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European Lithium Ltd. (AU:EUR)
:EUR

European Lithium (EUR) AI Stock Analysis

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AU

European Lithium

(OTC:EUR)

Rating:34Underperform
Price Target:
European Lithium Ltd. has a low overall stock score due to significant financial challenges, including deteriorating profitability, high leverage, and poor cash flow management. Technical indicators further underscore a bearish outlook with the stock trading below key moving averages. Valuation metrics highlight the risks associated with negative earnings and lack of income potential. Without recent earnings call insights or notable corporate events, the company's outlook remains uncertain and risky.

European Lithium (EUR) vs. iShares MSCI Australia ETF (EWA)

European Lithium Business Overview & Revenue Model

Company DescriptionEuropean 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 covering 11 mining areas located in Carinthia. European Lithium Limited is headquartered in West Leederville, Australia.
How the Company Makes MoneyEuropean Lithium Ltd. generates revenue primarily through the exploration and development of lithium mining projects. The company aims to extract and process lithium ore to produce lithium concentrate, which can then be sold to manufacturers of batteries and other lithium-dependent products. As the demand for electric vehicles and renewable energy solutions grows, the need for lithium increases, positioning European Lithium to capitalize on these market trends. The company may also engage in strategic partnerships and joint ventures with other mining companies or technology firms to enhance its operational capabilities and market reach. However, as a company in the exploration and development stage, its revenue generation is contingent on successfully advancing its mining projects to production stages.

European Lithium Financial Statement Overview

Summary
European Lithium Ltd. is facing significant financial challenges with deteriorating profitability and cash flows. The lack of revenue growth and increasing losses point towards operational inefficiencies. With high leverage and negative equity returns, the company may face difficulties in sustaining its operations without external financing or drastic improvements in operational performance. Immediate strategic actions are necessary to address these financial instabilities.
Income Statement
20
Very Negative
The company has shown a consistent lack of revenue generation, with total revenue declining to zero in the latest report. The EBIT and EBITDA margins are negative, indicating operational inefficiencies. Net income has also deteriorated significantly, reflecting poor profitability.
Balance Sheet
35
Negative
The company has a very high debt-to-equity ratio due to increasing liabilities and declining equity, indicating potential financial instability. Return on equity is negative, reflecting unprofitable operations. However, the company does have some cash reserves, which may offer short-term liquidity.
Cash Flow
25
Negative
The company's cash flow from operations is negative and worsening, with free cash flow also deeply negative, which indicates poor cash management. There is no positive growth in free cash flow. The operating cash flow to net income ratio is unfavorable, reflecting difficulties in converting income to cash.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
0.000.00742.88K29.72K198.003.48K
Gross Profit
-53.50K-74.07K730.48K19.51K-14.82K-25.77K
EBIT
-41.93M-8.32M-6.18M-5.86M-1.62M-1.55M
EBITDA
-171.90M-156.34M-12.09M-11.87M-3.57M-2.53M
Net Income Common Stockholders
-221.24M-205.81M-12.21M-12.32M-3.96M-3.26M
Balance SheetCash, Cash Equivalents and Short-Term Investments
2.51M6.08M13.14M33.00M5.42M300.65K
Total Assets
271.76M109.84M71.72M79.30M44.27M37.20M
Total Debt
2.00M1.99M0.000.00357.87K844.37K
Net Debt
-512.68K-3.78M-13.14M-33.00M-5.06M543.71K
Total Liabilities
109.98M113.45M5.41M749.53K1.71M2.64M
Stockholders Equity
131.18M6.15M66.30M78.55M42.57M34.55M
Cash FlowFree Cash Flow
-25.24M-22.38M-10.20M-20.61M-5.68M-3.72M
Operating Cash Flow
-23.63M-20.85M-7.16M-12.36M-2.56M-894.93K
Investing Cash Flow
3.93M6.02M-6.91M-8.85M-3.24M-2.83M
Financing Cash Flow
14.73M7.90M-5.81M40.55M10.93M2.82M

European Lithium Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.05
Price Trends
50DMA
0.05
Negative
100DMA
0.05
Negative
200DMA
0.04
Positive
Market Momentum
MACD
>-0.01
Positive
RSI
42.75
Neutral
STOCH
27.31
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:EUR, the sentiment is Negative. The current price of 0.05 is above the 20-day moving average (MA) of 0.05, above the 50-day MA of 0.05, and above the 200-day MA of 0.04, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.75 is Neutral, neither overbought nor oversold. The STOCH value of 27.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:EUR.

European Lithium Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUREE
52
Neutral
AU$17.48M-111.05%-100.00%33.33%
51
Neutral
$2.02B-1.14-21.37%3.64%2.88%-30.57%
AUGL1
42
Neutral
AU$37.95M-2.83%-6.51%
AUEMH
41
Neutral
AU$37.34M-7.08%-100.00%61.59%
AUEUR
34
Underperform
AU$66.82M-237.31%-2581.36%
DE9CH
€50.67M-6.71%
AULEL
39
Underperform
AU$41.44M-16.58%-131.72%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:EUR
European Lithium
0.05
>-0.01
-13.21%
DE:9CH
Galan Lithium Limited
0.05
-0.07
-58.33%
AU:GL1
Global Lithium Resources Ltd.
0.14
-0.17
-54.84%
AU:REE
RareX Limited
0.02
0.00
0.00%
AU:LEL
Lithium Energy Ltd.
0.37
-0.03
-7.50%
AU:EMH
European Metals Holdings Limited
0.18
-0.14
-43.75%

European Lithium Corporate Events

European Lithium Announces Expiry of 20 Million Options
May 2, 2025

European Lithium Limited announced the cessation of 20 million options that expired on May 1, 2025, without being exercised or converted. This development may impact the company’s capital structure but reflects a routine financial adjustment, with no immediate implications for stakeholders or operations.

European Lithium Reports Key Developments and Strategic Progress in Q1 2025
Apr 30, 2025

European Lithium Limited announced significant updates in its quarterly activities report for the period ending March 31, 2025. Key developments include the Tanbreez Project’s maiden mineral resource estimate and high-grade drilling results, as well as ongoing discussions for government grants. The company is also advancing its Wolfsberg Project in Austria and has completed planning for an energy supply corridor. Additionally, a joint venture is working on a lithium refinery in Saudi Arabia, expected to produce substantial amounts of battery-grade lithium hydroxide, enhancing the company’s industry positioning and potential impact on stakeholders.

European Lithium’s Tanbreez Project Shows Promising Scoping Study Results
Apr 23, 2025

European Lithium Ltd has announced the results of a scoping study for its Tanbreez Rare Earth Project in Greenland, revealing a net present value of approximately US$2.4–3.0 billion and an internal rate of return of 162% before tax. The project, which has a 30-year exploitation permit, shows potential for a viable standalone mining and processing operation, although further exploration and economic studies are needed to confirm its economic viability. The study highlights the significance of the Tanbreez project’s rare earth oxides, which are crucial for permanent magnet production, potentially impacting the company’s profitability and industry positioning.

European Lithium Ltd. Launches Options Offer to Raise Capital
Apr 11, 2025

European Lithium Ltd. has announced an Options Offer to its registered shareholders in Australia and the UAE, allowing them to purchase new options at a specified price and exercise them within a set timeframe. This initiative aims to raise up to $446,154, with the company’s directors agreeing to underwrite any shortfall, pending shareholder approval, potentially impacting the company’s financial strategy and stakeholder interests.

European Lithium Ltd Adjusts Stake in Cyclone Metals
Apr 10, 2025

European Lithium Ltd has announced a change in its substantial holding in Cyclone Metals Ltd, with its voting power decreasing from 10.66% to 9.93%. This change is due to a series of transactions, including participation in a rights issue and several on-market sales, as well as the issuance of new shares by Cyclone Metals, which diluted European Lithium’s percentage interest. These adjustments in holdings could impact European Lithium’s influence within Cyclone Metals, potentially affecting strategic decisions and stakeholder interests.

European Lithium Ltd. Announces Proposed Issue of 35 Million Securities
Apr 8, 2025

European Lithium Ltd. announced a proposed issue of 35 million securities, set to be issued by May 2, 2025. This move is part of the company’s strategic efforts to raise capital, potentially enhancing its operational capabilities and market position in the lithium industry, which is essential for the growing demand in electric vehicle and renewable energy sectors.

European Lithium Ltd. Announces Proposed Securities Issue
Apr 8, 2025

European Lithium Ltd. has announced a proposed issue of securities, with a maximum of 181,076,970 options to be issued at $0.10 each, exercisable on or before April 30, 2027. This move is likely to impact the company’s financial strategy and market positioning by potentially increasing capital, which could be used for further development of its lithium projects, thereby benefiting stakeholders and enhancing its competitive edge in the lithium industry.

European Lithium Ltd. Announces New Securities Issue to Bolster Financial Position
Apr 8, 2025

European Lithium Ltd. has announced a proposed issue of 42 million new securities, each priced at $0.10, with an issue date set for May 2, 2025. This move is part of their strategic efforts to strengthen their financial position and potentially enhance their market presence, impacting stakeholders by potentially increasing liquidity and investment opportunities.

European Lithium Ltd. Announces New Options Prospectus to Bolster Financial Position
Apr 8, 2025

European Lithium Ltd. has announced a prospectus for the issuance of up to 223,076,970 New Options and 35,000,000 Advisor Options, aiming to raise approximately $446,154. This strategic move, fully underwritten by the company’s directors, is designed to strengthen its financial position and support its ongoing projects in the lithium market. The issuance of these options is expected to enhance the company’s operational capabilities and potentially improve its market positioning, although the securities are considered highly speculative and carry inherent risks.

European Lithium Completes Preliminary Economic Assessment for Tanbreez Project
Apr 8, 2025

European Lithium Ltd has completed a Preliminary Economic Assessment (PEA) for the Tanbreez Rare Earth Project in Greenland, highlighting the potential for a viable standalone mining and processing operation. The assessment, conducted by Agricola Mining Consultants, indicates the project’s potential but also notes that further exploration and studies are necessary before estimating ore reserves or assuring economic viability. The announcement cautions investors against making decisions based solely on the PEA results, as it is a preliminary study and subject to various risks and uncertainties.

European Lithium Requests Trading Halt Pending Key Announcement
Apr 3, 2025

European Lithium Limited has requested a trading halt on its securities from the Australian Securities Exchange, effective from April 4, 2025. This halt is pending an announcement related to a scoping study for the Tanbreez Rare Earth Project in Greenland, which could have significant implications for the company’s operations and market positioning.

European Lithium Reveals High-Grade Drill Results from Tanbreez Project
Mar 28, 2025

European Lithium Ltd announced the publication of historical deep diamond drill results from the Tanbreez Project in Greenland, revealing high-grade rare earths and oxides. The drill results, including significant concentrations of TREO, zircon oxide, and other valuable minerals, could enhance the company’s resource estimates and strengthen its position in the rare earth minerals market.

European Lithium Updates Options Offer to Enhance Shareholder Value
Mar 23, 2025

European Lithium Ltd. has announced an update regarding its EUROB Options, which are set to expire on March 31, 2025. The company is offering new options to current holders at a reduced exercise price, with a revised record date of March 31, 2025. This move is part of a broader strategy to enhance shareholder value and secure additional capital for future projects. Directors of the company have committed to participating in the offer, and the issuance of these new options is subject to shareholder approval. This development could strengthen European Lithium’s market position and provide stakeholders with potential growth opportunities.

European Lithium Unveils Promising Drill Results at Tanbreez Project
Mar 18, 2025

European Lithium Ltd has announced the results of historical deep diamond drill holes from the Tanbreez Project in Greenland, revealing high-grade rare earth elements and oxides. These findings, along with a recent Maiden Mineral Resource Estimate, highlight the project’s potential and have attracted interest from Western governments, positioning the company as a significant player in the rare earth elements market.

European Lithium Announces Expiry and Replacement of Options
Mar 14, 2025

European Lithium Ltd. announced the expiry of its EUROB options on 31 March 2025, with a replacement offer allowing holders to apply for new options at a reduced exercise price, valid until April 2027. This move aims to maintain investor engagement and support the company’s capital structure, with directors participating significantly and offering underwriting support, subject to shareholder approval.

European Lithium Announces Maiden Mineral Resource Estimate for Tanbreez Project
Mar 13, 2025

European Lithium Ltd has announced a Maiden Mineral Resource Estimate (MRE) of 45 million tonnes at 0.4% REO for the Tanbreez Project in Greenland. This project is significant due to its high content of Heavy Rare Earth Elements (HREEs), which are more valuable than Light Rare Earth Elements (LREEs). The project is strategically positioned to supply the western hemisphere with critical minerals for various industries, including defense. The announcement marks a significant milestone for the company, as it now considers the Tanbreez Project material to its operations, following increased investment and partnership with Critical Metals Corp. The project is expected to undergo further development and drilling to expand its resource base.

European Lithium Acquires Substantial Stake in Moab Minerals
Mar 5, 2025

European Lithium Limited has become a substantial holder in Moab Minerals Limited, acquiring 166,666,667 fully paid ordinary shares, which represents a 9.61% voting power based on the total shares issued. This acquisition marks a significant investment by European Lithium, potentially enhancing its influence and strategic positioning within the industry, while also impacting Moab Minerals’ shareholder structure.

$500k Investment Boost for Moab Minerals’ Tanzanian Uranium Exploration
Mar 2, 2025

Moab Minerals Limited has secured a $500k investment from European Lithium Ltd through a placement of shares and options, which will be used to fund exploration activities at the Manyoni Uranium Project in Tanzania and for general working capital. This strategic financial move is expected to bolster Moab’s exploration efforts and enhance its position in the uranium exploration industry, potentially benefiting stakeholders by advancing the company’s project development goals.

European Lithium Announces Expiry of EUROB Options
Mar 2, 2025

European Lithium Ltd. has announced the expiry of 223,076,970 quoted options (EUROB Options) to acquire shares in the company, set to expire on 31 March 2025. The options, exercisable at $0.18 each, will cease official quotation on 25 March 2025. This development could impact the company’s liquidity and share price dynamics, as the exercise of these options would result in the issuance of an equivalent number of fully paid ordinary shares. Stakeholders should be aware that if the options are not exercised by the deadline, they will expire, and all associated rights will be forfeited.

Critical Metals Corp. Strengthens Board with Defense Expert Appointment
Feb 27, 2025

Critical Metals Corp. has appointed Michael C. Ryan as an independent director, enhancing its board with his extensive defense and military experience. This strategic move supports the advancement of the Tanbreez Project in Greenland, positioning the company as a crucial player in the supply of rare earth elements for defense and next-generation technologies.

Critical Metals Corp. Advances Strategic Growth with Successful Equity Raise
Feb 11, 2025

Critical Metals Corp, following a successful equity raise of US$24.5 million, is advancing its Tanbreez Rare Earth and Wolfsberg Lithium projects, aiming to become a leading supplier of strategic minerals for clean energy and defense. The company is enhancing its corporate governance and government relations, anticipating significant milestones and potential government support, which could strengthen its position in the critical minerals market.

European Lithium Ltd: Strengthening Strategic Mineral Ventures
Feb 6, 2025

European Lithium Ltd announced that Critical Metals Corp has raised approximately US$22.5 million through a private placement, aiming to advance its Tanbreez Rare Earth Project in Greenland and the Wolfsberg Lithium Project in Austria. This funding will enhance Critical Metals Corp’s balance sheet and development plans, positioning it as a key supplier in the lithium-ion battery supply chain in Europe. European Lithium’s substantial stake in Critical Metals underscores its strategic alignment with Critical Metals’ vision of becoming a reliable supplier of critical minerals for defense and clean energy applications.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.