Assessing Critical Metals (CRML) Valuation After Saudi Rare Earth JV And Tanbreez Progress
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Critical Metals (CRML) is back in focus after signing a non binding term sheet for a 50/50 joint venture to build a rare earth processing facility in Saudi Arabia, which is tied directly to its Tanbreez project.
See our latest analysis for Critical Metals.
The joint venture news comes after a series of Tanbreez focused updates, including fresh drilling results in Greenland, the order of an on site geochemical lab, and a planned business update call that has kept the project in the headlines. Over the same period, Critical Metals has seen a sharp swing in sentiment, with a 30 day share price return of 128.75% and a 1 year total shareholder return of 151.16%. The 3 year total shareholder return of 78.36% points to momentum that has built more recently than over the longer term.
If news driven moves in rare earths have your attention, it can be a good moment to see what else is out there through fast growing stocks with high insider ownership.
With CRML up 128.75% in 30 days and trading at $18.46 despite minimal revenue and a loss of $51.87 million, is the recent Saudi JV news still underappreciated, or is the market already pricing in future growth?
Critical Metals is trading on a P/B of 21.1x, with a last close of $18.46, and that stands out sharply against both peers and the broader industry.
P/B compares the company’s market value to its book value, which is effectively its net assets on the balance sheet. For an early stage mining explorer with minimal revenue of $561K and a loss of $51.87m, a high P/B implies investors are placing a lot of weight on future project potential rather than current financials.
CRML is described as expensive on this measure versus its direct peers, where the average P/B is 13.2x, and even more so against the wider US Metals and Mining industry average of 2.7x. That is a wide gap, which suggests the market is already assigning a premium to the Tanbreez and lithium story, rather than treating Critical Metals like a typical asset heavy miner with established cash flows.
See what the numbers say about this price — find out in our valuation breakdown.
Result: Price-to-Book of 21.1x (OVERVALUED)
However, you still have to weigh project execution risk and the company’s minimal revenue against the recent share price move and its high price-to-book (P/B) multiple.
Find out about the key risks to this Critical Metals narrative.
