Critical Elements (CRE) AI Stock Analysis

• Market Cap: C$92.59M
• Dividend Yield: N/A
• Average Volume (3M): 103.23K
• Price to Earnings (P/E): 59.9
• Beta (1Y): 1.02
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: CA
• Employees: 5
• Sector: Basic Materials
• Sector Strength: 52
• Industry: Industrial Materials
• EPS (TTM): <0.01
• Shares Outstanding: 217,848,830
• 10 Day Avg. Volume: 75,490
• 30 Day Avg. Volume: 103,234
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -18.30
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$1.26
• Price Target Upside: 198.90% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

The overall score reflects serious financial performance challenges, including zero revenue and negative cash flows. Despite positive corporate events that hint at potential growth, the stock's high P/E ratio and bearish technical indicators further weigh down the score.

Critical Elements Business Overview & Revenue Model

Company Description

Critical Elements Lithium Corporation (CRE) is a Canadian mining company focused on the exploration and development of lithium and other critical minerals. The company's primary asset is the Rose Lithium-Tantalum Project located in Quebec, Canada. This project positions the company within the growing sectors of renewable energy and electric vehicles, which are heavily reliant on lithium for battery production.

How the Company Makes Money

Critical Elements makes money primarily through the exploration, development, and future production of lithium and tantalum from its mining assets. Revenue is generated by extracting and selling these minerals to manufacturers in industries such as electric vehicles, consumer electronics, and renewable energy storage. The company may also engage in strategic partnerships and off-take agreements with key players in these sectors to secure long-term sales and enhance profitability. Additionally, raising funds through equity financing supports their exploration and development activities.

Critical Elements Financial Statement Overview

Summary

Critical Elements shows potential with a strong equity base and low leverage but faces significant challenges with zero revenue generation and negative cash flows. The positive net income in the TTM period is a bright spot but is overshadowed by operational inefficiencies and the absence of revenue. The company must focus on improving operational efficiency and revenue generation to enhance financial health.

Income Statement

The company has consistently reported zero revenue over the analyzed periods, indicating it may still be in a development phase or facing significant operational challenges. The net profit margin shows improvement in the TTM period due to a positive net income. However, the lack of revenue and persistent gross losses are significant concerns.

Balance Sheet

The company's debt-to-equity ratio is very low due to minimal debt levels compared to substantial equity, indicating low financial leverage which is a strength. However, the equity ratio is high, suggesting a reliance on equity financing. This can be beneficial but may also indicate challenges in accessing debt markets. The increase in stockholders' equity over time is a positive sign of financial stability.

Cash Flow

The company has negative free cash flow, indicating cash outflows exceed inflows, likely due to high capital expenditures. The operating cash flow is also negative, which raises concerns about the company's ability to sustain operations without external financing. The improvement in free cash flow growth rate between some periods is a positive but insufficient to offset the overall negative cash flow trend.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00	0.00
	Gross Profit
-56.36K	0.00	-60.99K	-23.28K	-22.32K	-23.05K
	EBIT
-6.13M	―	-5.81M	-2.61M	-3.12M	-1.69M
	EBITDA
-6.00M	―	-5.65M	-6.40M	-2.25M	-1.54M
	Net Income Common Stockholders
1.55M	―	-3.25M	-6.62M	-1.24M	-1.49M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
21.40M	20.90M	30.84M	31.83M	9.31M	2.91M
	Total Assets
81.07M	79.30M	78.98M	65.77M	38.69M	30.58M
	Total Debt
179.85K	191.87K	237.27K	41.22K	694.28K	6.82M
	Net Debt
-11.23M	-10.56M	-25.34M	-29.77M	-5.53M	5.02M
	Total Liabilities
6.14M	5.74M	6.92M	5.55M	4.97M	9.31M
	Stockholders Equity
74.93M	73.56M	72.06M	60.22M	33.72M	21.27M
Cash Flow		Free Cash Flow
-11.75M	-15.09M	-12.67M	-9.23M	-4.19M	-2.37M
	Operating Cash Flow
-2.80M	-6.06M	-5.19M	-6.01M	-2.92M	-1.52M
	Investing Cash Flow
-8.58M	-10.65M	-13.31M	-1.89M	-322.66K	-1.72M
	Financing Cash Flow
2.77M	1.89M	14.27M	31.49M	7.67M	3.06M

Critical Elements Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.42
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CRE, the sentiment is Negative. The current price of 0.42 is below the 20-day moving average (MA) of 0.48, below the 50-day MA of 0.51, and below the 200-day MA of 0.48, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.47 is Neutral, neither overbought nor oversold. The STOCH value of 12.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CRE.

Critical Elements Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SGML	56 Neutral	$1.23B	―	-40.19%	―	32.63%	-58.81%
Sector *	47 Neutral	$2.43B	-2.83	-21.77%	3.74%	4.16%	-28.83%
AVL	42 Neutral	$15.37M	―	-5.00%	―	―	-1118.18%
LTH	42 Neutral	C$122.19M	―	-408.27%	―	―	39.98%
LAC	39 Underperform	$841.94M	―	-4.13%	―	―	―
CRE	37 Underperform	C$92.59M	59.86	2.13%	―	―	―

Critical Elements Corporate Events

Cree Trappers Association and Partners Secure 2025 Funding for Cabin Reconstruction

The Cree Trappers Association, the Cree Hunters Economic Security Board, and 16 mining and exploration companies have approved funding for 2025 to continue rebuilding cabins destroyed by the 2023 wildfires in the Eeyou Istchee James Bay territory. This initiative, which began in 2024, aims to support Cree hunters and trappers by providing them with new cabins, allowing them to continue their traditional activities. The funding, totaling $750,000, is a collaborative effort to restore the affected areas and ensure the sustainability of the Cree way of life.

Spark’s Take on TSE:CRE Stock

According to Spark, TipRanks’ AI Analyst, TSE:CRE is a Neutral.

Critical Elements Lithium Corporation faces significant challenges with zero revenue and negative cash flows, reflected in a low financial performance score. However, recent corporate events, including project approvals and financial support, are promising and indicate potential for future growth. These positive developments are tempered by the high P/E ratio, suggesting the stock may currently be overvalued.

To see Spark’s full report on TSE:CRE stock, click here.

Critical Elements Secures Key Environmental Approval for Rose Project

Critical Elements Lithium Corporation has received its first environmental authorization for the Rose Lithium-Tantalum project, marking a crucial step towards site preparation and construction. This authorization allows the company to begin essential activities such as stripping and developing storage areas and building temporary water management infrastructure, contingent on meeting federal and provincial project approvals and securing necessary financing.

Critical Elements Secures Financial Support for Rose Project

Critical Elements Lithium Corporation has received a support letter from a leading Canadian financial institution indicating potential long-term debt financing of up to US$115 million for the Rose Lithium-Tantalum project. This development is a significant step towards securing the financial package needed for the project’s advancement, reflecting ongoing interest from potential partners and contributing to the company’s strategic growth in the lithium industry.

Critical Elements Secures $20 Million Federal Funding for Québec Project

Critical Elements Lithium Corporation has received conditional approval for $20 million in federal funding from the Government of Canada. This funding will be used to relocate power transmission infrastructure and build a new electrical sub-station for the Rose Lithium-Tantalum Project in Québec. The project is part of Canada’s Critical Minerals Strategy to boost the supply of essential minerals and support a green economy. The funding highlights the importance of sustainable development and Indigenous partnerships, reflecting the company’s commitment to becoming a leading supplier in the EV and energy storage sectors.