Variscan Mines Limited (VAR) AI Stock Analysis

• Market Cap: AU$4.70M
• Dividend Yield: N/A
• Average Volume (3M): 2.92M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.91
• Revenue Growth: N/A
• EPS Growth: 10.00%
• Country: AU
• Employees: 5
• Sector: Basic Materials
• Sector Strength: 64
• Industry: Industrial Materials
• EPS (TTM): >-0.01
• Shares Outstanding: 782,857,700
• 10 Day Avg. Volume: 2,198,617
• 30 Day Avg. Volume: 2,921,583
• PEG Ratio: 0.73
• Price to Book (P/B): 0.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -18.20
• 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

• Rating: 39 Underperform
• Price Target: ―

Variscan Mines Limited exhibits fundamental challenges with significant focus on improving profitability and cash flows. The debt-free balance sheet provides some stability, but overall, the financial health is concerning. Technical analysis is hindered by a lack of data, and the negative P/E ratio reflects poor valuation metrics. These factors combined result in a low overall stock score.

Variscan Mines Limited Business Overview & Revenue Model

Company Description

Variscan Mines Limited, a natural resources company, engages in the acquisition, exploration, and development of mineral properties. The company explores for copper, gold, zinc, lead, and uranium deposits. It owns interests in the Novales/Udias and Guajaraz projects located in Spain; the Rosario project located to the east of the port city of Chanaral, Chile; and the Junction Dam, Hillston, and Callabonna tenements located in Australia. The company was formerly known as PlatSearch NL and changed its name to Variscan Mines Limited in January 2014. Variscan Mines Limited was incorporated in 1987 and is based in Perth, Australia.

How the Company Makes Money

Variscan Mines Limited generates revenue primarily through the exploration and development of mineral resources. The company invests in identifying and developing mineral-rich properties, which can then be sold, joint ventured, or otherwise monetized once significant mineral deposits are confirmed. Revenue streams include the sale of mineral rights, joint venture partnerships with other mining companies, and potential future revenues from mining operations if properties are developed into producing mines. Strategic partnerships and collaborations with other mining entities or investors are significant factors that contribute to Variscan's earnings, enabling the company to leverage external expertise and financial resources to advance its projects.

Variscan Mines Limited Financial Statement Overview

Summary

Variscan Mines Limited faces significant challenges with profitability and cash generation. Despite a debt-free balance sheet, persistent negative net income and free cash flow indicate operational inefficiencies and reliance on external funding.

Income Statement

Variscan Mines Limited shows a challenging financial position with minimal revenue over the years and negative net income, indicating a consistent struggle to achieve profitability. The revenue growth is distorted by the absence of revenue in prior years, while the negative EBIT and EBITDA margins reflect operational inefficiencies. The company needs to address its revenue generation and cost management strategies to improve its financial health.

Balance Sheet

The company maintains a strong equity position with no debt, suggesting financial stability and low risk of financial distress. However, the return on equity is negative due to persistent net losses, calling for better profitability management. The equity ratio is high, showcasing a reliance on equity funding, which may limit financial flexibility.

Cash Flow

Variscan Mines Limited has been generating negative free cash flow consistently, indicating that it spends more on capital expenditures and operations than it earns. The operating cash flow to net income ratio is negative, showing cash flow challenges. Financing activities have been a major source of cash, but reliance on such external funding may not be sustainable without improved cash generation from operations.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
0.00	1.07K	0.00	0.00	0.00	0.00
	Gross Profit
-1.88K	1.07K	-7.55K	0.00	0.00	0.00
	EBIT
-729.20K	-679.41K	-824.32K	-822.69K	-661.41K	-1.14M
	EBITDA
-746.40K	-629.59K	-878.70K	-822.65K	-661.41K	-1.12M
	Net Income Common Stockholders
-860.19K	-650.27K	-886.24K	-827.05K	-684.61K	-1.13M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.15M	250.26K	1.02M	1.95M	4.44M	2.15M
	Total Assets
11.46M	9.83M	9.63M	9.04M	9.50M	5.95M
	Total Debt
0.00	0.00	0.00	0.00	0.00	0.00
	Net Debt
-1.15M	-250.26K	-1.02M	-1.95M	-4.44M	-2.15M
	Total Liabilities
177.04K	509.62K	254.18K	281.06K	232.42K	427.49K
	Stockholders Equity
11.28M	9.32M	9.38M	8.76M	9.27M	5.52M
Cash Flow		Free Cash Flow
-301.09K	-1.47M	-2.20M	-2.48M	-2.29M	-1.17M
	Operating Cash Flow
-485.83K	-358.95K	-586.76K	-638.53K	-767.98K	-777.69K
	Investing Cash Flow
-1.73M	-1.11M	-1.61M	-1.84M	-1.05M	-982.60K
	Financing Cash Flow
2.58M	707.00K	1.25M	-5.55K	4.11M	2.96M

Variscan Mines Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	50 Neutral	$1.99B	-1.06	-21.34%	3.71%	2.03%	-30.65%
VAR	39 Underperform	AU$4.70M	―	-8.33%	―	―	10.00%
ARTTF		$9.73M	―	-53.93%	―	―	―
CXOXF		$119.58M	―	-21.25%	―	―	―
MLXEF		$305.17M	4.67	27.43%	―	―	―
SFFRF		$43.05M	―	-36.70%	―	―	―

Variscan Mines Limited Corporate Events

Variscan Mines Reports Significant Zinc Discoveries and Government Support

Variscan Mines Limited has reported significant progress in its zinc exploration activities at the Novales-Udias Project in northern Spain. The company announced high-grade zinc intersections from its maiden underground drilling at the Udias Mine, indicating potential for resource expansion beyond the current Mineral Resource Estimate. Additionally, exceptional drilling results from the San Jose Mine suggest a potential feeder zone, bolstering the project’s prospects. The Government of Cantabria has expressed strong support for Variscan’s plans to restart mining operations, enhancing confidence in the permitting process. The company is advancing technical studies to fast-track a return to production, aiming to capitalize on the high-grade mineralization of its assets.

Variscan Mines Unveils Interactive Investor Website

Variscan Mines Limited has launched a new interactive investor website designed to consolidate all company content into a single platform, enhancing communication with investors and stakeholders. This initiative aims to improve transparency and engagement by providing access to announcements, financial reports, and direct interaction with the management team, thereby reinforcing the company’s commitment to transparency and stakeholder engagement.

Variscan Mines Expands Novales-Udias Project with New Licenses

Variscan Mines Limited has expanded its Novales-Udias Project in northern Spain by acquiring two new exploration licenses, Ana Isabel and Hipólita, covering 21.9 km². This expansion increases the project’s total area to 111.1 km² in a high-grade zinc district. The new licenses enhance Variscan’s strategic position by providing advanced exploration potential and access to extensions of the former Reocín Mine, which historically produced significant zinc and lead. The company’s strategy focuses on restarting production at the San Jose and Udias Mines to generate early cash flow while developing long-term exploration opportunities.

Variscan Mines Limited Announces Cessation of Securities

Variscan Mines Limited announced the cessation of 51,388,890 securities due to the expiry of options or other convertible securities without exercise or conversion as of March 15, 2025. This development may impact the company’s capital structure and could influence investor perception and market positioning, as it reflects changes in the company’s financial instruments.

Variscan Mines Limited Releases Half-Year Financial Report

Variscan Mines Limited has released its half-year financial report for the period ending 31 December 2024. This announcement is part of the company’s ongoing efforts to maintain transparency with stakeholders and provide insights into its financial health and operational progress. The report may impact the company’s operations and industry positioning, particularly in the context of its strategic focus on zinc projects in Spain.

Variscan Mines Gains Government Support for Zinc Project in Cantabria

Variscan Mines Limited has received strong support from the Government of Cantabria for its Novales-Udias Zinc Project, which plans to restart zinc mining in the region. A high-level meeting with Cantabrian officials, including the President and the Regional Minister for Industry, confirmed the government’s commitment to facilitating the project, potentially expediting its progress and enhancing Variscan’s position in the mining industry.

Variscan Mines Reports Exceptional Zinc Drilling Results at San Jose Mine

Variscan Mines Limited announced exceptional high-grade zinc drilling results from the San Jose Mine, particularly in the La Caseta area, indicating a probable feeder zone. The results include the highest assay result to date, reinforcing the quality of the Novales-Udias project and highlighting a priority exploration target for future drilling, which could significantly impact the company’s operational focus and industry positioning.

Variscan Mines Unveils Promising Drilling Results at Udias Mine

Variscan Mines Limited announced significant results from its maiden drilling campaign at the Udias Mine, part of the Novales-Udias Project in northern Spain, revealing high-grade zinc and lead intercepts. The campaign successfully identified new zones of mineralisation, extending beyond current geological models and showing potential for resource growth. The drilling results suggest strong geological similarities with the nearby San Jose Mine, indicating they share the same mineral system. The company plans to continue its drilling efforts to further explore this under-explored, highly mineralised area.

Variscan Mines Advances Drilling and Mine Re-Start at Udias

Variscan Mines Limited has announced progress in its maiden underground drilling campaign at the Udias Mine, with assay results expected soon. The drilling aims to expand the known mineral resource by targeting new areas outside the existing model, potentially enhancing the company’s resource base and market position. Additionally, the mine re-start study is advancing, with significant geotechnical and metallurgical tests underway, aligning with the company’s updated Explorer-Producer strategy.