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Galan Lithium Limited (AU:GLN)
ASX:GLN

Galan Lithium Limited (GLN) AI Stock Analysis

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AU:GLN

Galan Lithium Limited

(Sydney:GLN)

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Neutral 53 (OpenAI - 5.2)
Rating:53Neutral
Price Target:
AU$0.40
▲(0.25% Upside)
The score is held back primarily by weak financial performance (pre-revenue profile, ongoing losses, and negative operating/free cash flow), despite an improved FY2025 cash burn and a low-leverage balance sheet. Technicals are a secondary support with strong uptrend signals, but overbought indicators add near-term risk. Valuation is pressured by negative earnings and the lack of a dividend yield.
Positive Factors
Low leverage / strong balance sheet
Very low debt limits refinancing and interest burden, giving management flexibility to fund exploration and development from equity or cash reserves. This durable financial strength reduces solvency risk during project permitting and early construction phases, supporting long-term execution.
Strategic lithium brine assets for battery supply
Exposure to lithium brine projects and ambitions to produce lithium chemicals align with structurally growing battery and EV markets. If development succeeds, upstream brine feedstock plus downstream chemical production supports long-term demand capture and integration into the global battery materials supply chain.
Improved FY2025 cash burn
A marked reduction in cash burn suggests management has tightened spending or advanced higher-value workstreams, extending runway. Sustained lower burn improves the company's ability to hit development milestones with less frequent capital raises, enhancing project continuity over the medium term.
Negative Factors
Pre-revenue, persistent operating losses
Being pre-revenue means no steady operating cash inflows to offset capex and exploration costs. Persistent losses erode capital and make long-term project funding dependent on external raises, increasing execution and dilution risk until commercial production is achieved.
Consistently negative operating cash flow
Chronic negative operating cash flow prevents self-funding of development and increases reliance on capital markets. Over multiple quarters this heightens the risk that market conditions or funding gaps delay projects, raise financing costs, or force asset-scale back, impacting long-term delivery timelines.
Negative returns on equity despite equity growth
Equity base has grown but is not producing profits, indicating capital is not yet generating economic returns. Sustained negative ROE undermines investor return prospects and may pressure management to pursue dilutive financing or restructure assets if a clear path to profitability isn't established.

Galan Lithium Limited (GLN) vs. iShares MSCI Australia ETF (EWA)

Galan Lithium Limited Business Overview & Revenue Model

Company DescriptionGalan Lithium Limited acquires, explores for, evaluates, and develops mineral projects. It primarily explores for lithium and other deposits. The company holds 100% interests in the Hombre Muerto West project that comprises seven concessions covering an area of approximately 11,600 hectares located in the Catamarca province in Argentina; and the Candelas comprises fourteen exploration permits project covering an area of 24,072 hectares located in the Catamarca province, Argentina. It also holds 80% interest in the Greenbushes South lithium project covering an area of approximately 353 square kilometers located to the south of the Greenbushes mine. The company was formerly known as Dempsey Minerals Limited and changed its name to Galan Lithium Limited in August 2018. Galan Lithium Limited was incorporated in 2011 and is based in West Perth, Australia.
How the Company Makes MoneyGalan Lithium Limited makes money primarily through the exploration and development of lithium mining projects. The company's revenue model is centered around extracting lithium resources and selling them to manufacturers and other stakeholders involved in the production of lithium-ion batteries and electric vehicles. Key revenue streams include the sale of raw lithium and potential future off-take agreements with battery manufacturers and technology companies. Significant partnerships with local and international mining and technology firms may also contribute to the company's earnings by facilitating project development and resource extraction.

Galan Lithium Limited Financial Statement Overview

Summary
Galan Lithium Limited is facing significant financial challenges. The income statement reveals persistent operational losses and declining revenues. Although the balance sheet shows moderate stability with low leverage, the cash flow statement highlights substantial negative cash flows, indicating weak cash generation and liquidity concerns.
Income Statement
18
Very Negative
Galan Lithium Limited shows a weak income statement with consistently negative net income and EBIT. The company has experienced a significant decline in revenue from 2023 to 2024, with revenue dropping from 3,622 to 941. The gross profit margin is effectively zero due to minimal revenue. Net profit margin is negative, reflecting ongoing losses. The EBIT and EBITDA margins are also negative, indicating operational inefficiency.
Balance Sheet
72
Positive
The balance sheet indicates moderate financial stability. The debt-to-equity ratio is low, suggesting limited leverage, and stockholders' equity has grown over time, currently at 159,842,363. However, the equity ratio is relatively high, showing that the company is largely equity-funded. The company's asset base has expanded, but cash reserves have decreased significantly from 2023 to 2024, which could pose liquidity risks.
Cash Flow
34
Negative
The cash flow statement reflects negative free cash flow and operating cash flow, highlighting weak cash generation. Free cash flow has declined substantially, indicating increased capital expenditure without proportional revenue growth. The operating cash flow to net income ratio is negative, further emphasizing cash flow challenges.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue0.000.00941.003.62K0.002.51K
Gross Profit-222.62K-222.62K-255.17K-169.28K-15.37K439.00
EBITDA-9.06M-9.09M-8.66M-7.44M-5.07M-2.85M
Net Income-9.31M-9.31M-9.51M-7.62M-5.08M-907.89K
Balance Sheet
Total Assets223.19M223.19M174.26M128.04M90.12M39.10M
Cash, Cash Equivalents and Short-Term Investments4.45M4.45M4.33M45.15M53.89M15.57M
Total Debt446.91K446.91K605.72K749.43K0.000.00
Total Liabilities15.94M15.94M14.42M11.59M3.26M754.28K
Stockholders Equity207.25M207.25M159.84M116.45M86.86M38.35M
Cash Flow
Free Cash Flow-31.04M-4.22M-77.52M-36.33M-11.75M-3.70M
Operating Cash Flow-3.41M-3.41M-2.78M-1.91M-2.02M-1.49M
Investing Cash Flow-41.77M-41.77M-74.91M-36.73M-10.58M-2.24M
Financing Cash Flow45.29M45.29M36.87M29.89M50.93M17.65M

Galan Lithium Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.40
Price Trends
50DMA
0.25
Positive
100DMA
0.20
Positive
200DMA
0.16
Positive
Market Momentum
MACD
0.04
Negative
RSI
75.03
Negative
STOCH
86.73
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:GLN, the sentiment is Positive. The current price of 0.4 is above the 20-day moving average (MA) of 0.32, above the 50-day MA of 0.25, and above the 200-day MA of 0.16, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 75.03 is Negative, neither overbought nor oversold. The STOCH value of 86.73 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:GLN.

Galan Lithium Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
55
Neutral
AU$165.24M-93.33-8.09%-275.00%
53
Neutral
€454.57M-30.38-5.18%47.15%
52
Neutral
AU$158.35M-41.16-2.30%12.50%
46
Neutral
AU$394.88M-4.61-111.27%66.10%
43
Neutral
AU$249.19M-9.73-12.73%67.90%
43
Neutral
AU$41.44M-6.89-13.86%-12.34%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:GLN
Galan Lithium Limited
0.40
0.27
203.85%
AU:LKE
Lake Resources N.L.
0.11
0.07
155.81%
AU:EUR
European Lithium
0.23
0.16
210.81%
AU:MEU
Marmota Limited
0.14
0.08
145.61%
AU:GL1
Global Lithium Resources Ltd.
0.61
0.43
236.11%
AU:LEL
Lithium Energy Ltd.
0.37
0.00
0.00%

Galan Lithium Limited Corporate Events

Galan Lithium Issues New Shares Under Employee Incentive Plan
Jan 6, 2026

Galan Lithium Limited has issued 101,492 fully paid ordinary shares to an employee under its 2022 Securities Incentive Plan, expanding its share capital as part of staff remuneration and alignment initiatives. The company has confirmed that these shares were issued without a prospectus but qualify for secondary trading under the Corporations Act exemption, and it states it is in compliance with its continuous disclosure and reporting obligations, indicating no additional undisclosed information relevant to investors.

The most recent analyst rating on (AU:GLN) stock is a Hold with a A$0.34 price target. To see the full list of analyst forecasts on Galan Lithium Limited stock, see the AU:GLN Stock Forecast page.

Galan Lithium Limited Issues Shares to Employees Under Incentive Plan
Dec 17, 2025

Galan Lithium Limited has issued 614,830 fully paid ordinary shares to its employees under the Galan Securities Incentive Plan. This move, facilitated under the exemption of section 708A(5) of the Corporations Act, allows for the on-sale of these shares without disclosure, potentially enhancing employee engagement and aligning interests with the company’s growth objectives.

The most recent analyst rating on (AU:GLN) stock is a Buy with a A$0.30 price target. To see the full list of analyst forecasts on Galan Lithium Limited stock, see the AU:GLN Stock Forecast page.

Galan Lithium Issues Shares to Employees as Incentive
Dec 17, 2025

Galan Lithium Limited has announced the issuance of 614,830 ordinary fully paid shares to its employees under the Galan Securities Incentive Plan (2022) instead of providing a cash bonus. This move is part of the company’s strategy to incentivize its workforce and align their interests with the company’s growth objectives, potentially enhancing its market position and operational efficiency.

The most recent analyst rating on (AU:GLN) stock is a Buy with a A$0.30 price target. To see the full list of analyst forecasts on Galan Lithium Limited stock, see the AU:GLN Stock Forecast page.

Galan Lithium Advances HMW Project with Nano-Filtration Plant Transit
Dec 15, 2025

Galan Lithium Limited has announced significant progress in its Phase 1 construction activities at the Hombre Muerto West (HMW) project. The nano-filtration plant, crucial for the operation, has been assembled and tested in Sydney and is now being transported to South America, with commissioning expected in early 2026. Additionally, evaporation ponds have been redesigned to support the production rate of 4,000 tonnes per annum of lithium carbonate equivalent, marking a strategic advancement in Galan’s operational capabilities and positioning in the lithium market.

The most recent analyst rating on (AU:GLN) stock is a Buy with a A$0.30 price target. To see the full list of analyst forecasts on Galan Lithium Limited stock, see the AU:GLN Stock Forecast page.

Galan Lithium Director Increases Shareholding
Nov 27, 2025

Galan Lithium Limited announced a change in the director’s interest, specifically for Juan Pablo Vargas de la Vega, who has increased his direct holding of fully paid ordinary shares by 678,618 shares. This change was due to the vesting and exercise of STI performance rights, which were previously approved by shareholders. The increase in shareholding reflects confidence in the company’s strategic direction and potential growth, which may positively influence stakeholder perceptions and market positioning.

The most recent analyst rating on (AU:GLN) stock is a Buy with a A$0.41 price target. To see the full list of analyst forecasts on Galan Lithium Limited stock, see the AU:GLN Stock Forecast page.

Galan Lithium Expands Share Base with New Issuance
Nov 27, 2025

Galan Lithium Limited has issued 1,325,873 fully paid ordinary shares following the exercise of executive performance rights. This issuance, conducted without disclosure under the Corporations Act, is exempt from on-sale restrictions, allowing the shares to be traded freely. This move signifies Galan’s compliance with regulatory requirements and potentially enhances its market liquidity, reflecting its strategic efforts to strengthen its position in the lithium market.

The most recent analyst rating on (AU:GLN) stock is a Buy with a A$0.41 price target. To see the full list of analyst forecasts on Galan Lithium Limited stock, see the AU:GLN Stock Forecast page.

Galan Lithium Secures Shareholder Approval for Key Resolutions at AGM
Nov 17, 2025

Galan Lithium Limited announced that all resolutions proposed at its Annual General Meeting were approved by shareholders. The successful resolutions include the adoption of the remuneration report, re-election of directors, approval of placement capacity, and the securities incentive plan, among others. This outcome reflects strong shareholder support and is likely to enhance the company’s governance and operational capabilities, potentially strengthening its position in the lithium market.

The most recent analyst rating on (AU:GLN) stock is a Buy with a A$0.41 price target. To see the full list of analyst forecasts on Galan Lithium Limited stock, see the AU:GLN Stock Forecast page.

Galan Lithium Aims for Low-Cost Leadership in Lithium Production
Nov 13, 2025

Galan Lithium Limited has announced its participation in the Noosa Mining Conference, highlighting its strategic positioning as a low-cost lithium producer. With a robust capital structure and experienced leadership, the company aims to leverage its South American expertise to strengthen its market position, potentially impacting stakeholders positively by enhancing its operational capabilities and market reach.

The most recent analyst rating on (AU:GLN) stock is a Buy with a A$0.41 price target. To see the full list of analyst forecasts on Galan Lithium Limited stock, see the AU:GLN Stock Forecast page.

Galan Lithium Issues New Shares to Boost Market Presence
Nov 5, 2025

Galan Lithium Limited has issued 90,909,091 fully paid ordinary shares under a subscription agreement, as announced on 5 November 2025. This issuance is exempt from disclosure requirements under the Corporations Act 2001, allowing the shares to be traded freely. The company has complied with all relevant legal provisions, and there is no additional undisclosed information that investors would expect to find in a disclosure document. This move is likely to impact the company’s liquidity and market presence positively, enhancing its ability to capitalize on the growing demand for lithium in the energy sector.

The most recent analyst rating on (AU:GLN) stock is a Buy with a A$0.41 price target. To see the full list of analyst forecasts on Galan Lithium Limited stock, see the AU:GLN Stock Forecast page.

Galan Lithium Limited Announces Quotation of New Securities on ASX
Nov 5, 2025

Galan Lithium Limited has announced the quotation of 90,909,091 fully paid ordinary securities on the Australian Securities Exchange (ASX) as part of a previously announced transaction. This move is expected to enhance the company’s capital structure and potentially strengthen its position in the lithium market, offering implications for stakeholders interested in the growing demand for lithium in renewable energy applications.

The most recent analyst rating on (AU:GLN) stock is a Buy with a A$0.41 price target. To see the full list of analyst forecasts on Galan Lithium Limited stock, see the AU:GLN Stock Forecast page.

Galan Lithium Secures Final Tranche of Strategic Investment for Argentine Project
Nov 4, 2025

Galan Lithium Limited has completed the final A$10 million tranche of a strategic A$20 million investment from the Clean Elements Fund, securing funding for the construction of Phase 1 of its Hombre Muerto West lithium brine project in Argentina. This investment positions Galan as a leading ASX-listed lithium developer moving towards production, with the first lithium chloride production expected in the first half of 2026. The partnership with Clean Elements is seen as a long-term relationship, with Clean Elements’ Chairman, Ofer Amir, joining Galan’s Board as a Non-Executive Director, bringing extensive experience in international capital markets to support Galan’s future growth phases.

The most recent analyst rating on (AU:GLN) stock is a Buy with a A$0.41 price target. To see the full list of analyst forecasts on Galan Lithium Limited stock, see the AU:GLN Stock Forecast page.

Galan Lithium Advances HMW Project with Funding and Government Support
Oct 31, 2025

Galan Lithium Limited has announced significant progress in its Hombre Muerto West (HMW) lithium brine project in Argentina. The company has secured $20 million in funding from the Clean Elements Fund and received approval for the RIGI incentive regime from the Argentine Government, ensuring fiscal stability and supporting the completion of Phase 1 construction. These developments position Galan as a competitive player in the lithium industry, with plans to begin production in the first half of 2026.

The most recent analyst rating on (AU:GLN) stock is a Buy with a A$0.41 price target. To see the full list of analyst forecasts on Galan Lithium Limited stock, see the AU:GLN Stock Forecast page.

Galan Lithium Expands Greenbushes South Tenure with Strategic Licenses
Oct 20, 2025

Galan Lithium Limited has secured exploration and prospecting licenses for the Greenbushes South area, strategically expanding its tenure over a key mineralising fault zone near the world-class Greenbushes lithium deposit. This acquisition provides Galan with significant opportunities to explore and potentially enhance its lithium resources in Australia, complementing its ongoing projects in Argentina. The move is expected to strengthen Galan’s position in the lithium market and offer new prospects for stakeholders.

The most recent analyst rating on (AU:GLN) stock is a Buy with a A$0.41 price target. To see the full list of analyst forecasts on Galan Lithium Limited stock, see the AU:GLN Stock Forecast page.

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.Date of analysis: Jan 04, 2026