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Red Hill Minerals Limited
Basic Materials · Other Industrial Metals & Mining
Updated just now
$4.80
MARKET CAP
$308.30M
P/E RATIO
33.8
DIV. YIELD
1.3%
FRANKING
100%
Red Hill Minerals Limited engages in the exploration of gold and base metals in Western Australia. It primarily explores for gold, copper, uranium, and iron deposits.
View full descriptionThe Warsi Rating combines two proven approaches: value investing principles and dividend strategy. A stock must score 70+ on both to be rated Solid or higher.
$1.04
Discounted cash flow estimate
$10.59
For 6% dividend yield
Business quality and balance-sheet durability.
Short-term assets vs. short-term debts
Strong liquidity. 10.42 ratio means ample cash to cover short-term obligations.
Current Snapshot
Current Ratio
10.42x
Warning Floor
1.00x
Target
1.50x
Why It Matters
Liquidity supports operational stability. Companies with weak liquidity can face pressure even when long-term fundamentals are sound.
Formula
Current Assets / Current LiabilitiesMethod
Compare the current ratio to the warning floor and target level used in the framework.
Worked Example
This company's current ratio is 10.42x — it has $10.42 in short-term assets for every $1 of short-term liabilities. The target is 1.5x, with a warning floor at 1.0x.
How to Interpret
Ratios above the target suggest healthier short-term resilience; ratios below 1.0x can indicate immediate funding risk.
Strong liquidity means the company can keep paying dividends even during temporary revenue drops. There's ample cash cushion to weather storms.
Sources
Profit generated per $1 of shareholder investment
25.8% average ROE meets the threshold, but dropped to -16.9% in a weak year. Consistency matters in this framework.
Current Snapshot
10Y Avg
25.8%
Threshold
15.0%
Worst Year
-16.9%
Why It Matters
ROE shows how effectively management turns shareholder capital into profit. High and stable ROE can signal pricing power, cost discipline, or both.
Formula
Net Income / Shareholders' Equity x 100Method
Use the 10-year average ROE and review the weakest year to check whether returns stayed resilient across cycles.
Worked Example
This company's 10-year average ROE is 25.8%, meaning each $1 of shareholder equity generates $0.26 in annual profit. The threshold is 15%, and the worst single year was -16.9%.
How to Interpret
Higher and steadier ROE generally supports stronger long-term compounding. Large drawdowns in weak years can point to fragility.
The average is solid, but the dip shows some vulnerability. At 25.8% ROE, every $1 retained generates $0.26 in annual profit — monitor whether the weak year was a one-off or a recurring pattern.
Sources
Real cash left after running the business
Negative free cash flow means the company is consuming cash. May need to raise debt or equity to fund operations.
Current Snapshot
Current FCF
$-38M
Pass Rule
> $0
Status
Negative
Why It Matters
Free cash flow is the cash available after core operating and capital needs. It is central to dividend capacity.
Formula
Operating Cash Flow - Capital ExpendituresMethod
Review whether free cash flow is consistently positive and whether it is sufficient relative to dividends and debt needs.
Worked Example
This company generated $-38M in free cash flow — cash left after operating costs and capital expenditure. Negative FCF means the company is consuming more cash than it generates.
How to Interpret
Persistently negative free cash flow can force reliance on borrowing or equity issuance to maintain payouts.
Negative cash flow means dividends may require borrowing - an unsustainable situation. The company is spending more cash than it generates, which can't continue indefinitely.
Sources
Price versus estimated intrinsic value and required return thresholds.
What percentage of the stock price comes back as earnings each year
3.0% earnings yield is below the 8.5% threshold. You'd earn nearly as much from safer government bonds, which means the extra risk of owning shares isn't being compensated.
Current Snapshot
Current Yield
3.0%
Required Yield
8.5%
Spread
-5.5pp
Why It Matters
Earnings yield reframes valuation as return on price paid. It helps compare equity earnings power against lower-risk alternatives.
Formula
(Earnings per Share / Stock Price) x 100Method
Calculate current earnings yield, then compare it to the required yield for the stock's industry setting.
Worked Example
With EPS of $0.14 and a share price of $4.80, earnings yield is 3.0%. The required yield for this industry is 8.5% (based on 4.5% government bond rate plus a risk premium).
How to Interpret
A yield above the required level suggests better valuation support; below it indicates thinner compensation for equity risk.
Returns don't justify the added risk compared to safe bonds. Consider whether the dividend yield alone compensates, or wait for a better price.
Sources
How current price compares with estimated intrinsic value
How much earnings are consumed by capital expenditure
Exceptionally capital-light. Only 4% of earnings consumed by CapEx — this is the type of business Buffett loves.
Current Snapshot
10Y CapEx Intensity
4%
Threshold
75%
Buffer
+71%
Why It Matters
CapEx intensity estimates how much of earnings must be reinvested just to sustain operations.
Formula
Cumulative CapEx (10yr) / Cumulative Net Income (10yr) x 100Method
Aggregate 10-year CapEx and net income, then compare the ratio with the sector threshold in the framework.
Worked Example
Over 10 years, 4% of this company's cumulative earnings were consumed by capital expenditure. The materials & mining threshold is 75%, leaving a buffer of +71%.
How to Interpret
Lower ratios usually indicate better cash conversion. Higher ratios can reduce room for dividends and buybacks.
Very low capital requirements mean most profits are available for dividends, buybacks, or growth. This business generates wealth without needing to pour money back in — the hallmark of a durable competitive advantage.
Sources
Consistency of profits over time
Is the business growing — and is debt being managed responsibly?
Total debt has increased 86%. Check whether this funded growth investments or is covering operational shortfalls — rising debt can threaten future dividends.
Current Snapshot
Revenue Change
N/A
Debt Change
+86.3%
Trend State
Mixed
Why It Matters
Revenue trend shows whether the business is expanding or contracting. Debt trend adds context on whether growth is being funded conservatively.
Formula
Revenue Change (%) = (Latest Revenue - Earliest Revenue) / |Earliest Revenue| x 100; Debt Change (%) = (Latest Debt - Earliest Debt) / |Earliest Debt| x 100Method
Map annual revenue history and, where relevant, annual debt history. For financial companies, debt is excluded because deposits and reserves distort this signal.
Worked Example
If revenue rose from $5B to $7B over the period, revenue change is +40%. If debt fell from $2B to $1.5B, debt change is -25%.
How to Interpret
Rising revenue with stable or falling debt is typically stronger than rising revenue funded by rapidly rising leverage.
Total debt has increased 86%. Check whether this funded growth investments or is covering operational shortfalls — rising debt can threaten future dividends.
Sources
Annual dividends as percentage of stock price
13.23% yield significantly exceeds Barsi's 6% minimum. Based on 6-year average, not one-time spikes.
Current Snapshot
6Y Avg Yield
13.2%
6% Requirement
6.0%
Gross Yield
18.9%
Why It Matters
Yield translates dividend income into a percentage of the price paid, which is central to income-first screening.
Formula
Annual Dividends per Share / Stock Price x 100Method
Use the 6-year average annual dividend for consistency and compare the result with the 6% framework requirement.
Worked Example
With a 6-year average annual dividend of $0.64 and a share price of $4.80, the Barsi yield is 13.2%. The minimum requirement is 6%. Including franking credits, the gross yield is 18.9%.
How to Interpret
Higher sustainable yield improves upfront income, but unusually high yields may reflect elevated risk or weak coverage.
Very high yields can signal trouble — the stock price may have dropped because the market expects a dividend cut. Verify the payout ratio is sustainable and the company can maintain this level of distributions before relying on this income.
Sources
Track record of consistent dividend payments
Insufficient dividend history for estimation
Highest price to lock in 6% yield
Industry category of the business
Basic Materials is not a BESST sector. Non-BESST stocks receive a lower base score but can still qualify with exceptional dividend metrics.
Current Snapshot
Industry
Other Industrial Metals & Mining
BESST Match
No
Score Impact
No bonus
Why It Matters
Sector classification helps contextualise risk and demand durability, which can materially affect dividend stability.
Formula
BESST Match = Sector in {Banks, Energy, Sanitation, Insurance, Telecom}Method
Match company sector or industry against BESST categories. A match adds scoring support but does not replace core dividend checks.
Worked Example
This company operates in Other Industrial Metals & Mining (Basic Materials sector). It does not match a BESST sector, so it receives the standard base score. Non-BESST stocks can still qualify with strong dividend metrics.
How to Interpret
Sources
How much of a company's earnings are paid out as dividends
A 38% payout is in the sustainable range (30–75%) — the company balances rewarding shareholders with reinvesting for growth. This gives the price ceiling calculation a stable base, which is a healthy sign for long-term dividend investors.
Current Snapshot
Latest Ratio
37.8%
Healthy Range
30%-75%
Zone
Healthy
Why It Matters
Payout ratio links dividends to earnings capacity and helps evaluate whether current distributions are likely to remain supportable.
Formula
Payout Ratio (%) = (Annual Dividend per Share / Earnings per Share) x 100Method
Calculate year-by-year payout ratios where EPS is positive, classify each year by sustainability zone, and compare with the current TTM ratio.
Worked Example
$0.10 dividend / $0.14 EPS equals 66.8% payout ratio.
How to Interpret
Ratios in the middle range are usually more sustainable than very high ratios. Values above 100% indicate dividends exceeded earnings in that period.
A 38% payout is in the sustainable range (30–75%) — the company balances rewarding shareholders with reinvesting for growth. This gives the price ceiling calculation a stable base, which is a healthy sign for long-term dividend investors.
Sources
Red Hill Minerals Limited engages in the exploration of gold and base metals in Western Australia. It primarily explores for gold, copper, uranium, and iron deposits. The company was formerly known as Red Hill Iron Limited and changed its name to Red Hill Minerals Limited in December 2022. Red Hill Minerals Limited was incorporated in 2005 and is based in West Perth, Australia.
Who owns the company's shares and how much leadership has at stake
When leaders own 20%+, they win when you win and lose when you lose
Few fund managers own this — expect less research and analyst coverage
Shares freely traded on the ASX by individual investors like you
Leadership owns a solid 83.2% of the company, which is encouraging. However, professional fund managers aren’t heavily involved (0.1%), so there may be less analyst coverage and research available. This can mean the stock is overlooked — a potential opportunity if the fundamentals are strong.
Current Snapshot
Insider %
83.2%
Institutional %
0.1%
Float %
16.7%
Why It Matters
Ownership mix affects governance incentives, liquidity, and share-price behaviour under large portfolio rebalancing flows.
Formula
Public Float (%) = 100 - Insider Ownership (%) - Institutional Ownership (%)Method
Use reported ownership percentages, convert to percentage terms, and compute remaining public float as the residual.
Worked Example
If insiders own 83.2% and institutions own 0.1%, public float is 16.7%.
How to Interpret
Higher insider ownership can improve alignment of incentives, while dominant institutional concentration can amplify short-term price moves.
Leadership owns a solid 83.2% of the company, which is encouraging. However, professional fund managers aren’t heavily involved (0.1%), so there may be less analyst coverage and research available. This can mean the stock is overlooked — a potential opportunity if the fundamentals are strong.
Sources
| Date | Insider | Type | Shares | Value |
|---|---|---|---|---|
| 30 June 2025 | Wall (Michael) Chief Executive Officer | Unknown | 86K | — |
Company insiders have been net buyers of shares over the past 12 months. This may indicate management confidence in future prospects.
Value analysis may be affected by missing data.
Market data sourced from third-party financial data providers. Analysis generated using Warsi Criteria — proprietary scoring algorithms for value investing and dividend income analysis. Not financial advice. Learn how we analyse stocks →
Stock is trading 823% ABOVE the fair-value threshold (includes 50% margin of safety) and above the estimated intrinsic value.
Current Snapshot
Current Margin
-361.5%
Industry Threshold
50%
Status
362% Overvalued
Why It Matters
Margin of safety provides a valuation buffer against modelling uncertainty and adverse business outcomes.
Formula
(Estimated Intrinsic Value per Share - Current Price) / Estimated Intrinsic Value per Share x 100Method
Estimate intrinsic value using a two-stage DCF (10-year projection plus terminal value), then compare with current price.
Worked Example
For this stock now: intrinsic value is $1.04 per share, current price is $4.80, and margin of safety is -361.5%.
How to Interpret
Positive margin indicates price below modelled value; negative margin indicates price above modelled value. Compare against the industry's required buffer.
The market price is above both your required threshold and intrinsic value estimate. Under this methodology, there is no valuation buffer for estimate error or market volatility.
Sources
Cyclical business - earnings naturally fluctuate with commodity prices. Focus on dividend consistency instead.
Current Snapshot
Positive Years
3/4
Allowed Losses
0 (limited)
EPS CAGR
-75.1%
Why It Matters
Consistency in EPS helps distinguish resilient earnings power from one-off performance spikes.
Formula
Positive EPS Years / Available EPS YearsMethod
For 8+ years of data, apply industry-specific loss tolerance. For limited data, every available year must be positive.
Worked Example
This company reported positive earnings in 3 of the last 4 years, with 5 loss years. With only 4 years of data, every year must be positive. EPS growth rate (CAGR) is -75.1%.
How to Interpret
Fewer loss years and stronger EPS continuity generally improve confidence in future dividend and valuation assumptions.
Cyclical businesses have volatile earnings tied to commodity prices. For these companies, dividend track record is more telling than earnings consistency.
Sources
| Ex-Date | Pay Date | Gross | Franking | Net | Credit |
|---|---|---|---|---|---|
| 9 Mar 2026Interim | 24 Mar 2026 | $0.17 | 100% | $0.12 | $0.05 |
| 25 Sept 2025Final | 23 Oct 2025 | $0.07 | 0% | $0.07 | $0.00 |
| 29 Apr 2025Interim | 27 May 2025 | $0.03 | 0% | $0.03 | $0.00 |
| 28 Nov 2024Final | 26 Dec 2024 | $0.30 | 0% | $0.30 | $0.00 |
| 9 July 2024Final | 6 Aug 2024 | $1.50 | 0% | $1.50 | $0.00 |
| 27 Nov 2023Final | 25 Dec 2023 | $0.10 | 0% | $0.10 | $0.00 |
| 10 July 2023Final | 7 Aug 2023 | $0.10 | 0% | $0.10 | $0.00 |
| 29 Nov 2022Final | 27 Dec 2022 | $0.20 | 0% | $0.20 | $0.00 |
| 16 May 2022Final | 13 June 2022 | $0.20 | 0% | $0.20 | $0.00 |
| 28 Oct 2021Final | 25 Nov 2021 | $1.20 | 0% | $1.20 | $0.00 |
6 years of consistent dividends meets Barsi's 6-year minimum requirement.
Current Snapshot
History
6yr
Predictability
Variable
Payout Health
Elevated
Why It Matters
Payment consistency is a direct test of dividend reliability. Large cuts or skips often appear before confidence recovers.
Formula
Consecutive Years = count of years with dividend payments and no disqualifying skip/cut eventsMethod
Require at least 6 years of history, then check for skipped years and large cuts, allowing approved systemic-event exceptions.
Worked Example
This company has 6 years of dividend history (2021–2026). No suspensions detected — 6 consecutive years of payments. Predictability: Variable. Payout health: Elevated. The minimum requirement is 6 years.
How to Interpret
Longer uninterrupted records generally signal stronger income reliability than high yield alone.
A consistent track record through recent years gives confidence your income will continue. This company has shown commitment to shareholder returns.
Sources
Priced well below ceiling. 55% below means you're locking in well over 6% yield.
Current Snapshot
Current Price
$4.80
Max Buy Price
$10.59
Delta
+54.7%
Why It Matters
The price ceiling links valuation discipline to income targets by defining the price that aligns with a 6% yield target.
Formula
6-Year Average Annual Dividend / 0.06Method
Use the 6-year average dividend (not one year) and divide by 0.06 to estimate the maximum entry price for target yield.
Worked Example
With a current price of $4.80 and a ceiling of $10.59, the entry is 54.7% below the ceiling.
How to Interpret
Prices below the ceiling imply a historical yield above 6%; prices above it imply a lower historical yield at entry.
Buying this far below the ceiling locks in a yield well above 6% based on proven historical dividends. Your income starts strong from day one.
Sources
BESST alignment is a positive context signal. Non-BESST stocks can still qualify with strong yield and dividend consistency.
Non-essential businesses face demand drops during recessions — discretionary spending is first to be cut. This increases cyclical risk for dividends, but companies with decades of consistent payments can still demonstrate durability.
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