Vanadium Resources Ltd. (VR8) AI Stock Analysis

• Market Cap: AU$7.90M
• Dividend Yield: N/A
• Average Volume (3M): 341.69K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.95
• Revenue Growth: N/A
• EPS Growth: 58.46%
• Country: AU
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 67
• Industry: Industrial Materials
• EPS (TTM): >-0.01
• Shares Outstanding: 564,291,900
• 10 Day Avg. Volume: 301,900
• 30 Day Avg. Volume: 341,691
• PEG Ratio: -156.74
• Price to Book (P/B): 0.27
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.24K
• 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: 30 Underperform
• Price Target: ―

Vanadium Resources Ltd. faces severe financial instability with no revenue, persistent losses, and negative cash flows. The bearish technical indicators and negative valuation metrics further exacerbate the potential risks. While the strong equity position offers some buffer, the overall outlook remains highly challenging, and strategic changes are essential for improvement.

Vanadium Resources Ltd. Business Overview & Revenue Model

Company Description

Vanadium Resources Limited, engages in the exploration and development of mineral projects in Australia and South Africa. The company explores for vanadium, copper, zinc, and lead. It holds 100% interest in the Quartz Bore project that consists of an exploration license covering an area of approximately 15 square kilometers located in the West Pilbara province; and the Steelpoortdrift Vanadium project located in Limpopo Province, South Africa. The company was formerly known as Tando Resources Limited and changed its name to Vanadium Resources Limited in July 2019. Vanadium Resources Limited was incorporated in 2017 and is based in Victoria Park, Australia.

How the Company Makes Money

Vanadium Resources Ltd. generates revenue primarily through the exploration, development, and eventual production of vanadium from its mining projects. The company's revenue model is based on the extraction and sale of vanadium concentrate, which is used in the production of ferrovanadium and vanadium pentoxide, critical components in steel alloys and energy storage systems, respectively. Key revenue streams include long-term supply contracts with industrial clients and potential partnerships with steel manufacturers and battery technology companies. The company's earnings are influenced by factors such as the global demand for vanadium, market prices, and the efficiency of its mining operations.

Vanadium Resources Ltd. Financial Statement Overview

Summary

Vanadium Resources Ltd. is facing significant financial challenges due to the absence of revenue, continuous losses, and negative cash flows. The company has a strong equity position with minimal debt, which provides some financial stability, but the negative cash flow and lack of operational income are major concerns.

Income Statement

Vanadium Resources Ltd. has reported no revenue over the years, resulting in consistently negative EBIT and net income. The lack of revenue growth and negative profit margins signal significant challenges in achieving profitability.

Balance Sheet

The company shows a strong equity position with a high equity ratio of approximately 98.7%. However, the company has minimal debt, leading to a low debt-to-equity ratio, which contributes to financial stability. Despite this, the lack of revenue and continuous losses are concerning for long-term sustainability.

Cash Flow

Operating cash flow remains negative, with a continuous decline in free cash flow, indicating that the company is burning cash without generating inflows from operations. Despite occasional financing inflows, the cash flow situation remains weak, signaling liquidity risks.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00	0.00
	Gross Profit
-6.16K	-11.94K	-3.86K	-849.00	-849.00	-849.00
	EBIT
―	-1.18M	-1.77M	-1.38M	-292.68K	-2.60M
	EBITDA
-372.38K	-2.00M	-2.21M	-1.29M	-292.97K	-2.73M
	Net Income Common Stockholders
―	-1.96M	-2.23M	-1.63M	-583.27K	-2.87M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
146.89K	1.92M	6.10M	2.92M	1.80M	248.86K
	Total Assets
29.64M	30.23M	31.41M	27.73M	23.28M	21.90M
	Total Debt
171.88K	165.56K	558.35K	621.37K	0.00	0.00
	Net Debt
24.99K	-1.75M	-5.54M	-2.29M	-1.80M	-248.86K
	Total Liabilities
678.85K	704.05K	915.19K	1.29M	71.17K	96.56K
	Stockholders Equity
29.23M	29.83M	31.01M	26.90M	23.21M	21.80M
Cash Flow		Free Cash Flow
―	-3.79M	-2.74M	-3.60M	-393.26K	-1.53M
	Operating Cash Flow
―	-1.59M	-1.43M	-1.05M	-375.06K	-645.91K
	Investing Cash Flow
―	-2.20M	-1.31M	-2.94M	-71.18K	-972.37K
	Financing Cash Flow
0.00	-389.79K	5.92M	5.10M	2.00M	936.55K

Vanadium Resources Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:VR8, the sentiment is Negative. The current price of 0.01 is below the 20-day moving average (MA) of 0.01, below the 50-day MA of 0.02, and below the 200-day MA of 0.03, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 45.07 is Neutral, neither overbought nor oversold. The STOCH value of -66.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:VR8.

Vanadium Resources Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$2.03B	-1.13	-21.36%	3.65%	2.87%	-30.54%
VR8	30 Underperform	AU$7.90M	―	-5.01%	―	―	58.46%
SYAAF		$192.90M	―	-33.63%	―	―	―
ARRRF		$53.97M	―	-15.37%	―	―	―
ATVVF		$50.47M	―	-15.36%	―	―	―
SFFRF		$41.02M	―	-36.70%	―	―	―
VR1	50 Neutral	AU$37.11M	―	-44.01%	―	21.55%	64.76%

Vanadium Resources Ltd. Corporate Events

Vanadium Resources Advances Strategic Partnerships Amid Cost Management

Vanadium Resources Limited has been actively engaging with potential strategic equity and offtake partners to advance its Steelpoortdrift Vanadium Project. The company extended its Memorandum of Understanding with China Energy for engineering and financing services, reflecting ongoing collaboration. Despite operational pauses and cost-reduction measures, the company raised A$783,000 to extend its operational runway. The board remains optimistic about securing strategic partnerships to maximize long-term shareholder value, although the timing remains uncertain.

Vanadium Resources Schedules General Meeting for Shareholders

Vanadium Resources Limited has announced a General Meeting of Shareholders scheduled for May 9, 2025, in West Perth, Australia. The meeting will address important resolutions affecting shareholders, and voting will be conducted by a poll. Shareholders are encouraged to submit proxy forms if they cannot attend. The Notice of Meeting is available electronically, aligning with the company’s policy to reduce physical mailings, which reflects a broader industry trend towards digital communications.

Vanadium Resources Ltd. Quotes New Securities on ASX

Vanadium Resources Ltd. has announced the quotation of 1,666,667 fully paid ordinary securities on the Australian Securities Exchange (ASX) under the code VR8. This move is part of previously announced transactions and is expected to enhance the company’s financial flexibility and market presence, potentially impacting its stakeholders positively by providing additional capital for operational and strategic initiatives.

Vanadium Resources Extends MOU with China Energy

Vanadium Resources Limited has announced an extension of its Memorandum of Understanding with China Energy International Group concerning the Steelpoortdrift Vanadium Project. The extension, now valid until June 30, 2025, allows more time to finalize an agreement for engineering, procurement, construction services, and financing assistance, potentially impacting the company’s operations and market position positively.

Vanadium Resources Announces Proposed Securities Issue to Strengthen Financial Position

Vanadium Resources Ltd. announced a proposed issue of securities, including convertible notes, unlisted options, and ordinary fully paid shares, totaling over 36 million securities. This move reflects the company’s strategy to raise capital, potentially enhancing its financial position and operational capabilities, thereby impacting its market standing and shareholder value.

Vanadium Resources Secures A$783,000 Funding to Boost Strategic Partnerships

Vanadium Resources Limited has successfully secured A$783,000 through a convertible note issue to fund working capital and settle outstanding advisory fees as it continues to pursue strategic equity partnerships for its Steelpoortdrift Vanadium Project. This funding, supported by board members and sophisticated investors, is structured to minimize shareholder dilution amid challenging market conditions and is expected to provide the company with additional time to advance discussions with potential strategic investors, including tier-1 organizations.

Vanadium Resources Extends Trading Suspension Ahead of Funding Announcement

Vanadium Resources Limited has requested an extension for the voluntary suspension of its ordinary shares on the ASX due to pending funding arrangement announcements. This move suggests strategic financial adjustments that could impact the company’s operational dynamics and stakeholder interests, highlighting the importance of upcoming developments for investor confidence.