and copper assets. The company is in advanced discussions for a potential non-binding offer, which would lead to a due diligence phase. Additionally, Sunstone is exploring a significant business transaction to combine a privately owned gold development asset with its existing assets. While these discussions are promising, there is no guarantee of a finalized agreement.

Sunstone Metals Limited Releases Half-Year Financial Report
Mar 13, 2025

Sunstone Metals Limited has released its half-year financial report for the period ending December 31, 2024. The report includes various financial statements such as the consolidated statement of profit or loss, financial position, changes in equity, and cash flows, along with notes to the financial statements and an independent auditor’s review report. This release provides stakeholders with insights into the company’s financial health and performance over the past six months, which may influence investor decisions and market perceptions.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.