tiprankstipranks
Trending News
More News >
Eastern Metals Limited (AU:EMS)
ASX:EMS
Australian Market

Eastern Metals Limited (EMS) AI Stock Analysis

Compare
2 Followers

Top Page

AU

Eastern Metals Limited

(Sydney:EMS)

40Underperform
Eastern Metals Limited's strong revenue growth and no-debt position provide some stability, but the ongoing profitability issues and negative cash flows pose significant risks. The technical analysis indicates a bearish trend with oversold conditions, while the valuation metrics highlight challenges due to negative earnings. Overall, the stock presents a high-risk investment profile with potential for improvement if profitability can be enhanced.

Eastern Metals Limited (EMS) vs. S&P 500 (SPY)

Eastern Metals Limited Business Overview & Revenue Model

Company DescriptionEastern Metals Limited (EMS) is a mining and exploration company focused on the identification, development, and extraction of mineral resources. The company operates primarily in the mining sector, with core products including metals such as copper, gold, and nickel. EMS is committed to sustainable practices and leveraging advanced technologies to enhance its mining operations.
How the Company Makes MoneyEastern Metals Limited generates revenue through the exploration, extraction, and sale of various mineral resources. The primary revenue streams include the sale of mined metals such as copper, gold, and nickel to industrial and commercial clients. Significant partnerships with smelting companies and metal traders contribute to its earnings by facilitating the processing and distribution of its raw materials. Additionally, EMS may engage in joint ventures or strategic alliances with other mining firms to optimize resource extraction and share operational costs, thus impacting its overall profitability.

Eastern Metals Limited Financial Statement Overview

Summary
Eastern Metals Limited shows strong revenue growth and a solid equity structure with no debt, providing stability in its financial position. However, persistent profitability challenges with negative profit margins and operating cash flows pose significant risks. The company needs to focus on improving operational efficiency and profitability to ensure long-term financial health.
Income Statement
35
Negative
Eastern Metals Limited has shown a significant increase in revenue from 2022 to 2024, with a growth rate of 378% in 2023 and 378.25% in 2024, indicating a positive trend in top-line growth. However, the company has consistently reported negative EBIT, EBITDA, and net income, leading to negative profit margins over the years. The gross profit margin is effectively 100% due to the low cost of revenue, but the high operating expenses result in substantial net losses.
Balance Sheet
60
Neutral
The company maintains a strong equity position with no debt, indicating low financial risk, as shown by a debt-to-equity ratio of 0. The equity ratio has decreased from 89.2% in 2023 to 89.9% in 2024, reflecting a healthy capital structure. However, the negative return on equity highlights ongoing profitability challenges. The company has improved its cash position as well, although total assets have decreased.
Cash Flow
45
Neutral
Despite generating negative operating cash flows, Eastern Metals Limited has improved its free cash flow position in 2024 compared to previous years. The free cash flow to net income ratio is positive in 2024, indicating some improvement in cash flow management. However, operating cash flow remains negative, which is a concern for long-term sustainability.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021
Income StatementTotal Revenue
244.95K50.00K10.46K362.0066.00
Gross Profit
244.95K50.00K1.14K-4.11K66.00
EBIT
-2.30M-1.92M-2.50M-2.94M-445.51K
EBITDA
-2.29M-1.88M-2.49M-2.94M89.10K
Net Income Common Stockholders
-2.27M-1.89M-2.49M-2.94M-445.45K
Balance SheetCash, Cash Equivalents and Short-Term Investments
156.46K1.05M2.36M3.89M380.60K
Total Assets
1.27M2.17M3.41M4.85M511.15K
Total Debt
0.000.000.000.004.15K
Net Debt
-156.46K-1.05M-2.36M-3.89M-376.45K
Total Liabilities
136.07K218.93K132.52K524.08K540.21K
Stockholders Equity
1.13M1.95M3.27M4.33M-29.06K
Cash FlowFree Cash Flow
-2.41M-1.80M-2.81M-2.42M-159.76K
Operating Cash Flow
-2.40M-1.80M-2.73M-1.72M-119.79K
Investing Cash Flow
220.64K0.00-90.58K-776.32K-69.97K
Financing Cash Flow
938.00K484.24K1.29M6.01M570.36K

Eastern Metals Limited Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.01
Price Trends
50DMA
0.01
Neutral
100DMA
0.01
Negative
200DMA
0.02
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
27.45
Positive
STOCH
>-0.01
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:EMS, the sentiment is Neutral. The current price of 0.01 is above the 20-day moving average (MA) of <0.01, equal to the 50-day MA of 0.01, and below the 200-day MA of 0.02, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 27.45 is Positive, neither overbought nor oversold. The STOCH value of >-0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:EMS.

Eastern Metals Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUARL
50
Neutral
$85.22M-15.37%-34.41%
49
Neutral
$1.99B-1.09-21.26%3.60%1.47%-31.20%
AUGML
47
Neutral
AU$11.86M4.298.76%
AUHRZ
43
Neutral
€113.94M
AUEMS
40
Underperform
-129.06%9.16%
AULMG
32
Underperform
AU$34.12M-0.86%97.62%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:EMS
Eastern Metals Limited
0.01
-0.04
-80.00%
AU:ARL
Ardea Resources
0.42
-0.18
-30.00%
AU:HRZ
Horizon Minerals Ltd
0.05
>-0.01
-1.92%
AU:GML
Gateway Mining Limited
0.03
<0.01
50.00%
AU:LMG
Latrobe Magnesium Limited
0.01
-0.04
-80.00%

Eastern Metals Limited Corporate Events

Eastern Metals Sells Thomson Project Royalty to Red Hill Minerals
May 5, 2025

Eastern Metals Limited has finalized an agreement to sell its 1.5% net smelter royalty from the Thomson Project to Red Hill Minerals Ltd for $220,000. This transaction, subject to due diligence and other conditions, reflects Eastern Metals’ strategic move to monetize its assets, potentially impacting its financial position and stakeholder interests.

Eastern Metals Limited Reports Quarterly Activities and Announces Strategic Changes
Apr 30, 2025

Eastern Metals Limited has released its quarterly activities report for March 2025, highlighting key developments and financial updates. The company completed site rehabilitation at its Cobar Project in New South Wales, while no exploration activities were conducted at the Arunta Project in the Northern Territory. A significant corporate change includes the appointment of Ian White as Non-Executive Chairman following Dr. Jason Berton’s retirement. Financially, Eastern Metals reported a cash reserve of $49,000 and announced an initial placement to raise $250,000, with plans for a subsequent placement aiming to raise up to $4,000,000. The resignation of CEO Ley Kingdom was also announced, effective May 2025.

Eastern Metals Limited Announces Major Securities Issue to Fuel Growth
Apr 24, 2025

Eastern Metals Limited has announced a proposed issue of securities, including options and performance rights, totaling over 1.1 billion securities. This strategic move is aimed at raising capital to support the company’s operational and expansion plans, potentially enhancing its market position and offering new opportunities for stakeholders.

Eastern Metals Limited Announces Proposed Securities Issue to Boost Capital
Apr 24, 2025

Eastern Metals Limited has announced a proposed issue of securities, including options and ordinary shares, totaling 25,750,000 units. This move is part of the company’s strategy to raise capital, potentially impacting its operational capabilities and market positioning by providing additional resources for exploration and development activities.

Eastern Metals Initiates Capital Raising and Strategic Acquisition
Apr 24, 2025

Eastern Metals Limited has announced a capital raising initiative, securing commitments for an initial placement of A$250,000 through the issuance of 25 million shares at A$0.01 each. This move is part of a broader strategy to raise up to A$4.25 million, which includes a subsequent placement aimed at raising between A$3 million and A$4 million. The funds are intended for general working capital and costs associated with a proposed acquisition of Raptor Resources Limited, a copper exploration company. This acquisition, pending due diligence and shareholder approval, could significantly enhance Eastern Metals’ resource portfolio and industry positioning.

Eastern Metals Limited Initiates Trading Halt for Strategic Moves
Apr 22, 2025

Eastern Metals Limited has requested a trading halt on its securities as it considers a proposed capital raising and a potential material acquisition. This move is aimed at strengthening the company’s financial position and expanding its operational capabilities, potentially impacting its market standing and stakeholder interests.

Eastern Metals CEO Resigns, Leadership Transition Ahead
Apr 3, 2025

Eastern Metals Limited has announced the resignation of its Chief Executive Officer, Ley Kingdom, effective from May 2, 2025. The board has acknowledged Ms. Kingdom’s contributions and expressed well wishes for her future endeavors, indicating a forthcoming leadership transition that may impact the company’s strategic direction and stakeholder interests.

Eastern Metals Limited Releases Half-Year Financial Report
Mar 11, 2025

Eastern Metals Limited has released its financial report for the half year ending December 31, 2024. The report includes corporate information such as the company’s directors, CEO, and contact details. The company is listed on the Australian Securities Exchange under the code EMS. This announcement provides stakeholders with updated corporate and financial information, which is crucial for assessing the company’s current standing and future prospects.

Eastern Metals Limited Announces Cessation of Securities
Feb 19, 2025

Eastern Metals Limited announced the cessation of 300,000 of its EMSAE options, which expired on February 17, 2025, without exercise or conversion. This cessation of securities reflects the company’s ongoing capital management strategy and may influence its market positioning by potentially impacting investor perception and stakeholder confidence.

Eastern Metals Limited Appoints New Director
Feb 10, 2025

Eastern Metals Limited announced the appointment of Gregory Starr as a director, effective February 10, 2025. The notice indicates that Starr currently holds no interests in securities or contracts related to the company, highlighting a straightforward transition into the role without immediate financial entanglements.

Eastern Metals Limited Announces Board Restructuring
Feb 10, 2025

Eastern Metals Limited announced key changes to its board, with Ian White replacing Dr. Jason Berton as Non-Executive Chairman. Gregory Starr joins as an Independent Non-Executive Director, enhancing the board’s independence. Starr’s extensive experience in the mining sector and corporate transitions is expected to strengthen the company’s strategic direction.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.