Latest news with #RedHillMinerals
News.com.au
01-07-2025
- Business
- News.com.au
Closing Bell: ASX ends flat as info tech rally falters
ASX slips back to even, losing just 1.2 points Info tech sector reverses course, retreating from 1.2pc gain to just 0.2pc Gold shines as USD falls; All Ord Gold index adds 1.09pc Gold shines, tech declines The info tech sector was providing the majority of the ASX's momentum this morning, up about 1.2%. As the day stretched long, the info tech gains evaporated, leaving the ASX 200 almost exactly where it started, down 1.2 points or 0.1%. Defensive stocks stood their ground; utilities added 0.91% and real estate 0.75%. Gold also made progress, gaining against a faltering greenback as the mounting clamour for interest rate cuts on Wall Street puts pressure on the US dollar. The ASX All Ord Gold industry added 1.09%, alongside a 0.42% uptick for the Small Ords. A lot of that movement was in penny stocks, but Emerald Resources (ASX:EMR) added 3.3%, Red Hill Minerals (ASX:RHI) 5%, Kingsgate Consolidated (ASX:KCN) 7% and Saturn Metals (ASX:STN) 12.5%. ASX SMALL CAP LEADERS Today's best performing small cap stocks: Security Name Last % Change Volume Market Cap EWC Energy World Corpor. 0.048 129% 14856294 $64,657,346 AOA Ausmon Resorces 0.002 100% 1329400 $1,311,213 CT1 Constellation Tech 0.002 100% 3113189 $1,474,734 NXS Next Science Limited 0.11 64% 9215319 $19,574,736 ADDDB Adavale Resource Ltd 0.032 60% 213697 $2,287,279 HMD Heramed Limited 0.011 57% 8474550 $6,129,219 IS3 I Synergy Group Ltd 0.0015 50% 2180451 $1,502,190 TEG Triangle Energy Ltd 0.003 50% 1104532 $4,178,468 SRL Sunrise 1.175 46% 2178862 $92,758,060 EV1 Evolutionenergy 0.015 36% 399417 $3,989,155 CZN Corazon Ltd 0.002 33% 525391 $1,776,858 M2R Miramar 0.004 33% 2150000 $2,990,470 RNX Renegade Exploration 0.004 33% 2165000 $3,865,090 VFX Visionflex Group Ltd 0.002 33% 3500000 $5,051,791 WBE Whitebark Energy 0.004 33% 2960000 $2,062,001 ICG Inca Minerals Ltd 0.012 33% 5049324 $14,187,511 ENX Enegex Limited 0.017 31% 43999 $4,951,987 GLA Gladiator Resources 0.009 29% 426348 $5,308,078 OMX Orangeminerals 0.077 28% 1426132 $8,286,137 PUR Pursuit Minerals 0.057 27% 965382 $4,488,028 NSB Neuroscientific 0.11 26% 2451852 $28,934,086 EGG Enero Group Ltd 0.865 26% 503556 $62,153,558 PNN Power Minerals Ltd 0.069 25% 1401168 $7,004,950 RMI Resource Mining Corp 0.015 25% 2838012 $8,813,440 ADR Adherium Ltd 0.005 25% 607622 $3,593,916 Energy World (ASX:EWC) is preparing to restructure its capital and management under a proposal that would see US$440 million in debt transformed into shares. EWC is converting its debt with Slipform Engineering Group into shares at $0.88 each, valuing them at 44-times its current 30-day VWAP of $0.02. EWC managing director Brian Allen will also step down from the position after 24 years, with new interim chair Alan Jowell and CEO Edward McCartin taking up their roles effective today. The company has opted to engage in a share conversion with Slipform, owned by the Elliott family (founder and EWC CEO Stewart Elliott passed away last year), in order to repay the outstanding debt. Next Science (ASX:NXS) is looking to offload the vast majority of its assets and intellectual property in an asset purchase agreement with Demetra Holdings S.p.A for a total sale price of US$50 million. NXS will retain ownership of the durable medical equipment segment and intends to return the net proceeds of the sale to shareholders to the tune of US$30 million. Management has signalled it intends to vote in favour of the transaction at the next EGM. Sunrise Energy Metals (ASX:SRL) has wrapped up a heavily oversubscribed $1.5m share purchase plan. The company could only accept 37.5% of subscription offers, after shareholders asked for $4m. Renegade Exploration (ASX:RNX) has unearthed multiple silver rock chips grading above 1000 g/t at the Broken Hills project in Nevada, US. Five rock chips exceeded 1020 g/t silver with additional gold values up to 16.21 g/t gold, peaking at 2469 g/t silver. ASX SMALL CAP LAGGARDS Today's worst performing small cap stocks: Security Name Last % Change Volume Market Cap GMN Gold Mountain Ltd 0.001 -33% 235592 $8,429,639 VMLDB Vital Metals Limited 0.067 -33% 11648 $11,790,134 AN1 Anagenics Limited 0.004 -20% 30000 $2,481,602 KPO Kalina Power Limited 0.004 -20% 4906284 $14,664,978 ROG Red Sky Energy. 0.004 -20% 6944305 $27,111,136 SIS Simble Solutions 0.004 -20% 250000 $5,411,652 SRJ SRJ Technologies 0.004 -20% 3561707 $3,027,890 TMX Terrain Minerals 0.002 -20% 9000136 $6,329,536 GBZ GBM Rsources Ltd 0.014 -18% 14131740 $24,069,639 TMK TMK Energy Limited 0.0025 -17% 7819005 $30,667,149 AON Apollo Minerals Ltd 0.006 -14% 1362333 $6,499,198 LML Lincoln Minerals 0.006 -14% 2107369 $14,717,988 T88 Taitonresources 0.06 -14% 13100 $5,212,016 ADC Acdc Metals Ltd 0.04 -13% 285381 $3,439,656 IFG Infocusgroup Hldltd 0.014 -13% 2904816 $4,415,389 NAG Nagambie Resources 0.014 -13% 1891 $12,852,838 KAM K2 Asset Mgmt Hldgs 0.065 -12% 6250 $17,840,305 SPD Southernpalladium 0.59 -12% 19389 $71,656,500 PCK Painchek Ltd 0.04 -11% 103757 $82,892,520 AAJ Aruma Resources Ltd 0.008 -11% 30000 $2,951,465 ADG Adelong Gold Limited 0.004 -11% 6915887 $9,309,045 AM5 Antares Metals 0.008 -11% 1160500 $4,633,676 CLG Close Loop 0.032 -11% 4353864 $19,146,595 DRE Dreadnought Resources Ltd 0.008 -11% 3790981 $45,715,500 GSM Golden State Mining 0.008 -11% 47098 $2,514,336 IN CASE YOU MISSED IT Asian Battery Metals (ASX:AZ9) has demonstrated the strength of the Yambat mineralised system in Mongolia with more high-grade copper-nickel intersections. Many Peaks Minerals (ASX:MPK) has retained an exclusive option to acquire 100% of the Baga gold project in Côte d'Ivoire. StockTake: Uvre (ASX:UVA) to dot the i's and cross the t's on New Zealand gold pickup. IoT tech company X2M Connect (ASX:X2M) has taken a 7% stake in Dicode after a major UAE contract win. Codeifai (ASX:CDE) is set to acquire AI-backed, quantum-secure platform from Canada's Credissential Inc. Magmatic Resources (ASX:MAG) has completed the first stage of its purchase for the highly prospective Weebo gold project in WA's Goldfields. Future Battery Minerals (ASX:FBM) has uncovered six new gold anomalies at its Burbanks East tenements. LAST ORDERS New Age Exploration (ASX:NAE) has locked in a $1 per tonne royalty for the first 15 million tonnes of any mineral ore or concentrate extracted from the Lochinvar coal project in the UK, completing the sale of the asset. Management reckons the royalties could be worth up to $15 million, while the sale itself allows NAE to focus its resources on its gold and lithium projects closer to home. TRADING HALTS Alphinity Global Equity Fund (ASX:XALG) – technical issue Alphinity Global Sustainable Equity Fund (ASX:XASG) – technical issue Australian Oil Company (ASX:AOK) – settlement deed Butn Ltd (ASX:BTN) – debt refinancing Falcon Metals (ASX:FAL) – exploration results Finder Energy Holdings (ASX:FDR) – cap raise Resources & Energy Group (ASX:REZ) – cap raise Santa Fe Minerals (ASX:SFM) – cap raise Yojee Ltd (ASX:YOJ) – cap raise At Stockhead, we tell it like it is. While New Age Exploration is a Stockhead advertiser, it did not sponsor this article.
Yahoo
18-03-2025
- Business
- Yahoo
Why Red Hill Minerals' (ASX:RHI) Healthy Earnings Aren't As Good As They Seem
Investors appear disappointed with Red Hill Minerals Limited's (ASX:RHI) recent earnings, despite the decent statutory profit number. We think that they may be worried about something else, so we did some analysis and found that investors have noticed some soft numbers underlying the profit. Check out our latest analysis for Red Hill Minerals One key financial ratio used to measure how well a company converts its profit to free cash flow (FCF) is the accrual ratio. The accrual ratio subtracts the FCF from the profit for a given period, and divides the result by the average operating assets of the company over that time. You could think of the accrual ratio from cashflow as the 'non-FCF profit ratio'. As a result, a negative accrual ratio is a positive for the company, and a positive accrual ratio is a negative. While having an accrual ratio above zero is of little concern, we do think it's worth noting when a company has a relatively high accrual ratio. Notably, there is some academic evidence that suggests that a high accrual ratio is a bad sign for near-term profits, generally speaking. Red Hill Minerals has an accrual ratio of 11.38 for the year to December 2024. Statistically speaking, that's a real negative for future earnings. To wit, the company did not generate one whit of free cashflow in that time. In the last twelve months it actually had negative free cash flow, with an outflow of AU$44m despite its profit of AU$158.3m, mentioned above. We also note that Red Hill Minerals' free cash flow was actually negative last year as well, so we could understand if shareholders were bothered by its outflow of AU$44m. However, that's not all there is to consider. We can see that unusual items have impacted its statutory profit, and therefore the accrual ratio. Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Red Hill Minerals. The fact that the company had unusual items boosting profit by AU$200m, in the last year, probably goes some way to explain why its accrual ratio was so weak. We can't deny that higher profits generally leave us optimistic, but we'd prefer it if the profit were to be sustainable. We ran the numbers on most publicly listed companies worldwide, and it's very common for unusual items to be once-off in nature. And, after all, that's exactly what the accounting terminology implies. Red Hill Minerals had a rather significant contribution from unusual items relative to its profit to December 2024. As a result, we can surmise that the unusual items are making its statutory profit significantly stronger than it would otherwise be. Red Hill Minerals had a weak accrual ratio, but its profit did receive a boost from unusual items. For all the reasons mentioned above, we think that, at a glance, Red Hill Minerals' statutory profits could be considered to be low quality, because they are likely to give investors an overly positive impression of the company. With this in mind, we wouldn't consider investing in a stock unless we had a thorough understanding of the risks. For example, Red Hill Minerals has 2 warning signs (and 1 which is significant) we think you should know about. In this article we've looked at a number of factors that can impair the utility of profit numbers, and we've come away cautious. But there is always more to discover if you are capable of focussing your mind on minutiae. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
