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VRX Silica Ltd. (AU:VRX)
:VRX
Australian Market

VRX Silica Ltd. (VRX) AI Stock Analysis

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AU

VRX Silica Ltd.

(Sydney:VRX)

Rating:56Neutral
Price Target:
AU$0.00
▼(-100.00%Downside)
VRX Silica Ltd. presents a mixed investment case. The company shows strong revenue growth potential but struggles with profitability and cash flow issues. Technical analysis indicates positive momentum, though caution is advised due to overbought signals. The valuation remains a concern with the negative P/E ratio reflecting current unprofitability.

VRX Silica Ltd. (VRX) vs. iShares MSCI Australia ETF (EWA)

VRX Silica Ltd. Business Overview & Revenue Model

Company DescriptionVRX Silica Ltd. (VRX) is an Australian-based mining company that specializes in the exploration and development of silica sand projects. The company is focused on developing its high-quality silica sand resources to meet the growing demand in the global glass manufacturing and foundry industries. VRX operates primarily in Western Australia, where it holds several key project sites known for their high-grade silica deposits.
How the Company Makes MoneyVRX Silica Ltd. generates revenue primarily through the extraction and sale of silica sand from its mining operations. The company's key revenue streams include long-term supply agreements with glass and foundry industries, which utilize silica sand as a critical raw material in their production processes. VRX also aims to expand its market reach through strategic partnerships and export opportunities, leveraging the increasing global demand for high-purity silica sand. Additionally, the company focuses on cost-efficient production methods and sustainable mining practices to optimize profitability and maintain competitive pricing in the market.

VRX Silica Ltd. Financial Statement Overview

Summary
VRX Silica Ltd. demonstrates substantial revenue growth, but faces ongoing profitability and cash flow challenges. A strong balance sheet with low leverage provides stability, yet persistent net losses and negative cash flows necessitate improved operational efficiency and expense management.
Income Statement
45
Neutral
VRX Silica Ltd. has shown a significant increase in total revenue from $113,479 in 2023 to $31,512 in 2024, indicating a substantial growth rate. However, the company continues to operate at a loss, as shown by negative EBIT and net income figures, indicating ongoing profitability challenges. Gross profit remains positive, but the net profit margin is negative due to high operating expenses.
Balance Sheet
60
Neutral
The company's balance sheet is relatively strong, with high stockholders' equity and a low debt-to-equity ratio due to minimal total debt. Equity has remained stable, contributing to a strong equity ratio. However, the company has been experiencing consistent net losses, which could affect long-term equity growth.
Cash Flow
50
Neutral
VRX Silica Ltd. has a negative free cash flow, which is a concern, as it indicates the company is spending more on capital expenditures than it generates from operations. Operating cash flow is negative, but financing cash flow is positive, indicating reliance on external financing. The free cash flow to net income ratio is negative, reflecting ongoing cash flow challenges.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
30.10K31.51K113.48K56.90K1.36M73.67K
Gross Profit
-46.73K-116.44K4.53K-27.63K1.29M22.44K
EBIT
-2.42M-2.27M-3.88M-3.97M-2.28M-2.43M
EBITDA
-3.68M-3.83M-4.93M-4.94M-1.02M-2.31M
Net Income Common Stockholders
-3.95M-4.26M-5.06M-5.03M-1.09M-2.37M
Balance SheetCash, Cash Equivalents and Short-Term Investments
2.17M2.31M1.58M9.31M10.44M2.60M
Total Assets
19.07M19.17M18.56M22.91M20.88M10.56M
Total Debt
293.62K337.22K418.16K188.19K255.24K134.15K
Net Debt
-1.87M-1.98M-1.16M-9.12M-10.19M-2.47M
Total Liabilities
1.06M1.10M1.02M1.52M829.09K399.57K
Stockholders Equity
18.01M18.07M17.54M21.39M20.05M10.16M
Cash FlowFree Cash Flow
-3.30M-4.85M-7.77M-5.51M-3.04M-2.84M
Operating Cash Flow
-3.10M-3.56M-2.93M-1.94M-1.51M-1.55M
Investing Cash Flow
-349.54K-406.60K-4.72M-3.56M-1.53M-1.27M
Financing Cash Flow
6.64M4.70M-72.99K4.37M10.88M3.88M

VRX Silica Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.07
Price Trends
50DMA
0.05
Positive
100DMA
0.05
Positive
200DMA
0.04
Positive
Market Momentum
MACD
<0.01
Positive
RSI
64.73
Neutral
STOCH
62.50
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:VRX, the sentiment is Positive. The current price of 0.07 is above the 20-day moving average (MA) of 0.07, above the 50-day MA of 0.05, and above the 200-day MA of 0.04, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 64.73 is Neutral, neither overbought nor oversold. The STOCH value of 62.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:VRX.

VRX Silica Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUVRX
56
Neutral
AU$50.82M-20.25%23.46%
51
Neutral
$2.02B-1.14-21.36%3.64%2.88%-30.57%
AUSIO
46
Neutral
AU$52.19M15.2617.81%-4.83%
AUEPM
42
Neutral
€42.99M-5.98%75.00%
AUDRX
41
Neutral
AU$100.17M6.07-0.45%-103.57%
AUQGL
37
Underperform
AU$163.87M-44.88%-92.59%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:VRX
VRX Silica Ltd.
0.07
0.03
75.00%
AU:QGL
Quantum Graphite Ltd
0.48
0.01
2.13%
AU:DRX
Diatreme Resources Limited
0.02
0.00
0.00%
AU:EPM
Eclipse Metals Ltd.
0.02
0.00
0.00%
AU:SIO
Simonds Group Ltd.
0.14
-0.04
-22.22%

VRX Silica Ltd. Corporate Events

VRX Silica Awaits Environmental Approval for Arrowsmith North Project
May 5, 2025

VRX Silica Ltd. has provided an update on the environmental approval process for its Arrowsmith North silica sand development proposal. The Environmental Protection Authority of Western Australia recommended the proposal’s implementation, subject to conditions. After an appeal was lodged, the Office of the Appeals Convenor completed its investigation and submitted a report to the Minister for Environment, who is expected to make a determination soon. The project promises significant economic benefits, including employment and royalties, and has garnered support from various stakeholders, positioning it as a potential long-term industry for Western Australia.

VRX Silica Advances Arrowsmith North Project Amid New Offtake Agreements
Apr 28, 2025

VRX Silica Ltd. announced that the Environmental Protection Authority of Western Australia has recommended approval for its Arrowsmith North Silica Sand Project, pending a decision by the Minister for Environment. Despite an appeal by the Conservation Council of WA, the company expects to complete permitting by the second quarter of 2025. The project is anticipated to bring significant economic benefits to Western Australia, including employment opportunities and royalties. Additionally, VRX has signed non-binding offtake agreements with major sand importers in South Korea, Japan, and Taiwan, adding 440,000 tonnes of offtake interest for Arrowsmith North silica sand, with potential growth to 640,000 tonnes per year.

VRX Silica Director Increases Stake Through Share Acquisition
Apr 2, 2025

VRX Silica Ltd has announced a change in the director’s interest, with Director Paul Boyatzis acquiring 700,000 ordinary shares through an indirect interest. This acquisition was part of a placement following shareholder approval, increasing his total holding to 6,200,000 ordinary shares. This move reflects a strategic decision by the director to increase his stake in the company, potentially signaling confidence in the company’s future prospects and stability.

VRX Silica Ltd. Issues New Shares to Raise Capital
Mar 28, 2025

VRX Silica Ltd. announced the issuance of 3,571,428 fully paid ordinary shares at $0.042 per share, raising approximately $150,000. This move, approved by shareholders, was executed without disclosure under Part 6D.2 of the Corporations Act 2001, and the company has complied with relevant legal provisions, indicating a strategic financial maneuver to potentially strengthen its market position.

VRX Silica Ltd. Announces General Meeting Results
Mar 25, 2025

VRX Silica Ltd. announced the results of its General Meeting held on March 25, 2025, where shareholders voted on several resolutions. The outcomes, detailed in a summary, indicate strong shareholder support for the resolutions, which could impact the company’s strategic direction and operational focus.

VRX Silica Limited Releases Interim Financial Report for 2024
Mar 13, 2025

VRX Silica Limited has released its interim financial report for the half-year ended December 31, 2024. The report provides insights into the company’s financial performance and strategic direction. VRX Silica Limited, listed on the Australian Securities Exchange, continues to focus on its operations and market positioning, which are crucial for its stakeholders.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.