VRX Silica Ltd. (VRX) AI Stock Analysis

• Market Cap: AU$63.52M
• Dividend Yield: N/A
• Average Volume (3M): 677.01K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.93
• Revenue Growth: N/A
• EPS Growth: 23.46%
• Country: AU
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 73
• Industry: Industrial Materials
• EPS (TTM): >-0.01
• Shares Outstanding: 747,303,300
• 10 Day Avg. Volume: 1,206,796
• 30 Day Avg. Volume: 677,007
• PEG Ratio: 12.53
• Price to Book (P/B): 3.97
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.97
• 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: 56 Neutral
• Price Target: AU$0.00 ▼(-100.00%Downside)

VRX Silica Ltd.'s significant revenue growth and strong technical momentum are offset by ongoing profitability and cash flow challenges, as well as an unattractive valuation due to negative earnings. The stock shows potential due to strong market momentum, but financial and valuation concerns limit its appeal.

VRX Silica Ltd. Business Overview & Revenue Model

Company Description

VRX Silica Limited, together with its subsidiaries, engages in the exploration, evaluation, and development of mineral properties in Australia. The company explores for silica. It owns 100% interests in the Arrowsmith and the Muchea silica sand projects located to the north of Perth in Western Australia; and the Boyatup silica sand project located to the east of the port town of Esperance. The company was formerly known as Ventnor Resources Limited and changed its name to VRX Silica Limited in December 2018. VRX Silica Limited was incorporated in 2010 and is headquartered in West Perth, Australia.

How the Company Makes Money

VRX 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. shows potential revenue growth but continues to face profitability and cash flow challenges. The balance sheet is strong with low leverage, providing stability. However, persistent net losses and negative cash flows highlight the need for improved operational efficiency and expense management.

Income Statement

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

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

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	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	30.10K	31.51K	113.48K	56.90K	1.36M	73.67K
Gross Profit	-46.73K	-116.44K	4.53K	-27.63K	1.29M	22.44K
EBITDA	-3.68M	-3.83M	-4.93M	-4.94M	-1.02M	-2.31M
Net Income	-3.95M	-4.26M	-5.06M	-5.03M	-1.09M	-2.37M
Balance Sheet
Total Assets	22.04M	19.17M	18.56M	22.91M	20.88M	10.56M
Cash, Cash Equivalents and Short-Term Investments	5.36M	2.31M	1.58M	9.31M	10.44M	2.60M
Total Debt	293.62K	337.22K	418.16K	188.19K	255.24K	134.15K
Total Liabilities	1.02M	1.10M	1.02M	1.52M	829.09K	399.57K
Stockholders Equity	21.02M	18.07M	17.54M	21.39M	20.05M	10.16M
Cash Flow
Free 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	6.64M	4.70M	-72.99K	4.37M	10.88M	3.88M

VRX Silica Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.08
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 0.08 is above the 20-day moving average (MA) of 0.08, above the 50-day MA of 0.06, and above the 200-day MA of 0.05, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 55.08 is Neutral, neither overbought nor oversold. The STOCH value of 53.33 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$10.25B	9.95	-0.15%	2.86%	2.14%	-32.15%
VRX	56 Neutral	AU$63.52M	―	-20.25%	―	―	23.46%
SIO	46 Neutral	AU$50.39M	14.74	17.81%	―	-4.83%	―
DRX	45 Neutral	AU$85.14M	6.07	-0.45%	―	―	-103.57%
QGL	37 Underperform	AU$160.42M	―	-44.88%	―	―	-92.59%
9EU		€28.47M	―	-5.98%	―	―	―

VRX Silica Ltd. Corporate Events

VRX Silica’s Arrowsmith North Project Clears Key Environmental Hurdle

VRX Silica Limited has received confirmation from the Western Australian Minister for the Environment that the Environmental Protection Authority’s assessment of its Arrowsmith North Silica Sand Project was adequate, allowing the project to proceed without further assessment. This decision marks a significant step in the environmental approval process, moving VRX closer to developing the Arrowsmith North site, which holds a substantial deposit of high-quality silica sand. The project is expected to produce over 2 million tonnes per annum of silica sand for the Asian foundry, container glass, and flat-glass markets, enhancing VRX’s industry positioning and offering potential benefits to stakeholders.

VRX Silica Awaits Environmental Approval for Arrowsmith North Project

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

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.