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Vital Metals Ltd (AU:VML)
ASX:VML
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Vital Metals Ltd (VML) AI Stock Analysis

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AU

Vital Metals Ltd

(Sydney:VML)

Rating:43Neutral
Price Target:
Vital Metals Ltd's overall stock score reflects its financial performance, which is showing some improvement in revenue and net income. However, significant operational and cash flow challenges remain. The technical analysis and valuation components are weak due to a lack of data and negative profitability, respectively. The company needs to address operational inefficiencies and improve cash flow to enhance its financial health and stock performance.

Vital Metals Ltd (VML) vs. iShares MSCI Australia ETF (EWA)

Vital Metals Ltd Business Overview & Revenue Model

Company DescriptionVital Metals Limited develops and explores for rare earths projects in Burkina Faso, Tanzania, Germany, and Canada. It holds a 100% interest in the Nechalacho Rare Earths Project located in Yellowknife, Northwest Territories. The company also owns interests in the Wigu Hill project located in Tanzania; Nahouri Gold Project located in Burkina Faso; and Aue Cobalt Project located in Germany. Vital Metals Limited was incorporated in 2004 and is headquartered in Sydney, Australia.
How the Company Makes MoneyVital Metals Ltd generates revenue primarily through the extraction and sale of rare earth elements from their mining operations. The company focuses on producing and supplying neodymium-praseodymium (NdPr) oxide, which is in high demand due to its application in producing permanent magnets. These magnets are critical for the automotive and renewable energy sectors, thus driving the demand for NdPr. Additionally, Vital Metals may engage in strategic partnerships or off-take agreements with manufacturers and technology companies to secure long-term contracts and stabilize revenue streams. However, specific partnership details and revenue contributions from these activities would require further information.

Vital Metals Ltd Financial Statement Overview

Summary
Vital Metals Ltd has shown progress in revenue generation, achieving positive net income, which is a significant improvement. However, the company faces challenges with operational efficiency and cash flow management. The balance sheet is strong with substantial equity, providing financial stability. To ensure long-term success, the company should focus on improving operational margins and cash flow generation.
Income Statement
45
Neutral
Vital Metals Ltd showed a significant improvement in revenue generation, achieving a total revenue of $2.65 million in 2024 after reporting no revenue in previous years. The net profit margin is positive at 87.38%, which is promising, but the company experienced negative EBIT and EBITDA margins due to high operating losses, indicating challenges in operational efficiency. Revenue growth is substantial, but the underlying profitability and efficiency remain concerns.
Balance Sheet
55
Neutral
The company has a strong equity position with an equity ratio of 95.97%, suggesting financial stability. However, the debt-to-equity ratio is relatively low at 0.014, indicating minimal leverage. The return on equity is positive at 3.99%, reflecting a turnaround in profitability. While the balance sheet is solid, the high dependence on equity might limit growth opportunities.
Cash Flow
40
Negative
Cash flow from operations is negative, and the company reports a negative free cash flow of $4.46 million for 2024, which may pose liquidity challenges. However, the operating cash flow to net income ratio improved significantly, indicating better cash generation efficiency compared to the past. The company needs to enhance its cash flows to support sustainable growth.
BreakdownJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue2.65M0.000.000.000.00
Gross Profit823.43K-1.67M-759.99K-206.26K-75.89K
EBITDA-3.38M-5.24M-3.97M-4.53M-4.50M
Net Income2.32M-51.68M-4.77M-4.75M-4.58M
Balance Sheet
Total Assets60.52M62.83M69.02M65.77M16.29M
Cash, Cash Equivalents and Short-Term Investments3.53M3.62M5.16M34.91M1.81M
Total Debt829.87K7.04M967.55K164.00K94.40K
Total Liabilities2.44M10.48M8.35M2.79M547.48K
Stockholders Equity58.08M52.36M60.66M62.98M15.74M
Cash Flow
Free Cash Flow-4.46M-49.79M-29.77M-16.12M-6.89M
Operating Cash Flow-573.28K-6.96M-4.75M-2.20M-1.99M
Investing Cash Flow-4.05M-42.82M-26.12M-14.17M-8.90M
Financing Cash Flow4.82M48.25M1.08M49.52M-55.01K

Vital Metals Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
59
Neutral
HK$16.60B4.48-5.52%6.29%-3.57%-61.41%
AUVML
43
Neutral
AU$12.38M25.00-4.50%95.18%
AUAKO
AU$15.80M-17.86%
AUAKN
AU$4.13M-72.79%
AUCAZ
55
Neutral
AU$9.23M-25.02%-285.71%
AUPVT
45
Neutral
AU$9.98M-11.42%55.10%
AUAR3
35
Underperform
AU$20.77M-15.31%7.62%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:VML
Vital Metals Ltd
0.10
0.04
66.67%
AU:AKO
Akora Resources Ltd.
0.11
-0.04
-26.67%
AU:AKN
AuKing Mining Ltd
0.01
-0.01
-50.00%
AU:CAZ
Cazaly Resources Limited
0.02
0.00
0.00%
AU:AR3
Australian Rare Earths Limited
0.10
0.01
11.11%
AU:PVT
Rafaella Resources Ltd.
0.01
-0.01
-50.00%

Vital Metals Ltd Corporate Events

Vital Metals Advances Rare Earths and Niobium Initiatives
Apr 29, 2025

Vital Metals Limited is finalizing a Scoping Study for its Tardiff deposit, which could significantly enhance the company’s value by incorporating niobium recovery, a mineral in high demand for its use in advanced technologies. Additionally, Vital has formed a Canadian Strategic Rare Earth Elements Consortium to accelerate the development of a national rare earth supply chain, positioning Canada as a key player in this sector and contributing to the socio-economic development of northern communities.

Vital Metals Issues 280 Million Unquoted Securities
Apr 11, 2025

Vital Metals Limited announced the issuance of 280 million unquoted securities as part of a previously disclosed transaction. This move is part of the company’s strategic efforts to enhance its financial standing and operational capabilities, potentially impacting its market position and stakeholder interests positively.

Vital Metals Director Increases Stake Significantly
Apr 3, 2025

Vital Metals Limited has announced a change in the director’s interest, with Michael Brook acquiring an additional 1,666,666 fully paid ordinary shares through an on-market purchase, increasing his total holdings to 2,499,999 shares. This acquisition reflects a significant personal investment in the company, potentially signaling confidence in its future prospects and stability, which may positively influence stakeholders and market perception.

Vital Metals Ltd Releases Interim Financial Report for H2 2024
Mar 14, 2025

Vital Metals Ltd has released its interim financial report for the half-year ended 31 December 2024. The report provides insights into the company’s financial performance, including statements of profit or loss, financial position, and cash flows. This release is significant for stakeholders as it offers a comprehensive overview of the company’s financial health and operational efficiency, potentially impacting investor confidence and market positioning.

Vital Metals Secures Loan and Forms Canadian REE Consortium
Mar 13, 2025

Vital Metals Limited has secured a $1 million loan to support the completion of its Scoping Study for the Tardiff deposit, which aims to evaluate the potential for rare earths and niobium recovery. The company has also formed a Canadian Strategic Rare Earth Elements Consortium to accelerate the establishment of a national rare earth supply chain in collaboration with the Canadian government and industry partners. This initiative is expected to reinforce Canada’s strategic role in the rare earth sector and contribute to the socio-economic development of northern communities.

Vital Metals Expands Tardiff Study to Include Niobium Recovery
Feb 28, 2025

Vital Metals Limited has announced an expansion of its Tardiff Scoping Study to include the potential recovery of niobium, alongside its existing focus on rare earth elements. The inclusion of niobium, which is used in aeronautic engines and electronics, could significantly enhance the project’s value. Initial testwork has shown a 15% recovery rate for niobium, and further studies are underway to optimize its recovery. This strategic move aligns with Vital’s collaboration with the Canadian Government to establish a central rare earths processing hub, potentially strengthening the nation’s critical mineral supply chain.

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: Apr 08, 2025