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Red Metal Limited (AU:RDM)
ASX:RDM
Australian Market
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Red Metal Limited (RDM) AI Stock Analysis

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AU:RDM

Red Metal Limited

(Sydney:RDM)

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Neutral 41 (OpenAI - 4o)
Rating:41Neutral
Price Target:
AU$0.00
▼(-100.00% Downside)
Red Metal Limited's overall stock score is primarily impacted by its poor financial performance, characterized by persistent losses and cash flow challenges. Technical analysis indicates a bearish trend with weak momentum, further weighing down the score. The negative P/E ratio and lack of dividend yield also contribute to the low valuation score, making the stock less attractive to investors.

Red Metal Limited (RDM) vs. iShares MSCI Australia ETF (EWA)

Red Metal Limited Business Overview & Revenue Model

Company DescriptionRed Metal Limited acquires and explores for mineral properties in Australia. It primarily explores for copper, gold, silver, lead, zinc, cobalt, and nickel deposits. It holds 100% interest in the Maronan, Gidyea, Corkwood, Pardoo, Nullarbor, Punt Hill and Pernatty Lagoon, Gulf, Sybella, Brunette Downs, and Birthday Well projects located in Australia. The company also holds interests in the Lawn Hill, Mount Skipper, Barton, Three Ways, Mallapunyah, Irindina, and Yarrie projects. Red Metal Limited was incorporated in 2003 and is based in Sydney, Australia.
How the Company Makes MoneyRed Metal Limited generates revenue primarily through the sale of fabricated metal products and components to various industries. The company's revenue model is based on a combination of direct sales and long-term contracts with key clients, ensuring a stable income stream. Key revenue streams include custom metal fabrication services, standard product lines, and value-added services such as design and engineering support. Additionally, RDM has established significant partnerships with major companies in the automotive and aerospace sectors, which not only enhance its market reach but also contribute to consistent order volumes. The company's focus on innovation and quality positions it favorably in a competitive market, allowing it to command premium pricing for its high-value offerings.

Red Metal Limited Financial Statement Overview

Summary
Red Metal Limited faces significant financial challenges, with declining revenues, negative profitability, and weak cash flows. Despite a strong cash position relative to debt, operational inefficiencies and inconsistent revenue growth pose risks. The balance sheet is somewhat stable, but negative return on equity underscores the need for strategic adjustments to enhance profitability and cash flow generation.
Income Statement
35
Negative
Red Metal Limited's income statement shows declining revenue over the past year, with a significant drop from 2023 to 2024. The company reported negative EBIT and EBITDA margins, indicating operational inefficiencies. Gross profit margin remains high, suggesting good cost management. However, the net profit margin is deeply negative, highlighting profitability challenges. Revenue growth has been inconsistent, posing a risk to future performance.
Balance Sheet
40
Negative
The balance sheet reveals a strong cash position with a substantial amount of cash and short-term investments relative to total debt, resulting in low net debt. However, the debt-to-equity ratio has increased slightly, indicating rising leverage. The return on equity remains negative due to persistent net losses, which undermines shareholder value. The equity ratio is moderate, reflecting a balanced capital structure.
Cash Flow
30
Negative
Cash flow analysis indicates substantial negative free cash flow, driven by significant operating cash outflows. While financing activities have provided liquidity, the free cash flow to net income ratio is negative, which raises concerns about cash generation capabilities. The operating cash flow to net income ratio is also unfavorable, suggesting that earnings are not being effectively converted into cash, potentially impacting future investments.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue32.96K1.78M1.83M793.07K2.63M3.37M
Gross Profit-228.27K1.78M1.83M793.07K2.51M3.27M
EBITDA-12.90M-12.19M-7.78M-10.64M-2.58M-1.26M
Net Income-7.47M-7.47M-5.64M-6.21M-2.29M-1.36M
Balance Sheet
Total Assets9.33M9.33M13.87M8.40M16.66M4.36M
Cash, Cash Equivalents and Short-Term Investments7.99M7.99M12.21M6.65M14.92M2.49M
Total Debt272.87K272.87K533.31K568.09K686.52K135.27K
Total Liabilities1.33M1.33M2.13M2.23M1.20M1.13M
Stockholders Equity6.43M6.43M6.37M3.51M8.83M3.23M
Cash Flow
Free Cash Flow-10.12M-10.11M-7.47M-8.36M-2.17M-1.57M
Operating Cash Flow-10.10M-10.10M-7.46M-562.70K-411.36K-348.22K
Investing Cash Flow-6.82K-6.82K-7.97K-7.64M-1.15M-1.22M
Financing Cash Flow5.90M5.90M13.02M-67.52K13.99M2.72M

Red Metal Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.14
Price Trends
50DMA
0.15
Negative
100DMA
0.13
Negative
200DMA
0.12
Positive
Market Momentum
MACD
>-0.01
Positive
RSI
41.48
Neutral
STOCH
38.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:RDM, the sentiment is Negative. The current price of 0.14 is below the 20-day moving average (MA) of 0.15, below the 50-day MA of 0.15, and above the 200-day MA of 0.12, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 41.48 is Neutral, neither overbought nor oversold. The STOCH value of 38.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:RDM.

Red Metal Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
$10.43B7.12-0.05%2.87%2.86%-36.73%
AU$123.01M-2.30%12.50%
AU$103.32M-15.00-10.46%-85.84%73.66%
AU$109.40M-23.01-27.55%-71.00%9.44%
AU$54.32M-6.42-116.65%-11.33%
€76.19M-27.78-1.95%21.74%
AU$41.44M-13.86%-12.34%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:RDM
Red Metal Limited
0.13
0.02
18.18%
AU:PEX
Peel Mining Limited
0.11
-0.02
-16.00%
AU:BML
Boab Metals Ltd
0.36
0.21
140.00%
AU:GL1
Global Lithium Resources Ltd.
0.50
0.28
127.27%
AU:E25
Element 25 Limited
0.30
0.02
7.14%
AU:LEL
Lithium Energy Ltd.
0.37
0.00
0.00%

Red Metal Limited Corporate Events

Red Metal Limited Director Increases Stake Through Option Exercise
Oct 29, 2025

Red Metal Limited announced a change in the director’s interest, specifically involving Russell Barwick, who exercised options to acquire 280,170 ordinary shares. This change reflects the director’s increased stake in the company, potentially signaling confidence in the company’s future prospects and impacting shareholder perceptions.

Red Metal Limited Announces New Securities Quotation
Oct 29, 2025

Red Metal Limited announced the issuance of 4,890,642 fully paid ordinary securities, which will be quoted on the Australian Securities Exchange (ASX) as of October 29, 2025. This move is part of the company’s strategy to enhance its capital structure, potentially impacting its market position and offering new opportunities for stakeholders.

Red Metal Limited Issues New Securities on ASX
Oct 24, 2025

Red Metal Limited has announced the issuance of 5,840,510 fully paid ordinary securities, which will be quoted on the Australian Securities Exchange (ASX) under the code RDM. This move is part of the company’s strategy to capitalize on convertible securities, potentially strengthening its financial position and providing additional capital for future growth initiatives.

Red Metal Limited Announces Upcoming Annual General Meeting
Oct 17, 2025

Red Metal Limited has announced its Annual General Meeting scheduled for November 17, 2025. The company encourages shareholders to access meeting documents online and submit proxy forms and questions in advance to facilitate a well-prepared meeting. The outcomes of the meeting resolutions will be shared via the ASX announcements platform.

Red Metal Limited Director Increases Stake Through Option Exercise
Oct 16, 2025

Red Metal Limited has announced a change in the interests of its director, Joshua Pitt, in the company’s securities. The change involves the exercise of options, resulting in an increase in ordinary shares held by Mr. Pitt. This adjustment reflects a strategic move by the director to convert options into shares, potentially signaling confidence in the company’s future performance.

Red Metal Limited Issues New Securities to Strengthen Market Position
Oct 16, 2025

Red Metal Limited has announced the issuance of 4,602,771 fully paid ordinary securities, which are set to be quoted on the Australian Securities Exchange (ASX) as of October 16, 2025. This move is part of the company’s strategic efforts to strengthen its financial position and potentially expand its operational capabilities, impacting its market standing and offering new opportunities for stakeholders.

Red Metal Limited Announces Expiry of Unlisted Options
Oct 9, 2025

Red Metal Limited has announced the upcoming expiry of its unlisted options, RDMAAC, which are set to expire on October 25, 2025. Holders of these options have been notified to exercise their rights by paying $0.13 per option before the deadline to convert them into fully paid ordinary shares. This announcement is significant for stakeholders as it provides an opportunity to invest further in the company, potentially impacting the company’s capital structure and shareholder base.

Red Metal Limited Announces Share Allotment
Oct 8, 2025

Red Metal Limited has announced the allotment of 600,000 ordinary fully paid shares following the exercise of unquoted options. This move was executed without disclosure to investors under the Corporations Act 2001, and the company confirms compliance with relevant provisions of the Act. This development signifies a strategic financial maneuver that may enhance the company’s liquidity and shareholder base, potentially impacting its market positioning.

Red Metal Limited Announces Quotation of New Securities on ASX
Oct 8, 2025

Red Metal Limited has announced the quotation of 2,375,000 ordinary fully paid securities on the ASX, marking a significant step in its financial operations. This move is expected to enhance the company’s liquidity and potentially improve its market positioning, offering stakeholders an opportunity to engage with the company’s growth trajectory.

Red Metal Limited Announces New Securities Issuance
Oct 3, 2025

Red Metal Limited has announced the issuance of 600,000 fully paid ordinary securities, which will be quoted on the Australian Securities Exchange (ASX). This move is part of the company’s strategy to enhance its financial standing and potentially expand its operational capabilities, signaling a positive development for stakeholders and investors.

Red Metal Limited Announces New Securities Quotation
Oct 3, 2025

Red Metal Limited has announced the issuance of 855,681 ordinary fully paid securities, which are set to be quoted on the Australian Securities Exchange (ASX). This move is part of the company’s strategy to enhance its financial flexibility and support its growth initiatives, potentially impacting its market positioning and offering new opportunities for stakeholders.

Red Metal Advances Exploration at Three Ways and Gulf Projects
Sep 30, 2025

Red Metal Limited has completed two proof-of-concept drill tests on its Three Ways and Gulf copper-gold projects, supported by $400,000 in grants from the Queensland Government. The drilling at Three Ways encountered carbonaceous shale and marble with magnetic pyrrhotite and minor chalcopyrite, but the drill hole missed the core of the magnetic target, necessitating further geochemical analysis and potential follow-up drilling.

Red Metal Limited Releases Updated Corporate Governance Statement
Sep 28, 2025

Red Metal Limited has released its corporate governance statement for the financial year ending June 30, 2025, which is available on their website. The statement confirms the company’s adherence to the ASX Corporate Governance Council’s recommendations, indicating a commitment to transparency and accountability in its operations, which is crucial for maintaining investor confidence and industry positioning.

Red Metal Limited Releases 2025 Annual Report
Sep 28, 2025

Red Metal Limited has released its Annual Report for 2025, detailing its financial performance and strategic initiatives. The report is crucial for stakeholders as it provides insights into the company’s operational progress and future plans, potentially impacting its market positioning and investor confidence.

Red Metal Limited Announces Quotation of New Securities on ASX
Sep 25, 2025

Red Metal Limited has announced the quotation of 477,063 fully paid ordinary securities on the Australian Securities Exchange (ASX) as of September 25, 2025. This move is part of the company’s strategy to enhance its capital structure, potentially impacting its operational capabilities and market positioning by providing additional financial resources to support its exploration and development projects.

Red Metal’s Stake in Maronan Metals Shows Promising Economic Potential
Sep 23, 2025

Maronan Metals Ltd, partially owned by Red Metal Limited, has released a Preliminary Economic Assessment for the underground development of the Starter Zone at the Maronan deposit. The study indicates a strong economic case for the project, highlighting a long life, diversified polymetallic operation with a high-grade silver resource. The preferred development pathway involves constructing a standalone processing facility, with potential for expanded production and improved project economics.

Red Metal Limited Begins Drilling at Pardoo Project Targeting Gold and Lithium
Sep 22, 2025

Red Metal Limited has commenced its maiden drilling program at the Pardoo Project, targeting two magnetic anomalies in the Hemi structural corridor. This initiative aims to explore potential Hemi-style gold mineralization or lithium pegmatites, with the program expected to take four weeks to complete. The exploration is supported by soil sampling and geophysical surveys, which add credibility to the untested exploration concepts. The outcome of this drilling could significantly impact Red Metal’s operations and positioning within the mining sector.

Red Metal Limited Issues New Securities to Bolster Market Position
Sep 19, 2025

Red Metal Limited has announced the issuance of 21,217 new ordinary fully paid securities, which will be quoted on the Australian Securities Exchange (ASX) as of September 19, 2025. This move reflects the company’s ongoing efforts to strengthen its financial position and potentially expand its operational capabilities, impacting its stakeholders by possibly enhancing market liquidity and investor interest.

Red Metal Limited Announces 2025 Annual General Meeting
Sep 19, 2025

Red Metal Limited has announced that its 2025 Annual General Meeting will take place on November 17, 2025. The company is inviting director nominations for election, which must be submitted by October 3, 2025. This meeting is a key event for stakeholders, as it will address the company’s future plans and operations.

Red Metal Begins Drilling at Pulkarrimarra Project
Sep 18, 2025

Red Metal Limited has commenced diamond core drilling at its Pulkarrimarra Project in the Paterson Province, Western Australia. The project targets sedimentary-hosted copper and high-priority gold targets, with funding support from BHP for the western targets. The drilling program is expected to take three months, with the potential to expedite completion using a second rig. This development positions Red Metal strategically within a region noted for significant mineral discoveries, potentially enhancing its market presence and offering promising opportunities for stakeholders.

Red Metal Limited Announces New Securities Quotation
Sep 12, 2025

Red Metal Limited has announced the issuance of 223,743 fully paid ordinary securities, which will be quoted on the Australian Securities Exchange (ASX) under the code RDM. This move is part of the company’s strategy to enhance its capital structure and potentially improve its market positioning, offering stakeholders an opportunity to engage with its growth prospects.

Red Metal Limited Announces Cessation of Securities
Aug 1, 2025

Red Metal Limited has announced the cessation of 2,475,000 securities, specifically options that expired on July 28, 2025, without being exercised or converted. This development may impact the company’s capital structure and could influence investor perceptions regarding the company’s financial strategy and market positioning.

Red Metal Limited Announces Cessation of Securities
Aug 1, 2025

Red Metal Limited announced the cessation of 8,250,000 securities due to the expiry of options or other convertible securities without exercise or conversion as of November 30, 2024. This cessation may impact the company’s capital structure and could influence investor perceptions and market positioning.

Red Metal Limited Advances Rare Earth and Gold Projects in Australia
Jul 31, 2025

Red Metal Limited’s June 2025 quarterly report highlights significant progress in its Sybella Rare Earth Elements project in Queensland, with successful leach tests indicating potential for large extensions to the Kary Zone. The company also secured a $400,000 grant for copper-gold drilling projects in Queensland and is advancing gold exploration in Western Australia. These developments could enhance Red Metal’s operational capabilities and strengthen its position in the mining sector, potentially benefiting stakeholders through increased resource estimates and exploration successes.

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: Oct 29, 2025