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Australian Strategic Materials Limited (ASM)

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Australian Strategic Materials Limited (ASM)

Thanks James for your insight. There was a capital raising for ASM at $1.20 and raised $55 Millions on 20/10/25. Yesterday closing share price was 65 cents. Please share your insight for such a big difference in price. Is ASM a profitable company and worth investing ? Thanks.

Answer

Hi John,

ASM is not yet profitable, for FY25, it reported a net loss of ~$24.6 million. They remain a speculative, early-stage resource company whose value today lies in its assets (ore bodies, rare-earth/critical-metal projects, processing capability) and the potential future demand for rare earths and critical minerals.

The company raised ~$55mn at $1.20 in October, as you say, and shortly after President Trump weighed on rare earths names when he said there were “no roadblocks” in US-China talks over critical minerals following his meeting with Chinese President Xi Jinping – even heavyweight Lynas (LYC) has corrected ~35% since late October and it didn’t have a capital raise at the time.

  • This highlights the risk of buying strength based on politcal rhetoric of trade posturing that can easily turn, which has clearly happened in this instance. We prefer Lynas (LYC) for exposure to rare earths, or Arafura (ARU) at the smaller end.
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Australian Strategic Materials Limited (ASM
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