WA Kaolin Ltd. (WAK) AI Stock Analysis

• Market Cap: AU$26.53M
• Dividend Yield: N/A
• Average Volume (3M): 98.16K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.16
• Revenue Growth: 65.38%
• EPS Growth: -46.00%
• Country: AU
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 68
• Industry: Industrial Materials
• EPS (TTM): -0.02
• Shares Outstanding: 698,178,400
• 10 Day Avg. Volume: 51,388
• 30 Day Avg. Volume: 98,159
• PEG Ratio: 0.21
• Price to Book (P/B): 4.74
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.85
• 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: 39 Underperform
• Price Target: AU$0.00 ▼(-100.00%Downside)

WA Kaolin Ltd. has a low overall stock score primarily due to its poor financial performance, characterized by high debt and negative profitability. The technical analysis and valuation further reflect challenges, with weak momentum and unattractive valuation metrics. The absence of earnings call and corporate events data maintains focus on financial and technical factors.

WA Kaolin Ltd. Business Overview & Revenue Model

Company Description

WA Kaolin Ltd. (WAK) is a leading Australian kaolin producer and mineral exploration company, primarily engaged in the extraction and development of high-grade kaolin deposits. The company operates in the industrial minerals sector, focusing on the production of kaolin products, which are used in a variety of applications including paper, ceramics, fiberglass, paints, and rubber industries. WA Kaolin Ltd. is dedicated to maintaining a sustainable operation framework while delivering premium-quality kaolin to its global customer base.

How the Company Makes Money

WA Kaolin Ltd. generates revenue through the mining, processing, and sale of kaolin products. The company owns and operates the Wickepin Kaolin Project in Western Australia, which is one of the largest known premium kaolin resources. The revenue model is primarily based on the extraction and processing of kaolin ore into various grades of finished products, which are then sold to customers across multiple industries. Additionally, WA Kaolin Ltd. may engage in strategic partnerships and long-term supply agreements with key industry players to secure consistent demand and revenue. The company's earnings are also influenced by factors such as global market demand for kaolin, production efficiency, and the development of new applications for kaolin products.

WA Kaolin Ltd. Financial Statement Overview

Summary

WA Kaolin Ltd. faces significant financial challenges, with negative profitability and cash flow issues. Despite revenue growth, the high debt levels and negative margins indicate poor financial health, necessitating improved operational strategies.

Income Statement

WA Kaolin Ltd. has shown significant revenue growth with a 76.4% increase from 2023 to 2024. However, profitability remains a concern with a negative gross profit margin of -50.4% and a net profit margin of -527.3% in 2024, indicating more expenses than revenue. Both EBIT and EBITDA margins are negative, reflecting operational inefficiencies.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 4.26, suggesting reliance on debt financing which could be risky. The equity ratio is 16.3%, indicating a small proportion of equity in the asset base. Return on equity is negative, highlighting the company's struggle to generate profit from shareholders' investments.

Cash Flow

WA Kaolin Ltd. has negative free cash flow, worsening by 12.3% from 2023 to 2024, stressing its cash-generating abilities. The operating cash flow to net income ratio is concerning as both are negative, indicating issues in converting sales into cash. The free cash flow to net income ratio also suggests poor cash management.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
2.90M	2.58M	1.46M	1.17M	1.21M	622.71K
	Gross Profit
-3.06M	-1.30M	1.09M	287.52K	261.82K	-223.21K
	EBIT
-7.12M	-12.93M	-1.57M	-5.61M	-8.88M	-2.09M
	EBITDA
-9.44M	-11.75M	-656.78K	-5.33M	-8.82M	-3.34M
	Net Income Common Stockholders
-11.53M	-13.58M	-3.75M	-7.55M	-20.67M	-5.16M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.12M	751.88K	3.09M	6.36M	10.92M	24.58M
	Total Assets
36.88M	36.63M	43.35M	32.62M	25.74M	30.44M
	Total Debt
25.77M	25.45M	29.48M	24.33M	20.40M	21.79M
	Net Debt
24.65M	24.70M	26.38M	17.97M	9.48M	-2.79M
	Total Liabilities
30.59M	30.66M	33.55M	27.15M	23.61M	24.41M
	Stockholders Equity
6.30M	5.97M	9.80M	5.47M	2.13M	6.03M
Cash Flow		Free Cash Flow
-9.72M	-13.56M	-12.08M	-15.95M	-11.81M	-3.03M
	Operating Cash Flow
-6.13M	-10.70M	-5.04M	-5.13M	-3.81M	-2.87M
	Investing Cash Flow
-3.59M	4.83M	-7.04M	-10.83M	-8.00M	-165.34K
	Financing Cash Flow
6.93M	3.52M	8.81M	10.68M	19.90M	5.08M

WA Kaolin Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.04
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:WAK, the sentiment is Negative. The current price of 0.04 is equal to the 20-day moving average (MA) of 0.04, below the 50-day MA of 0.04, and below the 200-day MA of 0.04, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 46.54 is Neutral, neither overbought nor oversold. The STOCH value of 71.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:WAK.

WA Kaolin Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AXE	54 Neutral	AU$68.81M	―	-29.78%	―	―	23.17%
Sector *	51 Neutral	$2.04B	-1.21	-21.10%	3.95%	2.90%	-30.45%
RNU	46 Neutral	AU$150.04M	84.29	1.05%	―	―	―
WAK	39 Underperform	AU$26.53M	―	-139.33%	―	65.38%	-46.00%
ADN	38 Underperform	AU$49.55M	―	-3.44%	―	―	45.16%

WA Kaolin Ltd. Corporate Events

WA Kaolin Ltd. Updates Registered and Postal Addresses

WA Kaolin Ltd. has announced a change in its registered and postal addresses, now located at 330 Sparks Road, East Wickepin, and PO Box 170, Wickepin, respectively. This update is effective immediately and will be reflected in all future communications and filings, indicating a potential strategic move to streamline operations or enhance logistical efficiency.

WA Kaolin Ltd Reports Strong Growth and Operational Advancements in March 2025 Quarter

WA Kaolin Ltd has reported significant operational and financial progress in its March 2025 quarterly activities report. The company has upgraded its operations with new classifiers to meet the growing demand, achieving production rates of 20 tonnes per hour, including a new technical grade kaolin. Sales have increased, with a notable rise in customer interest from China, and forward orders are set to reach record levels. Financially, the company has completed a $7 million ANREO and maintains a strong cash position. The company is also advancing its research and development efforts, launching new engineered clay grades and exploring applications in green cement, which could enhance its market positioning and stakeholder value.

Kenneth Joseph Hall Increases Stake in WA Kaolin Ltd.

WA Kaolin Ltd. has announced a change in the substantial holding of Kenneth Joseph Hall, who has increased his voting power in the company from 19.72% to 22.66% through share placements. This increase in voting power could potentially strengthen Hall’s influence in company decisions, impacting its strategic direction and possibly affecting stakeholder interests.

WA Kaolin Ltd. Reports Strong March Sales and Expands Operations

WA Kaolin Ltd. reported a steady sales performance in March, with a significant increase in sales volume and revenue. The company is ramping up production to meet growing demand and is undertaking mine expansion plans. The introduction of new classifiers has improved plant performance, and further upgrades are expected to enhance capacity significantly. These developments indicate a positive trajectory for WA Kaolin’s operational efficiency and market positioning.

WA Kaolin Issues 10 Million Unquoted Options

WA Kaolin Limited announced the issuance of 10 million unquoted options with an expiration date of June 30, 2027, and an exercise price of $0.09. This issuance is part of previously announced transactions and is not intended to be quoted on the ASX, potentially impacting the company’s financial strategy and stakeholder interests.

WA Kaolin Ltd. Reports Revenue Growth and Reduced Losses for H2 2024

WA Kaolin Ltd. reported a 26.9% increase in revenues from continuing activities for the half-year ended December 31, 2024, reaching $1,517,216. Despite this revenue growth, the company recorded a comprehensive loss of $3,497,070, which is a 37% reduction compared to the previous period, indicating an improvement in financial performance. The company’s net asset backing per ordinary share improved to $0.01 from a negative $0.02, reflecting a positive shift in its financial position.

WA Kaolin Announces Change in Substantial Holder’s Voting Power

WA Kaolin Ltd. has announced a change in the voting power of its substantial holder, Century Horse Limited (CHL) and Mr. Cheng-Chen Hu, collectively known as the CHL Group. The group’s voting power decreased from 14.4% to 12.14% due to dilution following the issuance of securities by WA Kaolin as part of a retail component of an underwritten, accelerated non-renounceable entitlement offer. This change reflects a strategic financial adjustment within the company, potentially impacting its shareholder dynamics and market positioning.