ARC Minerals (ARCM) AI Stock Analysis

• Market Cap: £9.05M
• Dividend Yield: N/A
• Average Volume (3M): 10.66M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.65
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: UK
• Employees: 35
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): >-0.01
• Shares Outstanding: 1,448,108,300
• 10 Day Avg. Volume: 3,817,369
• 30 Day Avg. Volume: 10,660,750
• PEG Ratio: 0.06
• Price to Book (P/B): 1.56
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.09
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: 0.63p ▲(4.17% Upside)

The score is primarily held back by weak financial performance (no revenue, continued losses, and negative operating/free cash flow), despite a low-debt balance sheet. Technicals add support with positive near-term momentum (price above 20/50DMA and positive MACD), while valuation is difficult to assess due to the negative P/E and lack of dividend data.

Positive Factors

Low leverage / conservative balance sheet

Extremely low debt and a material equity base reduce refinancing risk and give the company flexibility to fund exploration or cover losses without immediate external debt. This conservatism lengthens runway and supports execution of long-duration resource programs.

Narrowing operating loss trend

A marked reduction in operating losses points to improving cost control or operational progress. If sustained, this trend lowers future funding needs, increases the odds of reaching cash flow breakeven sooner, and improves the durability of the business model.

Clear exploration and development focus

A focused exploration/development strategy is a clear, durable business model: successful discoveries can create long-term asset value. For investors, disciplined execution on exploration targets can translate into scalable resource value rather than transient trading returns.

Negative Factors

No reported revenue

Lack of recurring revenue means the business relies entirely on external financing or asset dispositions to advance projects. Over the medium term this raises dilution and execution risk, and prevents the company from self-funding exploration and development activities.

Persistent negative cash flow

Consistent negative operating and free cash flow indicate ongoing cash burn that will require continued capital raises or asset sales. This structural cash deficit shortens runway, can delay projects, and forces management to prioritize financing over long-term value creation.

Earnings volatility and one‑offs

Large swings from one-off gains to recurring losses highlight earnings volatility and limited predictable profitability. This undermines planning, makes internal capital allocation unreliable, and increases the probability that future results will depend on episodic events or further financing.

ARC Minerals Business Overview & Revenue Model

Company Description

Arc Minerals Limited engages in the identification, evaluation, acquisition, and development of mineral properties in Africa. It holds interests in the Zamsort copper-cobalt project; and a 72.5% the Zaco copper project located in northwest Zambia. The company was formerly known as Ortac Resources Limited and changed its name to Arc Minerals Limited in January 2018. Arc Minerals Limited is based in Road Town, British Virgin Islands.

How the Company Makes Money

ARC Minerals Financial Statement Overview

Summary

Financials remain weak: no reported revenue across 2020–2024, with consistently negative EBITDA/EBIT and ongoing cash burn (2024 operating cash flow ~-£2.2m; free cash flow ~-£2.9m). The main offset is a stronger balance sheet with minimal leverage (debt-to-equity ~0.005) and an equity cushion (~£11.2m), plus a material improvement in 2024 operating loss versus 2023 (EBIT improved from ~-£5.1m to ~-£1.1m).

Income Statement

Operations remain loss-making with no reported revenue across 2020–2024, and EBITDA/EBIT are consistently negative. Losses narrowed materially in 2024 versus 2023 on an operating basis (EBIT improved from about -£5.1m to -£1.1m), but net income swung sharply from a one-off positive £7.1m in 2023 to a -£2.2m loss in 2024, highlighting earnings volatility and limited recurring profitability.

Balance Sheet

The balance sheet is a relative strength: leverage is very low in 2024 (debt-to-equity ~0.005) with equity of ~£11.2m supporting ~£13.2m of assets. This is a clear improvement from higher leverage in 2020–2021. The key weakness is returns: profitability is insufficient to earn an attractive return on equity (negative in 2024), and the business still relies on its capital base rather than internally generated earnings.

Cash Flow

Cash generation is weak, with negative operating cash flow and negative free cash flow in most years (2024 operating cash flow ~-£2.2m; free cash flow ~-£2.9m), implying ongoing cash burn. Free cash flow deterioration from 2023 to 2024 also suggests higher funding needs, even though the company has shown occasional year-to-year improvements. Overall, cash flows do not yet support self-funding operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00	0.00
Gross Profit	0.00	0.00	-2.00K	-10.00K	-31.00K	-97.33K
EBITDA	-865.00K	-1.38M	-2.71M	-5.65M	-5.42M	-1.87M
Net Income	-3.75M	-2.24M	7.08M	-7.34M	-5.36M	-2.03M
Balance Sheet
Total Assets	11.42M	13.17M	12.90M	8.70M	14.25M	9.21M
Cash, Cash Equivalents and Short-Term Investments	682.00K	1.64M	349.00K	2.35M	2.17M	700.00K
Total Debt	151.00K	53.00K	47.00K	1.27M	3.61M	3.31M
Total Liabilities	1.49M	1.77M	2.35M	2.85M	6.07M	3.66M
Stockholders Equity	9.90M	11.22M	10.55M	6.49M	7.11M	5.04M
Cash Flow
Free Cash Flow	-1.72K	-2.87M	-2.28M	-1.55M	-3.95M	-2.78M
Operating Cash Flow	-1.72K	-2.20M	-2.22M	-880.00K	-3.58M	-2.46M
Investing Cash Flow	-5.87K	-47.00K	1.85M	-297.00K	-367.00K	-145.00K
Financing Cash Flow	37.89K	3.64M	29.00K	2.30M	5.05M	3.13M

ARC Minerals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ARCM	50 Neutral	£9.05M	-2.40	-32.02%	―	―	―
JAN	50 Neutral	£10.92M	-4.23	-43.78%	―	―	―
GLR	48 Neutral	£11.74M	-7.73	13.10%	―	―	―
CRTM	46 Neutral	£13.23M	-0.29	-481.01%	―	―	-0.59%
IRON	45 Neutral	£6.89M	―	―	―	―	―
BEM	44 Neutral	£5.78M	-2.36	-10.21%	―	―	42.24%

ARC Minerals Corporate Events

Arc Minerals Schedules Live Investor Presentation for 28 January

Arc Minerals has announced that its chief executive officer, Rémy Welschinger, will host a live investor presentation via the Investor Meet Company platform on 28 January 2026, offering shareholders and potential investors an opportunity to hear directly from management and ask questions in real time. The event, which is free to access for registered users, underlines the company’s efforts to enhance investor engagement and transparency, potentially broadening its shareholder base and strengthening market confidence in its strategy.

The most recent analyst rating on (GB:ARCM) stock is a Hold with a £0.67 price target. To see the full list of analyst forecasts on ARC Minerals stock, see the GB:ARCM Stock Forecast page.

Arc Minerals Names Rémy Welschinger as New CEO in Strategic Leadership Shift

Arc Minerals has appointed current non-executive director Rémy Welschinger as its new Chief Executive Officer, effective 2 January 2026, with Welschinger moving into an executive director role and existing Executive Chairman Nick von Schirnding transitioning to non-executive chairman on the same date. The leadership reshuffle, which follows Arc’s recent move to regain control of what it describes as some of Africa’s best copper exploration licences, signals a strategic reset for the explorer and places a seasoned finance and commodities specialist at the helm as the company seeks to capitalise on its repositioned African copper portfolio.

Arc Minerals Secures Favorable Legal Ruling in Zambia

Arc Minerals Ltd announced a favorable legal outcome in Zambia, where the High Court set aside a consent judgment that had transferred a portion of an exploration license to another company. This decision is a significant step for Arc Minerals, as it addresses previous disruptions caused by a former shareholder and reaffirms the company’s confidence in the legal system’s integrity.

Arc Minerals Secures Settlement Payment from Avanti Gold

Arc Minerals Ltd has successfully received a settlement payment of US$625,000 from Avanti Gold Corporation, resolving outstanding receivables as per a previously announced agreement. This financial boost will be utilized to further develop the company’s assets and support its working capital, potentially enhancing its operational capabilities and market position.