Lithium Chile Inc (LITH) AI Stock Analysis

• Market Cap: C$109.51M
• Dividend Yield: N/A
• Average Volume (3M): 98.34K
• Price to Earnings (P/E): 16.7
• Beta (1Y): 0.10
• Revenue Growth: N/A
• EPS Growth: -7.56%
• Country: CA
• Employees: N/A
• Sector: Energy
• Sector Strength: 74
• Industry: Industrial Materials
• EPS (TTM): 0.03
• Shares Outstanding: 206,627,660
• 10 Day Avg. Volume: 66,735
• 30 Day Avg. Volume: 98,345
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): 26.40
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Lithium Chile Inc. faces major financial challenges, with no revenue and negative cash flows impacting its score significantly. While technical analysis shows some positive signs, these are insufficient to offset the financial weaknesses. The valuation is moderate but lacks a dividend yield, further limiting attractiveness.

Lithium Chile Inc Business Overview & Revenue Model

Company Description

Lithium Chile Inc (LITH) is a mining exploration company focused on the acquisition and development of lithium properties in Chile and Argentina. The company is engaged in the exploration of its vast land package, which is strategically located in the lithium triangle, an area known for its high-grade lithium deposits. Lithium Chile's primary objective is to identify and develop lithium resources to meet the growing global demand for lithium-ion batteries used in electric vehicles and renewable energy storage solutions.

How the Company Makes Money

Lithium Chile Inc generates revenue primarily through the exploration and potential development of its lithium properties. The company aims to increase its value by advancing its exploration projects to the point where they become attractive for joint ventures or acquisitions by larger mining companies. Additionally, Lithium Chile may enter into strategic partnerships or earn-in agreements with other mining firms to co-develop specific projects, sharing both the risks and potential profits. Revenue may also be generated through the sale or optioning of its properties to interested parties seeking to exploit the lithium resources.

Lithium Chile Inc Financial Statement Overview

Summary

Lithium Chile Inc. has significant financial challenges, including no revenue generation and negative operating performance. The company benefits from zero debt and a strong equity base, but negative cash flows and operational inefficiencies undermine overall financial health.

Income Statement

Lithium Chile Inc. has faced consistent challenges in generating revenue, with no revenue reported in recent periods. Despite a positive net income of 6.54 million CAD in the latest TTM report, this is primarily due to non-operational gains. The company continues to record negative EBIT and EBITDA margins, reflecting operational inefficiencies and a lack of profitability from core activities.

Balance Sheet

The balance sheet shows a strong equity position with zero debt, resulting in a debt-to-equity ratio of 0. This indicates financial stability and low leverage risk. However, the equity ratio has declined slightly over time, and the return on equity is volatile due to fluctuating net income.

Cash Flow

Cash flow analysis reveals persistent negative operating cash flows and free cash flow, highlighting challenges in generating cash from operations. The operating cash flow to net income ratio indicates cash flow difficulties despite reported net income. The company has been relying heavily on financing activities to support its cash flow needs.

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	90.51K
	Gross Profit
-70.80K	-35.57K	-9.55K	0.00	0.00	90.51K
	EBIT
-2.85M	-6.96M	-10.56M	-1.51M	-550.81K	76.34K
	EBITDA
-3.61M	-6.96M	-7.01M	-1.51M	-550.81K	76.34K
	Net Income Common Stockholders
6.54M	-1.11M	-2.12M	-5.98M	-547.17K	-3.64M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.57M	18.54M	38.18M	6.98M	568.34K	138.44K
	Total Assets
10.20M	55.85M	54.54M	16.16M	8.95M	7.72M
	Total Debt
0.00	0.00	0.00	0.00	0.00	0.00
	Net Debt
-2.57M	-2.59M	-16.94M	-6.93M	-568.34K	-138.44K
	Total Liabilities
92.82K	2.79M	1.63M	767.72K	432.10K	135.61K
	Stockholders Equity
10.11M	51.49M	52.91M	15.39M	8.51M	7.59M
Cash Flow		Free Cash Flow
-24.18M	-1.73M	-1.42M	-2.39M	-1.08M	-2.28M
	Operating Cash Flow
-96.55K	-1.05M	-771.17K	-2.26M	-417.20K	-946.79K
	Investing Cash Flow
-3.93M	-18.59M	-28.06M	-1.54M	-563.83K	-1.47M
	Financing Cash Flow
67.63K	5.76M	38.84M	10.17M	1.41M	-12.01K

Lithium Chile Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.59
• 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:LITH, the sentiment is Negative. The current price of 0.59 is below the 20-day moving average (MA) of 0.64, below the 50-day MA of 0.66, and below the 200-day MA of 0.64, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 30.09 is Neutral, neither overbought nor oversold. The STOCH value of 5.42 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:LITH.

Lithium Chile Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	58 Neutral	$9.12B	5.24	-7.59%	7.51%	0.53%	-65.25%
SGML	50 Neutral	$1.41B	―	-40.19%	―	72.76%	38.06%
CRE	49 Neutral	C$102.39M	59.15	2.13%	―	―	―
FL	43 Neutral	C$125.41M	―	-82.26%	―	―	25.32%
LAC	42 Neutral	$793.83M	―	-4.13%	―	―	―
LITH	41 Neutral	C$109.51M	16.67	10.97%	―	―	-7.56%
PMET	39 Underperform	C$348.87M	5,680.00	-2.20%	―	―	-2226.67%

Lithium Chile Inc Corporate Events

Lithium Chile Updates on Arizaro Project Sale and Expands Coipasa Holdings

Lithium Chile Inc. has announced an update on its proposed sale of an 80% interest in the Salar de Arizaro project in Argentina for USD $180 million. The due diligence process, involving legal and financial assessments by Dentons LLP and KPMG Inc., is expected to conclude by February 2025, leading to a definitive agreement. Following the sale, Lithium Chile will retain a significant interest in Block IV of the Salar de Arizaro and plans to continue exploration efforts there. Additionally, the company has expanded its land holdings in the Salar de Coipasa project in Chile, following its approval for commercial exploitation under the new National Lithium Strategy, enhancing its strategic positioning in the lithium market.

Lithium Chile Sells Major Stake in Arizaro Project

Lithium Chile Inc. has signed a binding letter of intent to sell its 80% interest in the Arizaro project to a large Asian company for $180 million USD, a move that could significantly benefit its shareholders. The transaction is contingent on several conditions including due diligence and regulatory approvals.

Lithium Chile Boosts Stake in Arizaro Project

Lithium Chile Inc. has increased its stake in the Arizaro Project in Argentina to 80% by acquiring an additional 17.8% interest, aiming to capitalize on the project’s significant value. The acquisition, involving the issuance of common shares and a cash payment, is a crucial step in the company’s strategic sale process initiated last year.

Lithium Chile Spins Out Kairos Gold Subsidiary

Lithium Chile Inc. has announced the spin out of its subsidiary, Kairos Gold Inc., into a separate company focusing on gold, copper, and silver exploration, offering shareholders a new opportunity to invest in these resources. Shareholders will receive shares in Kairos Gold, creating potential for growth as the new company takes advantage of strong gold market fundamentals.