Canada Rare Earth (LL) AI Stock Analysis

• Market Cap: C$6.35M
• Dividend Yield: N/A
• Average Volume (3M): 0.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.68
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: CA
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 59
• Industry: Industrial Materials
• EPS (TTM): N/A
• Shares Outstanding: 211,587,690
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.47
• Price to Cash Flow (P/CF): -6.80
• 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

Canada Rare Earth's overall score is driven by weak financial performance highlighted by a significant decline in revenue and profitability, coupled with a precarious balance sheet. While the stock shows some positive short-term momentum, the lack of valuation metrics and potential overbought condition limit its appeal. The company's high financial risk and inability to generate consistent cash flow are significant concerns.

Canada Rare Earth Business Overview & Revenue Model

Company Description

Canada Rare Earth (LL) is a company operating in the natural resources sector, primarily focusing on the production, refining, and distribution of rare earth elements. These elements are critical components in various high-tech applications, including electronics, renewable energy systems, and advanced manufacturing processes. The company leverages its expertise and infrastructure to deliver high-quality rare earth materials to markets worldwide.

How the Company Makes Money

Canada Rare Earth (LL) generates revenue through the extraction and processing of rare earth elements from its mining operations. The company sells these elements to manufacturers and industries that require them for the production of high-tech products, such as smartphones, electric vehicles, and wind turbines. Additionally, Canada Rare Earth (LL) engages in strategic partnerships and joint ventures to enhance its production capabilities and market reach. These collaborations often involve technology sharing or co-development agreements, which further contribute to the company's earnings. The fluctuation in global demand for rare earth materials and the company's ability to maintain efficient operations significantly impact its revenue streams.

Canada Rare Earth Financial Statement Overview

Summary

Canada Rare Earth's financial health is weak, with a significant decline in revenue and profitability. The balance sheet is precarious with negative equity, indicating high financial risk. Despite improvements in operating cash flows, the company faces substantial challenges, particularly with its leverage and equity position.

Income Statement

Canada Rare Earth has shown significant volatility in revenue with a sharp decline from the previous year, impacting gross profit margins negatively. The company is currently operating at a loss, with both EBIT and net income in the red, indicating operational inefficiencies. The negative EBITDA margin further reflects on the company's inability to generate positive earnings before accounting for interest, taxes, depreciation, and amortization.

Balance Sheet

The balance sheet reveals a concerning negative stockholders' equity, indicating liabilities exceed assets, which is a significant red flag. The debt-to-equity ratio cannot be calculated due to negative equity, but the presence of substantial liabilities suggests high financial risk. Overall, the company is in a precarious financial position.

Cash Flow

The company has shown improvement in operating cash flow, turning positive in the most recent period. However, free cash flow remains highly volatile, reflecting on its inconsistent cash generation ability. The operating cash flow to net income ratio is favorable, indicating better cash conversion from operations, yet the overall cash flow situation remains unstable.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
1.80M	1.64M	5.38M	1.28M	597.19K	1.08M
	Gross Profit
294.96K	415.57K	1.30M	213.89K	109.79K	2.86K
	EBIT
-316.35K	-875.59K	228.53K	-787.60K	-779.20K	-975.01K
	EBITDA
-608.49K	-1.10M	393.15K	-926.73K	-607.09K	-504.75K
	Net Income Common Stockholders
-744.86K	-911.90K	171.27K	-668.00K	-674.36K	-791.23K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
97.72K	221.56K	220.63K	33.84K	204.27K	514.23K
	Total Assets
1.61M	3.28M	2.27M	603.11K	1.52M	1.11M
	Total Debt
1.41M	1.04M	1.24M	3.26K	40.10K	1.12M
	Net Debt
1.31M	554.54K	1.02M	-30.57K	-164.17K	602.29K
	Total Liabilities
3.39M	4.70M	2.27M	786.65K	1.57M	1.99M
	Stockholders Equity
-1.78M	-1.42M	6.13K	-183.54K	-45.95K	-882.14K
Cash Flow		Free Cash Flow
-1.19M	685.67K	63.82K	-153.33K	-922.82K	-974.73K
	Operating Cash Flow
-1.19M	685.67K	110.78K	-74.00K	-136.49K	-965.10K
	Investing Cash Flow
-45.94K	-245.09K	-416.47K	-79.32K	-786.33K	-9.63K
	Financing Cash Flow
571.16K	-439.65K	410.53K	-6.84K	601.40K	601.40K

Canada Rare Earth Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.03
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:LL, the sentiment is Positive. The current price of 0.03 is below the 20-day moving average (MA) of 0.03, below the 50-day MA of 0.03, and above the 200-day MA of 0.02, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 87.96 is Negative, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:LL.

Canada Rare Earth Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NEO	71 Outperform	C$358.40M	―	-3.15%	4.66%	-15.41%	-69.47%
SYH	56 Neutral	C$64.40M	―	-5.97%	―	―	55.15%
Sector *	47 Neutral	$2.66B	-3.11	-22.17%	3.33%	3.66%	-28.13%
LGO	46 Neutral	$157.07M	―	-21.82%	―	-27.73%	-44.62%
AVL	42 Neutral	$17.04M	―	-5.00%	―	―	-1118.18%
LL	41 Neutral	C$6.35M	―	64.19%	―	―	―
UCU	37 Underperform	C$73.52M	―	-34.08%	―	―	-112.17%

Canada Rare Earth Corporate Events

Canada Rare Earth Secures Acquisition of Laos Refinery and Advances Rare Earth Mining Project

Canada Rare Earth Corp. has secured the rights to acquire a 70% stake in a fully permitted rare earth refinery in Laos, with a production capacity of 3,000 tonnes per year. This move is backed by the Lao government’s policy reversal, supporting local rare earth processing to bolster economic benefits. The refinery, which requires modest refurbishments, is expected to be operational by Q4 2025. The company is also exploring offtake agreements and potential investments to ensure a stable supply of rare earth oxides and align with strategic partners. Additionally, Canada Rare Earth plans to enter a joint venture to develop a rare earth mining project in Laos, pending approval from the TSX Venture Exchange, which has temporarily halted trading of the company’s shares.

Canada Rare Earth Secures Major Stake in Laos Rare Earth Refinery

Canada Rare Earth Corp. has entered a Memorandum of Understanding to acquire 70% of a permitted rare earth refinery in Laos, which has a production capacity of 3,000 tonnes per year. This acquisition aligns with the Lao government’s policy reversal, which now supports in-country processing of rare earth elements, enhancing economic benefits and reducing supply risks for the refinery. Additionally, the company is negotiating with potential partners for offtake agreements and investments, which are crucial for the refinery’s operational success. Furthermore, Canada Rare Earth plans to enter a joint venture to co-develop a rare earth mining project in Laos. However, these developments have led to a trading halt on the company’s shares pending regulatory approval for a Change of Business under TSX.V policy.