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

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AU:WAK

WA Kaolin Ltd.

(Sydney:WAK)

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Neutral 40 (OpenAI - 4o)
Rating:40Neutral
Price Target:
AU$0.00
▼(-100.00% Downside)
WA Kaolin Ltd. faces significant financial challenges with high leverage and negative profitability, which are the most significant factors affecting its score. The technical analysis indicates a bearish trend, and the valuation metrics are unattractive due to ongoing losses.

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

WA Kaolin Ltd. Business Overview & Revenue Model

Company DescriptionWA Kaolin Ltd. (WAK) is an Australian-based mining company specializing in the exploration and production of high-quality kaolin, a versatile clay mineral used across various industries. The company operates primarily in the mining sector, focusing on the extraction of kaolin from its deposits in Western Australia. WAK's core products include a range of kaolin materials tailored for applications in ceramics, paper, plastics, and pharmaceuticals, leveraging advanced processing technologies to ensure product quality and consistency.
How the Company Makes MoneyWA Kaolin Ltd. generates revenue through the sale of its kaolin products to a diverse range of industries, including ceramics, paper manufacturing, plastics, and pharmaceuticals. The company capitalizes on the growing demand for high-quality kaolin, driven by its applications in various sectors. Key revenue streams include direct sales to manufacturers and distributors, long-term supply contracts, and partnerships with companies in the ceramics and paper industries. Additionally, WAK benefits from strategic collaborations that enhance its market reach and product development, allowing for increased sales volumes and potentially higher margins.

WA Kaolin Ltd. Financial Statement Overview

Summary
WA Kaolin Ltd. shows strong revenue growth but faces significant profitability and cash flow challenges. High leverage and negative equity returns pose financial risks, while negative cash flow metrics indicate operational inefficiencies.
Income Statement
45
Neutral
WA Kaolin Ltd. has shown significant revenue growth of 98.37% in the latest year, indicating strong top-line expansion. However, the company continues to face profitability challenges, with negative net profit and EBIT margins, reflecting ongoing operational inefficiencies. The gross profit margin remains low at 7.09%, suggesting limited pricing power or high cost of goods sold.
Balance Sheet
30
Negative
The company's balance sheet is heavily leveraged, with a high debt-to-equity ratio of 2.98, indicating significant reliance on debt financing. The negative return on equity of -90.14% highlights the company's inability to generate positive returns for shareholders. The equity ratio of 21.83% suggests a relatively low proportion of equity financing, increasing financial risk.
Cash Flow
40
Negative
WA Kaolin Ltd. has a negative operating cash flow, indicating challenges in generating cash from core operations. The free cash flow to net income ratio of 1.42 suggests that the company is managing to convert its net income into free cash flow, albeit both are negative. The free cash flow growth rate is negative, reflecting declining cash generation capabilities.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue4.90M5.75M2.58M1.46M1.17M1.21M
Gross Profit-817.06K407.54K-6.46M1.09M-3.83M261.82K
EBITDA-6.18M-5.91M-11.75M-1.02M-5.33M-17.87M
Net Income-7.81M-7.81M-13.58M-3.75M-7.55M-20.67M
Balance Sheet
Total Assets39.68M39.68M36.63M43.35M32.62M25.74M
Cash, Cash Equivalents and Short-Term Investments3.58M3.58M751.88K3.09M6.36M10.92M
Total Debt25.84M25.84M25.45M29.48M24.33M20.40M
Total Liabilities31.02M31.02M30.66M33.55M27.15M23.61M
Stockholders Equity8.66M8.66M5.97M9.80M5.47M2.13M
Cash Flow
Free Cash Flow-6.81M-6.81M-13.56M-12.08M-15.95M-11.81M
Operating Cash Flow-4.79M-4.79M-10.70M-5.04M-5.13M-3.81M
Investing Cash Flow-2.02M-2.02M4.83M-7.04M-10.83M-8.00M
Financing Cash Flow9.81M9.64M3.52M8.81M10.68M19.90M

WA Kaolin Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.04
Price Trends
50DMA
0.04
Positive
100DMA
0.04
Negative
200DMA
0.04
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
52.50
Neutral
STOCH
100.00
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:WAK, the sentiment is Neutral. The current price of 0.04 is above the 20-day moving average (MA) of 0.04, above 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 52.50 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:WAK.

WA Kaolin Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
56
Neutral
AU$40.32M-13.79-20.13%-241.18%
40
Neutral
AU$24.44M-2.67-106.72%90.14%52.54%
40
Underperform
AU$40.26M-13.16-100.11%-26.67%
32
Underperform
AU$38.66M-2.65-15.13%23.60%
28
Underperform
AU$55.17M-5.61-268.97%
* 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
0.12
0.08
200.00%
AU:G6M
Group 6 Metals Limited
2.50
0.00
0.00%
AU:ARD
Argent Minerals Limited
0.02
0.00
0.00%
AU:BKT
Black Rock Mining Limited
0.02
-0.03
-66.67%
AU:LGM
Legacy Minerals Holdings Ltd.
0.22
0.04
22.22%

WA Kaolin Ltd. Corporate Events

WA Kaolin Ltd Reports Record Sales and Corrects Cash Flow Report
Oct 31, 2025

WA Kaolin Ltd announced a correction to its previously lodged cash flow report, ensuring all sections are now complete. The company reported record sales volumes and revenue for the September 2025 quarter, driven by increased production capacity and demand for its kaolin products. A recent plant upgrade improved efficiency by 20%, with further enhancements planned to increase annual capacity to 250,000 tonnes. The company is experiencing growth across various markets, including new trials in Asia and expanded product offerings, contributing to a significant increase in sales and revenue compared to the previous year.

WA Kaolin Ltd Reports Record Sales and Expands Capacity Amid Strong Market Demand
Oct 30, 2025

WA Kaolin Ltd has reported a record-breaking quarter for sales volumes and revenue, driven by increased production capacity and strong market demand. The company has successfully completed a plant upgrade, improving reliability and efficiency, and plans further capacity enhancements by the end of the year. Transitioning to in-house mining has improved quality control and reduced costs, contributing to the company’s robust financial performance. With new product launches and market expansion efforts in Asia, WA Kaolin is well-positioned for continued growth, supported by a substantial backlog of orders and increased production capabilities.

WA Kaolin Limited Announces Upcoming Annual General Meeting
Oct 28, 2025

WA Kaolin Limited has announced its Annual General Meeting scheduled for November 21, 2025. The company encourages shareholders to submit proxy forms and questions in advance to facilitate a smooth meeting process. This approach aims to enhance shareholder engagement and streamline communication during the meeting, reflecting the company’s commitment to transparency and effective stakeholder interaction.

WA Kaolin Releases Corporate Governance Statement for 2025
Oct 24, 2025

WA Kaolin Limited has released its corporate governance statement for the financial year ending June 30, 2025, which is available on their website. The statement outlines the company’s adherence to the ASX Corporate Governance Council’s principles and recommendations, highlighting its commitment to transparency and accountability. This move is likely to enhance stakeholder confidence and strengthen the company’s position within the industry.

WA Kaolin Ltd. Appoints New Director
Oct 24, 2025

WA Kaolin Ltd. has announced the appointment of Catherine Lynch as a director, effective October 15, 2025. The announcement is a formal disclosure of her initial interest notice, which is a regulatory requirement under the ASX listing rules. This appointment is part of the company’s governance and compliance obligations, ensuring transparency in its operations.

Director Cessation at WA Kaolin Ltd.
Oct 24, 2025

WA Kaolin Ltd. announced the cessation of Brady Norman Hall as a director effective October 20, 2025. This update is part of the company’s compliance with ASX listing rules, ensuring transparency in the disclosure of directors’ interests in securities. The announcement provides details on the securities held by the director, which include ordinary shares and unquoted options. This move may impact the company’s governance structure and could be of interest to stakeholders monitoring corporate governance practices.

WA Kaolin Ltd. Announces Director Change
Oct 24, 2025

WA Kaolin Ltd. announced the cessation of Kenneth Joseph Hall as a director, effective October 20, 2025. The notice includes details of Mr. Hall’s interests in the company’s securities, which comprise a significant number of ordinary shares and unquoted options. This change in directorship may impact the company’s governance structure and could have implications for its strategic direction.

WA Kaolin Strengthens Board with New Non-Executive Directors
Oct 15, 2025

WA Kaolin Limited has appointed Mr. Matt Shackleton and Ms. Catherine Lynch as Non-Executive Directors, enhancing the board’s expertise in finance, governance, and commercial operations. These appointments are part of the company’s strategic efforts to strengthen its leadership as it transitions into steady-state production and aims for growth, reflecting a commitment to expanding its operations and maintaining its reputation as a trusted global supplier.

WA Kaolin Announces Strategic Board Review and Operational Growth
Oct 6, 2025

WA Kaolin Limited is undergoing a strategic review of its board composition following the retirement of its Chair, Dr. John White, and plans to appoint two new Non-Executive Directors by late November. The company is experiencing operational growth, with record sales in the last quarter and a robust order book, while planning a maintenance shutdown to enhance production capacity.

WA Kaolin Ltd. Schedules AGM and Opens Director Nominations
Oct 2, 2025

WA Kaolin Ltd. has announced that its Annual General Meeting will take place on November 21, 2025, with the election of directors as a key agenda item. The deadline for director nominations is set for October 9, 2025, indicating a structured approach to governance and potential changes in leadership, which could impact the company’s strategic direction and stakeholder interests.

WA Kaolin Ltd Announces Chairman Resignation
Sep 11, 2025

WA Kaolin Ltd announced the resignation of Dr. John White as Chairman and Non-Executive Director, effective immediately, due to his other business and personal commitments. The company is in a ramp-up phase and seeks to appoint a director closer to its operations in Western Australia. Mr. Alf Baker will temporarily assume the Chairman role while the Board searches for a permanent replacement.

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: Nov 01, 2025