Patriot Battery Metals Inc (PMET) AI Stock Analysis

• Market Cap: C$375.58M
• Dividend Yield: N/A
• Average Volume (3M): 186.45K
• Price to Earnings (P/E): 5680.0
• Beta (1Y): 1.27
• Revenue Growth: N/A
• EPS Growth: -2226.67%
• Country: CA
• Employees: 17
• Sector: Basic Materials
• Sector Strength: 56
• Industry: Mining
• EPS (TTM): -0.03
• Shares Outstanding: 157,146,470
• 10 Day Avg. Volume: 192,672
• 30 Day Avg. Volume: 186,447
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -215.10
• 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$11.00
• Price Target Upside: 360.25% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

Patriot Battery Metals Inc. faces significant financial challenges due to zero revenue and ongoing losses, reflected in its low financial performance score. Technically, the stock is in a bearish phase with indicators suggesting a lack of upward momentum. Valuation metrics further underscore the risks with a negative P/E ratio and no dividend yield. However, the strategic partnership with Volkswagen provides a positive outlook, offering growth potential through increased investment and market positioning in the lithium sector.

Positive Factors

Cost Efficiency

Site infrastructure advanced, lowering exploration costs.

Project Potential

The Shaakichiuwaanaan project has the potential to be a world-class lithium mine.

Negative Factors

Transport Costs

Remote location impacts transport costs.

Patriot Battery Metals Inc Business Overview & Revenue Model

Company Description

Patriot Battery Metals Inc (PMET) is a minerals exploration company focused on the development and extraction of critical battery metals. Operating primarily in the mining sector, the company is engaged in the identification, acquisition, and exploration of properties rich in lithium and other essential materials used in the production of batteries for electric vehicles and renewable energy storage systems.

How the Company Makes Money

Patriot Battery Metals Inc generates revenue through the exploration and eventual sale of mineral resources, primarily lithium, extracted from its mining operations. The company invests in the acquisition and development of mineral-rich properties, which are then explored to determine their viability for mining. Once significant deposits are confirmed, PMET either partners with larger mining companies for the extraction process or sells the rights to these deposits. Key revenue streams include the sale of extracted minerals, joint venture agreements, and partnerships with companies in the electric vehicle and renewable energy sectors, who are seeking reliable sources of essential battery metals. Additionally, the company's earnings are influenced by market demand for lithium and other battery metals, which can fluctuate based on technological advancements and policy changes in the renewable energy industry.

Patriot Battery Metals Inc Financial Statement Overview

Summary

Patriot Battery Metals Inc. exhibits financial challenges typical of an early-stage mining company, with zero revenue and consistent losses impacting profitability and cash flows. The balance sheet remains strong with low debt levels, providing a cushion against financial distress. However, the company needs to focus on generating revenue and managing investments efficiently to improve financial health and investor confidence.

Income Statement

Patriot Battery Metals Inc. has reported zero revenue consistently over several periods, indicating a lack of sales generation. The gross profit margin is negative due to zero revenue and ongoing operating expenses. Additionally, the company has a history of negative net income, reflecting ongoing losses in operations. The EBIT and EBITDA margins are also negative, suggesting significant operational inefficiencies. This financial performance highlights the challenges faced in achieving profitability and growth.

Balance Sheet

The company's balance sheet shows a strong equity position with a high equity ratio, indicating a conservative capital structure with limited debt. The debt-to-equity ratio is very low, reflecting minimal leverage and reduced financial risk. However, the return on equity is negative due to continued net losses, which diminishes the attractiveness of the equity position. Overall, while the company maintains financial stability through equity, the lack of profitability is a concern.

Cash Flow

The cash flow analysis reveals significant negative free cash flow, mainly driven by high capital expenditures, suggesting heavy investment activities without immediate returns. The operating cash flow to net income ratio is negative, indicating cash burn without generating operating profits. Despite some financing inflows, the company's cash flow statement reflects ongoing cash challenges, necessitating careful financial management to sustain operations.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00	0.00
	Gross Profit
-1.71M	-876.00K	-21.00K	0.00	0.00	0.00
	EBIT
-19.66M	-19.78M	-17.20M	-4.15M	-774.20K	-751.83K
	EBITDA
-11.03M	13.49M	-6.85M	-3.55M	-774.17K	-689.66K
	Net Income Common Stockholders
-4.88M	2.61M	-10.12M	-3.88M	-775.05K	-528.96K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
43.70M	73.00M	56.72M	11.70M	149.55K	255.89K
	Total Assets
293.43M	247.92M	107.72M	26.62M	4.37M	2.95M
	Total Debt
399.00K	365.00K	0.00	0.00	40.00K	0.00
	Net Debt
-43.30M	-72.64M	-56.72M	-11.70M	-98.05K	-244.39K
	Total Liabilities
48.29M	44.70M	37.72M	2.76M	153.88K	43.24K
	Stockholders Equity
245.14M	203.22M	70.00M	23.86M	4.21M	2.91M
Cash Flow		Free Cash Flow
-99.05M	-54.55M	-34.90M	-10.52M	-1.28M	-951.43K
	Operating Cash Flow
-16.74M	-16.16M	-7.21M	-3.12M	-516.23K	-481.46K
	Investing Cash Flow
-120.16M	-91.67M	-27.69M	-7.40M	-760.54K	-375.45K
	Financing Cash Flow
74.84M	124.12M	79.93M	22.07M	1.17M	414.36K

Patriot Battery Metals Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.39
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PMET, the sentiment is Negative. The current price of 2.39 is below the 20-day moving average (MA) of 2.63, below the 50-day MA of 3.06, and below the 200-day MA of 4.02, indicating a bearish trend. The MACD of -0.13 indicates Negative momentum. The RSI at 34.69 is Neutral, neither overbought nor oversold. The STOCH value of 47.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:PMET.

Patriot Battery Metals Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SGML	50 Neutral	$1.75B	―	-38.77%	―	72.76%	38.06%
CRE	49 Neutral	C$115.46M	74.65	2.13%	―	―	―
Sector *	47 Neutral	$2.64B	-4.00	-31.55%	3.33%	2.93%	-29.90%
LAC	42 Neutral	$904.09M	―	-4.13%	―	―	―
PMET	31 Underperform	C$375.58M	5,680.00	-2.20%	―	―	-2226.67%
LTHM	27 Underperform	C$1.39M	―	-788.70%	―	―	14.62%

Patriot Battery Metals Inc Corporate Events

Patriot Battery Metals Secures C$69 Million Investment and Partnership with Volkswagen

Patriot Battery Metals Inc. has finalized a strategic investment of C$69 million from Volkswagen Group, marking VW’s acquisition of a 9.9% stake in the company. This investment will fund the exploration and development of the Shaakichiuwaanaan Lithium Project. The deal includes a 10-year offtake agreement for supplying 100,000 tonnes of spodumene concentrate annually to Volkswagen’s battery subsidiary, PowerCo SE. This partnership enhances Patriot’s position in the lithium market and aligns with the rising demand for lithium, while also strengthening their strategic relationship with Volkswagen to explore future development opportunities.