Lion Energy Limited (LIO) AI Stock Analysis

• Market Cap: AU$7.23M
• Dividend Yield: N/A
• Average Volume (3M): 205.91K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.90
• Revenue Growth: -47.23%
• EPS Growth: -2.78%
• Country: AU
• Employees: 85
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): >-0.01
• Shares Outstanding: 452,167,720
• 10 Day Avg. Volume: 80,260
• 30 Day Avg. Volume: 205,915
• PEG Ratio: 0.15
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 9.86
• P/FCF Ratio: -1.73
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: AU$0.02 ▼(-20.00% Downside)

The score is held down primarily by weak financial performance (ongoing losses, falling revenue, and sustained cash burn). Technicals are a relative bright spot with price trading above major moving averages and positive momentum, while valuation is constrained by negative earnings and the absence of a dividend yield.

Positive Factors

Manageable Leverage

Low reported debt-to-equity (~0.20 in 2024) reduces near-term refinancing pressure and gives the company balance-sheet flexibility. This durable advantage lowers solvency risk and supports continuing exploration or partnership activity while other weaknesses are addressed.

Positive Gross Margin

A positive gross margin (~31% in 2024) indicates underlying project-level economics can be profitable. If the firm controls operating and overhead costs, this structural margin provides a pathway to operating leverage and eventual profitability as revenues stabilize or recover.

Focused Energy Strategy

Concentration on hydrocarbons and related energy opportunities gives the company strategic clarity and sector-specific expertise. Over the medium term this positioning supports targeted asset acquisition, partner deals and operational focus aligned with enduring energy demand dynamics.

Negative Factors

Persistent Cash Burn

Sustained negative operating and free cash flow forces reliance on external capital, dilution or asset sales. This undermines the company's ability to fund exploration/development, raises funding risk over the next several months, and can erode strategic optionality if unresolved.

Declining Revenue and Ongoing Losses

Falling revenue alongside recurring net losses indicates the core business is contracting rather than scaling. Without a credible, durable recovery in sales or material cost restructuring, profitability metrics will remain weak and reduce capacity for reinvestment or debt repayment.

Eroding Equity and Negative ROE

Material decline in equity and a negative ROE reflect accumulated losses and potential dilution pressure. This erosion of shareholder capital increases vulnerability to shocks, makes future fundraising more dilutive or costly, and can force asset disposals to shore up liquidity.

Lion Energy Limited Business Overview & Revenue Model

Company Description

Lion Energy Limited (LIO) is an energy company primarily focused on the exploration and development of oil and gas resources. It operates within the energy sector, with a focus on identifying and developing key energy assets in its portfolio to maximize shareholder value. The company engages in activities related to the exploration, production, and sale of oil and gas products.

How the Company Makes Money

Lion Energy Limited generates revenue through its exploration and production activities in the oil and gas industry. The company earns money by discovering and developing oil and gas reserves, which are then extracted and sold to various markets. Revenue streams include the sale of crude oil, natural gas, and related hydrocarbons. The company's financial performance is influenced by factors such as global oil prices, production costs, and the successful development and management of its energy assets. Strategic partnerships and joint ventures may also play a role in enhancing its revenue-generating capabilities, although specific partnerships are not detailed.

Lion Energy Limited Financial Statement Overview

Summary

Lion Energy Limited is facing significant financial challenges with declining revenues, negative profitability, and poor cash flow generation. The company's equity ratio is strong, but it needs operational improvements to enhance financial health and stability.

Income Statement

Lion Energy Limited has experienced declining revenues over the years, with the latest year's revenue decreasing significantly from the previous year. The company has consistently posted negative EBIT and net income, indicating operational challenges and lack of profitability. The gross profit margin is low, further highlighting cost management issues.

Balance Sheet

The company's balance sheet shows a strong equity base compared to its total assets, but the high net losses have impacted overall equity negatively. Debt levels remain manageable with no significant increase, but the company needs to improve its profitability to strengthen its financial position.

Cash Flow

Lion Energy's cash flow situation is concerning, with negative operating and free cash flows, indicating that the company is not generating sufficient cash from its operations. The free cash flow has also shown negative growth, which could pose liquidity challenges in the future if not addressed.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	297.06K	522.39K	610.23K	1.58M	885.89K	1.36M
Gross Profit	-235.62K	162.98K	249.12K	929.47K	447.29K	519.37K
EBITDA	-1.32M	-1.86M	-2.10M	-2.08M	-1.08M	-405.61K
Net Income	-1.67M	-868.00K	-1.41M	-2.72M	-2.44M	-1.08M
Balance Sheet
Total Assets	11.61M	8.15M	11.95M	13.79M	13.83M	2.73M
Cash, Cash Equivalents and Short-Term Investments	2.17M	1.95M	3.02M	9.60M	11.94M	857.41K
Total Debt	2.14M	1.48M	0.00	0.00	1.88M	0.00
Total Liabilities	2.85M	1.70M	1.61M	1.85M	2.58M	589.34K
Stockholders Equity	8.76M	6.45M	10.33M	11.94M	11.25M	2.15M
Cash Flow
Free Cash Flow	-3.14M	-2.98M	-6.54M	-2.58M	-1.07M	-1.88M
Operating Cash Flow	-2.18M	-1.25M	-1.89M	-908.32K	-717.34K	-549.97K
Investing Cash Flow	2.39M	351.13K	-4.77M	-1.67M	-56.80K	-893.01K
Financing Cash Flow	-198.16K	997.04K	0.00	129.94K	11.66M	0.00

Lion Energy Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.02
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:LIO, the sentiment is Positive. The current price of 0.02 is above the 20-day moving average (MA) of 0.01, above the 50-day MA of 0.01, and above the 200-day MA of 0.01, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 64.49 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:LIO.

Lion Energy Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
SHE	51 Neutral	AU$4.79M	―	-9.49%	―	-16.79%	-205.26%
LIO	49 Neutral	AU$7.23M	-4.32	-16.03%	―	-47.23%	-2.78%
TEG	44 Neutral	AU$6.60M	―	―	―	―	―
ICN	43 Neutral	AU$4.61M	-7.69	―	―	―	13.33%
GLL	43 Neutral	AU$6.29M	-1.72	-1481.88%	―	―	36.96%

Lion Energy Limited Corporate Events

Lion Energy Secures OPIC Funding for High-Impact East Seram Exploration Well

Lion Energy has secured majority funding for the planned Bula Karang exploration well in Indonesia’s East Seram Production Sharing Contract through a farm-out agreement with its existing partner OPIC East Seram Corporation, a subsidiary of Taiwan’s CPC Corporation. Under the deal, OPIC will fund 88% of the estimated US$5.6 million drilling cost in return for an additional 15% participating interest, leaving Lion with a 45% stake in the PSC and a net funding obligation of about US$0.7 million, supported by proceeds from its recent Seram Non-Bula divestment. The shallow Bula Karang prospect, which carries a P50 prospective resource estimate of 12 million barrels of oil and can be drilled from onshore to an offshore target near existing producing fields and infrastructure, is scheduled to spud in the second quarter of 2026 and is designed for early production in the event of success, potentially extending the PSC term by 20 years and materially enhancing Lion’s growth prospects while limiting its financial exposure.

The most recent analyst rating on (AU:LIO) stock is a Hold with a A$0.01 price target. To see the full list of analyst forecasts on Lion Energy Limited stock, see the AU:LIO Stock Forecast page.

Lion Energy Limited Announces Cessation of Convertible Notes

Lion Energy Limited announced the cessation of 1,600,000 convertible notes due to repayment or redemption without conversion. This move may impact the company’s financial structure by reducing its convertible debt obligations, potentially influencing its market positioning and stakeholder interests.

Lion Energy Extends Maturity of $1.6 Million Convertible Notes

Lion Energy Limited has announced the successful extension of the maturity date for its $1.6 million Convertible Notes, originally issued in May 2024, by one year to 31 December 2026. This strategic move involves issuing new notes to current holders and redeeming existing ones at face value, potentially impacting the company’s financial flexibility and stakeholder interests positively.

Lion Energy Advances Hydrogen and Drilling Projects, Sells Oil Interest

Lion Energy Limited reported significant developments in Q3 2025, including progress on its Port of Brisbane Green Hydrogen Project, where it plans to apply for grant funding from ARENA to advance the project. The company is also making strides in its East Seram PSC with finalized commercial terms for drilling and strategic personnel hires. Additionally, Lion announced the strategic sale of a 2.5% interest in the Seram (Non-Bula) PSC, reducing its exposure to exploration liabilities while retaining interest in the Lofin Gas Field.

Lion Energy Limited Reports Quarterly Cash Flow with Strategic Asset Management

Lion Energy Limited reported its quarterly cash flow, highlighting a net cash outflow from operating activities amounting to $496,000 for the current quarter. Despite this, the company saw a positive net cash flow from investing activities of $824,000, primarily due to proceeds from the disposal of entities. This financial update indicates a strategic focus on optimizing cash flow through asset management, which could impact its operational capabilities and stakeholder interests.