MRG Metals Limited (MRQ) AI Stock Analysis

• Market Cap: AU$10.91M
• Dividend Yield: N/A
• Average Volume (3M): N/A
• Price to Earnings (P/E): ―
• Beta (1Y): -3.32
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: AU
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): 0.00
• Shares Outstanding: 2,726,518,600
• 10 Day Avg. Volume: N/A
• 30 Day Avg. Volume: N/A
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 36 Underperform
• Price Target: ―

MRG Metals Limited's overall stock score is low due to significant financial performance challenges, including substantial losses and negative cash flows. While the balance sheet is strong with high equity and no debt, the ongoing unprofitability and liquidity risks overshadow this strength. Technical analysis is neutral with no clear trend, and valuation metrics are unfavorable due to negative earnings. The company needs to address its financial weaknesses to improve its stock attractiveness.

MRG Metals Limited Business Overview & Revenue Model

Company Description

MRG Metals Ltd, together with its subsidiaries, engages in the exploration and development of heavy mineral sands in Mozambique. The company holds interests in Heavy Mineral Sands projects comprising 2 licenses the Corridor Central and Corridor South covering and area of 387 square kilometers; the Linhuane Project that consists of 113 square kilometers; and the Marao and Marruca projects comprising approximately 385 square kilometers located in Mozambique. MRG Metals Ltd was incorporated in 2011 and is based in Ballarat, Australia.

How the Company Makes Money

MRG Metals Limited generates revenue by exploring and developing mineral resource projects, particularly those rich in heavy mineral sands. The company's primary revenue streams include the sale of discovered mineral resources, such as zircon, rutile, and ilmenite, to industrial buyers and partners. Additionally, MRG Metals may enter into joint venture agreements or strategic partnerships with other mining companies to further develop its projects and share in the profits. The company's earnings are influenced by factors such as mineral resource prices, exploration success, and efficient project development and management.

MRG Metals Limited Financial Statement Overview

Summary

MRG Metals Limited faces significant financial challenges. Despite recent revenue growth, the company remains unprofitable with substantial losses impacting income and cash flow. The balance sheet is strong due to high equity and no debt, providing a buffer against financial instability. However, negative cash flows and reliance on financing activities highlight potential liquidity concerns. The company needs to improve profitability and cash flow generation to enhance its financial health.

Income Statement

MRG Metals Limited has shown a significant increase in revenue for the most recent year, marking a positive growth trend from no revenue in previous years. However, the company's profitability metrics remain concerning, with a net profit margin of -6382.80% and an EBIT margin of -6495.95%, reflecting substantial losses relative to revenue. The gross profit margin is 100%, but this is misleading due to low revenue figures. Overall, while revenue growth is promising, severe losses impact the income statement score negatively.

Balance Sheet

The company's balance sheet is relatively stable, with a strong equity position and no debt, resulting in a debt-to-equity ratio of 0. The equity ratio is 96.90%, indicating a solid financial structure with high equity levels compared to total assets. Return on equity is negative due to losses, but the high equity and absence of debt provide some financial stability. However, low asset utilization and persistent net losses weigh on the overall assessment.

Cash Flow

MRG Metals Limited has a challenging cash flow situation, with negative operating and free cash flows. The operating cash flow to net income ratio is 0.86, suggesting cash outflows are aligned with net losses. Free cash flow growth is negative, indicating continued cash burn. However, financing activities provide some relief, suggesting reliance on external funding to support operations. The negative cash flow metrics highlight potential liquidity risks.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	13.27K	0.00	0.00	―	―
Gross Profit	13.27K	0.00	-19.80K	―	―
EBITDA	-749.47K	-752.55K	-692.54K	-665.90K	-1.75M
Net Income	-847.05K	-846.89K	-702.34K	-665.66K	-1.75M
Balance Sheet
Total Assets	7.21M	6.81M	6.61M	5.69M	3.38M
Cash, Cash Equivalents and Short-Term Investments	359.55K	575.05K	1.02M	1.61M	721.25K
Total Debt	0.00	0.00	0.00	0.00	0.00
Total Liabilities	223.54K	59.52K	205.92K	127.04K	92.88K
Stockholders Equity	6.98M	6.75M	6.40M	5.56M	3.28M
Cash Flow
Free Cash Flow	-1.32M	-1.63M	-1.98M	-2.01M	-1.98M
Operating Cash Flow	-730.92K	-933.55K	-668.49K	-701.93K	-703.53K
Investing Cash Flow	-568.17K	-693.59K	-1.33M	-1.31M	-1.28M
Financing Cash Flow	1.08M	1.18M	―	2.90M	2.28M

MRG Metals Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HAV	62 Neutral	AU$75.33M	21.50	―	―	8.70%	11.11%
TLM	51 Neutral	AU$32.96M	-18.23	-36.62%	―	―	4.00%
SYR	42 Neutral	AU$383.48M	-1.56	-32.72%	―	-62.37%	23.19%
ADN	38 Underperform	AU$76.29M	-11.76	―	―	―	45.16%
MRQ	36 Underperform	AU$10.91M	―	-10.34%	―	―	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

MRG Metals Limited Corporate Events

MRG Metals Advances Mozambique and Zimbabwe Projects with Strategic Joint Venture

MRG Metals Limited has made significant progress in its Mozambique operations, with the approval of the Corridor Central HMS Mining Licence and nearing approval for Corridor South. The company has completed an infill drilling program at the Magonde HMS Target and is conducting mineralogical analysis to support a potential JORC-compliant Mineral Resource Estimate. In Zimbabwe, MRG is conducting metallurgical testwork on phosphate samples from the Shawa carbonatite, with results expected in Q3 2025. The joint venture with Sinowin Lithium aims to expand production capacity, with staged equity adjustments based on achieving specific production milestones, ensuring MRG retains a minimum 20% equity stake.

MRG Metals Advances Joint Venture and Secures Key Mining License

MRG Metals Limited has announced significant developments in its joint venture with Sinowin Lithium, where the joint venture company Terriland now holds a 100% stake in a newly established UAE company, Tailan Mining Ltd. The joint venture is poised to advance its mining operations in Mozambique, pending government approvals and the completion of necessary financial arrangements. The recent assay results from the Marao project confirm high-grade HMS mineralization at the surface, which could enhance the company’s operational prospects. Additionally, the formal documentation for a mining license for Corridor Central has been received, and payments have been made to the Mozambique government, marking a crucial step forward in the project development. The ongoing progress in securing mining licenses and the joint venture’s financial commitments highlight MRG Metals’ strategic positioning in the mining sector.

MRG Metals Completes Infill Drilling at Mozambique Project

MRG Metals Limited has completed infill drilling at the Magonde target within the Marao HMS Project in Mozambique. The company has visually estimated the total heavy mineral content from panned samples and is awaiting laboratory analyses to confirm these findings. This development is part of MRG Metals’ ongoing efforts to advance its exploration activities and refine its understanding of the mineral resources at the site, potentially impacting its strategic positioning in the mineral sands market.

MRG Metals Advances Exploration with Completion of Drilling at Magonde Target

MRG Metals Limited has completed an infill auger drilling program at the Magonde HMS Target in Mozambique, part of the Marao Project. This initiative, funded through a joint venture with Sinowin, involved drilling 100 holes to gather samples for mineralogical analysis. The results could lead to a Mineral Resource Estimate, enhancing the project’s value and advancing MRG’s strategy of developing HMS deposits in the region. The company plans to continue exploration activities at the Corridor North site, aiming to expand its resource base.

MRG Metals Limited Releases Half-Year Financial Report for 2024

MRG Metals Limited has released its half-year financial report for the period ending December 31, 2024. The report includes various financial statements and declarations, providing insights into the company’s financial performance and position over the past six months. This release is crucial for stakeholders as it offers a comprehensive overview of the company’s financial health and operational efficiency during the specified period.