ASX:REE

Stock Analysis Report

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Executive Summary

RareX Limited explores for and develops mineral properties in Australia. More Details


Snowflake Analysis

Flawless balance sheet with weak fundamentals.

Share Price & News

How has RareX's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: REE is more volatile than 90% of Australian stocks over the past 3 months, typically moving +/- 24% a week.

Volatility Over Time: REE's weekly volatility (24%) has been stable over the past year, but is still higher than 75% of Australian stocks.


Market Performance


7 Day Return

4.0%

REE

4.5%

AU Metals and Mining

1.7%

AU Market


1 Year Return

188.9%

REE

14.1%

AU Metals and Mining

-1.6%

AU Market

Return vs Industry: REE exceeded the Australian Metals and Mining industry which returned 14.1% over the past year.

Return vs Market: REE exceeded the Australian Market which returned -1.6% over the past year.


Shareholder returns

REEIndustryMarket
7 Day4.0%4.5%1.7%
30 Day-3.7%8.2%9.5%
90 Day103.1%3.0%9.2%
1 Year188.9%188.9%20.3%14.1%1.8%-1.6%
3 Year-13.3%-13.3%60.6%38.4%24.8%9.2%
5 Year70.7%-60.0%202.4%143.9%56.1%25.0%

Long-Term Price Volatility Vs. Market

How volatile is RareX's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

7.26x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

PE vs Market: REE 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 REE's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: REE is overvalued based on its PB Ratio (7.3x) compared to the AU Metals and Mining industry average (2.5x).


Next Steps

Future Growth

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

2.5%

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 RareX 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.


Next Steps

Past Performance

How has RareX performed over the past 5 years?

-49.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: REE is currently unprofitable.

Growing Profit Margin: REE is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: REE is unprofitable, and losses have increased over the past 5 years at a rate of 49.7% per year.

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

Earnings vs Industry: REE is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (38%).


Return on Equity

High ROE: REE has a negative Return on Equity (-105.32%), as it is currently unprofitable.


Next Steps

Financial Health

How is RareX's financial position?


Financial Position Analysis

Short Term Liabilities: REE's short term assets (A$3.6M) exceed its short term liabilities (A$1.3M).

Long Term Liabilities: REE has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: REE is debt free.

Reducing Debt: REE 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: REE has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: REE has sufficient cash runway for 1.9 years if free cash flow continues to reduce at historical rates of 10.2% each year.


Next Steps

Dividend

What is RareX current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate REE'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 REE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if REE'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 REE'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?

1.0yrs

Average board tenure


CEO

Jeremy Robinson

1.17yrs

Tenure

AU$496,494

Compensation

Mr. Jeremy Kim Robinson, BComm, has been Managing Director and Director of RareX Limited (formerly, Sagon Resources Limited) since September 27, 2019. Mr. Robinson is an experienced mining executive having...


CEO Compensation Analysis

Compensation vs Market: Jeremy's total compensation ($USD365.45K) is above average for companies of similar size in the Australian market ($USD280.83K).

Compensation vs Earnings: Insufficient data to compare Jeremy's compensation with company performance.


Board Members

NamePositionTenureCompensationOwnership
Jeremy Robinson
MD & Executive Director1.17yrsAU$496.49k2.02%
A$ 907.5k
John Young
Non-Executive Chairman0.75yrAU$33.25k0.59%
A$ 263.7k
Shaun Hardcastle
Non-Executive Director2.92yrsAU$103.95k0.42%
A$ 188.0k
Cameron Henry
Independent Non-Executive Director0.42yrAU$73.82kno data

1.0yrs

Average Tenure

Experienced Board: REE's board of directors are not considered experienced ( 1 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: REE 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 31.1%.


Top Shareholders

Company Information

RareX Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: RareX Limited
  • Ticker: REE
  • Exchange: ASX
  • Founded: 2003
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: AU$44.951m
  • Shares outstanding: 408.64m
  • Website: https://www.rarex.com.au

Location

  • RareX Limited
  • 513 Hay Street
  • Suite 23
  • Subiaco
  • Western Australia
  • 6008
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
REEASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJul 2007
CK1DB (Deutsche Boerse AG)Ordinary SharDEEURJul 2007
REECHIA (Chi-X Australia)Ordinary SharAUAUDJul 2007

Biography

RareX Limited explores for and develops mineral properties in Australia. The company primarily explores for cobalt, nickel, cobalt, copper, gold, and rare earths deposits. It holds 100% interest in the Cum...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/27 07:03
End of Day Share Price2020/11/27 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.