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ARU

Arafura Resources ASX:ARU Stock Report

Last Price

AU$0.39

Market Cap

AU$542.6m

7D

21.9%

1Y

136.4%

Updated

19 May, 2022

Data

Company Financials
ARU fundamental analysis
Snowflake Score
Valuation1/6
Future Growth0/6
Past Performance0/6
Financial Health6/6
Dividends0/6

ARU Stock Overview

Arafura Resources Limited explores and develops mineral properties in Australia.

Arafura Resources Peers

Price History & Performance

Summary of all time highs, changes and price drops for Arafura Resources
Historical stock prices
Current Share PriceAU$0.39
52 Week HighAU$0.50
52 Week LowAU$0.12
Beta0.73
1 Month Change-3.70%
3 Month Change95.00%
1 Year Change136.36%
3 Year Change519.05%
5 Year Change584.21%
Change since IPO95.00%

Recent News & Updates

Apr 11
We Think Arafura Resources (ASX:ARU) Can Afford To Drive Business Growth

We Think Arafura Resources (ASX:ARU) Can Afford To Drive Business Growth

There's no doubt that money can be made by owning shares of unprofitable businesses. By way of example, Arafura...

Dec 24
We're Keeping An Eye On Arafura Resources' (ASX:ARU) Cash Burn Rate

We're Keeping An Eye On Arafura Resources' (ASX:ARU) Cash Burn Rate

Even when a business is losing money, it's possible for shareholders to make money if they buy a good business at the...

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
7D21.9%5.5%3.5%
1Y136.4%3.0%2.1%

Return vs Industry: ARU exceeded the Australian Metals and Mining industry which returned 3% over the past year.

Return vs Market: ARU exceeded the Australian Market which returned 2.1% over the past year.

Price Volatility

Is ARU's price volatile compared to industry and market?
ARU volatility
ARU Average Weekly Movement14.6%
Metals and Mining Industry Average Movement11.2%
Market Average Movement9.5%
10% most volatile stocks in AU Market16.7%
10% least volatile stocks in AU Market4.3%

Stable Share Price: ARU is more volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 15% a week.

Volatility Over Time: ARU's weekly volatility (15%) 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$542.65m
Earnings (TTM)-AU$15.50m
Revenue (TTM)n/a

0.0x

P/S Ratio

-39.0x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ARU income statement (TTM)
RevenueAU$0
Cost of RevenueAU$8.77m
Gross Profit-AU$8.77m
Other ExpensesAU$6.73m
Earnings-AU$15.50m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.01
Gross Margin0.00%
Net Profit Margin0.00%
Debt/Equity Ratio0%

How did ARU perform over the long term?

See historical performance and comparison
New valuation analysis is now available for all ASX stocks. This is in beta.

Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-6.9%

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?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-20.6%

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, and losses have increased over the past 5 years at a rate of 20.6% 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 (57.8%).


Return on Equity

High ROE: ARU has a negative Return on Equity (-10.09%), as it is currently unprofitable.


Financial Health

How is Arafura Resources's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: ARU's short term assets (A$42.6M) exceed its short term liabilities (A$5.4M).

Long Term Liabilities: ARU's short term assets (A$42.6M) exceed its long term liabilities (A$332.4K).


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 sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: ARU has sufficient cash runway for 1.9 years if free cash flow continues to reduce at historical rates of 14.6% each year.


Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

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.


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as ARU has not reported any payouts.


Discover strong dividend paying companies

Management

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

8.8yrs

Average management tenure


CEO

Gavin Lockyer (53 yo)

8.83yrs

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 ($USD308.08K) is below average for companies of similar size in the Australian market ($USD811.54K).

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 (8.8 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 32.4%.


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
  • Implied Market Cap: AU$542.646m
  • 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 Analysis2022/05/19 00:00
End of Day Share Price2022/05/19 00:00
Earnings2021/12/31
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.