Lithium Ionic Corp (LTH) AI Stock Analysis

• Market Cap: C$129.92M
• Dividend Yield: N/A
• Average Volume (3M): 267.45K
• Price to Earnings (P/E): ―
• Beta (1Y): 3.28
• Revenue Growth: N/A
• EPS Growth: 39.98%
• Country: CA
• Employees: N/A
• Sector: Technology
• Sector Strength: 56
• Industry: Mining
• EPS (TTM): -0.28
• Shares Outstanding: 154,667,830
• 10 Day Avg. Volume: 262,661
• 30 Day Avg. Volume: 267,448
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -6.70
• 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$2.75
• Price Target Upside: 202.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Lithium Ionic Corp's stock receives a low score due to significant financial challenges, including persistent losses, negative cash flows, and a weak balance sheet. Although the technical indicators suggest potential short-term upward momentum, the stock's valuation remains unattractive due to negative earnings and lack of dividends. Without improvements in financial performance, the stock is likely to face continued volatility and risk.

Positive Factors

Debt Financing

LTH announced a non-binding LOI from the US Export-Import Bank for up to US$266M in debt financing for its Bandeira project, minimizing future equity dilution.

Resource Growth

The Baixa Grande project has shown a significant resource increase of approximately 32%, indicating strong growth potential.

Negative Factors

Strategic Competition

The loan commitment from EXIM is part of a program to ease supply chain competition from China, highlighting strategic backing for LTH.

Lithium Ionic Corp Business Overview & Revenue Model

Company Description

Lithium Ionic Corp (LTH) is a company operating in the mining and materials sector with a focus on the exploration and development of lithium resources. The company is engaged primarily in the identification and acquisition of high-potential lithium mining properties, working towards the extraction and processing of lithium for use in various industries, notably the growing electric vehicle and energy storage markets.

How the Company Makes Money

Lithium Ionic Corp makes money through the exploration, extraction, and sale of lithium. The company's revenue model is centered around identifying lucrative mining sites, extracting lithium, and selling it to manufacturers in industries that require lithium as a key component, such as battery production for electric vehicles and renewable energy storage solutions. Revenue streams include the direct sale of raw or processed lithium materials to industrial buyers and potentially through partnerships or joint ventures with other mining or technology companies that can utilize their lithium resources efficiently. Market demand for lithium due to the rise of electric vehicles and renewable energy technologies significantly contributes to the company's earnings.

Lithium Ionic Corp Financial Statement Overview

Summary

Lithium Ionic Corp faces significant financial challenges with persistent losses, negative cash flows, and a weak balance sheet. Negative revenue growth, negative profitability margins, and high operational costs without corresponding revenue are evident. Reliance on external financing is not sustainable long-term without improving revenue and profitability metrics.

Income Statement

The company shows a negative revenue growth trend with no significant revenue generation in the past years. All profitability margins, including gross profit, EBIT, and net income, are deeply negative, indicating high operational costs without corresponding revenue.

Balance Sheet

The balance sheet reveals negative stockholders' equity, suggesting financial instability. The debt-to-equity ratio cannot be computed due to negative equity, but the presence of substantial liabilities relative to assets indicates potential leverage risks.

Cash Flow

Negative operating and free cash flows indicate a cash burn situation, potentially unsustainable without consistent external financing. However, the company has succeeded in raising financing in recent periods, which has supported cash balances.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021
Income Statement		Total Revenue
1.00	0.00	0.00	0.00
	Gross Profit
-442.08K	-305.25K	-33.15K	0.00
	EBIT
-35.13M	-63.52M	-21.36M	-779.37K
	EBITDA
-39.38M	-63.78M	-21.41M	0.00
	Net Income Common Stockholders
-40.07M	-64.32M	-30.88M	-779.37K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.62M	11.17M	31.49M	7.79M
	Total Assets
6.39M	13.20M	32.84M	7.83M
	Total Debt
444.01K	495.04K	247.57K	0.00
	Net Debt
-1.97M	-10.67M	-21.25M	-7.79M
	Total Liabilities
5.11M	5.02M	2.26M	945.96K
	Stockholders Equity
1.27M	8.18M	30.58M	6.89M
Cash Flow		Free Cash Flow
-38.33M	-45.56M	-24.56M	182.16K
	Operating Cash Flow
-31.17M	-44.91M	-14.46M	182.16K
	Investing Cash Flow
-4.43M	6.60M	-9.40M	0.00
	Financing Cash Flow
41.04M	27.98M	37.56M	7.61M

Lithium Ionic Corp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.91
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:LTH, the sentiment is Negative. The current price of 0.91 is below the 20-day moving average (MA) of 0.92, above the 50-day MA of 0.89, and above the 200-day MA of 0.76, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 43.68 is Neutral, neither overbought nor oversold. The STOCH value of 50.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:LTH.

Lithium Ionic Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	58 Neutral	$21.45B	10.15	-18.53%	2.32%	5.01%	-21.90%
SGML	50 Neutral	$1.75B	―	-38.77%	―	72.76%	38.06%
CRE	49 Neutral	C$115.46M	74.65	2.13%	―	―	―
LTH	42 Neutral	C$129.92M	―	-408.27%	―	―	39.98%
LAC	42 Neutral	$904.09M	―	-4.13%	―	―	―
LTHM	27 Underperform	C$1.39M	―	-788.70%	―	―	14.62%

Lithium Ionic Corp Corporate Events

Lithium Ionic Reports Significant Growth in Baixa Grande Resource Estimate

Lithium Ionic Corp. announced a 32% increase in its Mineral Resource Estimate at the Baixa Grande Project in Brazil, highlighting the company’s strategic potential and the expertise of its exploration team. This growth is attributed to effective drilling efforts and positions Baixa Grande as a crucial element in the company’s long-term strategy to become a leading lithium producer, with continued growth potential in the region.

Lithium Ionic Corp: Key 2024 Achievements and 2025 Outlook

In 2024, Lithium Ionic Corp achieved significant milestones, including a 161% increase in mineral resource estimates for their flagship Bandeira Lithium Project, which is set to transition to construction in 2025. The company also secured significant financing, including a non-binding LOI from the Export-Import Bank of the United States for up to $266M, and strengthened its leadership and project funding. Additionally, the company announced a maiden mineral resource estimate for its Baixa Grande Project, enhancing its growth potential, and completed strategic land acquisitions to solidify its position in the region.

Lithium Ionic Reports Promising Bandeira Drill Results

Lithium Ionic Corp has announced promising drill results from its Bandeira Lithium Project in Brazil’s ‘Lithium Valley,’ showing strong potential for expanding their mineral resource. The results include significant intersections of high-grade lithium, indicating a robust growth outlook for the project.

Lithium Ionic Secures $266M Financing for Project

Lithium Ionic Corp. has received a non-binding Letter of Interest from the Export-Import Bank of the United States to provide up to $266 million in debt financing for its Bandeira Lithium Project in Brazil. This funding will cover the entire capital expenditure, propelling the company towards construction and production. The support underscores the project’s importance in strengthening global battery supply chains.