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ARU

Arafura ResourcesASX:ARU Stock Report

Market Cap

AU$364.2m

7D

11.9%

1Y

147.4%

Updated

26 Oct, 2021

Data

Company Financials
ARU fundamental analysis
Snowflake Score
Valuation0/6
Future Growth0/6
Past Performance0/6
Financial Health4/6
Dividends0/6

ARU Overview

Arafura Resources Limited explores and develops mineral properties in Australia.

Price History & Performance

Summary of all time highs, changes and price drops for Arafura Resources
Historical stock prices
Current Share PriceAU$0.23
52 Week HighAU$0.09
52 Week LowAU$0.30
Beta0.72
1 Month Change2.17%
3 Month Change80.77%
1 Year Change147.37%
3 Year Change250.75%
5 Year Change279.03%
Change since IPO17.50%

Recent News & Updates

Sep 05
We Think Arafura Resources (ASX:ARU) Needs To Drive Business Growth Carefully

We Think Arafura Resources (ASX:ARU) Needs To Drive Business Growth Carefully

We can readily understand why investors are attracted to unprofitable companies. For example, Arafura Resources...

May 23
We're Not Very Worried About Arafura Resources' (ASX:ARU) Cash Burn Rate

We're Not Very Worried About Arafura Resources' (ASX:ARU) Cash Burn Rate

There's no doubt that money can be made by owning shares of unprofitable businesses. Indeed, Arafura Resources...

Shareholder Returns

ARUAU Metals and MiningAU Market
7D11.9%-0.4%0.8%
1Y147.4%15.6%24.4%

Return vs Industry: ARU exceeded the Australian Metals and Mining industry which returned 15.6% over the past year.

Return vs Market: ARU exceeded the Australian Market which returned 24.4% over the past year.

Price Volatility

Is ARU's price volatile compared to industry and market?
ARU volatility
ARU Beta0.72
Industry Beta0.97
Market Beta1

Stable Share Price: ARU is more volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 13% a week.

Volatility Over Time: ARU's weekly volatility (13%) has been stable over the past year, but is still higher than 75% of Australian stocks.

About the Company

FoundedEmployeesCEOWebsite
1997n/aGavin Lockyerhttps://www.arultd.com

Arafura Resources Limited explores and develops mineral properties in Australia. The company focuses on the production of rare earth products, such as neodymium-praseodymium and mixed middle-heavy rare earths oxides. Its principal project is the Nolans project, a rare earths-phosphate-uranium-thorium deposit that supplies neodymium and praseodymium products located in Northern Territory, Australia.

Arafura Resources Fundamentals Summary

How do Arafura Resources's earnings and revenue compare to its market cap?
ARU fundamental statistics
Market CapAU$364.24m
Earnings (TTM)-AU$6.48m
Revenue (TTM)n/a

0x

P/S Ratio

-56.2x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ARU income statement (TTM)
RevenueAU$0
Cost of RevenueAU$0
Gross ProfitAU$0
ExpensesAU$6.48m
Earnings-AU$6.48m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.0042
Gross Margin0.00%
Net Profit Margin0.00%
Debt/Equity Ratio0%

How did ARU perform over the long term?

See historical performance and comparison

Valuation

Is Arafura Resources undervalued compared to its fair value and its price relative to the market?

2.99x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate ARU's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate ARU's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: ARU is unprofitable, so we can't compare its PE Ratio to the Australian Metals and Mining industry average.

PE vs Market: ARU is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ARU's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ARU is overvalued based on its PB Ratio (3x) compared to the AU Metals and Mining industry average (2.6x).


Future Growth

How is Arafura Resources forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

-0.5%

Forecasted Materials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Arafura Resources has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has Arafura Resources performed over the past 5 years?

23.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ARU is currently unprofitable.

Growing Profit Margin: ARU is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ARU is unprofitable, but has reduced losses over the past 5 years at a rate of 23.1% per year.

Accelerating Growth: Unable to compare ARU's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ARU is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (35.3%).


Return on Equity

High ROE: ARU has a negative Return on Equity (-5.31%), as it is currently unprofitable.


Financial Health

How is Arafura Resources's financial position?


Financial Position Analysis

Short Term Liabilities: ARU's short term assets (A$10.9M) exceed its short term liabilities (A$3.5M).

Long Term Liabilities: ARU's short term assets (A$10.9M) exceed its long term liabilities (A$4.1K).


Debt to Equity History and Analysis

Debt Level: ARU is debt free.

Reducing Debt: ARU has not had any debt for past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: ARU has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: ARU has less than a year of cash runway if free cash flow continues to reduce at historical rates of 11.4% each year


Dividend

What is Arafura Resources's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate ARU's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate ARU's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ARU's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ARU's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ARU's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.3yrs

Average management tenure


CEO

Gavin Lockyer (53 yo)

8.25yrs

Tenure

AU$440,796

Compensation

Mr. Gavin John Lockyer has been Managing Director and Chief Executive Officer at Arafura Resources Ltd., since July 23, 2013 and its Director since July 23, 2013. Mr. Lockyer joined Arafura Resources Limit...


CEO Compensation Analysis

Compensation vs Market: Gavin's total compensation ($USD330.43K) is below average for companies of similar size in the Australian market ($USD554.70K).

Compensation vs Earnings: Gavin's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: ARU's management team is seasoned and experienced (8.3 years average tenure).


Board Members

Experienced Board: ARU's board of directors are considered experienced (4.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 32.7%.


Top Shareholders

Company Information

Arafura Resources Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Arafura Resources Limited
  • Ticker: ARU
  • Exchange: ASX
  • Founded: 1997
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: AU$364.238m
  • Shares outstanding: 1.55b
  • Website: https://www.arultd.com

Location

  • Arafura Resources Limited
  • 432 Murray Street
  • Level 6
  • Perth
  • Western Australia
  • 6000
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/26 16:16
End of Day Share Price2021/10/26 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.