Red Metal Ltd (RDM) Fair Value & Analysis
Basic Materials · AU · Market cap A$50.4M (≈ $36.2M) · ISIN AU000000RDM6
What is Red Metal Ltd really worth?
Below-average quality, trading 61% below our fair value of A$0.3570.
Strengths
Risks
Fair value as of: Aug 31, 2026
From 3 valuation models · updated yesterday
Share price +3.7% over the past month.
What runs behind every stock
69 individual criteria per stock, every one traceable See the method →
What matters now
- The price is below even our cautious bear case (A$0.1975). The market is more pessimistic than our downside scenario.
- The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
- Solid quality (47/100) at a price below fair value, the discount is the argument here, not the business quality.
- A fairly wide model range (A$0.1975 to A$0.4938) leaves room in how you read the outcome.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 31, 2026.
How to read this chart
60‑month range A$0.0566 – A$0.2150 · fair‑value band A$0.1975 – A$0.4938 · the A$0.1400 price screens below the A$0.3570 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 2 fiscal years are left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Aug 31, 2026.
Analysis
Red Metal Ltd (RDM) currently trades at A$0.1400, while our model-based Fair Value estimate is A$0.3570, implying the stock looks roughly 60.8% undervalued today. The Quality Score stands at 47/100 (below-average quality), in the Basic Materials sector. How firm this estimate is: it rests on 3 models at a data quality of 80/100, which puts the evidence level at low.
Trailing-twelve-month revenue stands at A$2.1M. It earns a return on equity of 71.0%. The balance sheet holds a net cash position of A$7.7M. The stock trades on a trailing P/E of 2.8. Fundamentals as of Aug 31, 2026
Our scenario range runs from A$0.1975 (bear case) to A$0.4938 (bull case); at A$0.1400, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 28% below its 52-week high and 52% above its 52-week low, currently below its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at −37% fair-value upside, at 155%, RDM screens cheaper than that median.
Fair Value models
This estimate rests on fiscal year 2025 figures, and about 12 months have passed since. In that time the company retained roughly A$0.0500 per share, which is 12.8 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.
All 3 models by family
Widest divergence: Dividend Discount (A$0.3700) versus Asset-Based (A$0.0100). Highest evidence: Gordon GGM (66).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 31, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 41 · Market factors (momentum, volatility) 40
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.
About the company
Red Metal Limited, together with its subsidiaries, acquires and explores for mineral properties in Australia. It explores for copper, gold, lithium, silver, lead, zinc, cobalt, nickel, and rare earth deposits. The company was incorporated in 2003 and is based in Sydney, Australia.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
Red Metal Ltd reported revenue of A$1.8M in FY2025 versus A$3.4M in FY2021, a compound −14.7%/yr. Reported net income was −A$7.5M in FY2025.
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Peer Group
Other Industrial Metals & Mining · 482 stocks
How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.
Valuation Multiples vs Other Industrial Metals & Mining median · lower = cheaper
Strength profile in five axes (Snowflake)
Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more Other Industrial Metals & Mining stocks, each showing price versus our Fair Value estimate (as of Aug 31, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| BHP Group BHP | A$66.40 | A$41.87 | −37% |
| Vale S.A VALE | $15.31 | $8.95 | −42% |
| Saudi Arabian Mining Company 1211 | 65.50 SAR | 33.87 SAR | −48% |
| CMOC Group 603993 | ¥18.42 | ¥16.15 | −12% |
| Teck Resources Limited TECK | $69.34 | $32.02 | −54% |
| China Tungsten And Hightech Materials Co 000657 | ¥66.76 | ¥9.55 | −86% |
| Hindustan Zinc Limited HINDZINC | ₹573.00 | ₹508.34 | −11% |
| China Northern Rare Earth (Group) High-Tech Co 600111 | ¥41.02 | ¥10.59 | −74% |
| Western Mining Co 601168 | ¥37.85 | ¥25.99 | −31% |
| Boliden AB BOL | kr 527.80 | kr 461.48 | −13% |
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