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Lithium Energy Ltd. (AU:LEL)
ASX:LEL
Australian Market

Lithium Energy Ltd. (LEL) AI Stock Analysis

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AU:LEL

Lithium Energy Ltd.

(Sydney:LEL)

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Neutral 43 (OpenAI - 5.2)
Rating:43Neutral
Price Target:
AU$0.36
▼(-3.51% Downside)
The score is primarily weighed down by weak financial performance (no revenue, ongoing losses and cash burn, and a sharp increase in debt in 2025). Technicals add modest support but are largely neutral with overextended momentum signals, while valuation remains constrained by a negative P/E and lack of dividend yield.
Positive Factors
Strategic Resource Expansion
The completion of Phase 1 drilling and the planned Phase 2 campaign aim to expand the graphite resource base, crucial for long-term growth, especially with new Chinese export controls highlighting the need for alternative graphite supplies.
Strengthened Financial Position
The early sale of the Solaroz project enhances the company's financial position, providing liquidity to support ongoing operations and strategic initiatives, reducing reliance on external financing.
High-Grade Gold Potential
The confirmation of high-grade gold potential at Mt Usher positions it as a high-priority exploration target, potentially diversifying revenue streams and enhancing long-term resource value.
Negative Factors
Persistent Losses
Ongoing losses without revenue generation indicate a structurally weak profitability profile, limiting the ability to self-fund growth and necessitating continued reliance on external capital.
Increased Leverage
Rising debt levels elevate financial risk and could constrain future operational flexibility, impacting the company's ability to invest in growth opportunities without additional equity dilution.
Negative Cash Flow
Consistently negative cash flow highlights ongoing cash burn, underscoring the need for external funding to sustain operations and potentially limiting strategic investments.

Lithium Energy Ltd. (LEL) vs. iShares MSCI Australia ETF (EWA)

Lithium Energy Ltd. Business Overview & Revenue Model

Company DescriptionLithium Energy Limited, a battery minerals company, engages in the exploration, evaluation, and development of lithium and graphite mineral properties in Australia and Argentina. Its flagship projects are the Solaroz Lithium Brine project that consists of 8 mineral concessions covering an area of approximately 12,000 hectares located in Argentina; and the Burke Graphite project, which consists of 2 exploration permits covering an area of approximately 26 square kilometres located in the Cloncurry region in North Central Queensland, Australia. The company was incorporated in 2021 and is headquartered in West Perth, Australia.
How the Company Makes MoneyLithium Energy Ltd. generates revenue primarily through the sale of lithium products extracted from its mining operations. The company's key revenue streams include the direct sale of lithium concentrate to battery manufacturers and other industrial clients. Additionally, LEL may engage in strategic partnerships and joint ventures with technology companies and automotive manufacturers seeking a stable supply of lithium for their products. The company benefits from the increasing global demand for lithium-ion batteries, driven by the growth of the electric vehicle market and the expansion of renewable energy storage capacities. Market trends, commodity pricing, and supply agreements are significant factors contributing to LEL's earnings.

Lithium Energy Ltd. Financial Statement Overview

Summary
Financials reflect a pre-revenue profile with persistent losses and ongoing cash burn. Operating cash flow and free cash flow are negative each year (FCF about -7.9M in 2025), and leverage increased sharply with total debt rising to ~19.7M in 2025, elevating financial risk despite still-meaningful equity (~24.1M).
Income Statement
8
Very Negative
The company reports no revenue across 2021–2025, while losses remain material and volatile. Net loss widened in 2025 (annual) to about -6.0M from -5.0M in 2024, after an improvement from a much larger loss in 2023 (about -11.6M). Profitability is structurally weak given the lack of sales and consistently negative operating results, though the reduced loss versus 2023 is a modest positive.
Balance Sheet
32
Negative
Equity remains sizable (about 24.1M in 2025), which provides some balance-sheet support, but leverage increased sharply: total debt rose to ~19.7M in 2025 from near-zero levels in prior years, lifting debt relative to equity to ~0.82. Return on equity is consistently negative, reflecting ongoing losses and limiting the ability to compound book value without additional funding.
Cash Flow
14
Very Negative
Cash generation is weak with operating cash flow negative every year, including about -5.2M in 2025 (annual) and -4.6M in 2024. Free cash flow is also consistently negative (about -7.9M in 2025 vs. -9.9M in 2024), showing ongoing cash burn; the smaller cash outflow in 2025 is a relative improvement. While free cash flow is less negative than net income in 2025, the business still depends on external financing to fund operations and investment.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue0.000.000.000.000.000.00
Gross Profit-5.81K-9.68K0.00-11.22K-3.12K-77.00
EBITDA-805.00-2.81M-4.03M-12.06M-2.30M-1.17M
Net Income-1.65K-6.01M-5.03M-11.62M-2.31M-1.13M
Balance Sheet
Total Assets78.42M78.42M32.55M33.32M14.25M15.19M
Cash, Cash Equivalents and Short-Term Investments43.30M43.30M3.52M9.44M6.67M7.99M
Total Debt19.69M19.69M51.00K0.000.000.00
Total Liabilities55.04M55.04M3.23M1.20M166.81K187.62K
Stockholders Equity24.14M24.14M29.18M32.57M14.09M15.00M
Cash Flow
Free Cash Flow-4.82K-7.93M-9.93M-11.49M-1.42M-414.58K
Operating Cash Flow-3.45K-5.19M-4.61M-3.59M-1.40M-384.88K
Investing Cash Flow43.02M43.27M-2.39M-13.89M-6.88K-1.26M
Financing Cash Flow768.35K701.35K1.19M19.92M-20.53K9.54M

Lithium Energy Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.37
Price Trends
50DMA
0.37
Positive
100DMA
0.37
Positive
200DMA
0.37
Positive
Market Momentum
MACD
<0.01
Neutral
RSI
100.00
Negative
STOCH
90.91
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:LEL, the sentiment is Neutral. The current price of 0.37 is below the 20-day moving average (MA) of 0.37, above the 50-day MA of 0.37, and above the 200-day MA of 0.37, indicating a neutral trend. The MACD of <0.01 indicates Neutral momentum. The RSI at 100.00 is Negative, neither overbought nor oversold. The STOCH value of 90.91 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:LEL.

Lithium Energy Ltd. 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%
52
Neutral
AU$141.34M-36.39-2.30%12.50%
47
Neutral
AU$22.71M-3.24-83.91%2.92%61.36%
47
Neutral
AU$154.92M-4.69-32.57%-100.00%-477.06%
45
Neutral
AU$123.19M-0.77-200.54%-620.20%
45
Neutral
AU$44.64M-33.3396.00%
43
Neutral
AU$41.44M-6.89-13.86%-12.34%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:LEL
Lithium Energy Ltd.
0.37
0.00
0.00%
AU:LIT
Lithium Australia NL
0.01
>-0.01
-31.25%
AU:GL1
Global Lithium Resources Ltd.
0.54
0.32
143.18%
AU:RML
Resolution Minerals Ltd.
0.06
0.04
400.00%
AU:WR1
Winsome Resources Limited
0.63
0.15
30.21%
AU:PL9
Arizona Lithium Limited
0.01
0.00
0.00%

Lithium Energy Ltd. Corporate Events

Lithium Energy Completes Phase 1 Drilling at High-Grade Burke and Mt Dromedary Graphite Deposits
Dec 22, 2025

Lithium Energy Limited has completed Phase 1 of its resource drilling program at the Burke and Mt Dromedary graphite deposits in Queensland, where all holes intersected graphitic schist and samples from the initial seven reverse circulation holes have been sent for assay, with results expected in January. The company will move immediately into a larger Phase 2 campaign in early January, targeting 23 RC and four diamond holes between and around the Burke and Mt Dromedary deposits, aiming to expand its already substantial high-grade graphite resource base at a time when new Chinese export controls on graphite battery anode material underscore the strategic importance of alternative non-Chinese graphite supply for global battery markets.

Lithium Energy Completes Early Sale of Solaroz Project
Dec 15, 2025

Lithium Energy Limited has completed the early sale of its remaining interest in the Solaroz Lithium Brine Project in Argentina to CNGR Netherlands New Energy Technology B.V., receiving US$21.7 million. This transaction, initially scheduled for January 2026, was finalized in December 2025, strengthening the company’s financial position. Additionally, a deferred consideration may be received if lithium prices exceed a certain threshold, indicating potential future financial benefits.

Lithium Energy Confirms High-Grade Gold Potential at Mt Usher
Dec 12, 2025

Lithium Energy Limited has announced the results of re-assaying historical rock chip samples from the Mt Usher site within the Capricorn Gold-Copper Belt Project, confirming significant high-grade gold potential. The re-assay results revealed elevated levels of gold, silver, and base metals, suggesting a base metal-gold-telluride system associated with a quartz-feldspar porphyry system. With the recent granting of the Mt Usher Mineral Development Lease, the company plans to commence on-ground exploration activities to further define and extend the known gold mineralization, positioning Mt Usher as a high-priority exploration target.

Lithium Energy Launches New Drilling Phase at Solaroz Project
Dec 3, 2025

Lithium Energy Limited has commenced the next phase of drilling at its Solaroz Lithium Brine Project in Argentina, which is fully funded by CNGR Netherlands New Energy Technology B.V. This phase involves drilling three rotary and one diamond hole, totaling approximately 2,000 meters, to further explore lithium brine resources and confirm industrial water availability. The drilling program is part of a strategic move as CNGR Netherlands is set to acquire the remaining interest in Solaroz, potentially impacting the company’s operations and its positioning in the lithium market.

Lithium Energy Ltd. Announces Cessation of 400,000 Options
Dec 1, 2025

Lithium Energy Ltd. announced the cessation of 400,000 options expiring on November 30, 2025, due to the expiry of options without exercise or conversion. This announcement reflects a routine adjustment in the company’s issued capital and may have implications for stakeholders regarding the company’s financial structuring and market positioning.

Lithium Energy Begins Infill Drilling to Consolidate Queensland Graphite Deposits
Dec 1, 2025

Lithium Energy Limited has initiated an infill drilling program at its Burke Graphite Project in Queensland, aiming to consolidate the Burke and Mt Dromedary Graphite Deposits into a unified high-grade mineral resource. This effort is in response to new Chinese export controls on graphite battery anode material, highlighting the strategic importance of developing alternative graphite supply sources.

Lithium Energy Limited Announces Successful AGM Outcomes
Nov 27, 2025

Lithium Energy Limited announced the successful outcomes of its 2025 Annual General Meeting, where all resolutions were passed by a significant majority. Key resolutions included the adoption of the Remuneration Report, approval of the Employee Awards Plan, and the re-election and election of directors, indicating strong shareholder support and stability in the company’s governance.

Lithium Energy Limited Announces Change of Business Address
Nov 17, 2025

Lithium Energy Limited has announced a change in its registered office and principal place of business to a new address in Perth, Western Australia, effective from November 18, 2025. This relocation is part of the company’s ongoing operational adjustments, potentially enhancing its strategic positioning and operational efficiency within the energy sector.

Lithium Energy Ltd Advances Resource Projects Amid ASX Suspension
Oct 29, 2025

Lithium Energy Ltd has been suspended from trading on the ASX following the disposal of its main undertaking and is working towards reinstatement by advancing its resource projects. The company has secured new projects and is enhancing its technical capacity, aiming to demonstrate sufficient operational scale. Key developments include the acquisition of the Capricorn Gold-Copper Belt Project, where significant geophysical surveys and drilling are planned, and the Mt Dromedary Graphite Project, where resource development drilling is underway. Additionally, promising survey results at the White Plains Lithium Brine Project in Utah indicate potential lithium-bearing formations, which could significantly impact the company’s resource portfolio.

Lithium Energy Ltd. Releases 2025 Corporate Governance Statement
Oct 27, 2025

Lithium Energy Ltd. has released its Corporate Governance Statement for the financial year ending June 30, 2025, which is accessible on their website. The statement outlines the company’s adherence to the ASX Corporate Governance Council’s recommendations, highlighting its commitment to transparency and accountability in its management and oversight practices.

Lithium Energy Limited Releases 2025 Corporate Governance Statement
Oct 27, 2025

Lithium Energy Limited has released its Corporate Governance Statement for the 2024/2025 financial year, outlining its adherence to the ASX Corporate Governance Principles and Recommendations. The company emphasizes its commitment to transparency, ethical standards, and stakeholder interests, while acknowledging some deviations from the ASX guidelines. The Board of Directors is responsible for overseeing the company’s strategic direction, financial performance, risk management, and compliance with legal obligations, ensuring the highest standards of corporate governance are maintained.

Lithium Energy Limited Announces 2025 Annual General Meeting
Oct 16, 2025

Lithium Energy Limited has announced its Annual General Meeting (AGM) for shareholders, scheduled for November 27, 2025, in West Perth, Australia. The company has outlined the communication methods for distributing the AGM notice and annual report, encouraging shareholders to update their communication preferences and vote by proxy if unable to attend. This meeting is a key event for stakeholders to engage with the company’s strategic direction and governance.

Lithium Energy Limited Announces 2025 Annual General Meeting
Oct 16, 2025

Lithium Energy Limited has announced its Annual General Meeting (AGM) scheduled for November 27, 2025, in West Perth, Western Australia. The meeting will address the 2025 Annual Report and include resolutions such as the adoption of the Remuneration Report. This AGM is significant as it provides shareholders the opportunity to review the company’s financial performance and governance practices, potentially influencing future strategic decisions.

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: Dec 30, 2025