Sunstone Metals Limited (STM) AI Stock Analysis

• Market Cap: €109.05M
• Dividend Yield: N/A
• Average Volume (3M): 7.71M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.36
• Revenue Growth: N/A
• EPS Growth: -20.00%
• Country: AU
• Employees: 38
• Sector: Basic Materials
• Sector Strength: 62
• Industry: Industrial Materials
• EPS (TTM): 0.00
• Shares Outstanding: 6,058,424,000
• 10 Day Avg. Volume: 8,459,819
• 30 Day Avg. Volume: 7,709,441
• PEG Ratio: -0.95
• Price to Book (P/B): 0.71
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -11.17
• 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: €0.04
• Price Target Upside: 75.02% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 45 Neutral
• 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 Business Overview & Revenue Model

Company Description

Sunstone 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 Money

Sunstone 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

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

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

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
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
13.15K	0.00	0.00	0.00	0.00	0.00
	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	-2.79M	2.96M	-1.67M
	Net Income Common Stockholders
-1.18M	-2.29M	-1.88M	-2.87M	3.23M	4.56M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.33M	2.78M	10.59M	25.70M	12.17M	3.69M
	Total Assets
96.34M	85.99M	80.05M	68.81M	44.13M	42.75M
	Total Debt
0.00	78.40K	32.58K	72.48K	108.38K	30.12K
	Net Debt
-2.27M	-2.59M	-10.27M	-23.92M	-12.06M	-3.66M
	Total Liabilities
1.16M	2.07M	1.91M	2.44M	796.48K	745.87K
	Stockholders Equity
94.30M	83.04M	77.27M	65.50M	42.46M	41.12M
Cash Flow		Free Cash Flow
-6.94M	-15.87M	-26.85M	-15.69M	-8.50M	-9.82M
	Operating Cash Flow
-1.60M	-1.41M	-1.75M	3.03M	-1.31M	-1.37M
	Investing Cash Flow
-5.34M	-14.45M	-23.19M	-12.51M	9.83M	-5.30M
	Financing Cash Flow
10.00M	8.24M	11.31M	21.30M	-30.91K	8.48M

Sunstone Metals Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FHE	55 Neutral	AU$103.01M	―	-21.82%	―	―	-525.27%
AGE	51 Neutral	AU$116.21M	―	-5.22%	―	―	―
Sector *	51 Neutral	$2.02B	-1.19	-21.37%	3.64%	2.88%	-30.57%
ASM	48 Neutral	AU$116.96M	―	-15.33%	―	-52.53%	-27.29%
STM	45 Neutral	€109.05M	―	-2.97%	―	―	-20.00%
EQR	44 Neutral	AU$104.41M	―	-141.59%	―	562.03%	-336.00%
AUE	40 Underperform	AU$115.27M	―	-13.94%	―	―	38.19%

Sunstone Metals Limited Corporate Events

Sunstone Metals Advances Corporate Transactions for Ecuadorian Gold-Copper Projects

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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.