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Electra Battery Materials Corp (TSE:ELBM)
:ELBM
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Electra Battery Materials Corp
(ELBM)
35Underperform
Electra Battery Materials Corp (ELBM) vs. S&P 500 (SPY)
Market Cap
C$22.95M
Dividend YieldN/A
Average Volume (3M)40.70K
Price to Earnings (P/E)―
Beta (1Y)1.66
Revenue GrowthN/A
EPS Growth-622.58%
CountryCA
Employees37
SectorBasic Materials
Sector Strength59
IndustryIndustrial Materials
Share Statistics
EPS (TTM)-4.83
Shares Outstanding14,803,355
10 Day Avg. Volume88,480
30 Day Avg. Volume40,704
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
Price to Cash Flow (P/CF)5.70
P/FCF Ratio9.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$3.24Price Target Upside109.03% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Electra Battery Materials Corp Business Overview & Revenue Model
Company DescriptionElectra Battery Materials Corporation acquires and explores for resource properties in the United States and Canada. It primarily explores for cobalt and silver deposits. The company's flagship project is the Iron Creek cobalt-copper project, which covers an area of approximately 5,900 acres located in Lemhi County, Idaho. It also operates a cobalt refinery for producing battery materials for the electric vehicle supply chain. The company was formerly known as First Cobalt Corp. and changed its name to Electra Battery Materials Corporation in December 2021. Electra Battery Materials Corporation was incorporated in 2011 and is headquartered in Toronto, Canada.
How the Company Makes MoneyElectra Battery Materials Corp generates revenue primarily through the sale of refined battery-grade cobalt and nickel, which are key components in the production of lithium-ion batteries used in electric vehicles and other energy storage systems. The company leverages its expertise in mineral processing and refining to deliver high-purity products to manufacturers and suppliers within the battery value chain. Its revenue streams are further supported by recycling operations, whereby the company processes and sells recovered materials from used batteries. Strategic partnerships and collaborations with industry stakeholders enhance its market position and contribute to its earnings by facilitating access to advanced technologies and expanding its customer base.
Electra Battery Materials Corp Financial Statement Overview
Summary
Electra Battery Materials Corp faces significant financial challenges, with zero revenue and high net losses. The balance sheet is moderately leveraged with increasing liabilities, and cash flow is negative, indicating operational inefficiencies.Income Statement
Electra Battery Materials Corp has consistently reported zero revenue over the years, which is a significant concern for the income statement. There is a pattern of high net losses, with a TTM net income of -$67.63 million, indicating ongoing operational challenges. The gross profit margin is negative due to the lack of revenue, while EBIT and EBITDA margins are also negative, highlighting inefficiencies in operations and cost management.10
Very Negative
Balance Sheet
The balance sheet shows a moderately leveraged position with a debt-to-equity ratio of approximately 0.83 in the TTM period, reflecting a reliance on debt but not excessively so. However, the equity ratio has declined over time, from 92.23% in 2020 to 45.25% in the TTM, indicating increasing liabilities relative to assets. The return on equity has been negative due to continuous losses, impacting shareholder value.40
Negative
Cash Flow
Cash flow analysis reveals negative free cash flow in all periods, with a TTM free cash flow of -$16.7 million. This suggests the company is not generating sufficient cash to cover capital expenditures or operational costs. The operating cash flow to net income ratio is negative, underlying operational inefficiencies, and there is no free cash flow growth, indicating persistent cash flow challenges.15
Very Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | Gross Profit |
| -43.00K | -56.00K | -48.00K | -2.00K | 0.00 | 0.00 | EBIT |
| -11.76M | 13.98K | -16.75M | -19.19M | -7.36M | -8.44M | EBITDA |
| -46.28M | -13.34K | 12.60M | -18.34M | -1.76M | -116.19M | Net Income Common Stockholders |
| -67.63M | -64.67M | 70.82M | -34.01M | -3.06M | -104.75M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 3.26M | 8.15M | 8.38M | 60.39M | 4.17M | 4.42M | Total Assets |
| 204.60M | 148.69M | 187.52M | 167.61M | 103.68M | 110.29M | Total Debt |
| 0.00 | 45.43M | 29.66M | 23.29M | 6.66M | 6.32M | Net Debt |
| -3.26M | 37.02M | 21.70M | -35.34M | 2.49M | 1.90M | Total Liabilities |
| 6.22M | 65.39M | 61.02M | 67.65M | 11.53M | 9.76M | Stockholders Equity |
| 198.38M | 83.30M | 126.51M | 99.96M | 92.15M | 100.53M |
| Cash Flow | Free Cash Flow | ||||
| -16.70M | -36.75M | -63.47M | -18.97M | -5.68M | -9.42M | Operating Cash Flow |
| -16.90M | -23.05M | -15.85M | -16.88M | -5.68M | -9.11M | Investing Cash Flow |
| 1.46M | -14.05M | -43.55M | -8.08M | 11.50K | 2.23M | Financing Cash Flow |
| 5.15M | 36.54M | 8.48M | 78.88M | 5.54M | 8.16M |
Electra Battery Materials Corp Technical Analysis
Negative
1.55
Price Trends
2.13
Negative
2.37
Negative
2.56
Negative
Market Momentum
-0.19
Positive
30.30
Neutral
11.51
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ELBM, the sentiment is Negative. The current price of 1.55 is below the 20-day moving average (MA) of 1.91, below the 50-day MA of 2.13, and below the 200-day MA of 2.56, indicating a bearish trend. The MACD of -0.19 indicates Positive momentum. The RSI at 30.30 is Neutral, neither overbought nor oversold. The STOCH value of 11.51 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ELBM.
Electra Battery Materials Corp Peers Comparison
Overall Rating
UnderperformOutperform
Sector (47)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | C$6.60M | 16.67 | 31.05% | ― | 324.44% | ― | |
47 Neutral | $2.65B | -3.07 | -22.25% | 3.27% | 3.70% | -29.53% | |
40 Underperform | C$373.58M | ― | -17.85% | ― | ― | -92.22% | |
35 Underperform | C$22.95M | ― | -68.79% | ― | ― | -622.58% | |
33 Underperform | C$192.91M | ― | -73.59% | ― | ― | -62.76% |
* Basic Materials Sector Average
Performance Comparison
TSE:ELBM
Electra Battery Materials Corp
1.55
-1.01
-39.45%
AVLNF
Avalon Advanced Materials
0.02
-0.04
-66.67%
TSE:ARQ
Argo Gold
0.09
0.03
50.00%
TSE:NCX
NorthIsle Copper and Gold
0.74
0.24
48.00%
TSE:RIO
Rio2 Limited
0.88
0.46
109.52%
LAC
Lithium Americas Corp.
2.71
-4.31
-61.40%
Electra Battery Materials Corp Earnings Call Summary
Earnings Call Date: Nov 14, 2024 | % Change Since: -47.64% | Next Earnings Date: Apr 10, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant progress in partnerships, debt restructuring, and technical advancements in black mass processing. However, financial concerns were noted with a decrease in cash reserves and dependency on external funding. Overall, the sentiment leans positive due to the strategic achievements and future potential in the battery materials market.Highlights
Successful Partnerships and Agreements
Electra secured a feedstock agreement with Eurasian Resources Group, one of the largest cobalt miners globally, and strengthened its relationship with LG Energy Solution, increasing the offtake agreement for cobalt sulfate.
Debt Restructuring
Electra restructured its debt by closing a private placement of USD 51 million in senior secured convertible notes, canceling the previous USD 37 million debt, and reducing potential dilution.
Black Mass Trial and Product Improvements
Electra's black mass trial showed improved recovery rates for metals like lithium and nickel, and achieved lithium carbonate nearing technical grade at 96% to 97% purity.
Safety and Construction Progress
Electra reported over 80,000 work hours without lost time incidents and completed significant construction progress, adding 60,000 square feet to plant facilities.
Lowlights
Decreased Cash Reserves
Cash and marketable securities decreased from $15.7 million to $8.2 million due to capital and trial costs, despite pending government commitments.
Dependency on Government and Strategic Funding
Electra requires approximately USD 60 million in nondilutive funding to continue construction and commissioning, which is dependent on government and strategic partners.
Company Guidance
During the Electra Battery Materials Corporation's Q4 2023 earnings call, the company provided key guidance metrics and strategic updates. Electra held $8.2 million in cash and marketable securities at the end of Q4, down from $15.7 million the previous quarter, attributed to capital costs for refinery construction and the black mass trial. A $5 million government grant and $5.1 million in pending government commitments were highlighted as future financial contributions. The company’s debt restructuring led to a private placement of USD 51 million in senior secured convertible notes, resulting in net proceeds of USD 13.7 million. Electra's refinery project is approximately 40% constructed, with facilities expanded to 105,000 square feet. The company achieved significant milestones in its black mass trial, producing 28 tonnes of nickel-cobalt MHP and advancing lithium carbonate purity to 96-97%. Looking ahead, Electra requires approximately USD 60 million to complete construction for commissioning, with a focus on non-dilutive funding solutions. They also emphasized strategic partnerships, including agreements with Glencore and Eurasian Resources Group for feedstock, and LG Energy Solution for offtake, which will purchase 80% of production.Electra Battery Materials Corp Corporate Events
Product-Related AnnouncementsBusiness Operations and Strategy
Electra Launches Feasibility Study for Battery Recycling Refinery
Positive
Jan 28, 2025
Electra Battery Materials Corporation has initiated a feasibility study to develop a battery recycling refinery near its cobalt refinery in Ontario, Canada. This initiative, leveraging their proprietary hydrometallurgical process, aims to create a closed-loop system with North American battery manufacturers, enhancing the domestic supply chain and reducing dependency on Asian refiners. The project builds on Electra’s year-long trial in black mass recycling and partnership with the Three Fires Group to process battery scrap. The study, supported by Green Li-ion, could lead to the purchase of processing equipment for the Ontario site and further solidify Electra’s position in sustainable battery material solutions.
Electra Battery Materials Announces Reverse Share Split
Dec 30, 2024
Electra Battery Materials Corp has announced a reverse share split to meet Nasdaq’s minimum bid price requirement and attract more investors. The reverse split will reduce the number of outstanding shares and is planned to take effect at the close of business on December 31, 2024, with trading on a post-split basis starting January 2, 2025.
Electra Names Marty Rendall as New CFO
Dec 23, 2024
Electra Battery Materials Corporation announces the appointment of Marty Rendall as the new CFO, succeeding David Allen who is retiring. With extensive experience in the mining industry, Rendall aims to leverage his expertise to further Electra’s goal of building resilient supply chains. The transition marks a strategic step towards achieving cash flow by 2026.
Electra Secures Long-Term Permit for Idaho Exploration
Nov 19, 2024
Electra Battery Materials Corp has secured a 10-year exploration permit for its Idaho copper and cobalt properties, enhancing project certainty and flexibility. This move positions Electra as a potential key player in North America’s battery supply chain amid rising demand for critical minerals. The permit covers significant drilling sites, supporting the U.S.’s commitment to strengthening domestic mineral production.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.