European Lithium Ltd. (AU:EUR)
ASX:EUR
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European Lithium
(Sydney:EUR)
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Rating:49Neutral
Price Target:
AU$0.48
â–˛(198.75% Upside)
Action:Reiterated
Date:05/02/26
The score is primarily held back by weak financial performance, especially negative profitability and negative operating/free cash flow, despite a low-leverage balance sheet. Technicals are supportive with price above major moving averages and a positive MACD, but momentum is elevated (RSI/Stoch near 70), tempering the outlook. Valuation appears very low on P/E, but it is less reliable given the profitability concerns and no dividend yield support.
Positive Factors
Low leverage / strong equity base
Low leverage and a healthy equity position provide durable financing flexibility for capital-intensive mine and chemical-plant development. This reduces refinancing and solvency risk, supports staged capex or JV structures, and preserves strategic optionality during multi-month development cycles.
Negative Factors
Negative operating & free cash flow
Persistent negative operating and free cash flows are a structural funding risk for a development-stage miner. Continued cash burn forces reliance on dilutive equity, project financing, or JV funding, increasing execution and timing risk and potentially delaying project milestones and commercialization.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage / strong equity base
Low leverage and a healthy equity position provide durable financing flexibility for capital-intensive mine and chemical-plant development. This reduces refinancing and solvency risk, supports staged capex or JV structures, and preserves strategic optionality during multi-month development cycles.
Read all positive factors
European Lithium (EUR) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$712.29M
Dividend YieldN/A
Average Volume (3M)12.33M
Price to Earnings (P/E)<0.1
Beta (1Y)2.05
Revenue GrowthN/A
EPS GrowthN/A
CountryAU
Employees11
SectorBasic Materials
Sector Strength58
IndustryIndustrial Materials
Share Statistics
EPS (TTM)0.71
Shares Outstanding1,716,361,600
10 Day Avg. Volume8,391,100
30 Day Avg. Volume12,334,926
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)0.58
Price to Sales (P/S)55.77
P/FCF Ratio-2.56
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
European Lithium Business Overview & Revenue Model
Company Description
European Lithium Limited explores for and develops lithium deposits in Austria. The company focuses on the development of the Wolfsberg lithium project that consists of 22 original and 32 overlapping exploration licenses, and a mining license cove...
How the Company Makes Money
European Lithium’s primary pathway to revenue is developing and operating its lithium project(s) to generate income from the sale of lithium products into battery-material supply chains. In practice, this typically means (a) producing and selling ...
European Lithium Financial Statement Overview
Summary
Income Statement
30
Negative
Balance Sheet
45
Neutral
Cash Flow
25
Negative
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 400.16K | 1.24M | 451.96K | 742.88K | 177.44K | 30.83K |
| Gross Profit | 385.33K | 1.24M | -74.07K | 730.48K | 19.51K | -15.02K |
| EBITDA | -69.58M | -89.46M | -156.34M | -12.09M | -11.87M | -3.57M |
| Net Income | 1.10B | -71.49M | -205.81M | -12.21M | -12.32M | -3.96M |
Balance Sheet | ||||||
| Total Assets | 1.36B | 289.42M | 109.84M | 71.72M | 79.30M | 44.27M |
| Cash, Cash Equivalents and Short-Term Investments | 198.40M | 20.02M | 6.08M | 13.14M | 33.00M | 5.42M |
| Total Debt | 1.99M | 1.97M | 1.99M | 0.00 | 0.00 | 357.87K |
| Total Liabilities | 49.32M | 115.16M | 113.45M | 5.41M | 749.53K | 1.71M |
| Stockholders Equity | 1.31B | 119.54M | 6.15M | 66.30M | 78.55M | 42.57M |
Cash Flow | ||||||
| Free Cash Flow | -31.65M | -27.10M | -22.38M | -10.20M | -20.61M | -5.68M |
| Operating Cash Flow | -30.66M | -24.83M | -20.85M | -7.16M | -4.12M | -2.56M |
| Investing Cash Flow | 104.92M | -4.02M | 6.02M | -6.91M | -8.85M | -3.24M |
| Financing Cash Flow | 8.21M | 42.89M | 7.90M | -5.81M | 40.55M | 10.93M |
European Lithium Technical Analysis
Positive
0.16
Price Trends
0.24
Positive
0.22
Positive
0.18
Positive
Market Momentum
>-0.01
Negative
54.79
Neutral
57.14
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:EUR, the sentiment is Positive. The current price of 0.16 is below the 20-day moving average (MA) of 0.23, below the 50-day MA of 0.24, and below the 200-day MA of 0.18, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 54.79 is Neutral, neither overbought nor oversold. The STOCH value of 57.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:EUR.
European Lithium Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
57 Neutral | AU$572.83M | -15.69 | -4.22% | ― | ― | 56.94% | |
49 Neutral | AU$712.29M | 0.05 | 154.06% | ― | ― | ― | |
49 Neutral | AU$132.80M | 51.54 | -0.02% | ― | ― | 99.44% | |
49 Neutral | AU$101.59M | 111.61 | -5.62% | ― | ― | 35.64% | |
47 Neutral | AU$191.37M | -4.93 | -19.15% | ― | ― | 17.32% | |
43 Neutral | AU$35.84M | -7.76 | -0.02% | ― | ― | 13.53% |
* Basic Materials Sector Average
AU:EUR
European Lithium
0.42
0.37
746.94%
AU:LKE
Lake Resources N.L.
0.08
0.05
170.97%
AU:GLN
Galan Lithium Limited
0.46
0.35
333.33%
AU:GL1
Global Lithium Resources Ltd.
0.51
0.33
180.56%
AU:LEL
Lithium Energy Ltd.
0.32
-0.05
-13.51%
AU:OCN
Oceana Lithium Ltd.
0.52
0.48
1460.61%
European Lithium Corporate Events
European Lithium Seeks ASX Quotation for Additional Ordinary Shares
May 7, 2026
European Lithium Limited has applied to the Australian Securities Exchange for quotation of 154,012 new ordinary fully paid shares. The new EUR securities, issued on 7 May 2026 following the exercise or conversion of existing instruments, will mod...
Morgan Stanley exits substantial holder position in European Lithium
May 6, 2026
Morgan Stanley and its subsidiaries have disclosed that they have ceased to be a substantial holder in European Lithium Limited, following a series of transactions in late April 2026. The notice details extensive buying and predominantly selling o...
European Lithium Confirms ASX Compliance on Critical Metals Talks
May 5, 2026
European Lithium has responded to an ASX query letter confirming that it first entered into negotiations with Nasdaq-listed Critical Metals Corp. on 17 March 2026 regarding a potential transaction. The company also confirmed that signing a non-bin...
European Lithium Defends Timing of Disclosure on Critical Metals Merger Talks
May 5, 2026
European Lithium has clarified to the ASX that a proposed all-scrip combination with Nasdaq-listed Critical Metals Corp., under which CRML would acquire 100% of EUR via a scheme of arrangement, is information that would materially affect the value...
European Lithium boosts cash, advances Tanbreez and lines up merger with Critical Metals
Apr 30, 2026
European Lithium reported a strong March quarter highlighted by the sale of 7.5 million Critical Metals Corp. shares, raising about A$167.6 million and bolstering funding for its exploration portfolio. The company advanced drilling and sampling at...
European Lithium in Talks to Merge with Critical Metals at Large Premium
Apr 27, 2026
European Lithium has entered a non-binding indicative agreement for a scrip-based combination with NASDAQ-listed Critical Metals Corp., under which Critical Metals would acquire all European Lithium shares at an implied A$0.58 per share via a sche...
European Lithium Requests Trading Halt Amid Speculation of Control Deal
Apr 23, 2026
European Lithium Limited has requested a trading halt on its securities on the Australian Securities Exchange, effective from 24 April 2026, as it prepares to respond to media speculation surrounding a potential control transaction involving the c...
European Lithium Cancels 30 Million Performance Rights by Agreement
Apr 22, 2026
European Lithium Limited has updated the market on changes to its capital structure, reporting the cessation of a class of performance rights listed under the ASX security code EURAJ. The company advised that 30,000,000 of these performance rights...
Critical Metals Takes Control of Greenland’s Tanbreez Rare Earths Project as European Lithium Retains Minority Stake
Apr 19, 2026
Critical Metals Corp has secured approval from the Government of Greenland to acquire the remaining 50.5% interest in the Tanbreez Rare Earths Project, lifting its ownership to 92.5%, while European Lithium retains a 7.5% minority stake. The decis...
European Lithium Cancels 24 Million Shares After On-Market Buy-Back
Apr 1, 2026
European Lithium Limited has cancelled 23,955,240 ordinary fully paid shares following the completion of an on-market share buy-back, effective 31 March 2026. The reduction in issued capital is expected to tighten the company’s share base an...
European Lithium Launches On-Market Share Buy-Back
Apr 1, 2026
European Lithium Limited has announced an on-market share buy-back of its ordinary fully paid shares listed on the ASX under the ticker EUR. The company has lodged a formal notification outlining its intention to repurchase shares on market, signa...
European Lithium Extends On-Market Share Buy-Back to October 2026
Apr 1, 2026
European Lithium has closed its existing on-market share buy-back and plans to launch a new buy-back program running from 15 April to 15 October 2026, unless completed or terminated earlier. The company will conduct the extended buy-back within th...
European Lithium Seeks ASX Quotation for Additional Ordinary Shares
Mar 30, 2026
European Lithium Limited has applied for quotation on the ASX of 560,600 new fully paid ordinary shares under code EUR, with an issue date of 30 March 2026. The additional securities, arising from the exercise or conversion of existing instruments...
European Lithium Added to S&P/ASX All Ordinaries in March Rebalance
Mar 10, 2026
European Lithium Limited has been added to the SP/ASX All Ordinaries Index as part of SP Dow Jones Indices’ March 2026 quarterly rebalance, alongside a range of other resource, technology and industrial names. The index review also confirmed...
S&P Dow Jones Indices Reshapes S&P/ASX Benchmarks in March 2026 Rebalance
Mar 6, 2026
SP Dow Jones Indices has unveiled its March 2026 quarterly rebalance for the SP/ASX index family, reshuffling constituents across the SP/ASX 20, 50, 100, 200 and 300. The changes, effective before trading on 23 March 2026, see Northern Star Resour...
European Lithium Seeks ASX Quotation for 9 Million New Options
Feb 20, 2026
European Lithium Limited has applied for quotation on the ASX of 9,000,000 EUROC options, which are set to expire on 30 April 2027. The new options, issued under the company’s existing capital management framework, are expected to enhance li...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.