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WA Kaolin Ltd. (AU:WAK)
ASX:WAK
Australian Market

WA Kaolin Ltd. (WAK) AI Stock Analysis

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AU

WA Kaolin Ltd.

(Sydney:WAK)

Rating:43Neutral
Price Target:
AU$0.00
▼(-100.00%Downside)
WA Kaolin Ltd.'s overall stock score is primarily affected by its financial performance, with significant challenges in profitability and cash flow. Technical analysis suggests a neutral stance with mixed indicators. Valuation is weak due to a negative P/E ratio and no dividend yield. The absence of earnings call insights and corporate events limits further assessment.

WA Kaolin Ltd. (WAK) vs. iShares MSCI Australia ETF (EWA)

WA Kaolin Ltd. Business Overview & Revenue Model

Company DescriptionWA Kaolin Limited engages in the exploration and development of an inferred mineral resource of kaolinised granite in Australia. It holds interest in the Wickepin Kaolin project that comprises four retention licenses and a single mining lease covering an area of approximately 10,000 hectares located in Wickepin, Western Australia. The company was incorporated in 1998 and is based in East Rockingham, Australia.
How the Company Makes MoneyWA 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
35
Negative
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
40
Negative
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
30
Negative
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.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue2.90M2.58M1.46M1.17M1.21M622.71K
Gross Profit-3.06M-1.30M1.09M287.52K261.82K-223.21K
EBITDA-9.44M-11.75M-656.78K-5.33M-8.82M-3.34M
Net Income-11.53M-13.58M-3.75M-7.55M-20.67M-5.16M
Balance Sheet
Total Assets36.88M36.63M43.35M32.62M25.74M30.44M
Cash, Cash Equivalents and Short-Term Investments1.12M751.88K3.09M6.36M10.92M24.58M
Total Debt25.77M25.45M29.48M24.33M20.40M21.79M
Total Liabilities30.59M30.66M33.55M27.15M23.61M24.41M
Stockholders Equity6.30M5.97M9.80M5.47M2.13M6.03M
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-3.59M4.83M-7.04M-10.83M-8.00M-165.34K
Financing Cash Flow6.93M3.52M8.81M10.68M19.90M5.08M

WA Kaolin Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.04
Price Trends
50DMA
0.04
Negative
100DMA
0.04
Negative
200DMA
0.04
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
46.54
Neutral
STOCH
51.11
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 51.11 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

Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AULGM
56
Neutral
AU$28.09M-18.41%-103.03%
AUARD
45
Neutral
AU$31.82M-91.81%15.00%
44
Neutral
C$979.74M-6.70-13.35%2.68%17.20%-32.62%
AUWAK
43
Neutral
AU$27.93M-139.33%65.38%-46.00%
AUPHO
28
Underperform
AU$28.05M
-126.25%
AUG6M
AU$25.10M
AUBKT
32
Underperform
AU$38.30M-18.38%10.42%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:WAK
WA Kaolin Ltd.
0.04
0.00
0.00%
AU:PHO
PhosCo Ltd
0.06
0.03
100.00%
AU:G6M
Group 6 Metals Limited
0.02
>-0.01
-33.33%
AU:ARD
Argent Minerals Limited
0.02
0.00
0.00%
AU:BKT
Black Rock Mining Limited
0.03
-0.03
-50.00%
AU:LGM
Legacy Minerals Holdings Ltd.
0.19
-0.09
-32.14%

WA Kaolin Ltd. Corporate Events

WA Kaolin Ltd. Achieves Record Sales and Expands Operations
Jul 3, 2025

WA Kaolin Ltd. has reported record sales and revenue for June 2025, with a significant increase in operational capacity to meet rising demand. The company is transitioning to a 24-hour, six-day workweek and plans to operate both classifiers by the fourth quarter of 2025 to boost production rates. Additionally, WA Kaolin is in the final stages of developing new kaolin products for the paper market, aiming to secure customer orders in the upcoming quarter, which could further enhance its market positioning.

WA Kaolin Ltd. Updates Registered and Postal Addresses
May 27, 2025

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
Apr 29, 2025

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.
Apr 23, 2025

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
Apr 13, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 05, 2025