Hi, up 10% today cant necessarily find any news that correlates to change ,though in my opinion undervalued

Vance Stazzonelli adds ~ $12.5k on-market.

Small purchase, but historically a good sign.

Another steady as she goes Quarterly report:

Non-Executive Director David Brown sold 1m shares, 10.84% of his 9.2m share holdings in XRF between 2 and 8 Sept 2025. This reduces his ownership in XRF by 0.71% from 6.56% to 5.85%

• Sale for financial diversification as the vast majority of his investments are in XRF shares
• Does not currently have a plan to conduct any further share sales

No huge concern for me. Caused a dip in the XRF price after the recent post-earnings rise, but these dips are fairly normal for XRF.

Mr David Brown (non-executive director)

David has over 40 years of experience in the research, development and manufacturing of X-ray flux chemicals. He pioneered the commercial development of X-ray fluxes in Australia and was responsible for the commercialisation of current formulae now used by most Australian X-ray flux users. David was previously Chief Chemist for the Swan Brewery Co. Ltd, where he carried out research involving the separation of proteins by gel electrophoresis, a technique that has subsequently progressed to the modern techniques of DNA separation and profiling. David holds B.Sc. and B.Ec degrees from the University of Western Australia and has held the position of Chairman of the Scientific Industries Council of WA.

Discl: Held IRL and in SM

Current Market Cap at $2.23 is $313.3m

Management Bio's

Mr Fred Grimwade (non-executive Chairman)

Mr Grimwade is a Non-Executive Director of Australian United Investment Company Ltd and is a Principal and Executive Director of Fawkner Capital Management Pty Ltd, a specialist corporate advisory and investment firm. He was formerly the Chairman of CPT Global Ltd, and a Director of AWB Limited and Select Harvests Ltd. He has also held general management positions at Colonial Agricultural Company, the Colonial Group, Western Mining Corporation and Goldman, Sachs & Co. He has a broad range of experience in strategic management, mining, finance, corporate governance and law.

Mr Vance Stazzonelli (Managing Director)

Vance joined XRF Scientific Ltd as Chief Financial Officer in October 2009. He was subsequently appointed to Chief Operating Officer in January 2011 and then Chief Executive Officer in August 2012. On 22 February 2018, he was appointed as Managing Director.

Mr David Kiggins (non-executive director)

Mr Kiggins is a Chartered Accountant and Chartered Secretary, and currently Chief Financial Officer of Sadleirs. He has previously held senior finance positions at Arthur Andersen, Automotive Holdings Group Ltd, Global Construction Services Ltd, Heliwest and Stealth Global Holdings Ltd. He is experienced in finance, mergers, acquisitions, corporate governance and consulting. He has worked in mining, resources, automotive retail, construction services, telecommunications and general industrial companies.

Mr David Brown (non-executive director)

David has over 40 years of experience in the research, development and manufacturing of X-ray flux chemicals. He pioneered the commercial development of X-ray fluxes in Australia and was responsible for the commercialisation of current formulae now used by most Australian X-ray flux users. David was previously Chief Chemist for the Swan Brewery Co. Ltd, where he carried out research involving the separation of proteins by gel electrophoresis, a technique that has subsequently progressed to the modern techniques of DNA separation and profiling. David holds B.Sc. and B.Ec degrees from the University of Western Australia and has held the position of Chairman of the Scientific Industries Council of WA.

XRF Scientific reported revenue of $59.5 million, down slightly from $60.1 million in FY24 (a 1.1% decrease). Despite this, the company achieved a record Net Profit After Tax, up 17% year-on-year, driven by strong divisional performance and margin improvements.

Reasons for Slight Revenue Decline

1. Capital Equipment: Sales of xrFuse fusion machines normalized after prior years of strong growth, leading to fewer new orders.
2. Precious Metals: Fewer large new metal orders compared to FY24, though recurring orders remained strong.
3. Consumables: Record product volumes were offset by falling lithium input prices, which lowered selling prices and slightly reduced top-line revenue.

Divisional Highlights

• Consumables: Achieved a record profit before tax of \$7.2 million.
• Precious Metals: Delivered \$21.5 million in revenue and \$3.6 million in profit before tax.
• Capital Equipment: Generated \$21.8 million in revenue and \$4.6 million in profit before tax.
• Orbis Mining: Contributed \$5.8 million in revenue and \$1.7 million in profit before tax, with full ownership acquired post-year-end[1].

Balance Sheet & Financial Position

• Cash Position: Ended FY25 with \$8.13 million in cash, down from \$12.05 million in FY24[2].
• Borrowings: Total debt reduced slightly to \$4.57 million from \$4.69 million in FY24. Financing costs declined due to reduced borrowings[3].
• Net Cash: Net cash position decreased to \$3.56 million, down from \$7.35 million in FY24.
• Major Cash Outflows: Included the \$2 million purchase of the remaining Orbis shares and a \$4.1 million dividend payment during the year.

Shareholder Returns

• Declared a final fully franked dividend of 4.5 cents per share, up 15% from the previous year

@RogueTrader posted this Rask podcast on small caps which talked about XRF.

https://www.youtube.com/watch?v=Kg8RQKG72xQ&ab_channel=Rask

The one point I picked up was that the Seneca boys use the lab mining sample volumes from the big Labs SGS, ALQ, as a leading indicator for XRF consumable volumes and revenue.

Quite an interesting chart from the ALQ FY25 Annual Report of 27 May 2025 in terms of the noticeable sample volume spike in 2025 through to 16 May 2025, implying the flow through to XRF consumables volume.

When a business with XRF's quality falls 28% in SP within a couple of months I think it warrants a look.

The March quarter trading update (pasted below) revealed a 9% drop in revenue but a 5% increase in profit before tax compared with the PCP.

I suppose the other plausible trigger for the slump in SP is concerns over the effects on mining services secondary to pain in China from tariffs.

In any case I see a PE of 22 as undemanding for a business with long term growth potential, quality management and a strong balance sheet. Looking to add to holdings... (Held IRL)

Good call with Vance as always! There is zero fluff - he calls it as he sees it in his completely unassuming style. I took away the following key points from the call:

1. XRF is increasingly wanting to do more in analysis-type equipment, diversifying from the traditional base of sample preparation products.
2. Like to sell all capital products for a profit - do not like to use capital sales as a loss leader, believe should make good gross margins on capital sales which leads to good follow-up consumable sales
3. Vance sees after sale technical and chemistry support which customers rely heavily on, over and above the world-class products, as a key XRF differentiation, not just the quality of the products and price - he made this point repeatedly in the session - I understood “technical support” but “chemistry support” was an interesting added perspective
4. In acquisitions, want to always be able to add value rather than buy a business simply to add scale - how to take good products to the next level by adding XRF resources, capabilities and after care technical & chemistry support into the mix 
5. Currently, no impact on US tariffs other than reciprocal tariffs potentially, largest competitor is based in Canada, the US has no domestic manufacturing of X-Ray Flux, cheaper alternatives are in China (also subject to tariffs), US is less than 10% of revenue
6. No need for capex in the $m in the coming years as capacity upgrades across Consumables, Precious Metals and Capital Equipment have already been undertaken - only small capex tweaks in the $’000k range is likely to be needed
7. No key man risk - Vance not going anywhere soon - great place to work, good management team, best experts in the world in the product line
8. Management is laser focused on the profit line, not revenue and COGS, which will fluctuate with movements in Li and platinum prices - pricing is based on spot price + margin

XRF is the sort of company that the Future Made in Australia policy must be aiming to produce - world class leading technology and expertise, products manufactured domestically which are globally superior and thus competitive, punching above its weight globally ...

Discl: Held IRL and in SM