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E2 Metals Ltd. (AU:USL)
ASX:USL
Australian Market

E2 Metals Ltd. (USL) AI Stock Analysis

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AU

E2 Metals Ltd.

(Sydney:USL)

Rating:36Underperform
Price Target:
E2 Metals Ltd. scores low due to significant financial performance issues, including declining revenue and negative profitability. The technical analysis suggests a bearish trend, further weighing on the score. Valuation is also a concern due to the negative P/E ratio and lack of dividend yield.

E2 Metals Ltd. (USL) vs. iShares MSCI Australia ETF (EWA)

E2 Metals Ltd. Business Overview & Revenue Model

Company DescriptionUnico Silver Limited engages in the exploration and evaluation of mineral deposits in Australia and Argentina. It explores for gold, silver, and copper deposits. Its flagship property is the Santa Cruz project covering an area of approximately 90,000 hectares located in southern Argentina. The company was formerly known as E2 Metals Limited and changed its name to Unico Silver Limited in March 2023. Unico Silver Limited was incorporated in 2005 and is based in Adelaide, Australia.
How the Company Makes MoneyE2 Metals Ltd. generates revenue primarily through the exploration and subsequent development of mineral properties. The company identifies promising gold and silver deposits, which can be sold or developed into mining operations. Revenue is derived from the sale of mineral resources or partnerships and joint ventures with larger mining companies. Additionally, E2 Metals may engage in raising capital through equity financing to fund its exploration activities, which can lead to future revenue from successful mineral discoveries.

E2 Metals Ltd. Financial Statement Overview

Summary
E2 Metals Ltd. is facing financial challenges with inconsistent and declining revenue, leading to negative profit margins. The balance sheet is stable with no debt, but cash flow issues persist, impacting operational financing and growth.
Income Statement
20
Very Negative
E2 Metals Ltd. has shown inconsistent revenue with no revenue in recent periods, leading to negative gross and net profit margins. The EBIT and EBITDA margins are negative, indicating operational inefficiencies. The company also lacks revenue growth, with declining revenue over the periods where revenue was reported.
Balance Sheet
50
Neutral
The company maintains a solid equity position with no debt, resulting in a favorable debt-to-equity ratio. However, the return on equity is negative due to consistent net losses. The equity ratio is strong, showcasing a healthy balance between equity and total assets.
Cash Flow
35
Negative
E2 Metals Ltd. shows negative operating and free cash flows, indicating challenges in generating cash from operations. The free cash flow growth rate is also negative, while the operating cash flow to net income ratio is poor, reflecting cash flow struggles.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
970.00K0.0061.47K0.000.000.00
Gross Profit
970.00K-83.64K1.06K-69.57K-17.97K0.00
EBIT
-10.78M-3.48M-19.05M-10.18M-5.88M-3.16M
EBITDA
-10.73M-2.95M-17.69M-15.51M-9.54M0.00
Net Income Common Stockholders
-10.08M-2.83M-17.69M-8.93M-5.20M-2.36M
Balance SheetCash, Cash Equivalents and Short-Term Investments
25.45M5.05M8.53M10.68M11.04M3.56M
Total Assets
28.33M6.72M10.45M11.18M12.37M3.98M
Total Debt
0.000.00171.23K205.19K0.000.00
Net Debt
-25.45M-5.05M-8.36M-10.47M-11.04M-3.56M
Total Liabilities
2.15M2.66M3.78M633.97K186.28K72.31K
Stockholders Equity
26.18M4.06M10.04M13.66M13.86M4.59M
Cash FlowFree Cash Flow
-5.04M-2.58M-2.41M-13.63M-10.53M-4.24M
Operating Cash Flow
-5.04M-2.58M-5.07M-13.63M-10.39M-3.39M
Investing Cash Flow
-4.31M-867.05K-2.66M5.28M3.52M330.89K
Financing Cash Flow
28.48M-30.50K5.61M7.94M14.52M2.68M

E2 Metals Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.26
Price Trends
50DMA
0.23
Positive
100DMA
0.22
Positive
200DMA
0.22
Positive
Market Momentum
MACD
0.01
Negative
RSI
54.99
Neutral
STOCH
32.12
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:USL, the sentiment is Positive. The current price of 0.26 is above the 20-day moving average (MA) of 0.25, above the 50-day MA of 0.23, and above the 200-day MA of 0.22, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 54.99 is Neutral, neither overbought nor oversold. The STOCH value of 32.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:USL.

E2 Metals Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
51
Neutral
$2.03B-1.27-21.09%4.14%2.90%-30.49%
AUUSL
36
Underperform
AU$116.06M-57.78%56.38%
DEC8U
€339.08M-16.63%
$19.26B26.8411.01%2.07%
$2.38B28.3113.42%0.77%
$2.39B-0.38%
$2.05B9.4926.42%1.00%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:USL
E2 Metals Ltd.
0.26
0.12
85.71%
DE:C8U
Chalice Mining
0.86
0.06
7.50%
NESRF
Northern Star Resources Ltd
14.62
5.92
68.05%
ELKMF
Gold Road Resources Ltd
2.46
1.34
119.64%
RGRNF
Regis Resources Limited
3.47
2.25
184.43%
RMLRF
Ramelius Resources Limited
1.83
0.61
50.00%

E2 Metals Ltd. Corporate Events

Unico Silver Advances Exploration in Santa Cruz with New Drilling Campaigns
Apr 28, 2025

Unico Silver has made significant progress in its exploration activities during the March 2025 quarter, with drilling projects at Cerro Leon and Joaquin in Santa Cruz, Argentina. The company completed Phase 2 diamond drilling at Cerro Leon and commenced a maiden drill campaign at Joaquin, aiming to expand mineralization and convert the Foreign Resource Estimate to JORC. These developments are expected to advance new discoveries and enhance Unico Silver’s resource estimates, potentially impacting its market positioning and stakeholder interests.

Unico Silver Limited Announces Cessation of Securities
Apr 1, 2025

Unico Silver Limited has announced the cessation of 1,550,000 securities due to the expiry of options or other convertible securities without exercise or conversion. This development may impact the company’s capital structure and could influence investor perception regarding the company’s financial strategies and market positioning.

Unico Silver Reports High-Grade Silver Discoveries at Cerro Leon Project
Mar 24, 2025

Unico Silver Limited has announced significant assay results from its Cerro Leon project, revealing high-grade silver mineralization at the Archen site, extending the mineralization vertically by 50 meters and remaining open at depth. The company’s ongoing drilling program has confirmed a high-grade mineralized shoot with increasing grades at deeper levels, highlighting the project’s strong exploration potential. This discovery, along with the planned regional exploration program, underscores the potential for additional high-grade mineralization and aims to systematically grow the company’s resource base.

Unico Silver Ltd. Launches Major Drill Program to Boost Silver Exploration
Mar 17, 2025

Unico Silver Ltd. has announced a fully funded 50,000-meter drill program aimed at unlocking new discoveries and growth in its silver exploration efforts in Santa Cruz, Argentina. This initiative is expected to enhance the company’s operations and strengthen its industry positioning by expanding its resource base, which is crucial for stakeholders looking for potential growth and returns.

Unico Silver Accelerates Drilling at Joaquin Project for Resource Expansion
Mar 16, 2025

Unico Silver Limited has commenced a 10,000-meter maiden drill program at the Joaquin Project in Argentina ahead of schedule, targeting resource expansion and high-grade discoveries. This initiative, supported by local mining authorities, aims to convert historical estimates to compliant resources and explore new high-grade mineralization, potentially enhancing the company’s resource base and market position.

Unico Silver Limited Releases Half-Year Financial Report
Mar 14, 2025

Unico Silver Limited has released its half-year 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 during the period. This release is crucial for stakeholders as it offers a detailed view of the company’s financial health and operational outcomes, which can influence investor decisions and market perceptions.

Unico Silver Reports High-Grade Mineralization at Cerro Leon Project
Mar 11, 2025

Unico Silver Limited has announced promising drill results from its Cerro Leon project in Argentina, revealing high-grade mineralization at the Archen site, which extends 50 meters vertically and remains open at depth. The discovery of new mineralized zones outside the existing resource base highlights the project’s strong exploration potential and could significantly enhance the company’s resource portfolio. The ongoing drilling program aims to further explore the underexplored western extension of the Cerro Leon vein field, with additional regional exploration planned to identify new targets and expand the resource base.

Unico Silver Announces Upcoming Investor Webinar on Cerro Leon Project
Feb 10, 2025

Unico Silver Limited has announced a shareholder and investor webinar to provide updates on its 50,000 metre drill campaign at the Cerro Leon Project in Santa Cruz, Argentina. The webinar, led by Managing Director Todd Williams, aims to discuss exploration priorities and the upcoming revised Mineral Resource Estimate, indicating significant progress in the company’s ongoing projects.

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.