Added to YB: 2026-08-27
Pitch date: 2026-08-24
AUQ.AX [bullish]
Alara Resources Limited
Author Info
Raper Capital has 20+ years of buy- and sell-side experience in a variety of roles, and currently manage my single family office, Raper Capital Sign up for the newsletter.
Company Info
Alara Resources Limited engages in the exploration, evaluation, and development of mineral exploration licenses in Australia and Oman.
Market Cap
AUD 37.7M
Pitch Price
AUD 0.05
Price Target
0.14
Dividend
N/A
EV/EBITDA
4.90
P/E
-62.58
EV/Sales
1.71
Sector
Metals and Mining
Category
special_situation
Alara (AUQ) – why does it trade at 1x FCF?
AUQ.AX: Cheapest producing copper equity raper_capital can find on the ASX, held through Alara's 51%-owned Omani Al Wash-hi Majaza JV (AHRL); trades at ~1x FCF (A$34mm market cap at 3.7c) against a mine that in the June 2026 quarter printed record sales of 2,077t copper and 1,556oz gold, A$21.4mm operating cash flow, and repaid A$41.2mm of borrowings, cutting AHRL net debt to A$96.4mm. Author says the three main overhangs are lifting: won its Omani licence lawsuit on the merits at the Ibra Primary Court in June 2026 (plaintiffs appealing, first hearing early November 2026), completed in August an oversubscribed, renounceable 3-for-20 entitlement offer at 3.2c raising A$3.85mm designed to fix the 2024 Takeovers Panel complaints (insiders took up commitment shares at 3.2c), and the plant has run at or above 110% of nameplate for four consecutive quarters (nameplate formally declared March 2026).
Read full article (11 min)