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Assessing Critical Metals (CRML) Valuation After Greenland Facility Milestone And Rare Earths Momentum

Simply Wall St · 3d ago

Construction milestone and geopolitical interest put Critical Metals in focus

Critical Metals (CRML) has formally approved and begun construction of an Arctic-grade, multi-use storage and pilot-plant facility in Qaqortoq, Greenland, a key step for advancing its Tanbreez rare earths project.

The company is also setting up a permanent local office in Qaqortoq. Its shares have recently moved sharply, helped by investor attention on Western access to rare earth supply chains and Greenland’s strategic importance.

See our latest analysis for Critical Metals.

The recent construction greenlight has arrived alongside brisk price action, with a 98.13% 7 day share price return and a 69.34% year to date share price return. The 1 year total shareholder return of 105.22% points to momentum that has recently intensified.

If this kind of rare earths story has your attention, it can also be worth widening the lens to find fast growing stocks with high insider ownership that might sit earlier or later in the same kind of growth journey.

After an 80% style weekly surge and a 105.22% 1 year total return, it is fair to ask whether recent excitement around Tanbreez and Greenland geopolitics still leaves room for mispricing or if the market is already incorporating the company’s future growth story.

Price to book of 15.7x, is it justified?

With Critical Metals last closing at US$13.75, the current valuation sits on a P/B of 15.7x, which screens as expensive against both peers and the wider industry.

P/B compares the market value of the company to its net assets on the balance sheet, so a higher ratio usually means investors are paying more for each dollar of book value. For an early stage, loss making miner with minimal revenue of US$561K and a reported net loss of US$51.87m, this raises clear questions about how much of the price reflects future expectations rather than current fundamentals.

Compared with its immediate peer group average P/B of 13.2x, Critical Metals trades on a richer multiple. This suggests the market is assigning a premium to its projects and optionality. Against the broader US metals and mining industry, where the average P/B sits at 2.4x, the gap is even more pronounced, with Critical Metals valued at several times the sector level.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price-to-book of 15.7x (OVERVALUED).

However, the story can change quickly if project timelines slip or if ongoing losses of around US$51.87m a year begin to put greater pressure on available funding.

Find out about the key risks to this Critical Metals narrative.

Build Your Own Critical Metals Narrative

If you see the story differently, or just want to weigh the numbers yourself, you can pull the key data together and build your own view in a few minutes, then Do it your way

A great starting point for your Critical Metals research is our analysis highlighting 4 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.