Vital Metals Ltd (VML) AI Stock Analysis

• Market Cap: AU$12.38M
• Dividend Yield: N/A
• Average Volume (3M): 82.61K
• Price to Earnings (P/E): 25.0
• Beta (1Y): -0.23
• Revenue Growth: N/A
• EPS Growth: 95.18%
• Country: AU
• Employees: 13
• Sector: Basic Materials
• Sector Strength: 68
• Industry: Industrial Materials
• EPS (TTM): 0.00
• Shares Outstanding: 117,899,270
• 10 Day Avg. Volume: 113,123
• 30 Day Avg. Volume: 82,612
• PEG Ratio: 0.85
• Price to Book (P/B): 11.58
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -65.49
• 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: 43 Neutral
• 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 Business Overview & Revenue Model

Company Description

Vital 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 Money

Vital 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

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

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

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.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	2.65M	0.00	0.00	0.00	0.00
Gross Profit	823.43K	-1.67M	-759.99K	-206.26K	-75.89K
EBITDA	-3.38M	-5.24M	-3.97M	-4.53M	-4.50M
Net Income	2.32M	-51.68M	-4.77M	-4.75M	-4.58M
Balance Sheet
Total Assets	60.52M	62.83M	69.02M	65.77M	16.29M
Cash, Cash Equivalents and Short-Term Investments	3.53M	3.62M	5.16M	34.91M	1.81M
Total Debt	829.87K	7.04M	967.55K	164.00K	94.40K
Total Liabilities	2.44M	10.48M	8.35M	2.79M	547.48K
Stockholders Equity	58.08M	52.36M	60.66M	62.98M	15.74M
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 Flow	4.82M	48.25M	1.08M	49.52M	-55.01K

Vital Metals Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ILU	70 Outperform	$2.26B	9.72	10.39%	1.49%	-9.35%	-32.77%
LYC	59 Neutral	$9.35B	186.21	2.27%	―	-20.07%	-74.91%
ASM	52 Neutral	AU$125.13M	―	-15.33%	―	-52.53%	-27.29%
ARU	46 Neutral	$529.83M	―	-33.33%	―	―	65.19%
Sector *	44 Neutral	AU$1.45B	-5.90	-41.37%	4.07%	-3.45%	-43.04%
VML	43 Neutral	AU$12.38M	25.00	-4.50%	―	―	95.18%
HAS	33 Underperform	AU$59.07M	―	-86.77%	―	―	-879.59%

Vital Metals Ltd Corporate Events

Vital Metals Advances Rare Earths and Niobium Initiatives

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

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

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

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

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

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.