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Lithium Australia NL (AU:LIT)
ASX:LIT

Lithium Australia NL (LIT) AI Stock Analysis

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AU

Lithium Australia NL

(Sydney:LIT)

Rating:34Underperform
Price Target:
Lithium Australia NL is currently facing significant financial challenges, with operational losses and a high debt burden being the key concerns. The stock's technical indicators suggest a bearish trend, and the valuation metrics are unattractive due to negative profitability. Immediate improvements in financial health and operational efficiency are required to enhance its stock performance.

Lithium Australia NL (LIT) vs. iShares MSCI Australia ETF (EWA)

Lithium Australia NL Business Overview & Revenue Model

Company DescriptionLithium Australia Limited, together with its subsidiaries, primarily engages in the mineral exploration and technology development activities. It operates through Battery Recycling, Battery Materials, Chemicals, and Raw Materials segments. The company researches and develops processing technologies for mixed-battery recycling, as well as sells recovered energy metals; and researches, develops, and produces battery materials, including lithium ferro phosphate, as well as sells battery energy storage systems. It also researches and develops a suite of extraction and refining technologies for the recovery of lithium chemicals from various materials, including lithium micas and spodumene; and offers end of life solutions for batteries. In addition, the company develops cathode active materials for e-mobility and energy storage applications; and processes lithium chemicals. Lithium Australia Limited was incorporated in 2007 and is based in West Perth, Australia.
How the Company Makes MoneyLithium Australia NL makes money through several key revenue streams. Primarily, the company generates revenue by developing proprietary lithium extraction technologies, which it licenses to partners in the mining and battery sectors. Additionally, the company engages in direct mining operations, extracting lithium from its various mining projects and selling the raw materials to battery manufacturers and other industrial clients. Strategic partnerships with technology firms and battery producers also play a significant role in the company's earnings, as these collaborations often result in technology sales, joint ventures, and shared revenue from lithium production. By focusing on improving lithium recovery rates and reducing production costs, Lithium Australia enhances its profitability and competitive standing in the market.

Lithium Australia NL Financial Statement Overview

Summary
Lithium Australia NL faces financial challenges across its income statement, balance sheet, and cash flow. While revenue growth is a positive sign, operational losses and high debt levels raise concerns. The company needs to focus on improving profitability and stabilizing its financial position to ensure sustainable growth.
Income Statement
25
Negative
Lithium Australia NL shows a mixed income statement performance. The company experienced significant revenue growth from 2023 to 2024, but the gross profit margin remains weak. The net profit margin is negative, reflecting ongoing losses, and both EBIT and EBITDA margins are deeply negative, indicating operational challenges.
Balance Sheet
35
Negative
The balance sheet reveals a concerning debt-to-equity ratio, as the company's debts are substantial compared to its equity. Stockholders' equity has declined significantly over the years, reducing the equity ratio. However, the return on equity is negative due to persistent net losses.
Cash Flow
30
Negative
Cash flow analysis indicates ongoing negative free cash flow, which limits internal funding capabilities. The operating cash flow to net income ratio suggests operational inefficiencies, and free cash flow growth is absent, pointing to cash management issues.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
7.89M6.71M5.49M2.94M1.18M374.38K
Gross Profit
4.29M2.22M-9.75M-12.58M-9.31M-6.99M
EBIT
-13.50M-14.16M-12.30M-17.09M-17.50M-9.86M
EBITDA
-14.17M-9.27M-4.13M-17.41M-18.46M-7.87M
Net Income Common Stockholders
-9.93M-10.77M-7.24M-20.63M-19.86M-8.53M
Balance SheetCash, Cash Equivalents and Short-Term Investments
6.01M5.92M15.61M5.87M11.60M4.25M
Total Assets
20.68M18.48M25.08M21.93M32.55M27.92M
Total Debt
5.67M4.21M1.29M1.77M793.53K1.04M
Net Debt
580.25K-543.80K-7.76M-3.07M-10.58M-2.70M
Total Liabilities
17.64M15.11M7.72M10.71M8.95M3.34M
Stockholders Equity
3.04M4.16M18.17M11.85M24.98M24.70M
Cash FlowFree Cash Flow
-4.24M-10.12M-10.29M-12.70M-6.44M-5.38M
Operating Cash Flow
-3.70M-6.12M-8.61M-9.82M-4.72M-4.46M
Investing Cash Flow
-1.92M-759.79K1.21M-2.53M-1.71M-1.82M
Financing Cash Flow
5.74M2.56M11.60M5.81M14.10M7.30M

Lithium Australia NL Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.01
Price Trends
50DMA
0.01
Negative
100DMA
0.02
Negative
200DMA
0.02
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
31.77
Neutral
STOCH
100.00
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:LIT, the sentiment is Negative. The current price of 0.01 is below the 20-day moving average (MA) of 0.01, below the 50-day MA of 0.01, and below the 200-day MA of 0.02, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 31.77 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:LIT.

Lithium Australia NL Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
51
Neutral
$2.01B-1.11-21.16%3.67%2.69%-30.65%
AULIT
34
Underperform
$15.21M-141.00%37.21%4.76%
$2.37B22.94-1.04%
$108.62M-21.25%
$120.02M-17.81%
$1.86B1,408.33-36.53%6.27%
$2.47B43.31-33.95%4.54%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:LIT
Lithium Australia NL
0.01
-0.02
-60.00%
PILBF
Pilbara Minerals
0.78
-1.71
-68.67%
CXOXF
Core Lithium Ltd
0.05
-0.04
-44.44%
SYAXF
Sayona Mining
0.01
-0.02
-66.67%
IPGDF
IGO
2.60
-2.09
-44.56%
MALRF
Mineral Resources Limited
15.50
-30.72
-66.46%

Lithium Australia NL Corporate Events

Livium Ltd Updates Securities Trading Policy to Enhance Governance
Jun 4, 2025

Livium Ltd has announced a revision of its Securities Trading Policy, which will be accessible on their website. This update reflects the company’s commitment to maintaining robust corporate governance practices. The revision is likely to impact stakeholders by ensuring compliance with ASX regulations, potentially enhancing investor confidence and operational transparency.

Livium CEO Appointed President of Battery Recycling Industry Association
May 29, 2025

Livium Ltd announced that its CEO, Simon Linge, has been appointed as President of the Association for the Battery Recycling Industry (ABRI), the peak body for battery recycling in Australia. This strategic appointment is expected to enhance Livium’s influence in shaping industry standards and policies, promoting sustainable practices, and driving investment in the battery recycling sector. Linge’s leadership at ABRI will align with Livium’s goals of delivering sustainable recycling solutions and supporting the decarbonization of battery-intensive sectors, potentially creating long-term value for the company and its stakeholders.

NoviqTech and Livium Partner to Tokenize Battery Recycling Benefits
May 28, 2025

NoviqTech and Livium have announced a partnership to tokenize the environmental benefits of Livium’s battery recycling operations using NoviqTech’s Carbon Central platform. This collaboration aims to enhance the tracking and verification of carbon reductions and mineral circularity, supporting compliance with global regulations. The initiative positions Livium to align with emerging battery passport standards and regulations, as they plan to expand operations nationally. The use of Hedera’s distributed ledger ensures the credibility and traceability of environmental assets, creating commercial value through trusted environmental disclosures.

NoviqTech and Livium Partner to Tokenize Battery Recycling Benefits
May 28, 2025

NoviqTech and Livium have announced a partnership to tokenize the environmental benefits of Livium’s battery recycling operations using NoviqTech’s Carbon Central platform. This collaboration aims to create a digital framework for tracking carbon reductions and mineral circularity, leveraging Digital Twin technology to enhance transparency and compliance with global regulations. The initiative supports Livium’s expansion plans and positions it to meet evolving standards in battery recycling and sustainability reporting.

Livium Expands Battery Recycling Agreement with BYD Australia
May 12, 2025

Livium has expanded its recycling agreement with BYD Australia, a subsidiary of BYD Company Limited, to include a broader range of battery products such as commercial vehicle batteries and battery energy storage systems. This new agreement, effective from May 2025 for an initial three-year term, positions Livium as a preferred recycling partner and supports its strategy to secure long-term contracts and diversify its battery sources. The collaboration is set to enhance Livium’s industry positioning and potentially extend its services beyond Australia to New Zealand and the Pacific Islands, aiming to strengthen regional environmental outcomes.

Livium Ltd Announces Quotation of New Securities on ASX
Apr 28, 2025

Livium Ltd has announced the application for quotation of 410,000,001 securities on the Australian Securities Exchange (ASX), with the securities set to expire on April 28, 2028. This move is part of a previously announced transaction, and the issuance of these securities could potentially enhance Livium Ltd’s market presence and provide additional liquidity for stakeholders.

Livium Ltd Issues New Options to Boost Market Position
Apr 28, 2025

Livium Ltd has announced the issuance of 410,000,001 options, exercisable at $0.02 and expiring on 28 April 2028, following shareholder approval. These options, under the new class of quoted securities (ASX: LITOC), are expected to commence trading on the ASX from 30 April 2025. This move is part of Livium’s strategy to strengthen its market position and capitalize on the increasing demand for lithium-ion batteries, aligning with its focus on sustainable lithium production and recycling.

Livium Ltd Secures Major Recycling Agreement and ARENA Grant
Apr 28, 2025

Livium Ltd has secured a significant battery recycling agreement with Sell & Parker valued at over A$5.0 million, expected to generate A$3.0 million in revenue over the next year. Additionally, the company has executed a binding agreement with the Australian Renewable Energy Agency for a grant of up to A$30 million to fund the construction and operation of a lithium ferro phosphate demonstration plant. This funding and strategic agreements position Livium to enhance its market presence and operational profitability, with expectations of securing further contracts and expanding its customer base.

Livium Secures Landmark Recycling Agreement with Sell & Parker
Apr 23, 2025

Livium has secured a significant recycling agreement with Sell & Parker, valued at over A$5.0 million, marking its largest recycling contract to date. This three-year agreement, expected to generate A$3.0 million in revenue over the next 12 months, will enhance Livium’s market position and profitability without increasing operating costs, as it processes materials containing embedded batteries for Sell & Parker, a longstanding customer.

Livium Ltd Announces Target Market Determination for Share Options
Apr 22, 2025

Livium Ltd, trading on the ASX under the code LIT, has announced a Target Market Determination for options to acquire fully-paid ordinary shares in the company. These options are exercisable at $0.02 and expire three years from the issue date. The options are part of a broader placement strategy to raise approximately $4.5 million. The company aims to offer these options to placement participants and a lead manager, Copeak Pty Ltd, as part of its capital raising efforts. This move is expected to enhance Livium Ltd’s financial positioning and provide opportunities for investors to participate in the company’s growth.

Livium Ltd Applies for Quotation of New Securities on ASX
Apr 17, 2025

Livium Ltd has announced the application for quotation of 1,928,754 fully paid ordinary securities on the Australian Securities Exchange (ASX) under the code LIT. This move is part of previously announced transactions and could potentially enhance the company’s market presence and liquidity, offering stakeholders increased opportunities for investment and growth.

Livium Ltd Issues Over 11 Million New Shares to Bolster Financial Position
Apr 17, 2025

Livium Ltd has issued 11,928,754 ordinary shares following shareholder approval at its General Meeting. This issuance includes 1,928,754 Placement Shares and 10,000,000 Capital Raise Fee Shares, bringing the total number of shares to 1,690,507,119. The issuance was conducted without disclosure under Part 6D.2 of the Corporations Act 2001, and the company has complied with relevant legal provisions. This move is expected to strengthen Livium’s financial position and support its strategic initiatives in the sustainable lithium production industry.

Livium Set to Boost Revenue with New Recycling Agreement
Apr 17, 2025

Livium Ltd, through its subsidiary Envirostream, is in advanced discussions to finalize a new recycling agreement with Sell & Parker Pty Ltd, a national metal recycling business. This Proposed Agreement, expected to commence in late April 2025, is anticipated to generate over A$1.0 million in revenue, representing about 15% of Livium’s total recycling revenue for FY24. The agreement aims to enhance Livium’s battery recycling capabilities and diversify its sources, potentially increasing collection volumes significantly for FY25 and the first half of FY26.

Livium Ltd Secures Shareholder Approval for Strategic Initiatives
Apr 17, 2025

Livium Ltd announced that all resolutions proposed at its General Meeting of Shareholders on April 17, 2025, were carried by a poll. This outcome reflects strong shareholder support for the company’s strategic initiatives, including the ratification of previous share issues and approvals for additional placements and options. The successful resolutions are expected to bolster Livium’s financial position and enhance its ability to capitalize on the growing demand for lithium and battery recycling technologies.

Livium Ltd Appoints New Director with No Initial Securities Interest
Apr 1, 2025

Livium Ltd has announced the appointment of Phillip Campbell as a director, effective April 1, 2025. The initial director’s interest notice reveals that Campbell currently holds no securities or interests in the company, indicating a fresh start in his role without any pre-existing financial ties to Livium Ltd.

Livium Ltd Boosts Investor Engagement and Market Expansion Following ARENA Grant
Mar 26, 2025

Livium Ltd has announced increased investor engagement and potential customer interest following a A$30 million grant from the Australian Renewable Energy Agency (ARENA) for its VSPC LFP Demonstration Plant. The company is actively seeking additional funding to close a A$30 million gap for the plant, with plans to commence a front-end engineering and design study. VSPC is expanding its market presence in the USA through a partnership with UMC and is exploring licensing opportunities to penetrate non-core markets. The demonstration plant aims to validate VSPC’s proprietary process and support scale-up to commercial production, with estimated annual revenues of US$319 million.

Livium Ltd Advances in Insurance Settlements Post-Envirostream Fire
Mar 18, 2025

Livium Ltd has announced that the insurance claim period related to a 2019 fire at its subsidiary Envirostream has ended, with no new claims anticipated. The company has received confirmation that settlement proceedings are advancing between certain claimants and Envirostream’s insurance company, which could lead to the release of a A$7.5 million provision from Livium’s balance sheet. This development is expected to positively impact Livium’s financial position, as previous settlements have already resulted in a reversal of provisions, enhancing the company’s balance sheet and income statement.

Livium Ltd Announces Significant Update on Securities Issuance
Mar 18, 2025

Livium Ltd has announced an update regarding its securities issuance, indicating a significant change in its share count. The company has adjusted the number of shares from 185,474,661 to nil, as per the latest amendment to their Appendix 3B. This update reflects a strategic move in their securities management, potentially impacting their market positioning and stakeholder interests.

Livium’s Envirostream Expands Battery Recycling Operations
Mar 17, 2025

Livium Ltd’s subsidiary, Envirostream Australia Pty Limited, is advancing its battery recycling operations by securing long-term agreements with major clients like BYD and ZECO Energy, and engaging in discussions for new projects that could significantly increase recycling volumes. The company is diversifying its services to include recycling tolling arrangements and safe storage of new batteries, while also seeking government grants and strategic investments to expand its operational capacity. With a focus on growing end-of-life battery volumes, Envirostream aims to enhance its market position and financial performance, aligning with the expected growth in the lithium-ion battery recycling market, estimated to reach A$122 million by 2030.

Livium Ltd Announces General Meeting to Discuss Strategic Initiatives
Mar 14, 2025

Livium Ltd has announced a General Meeting for its shareholders, scheduled for April 17, 2025, in West Perth, Western Australia. The meeting materials are available online, and shareholders are encouraged to participate either in person or by proxy. This announcement underscores Livium’s commitment to maintaining transparent communication with its stakeholders as it continues to focus on sustainable lithium production and battery recycling.

Livium Completes Full Repayment of Lind Facility
Mar 13, 2025

Livium Ltd has successfully completed the repayment of its pre-payment amount to The Lind Partners, totaling A$2.27 million, without issuing new shares. This settlement follows a capital raise of A$4.5 million from institutional and sophisticated investors, enhancing Livium’s financial stability and market positioning.

Livium Ltd Announces Quotation of New Securities on ASX
Mar 6, 2025

Livium Ltd has announced the application for quotation of 32,592,593 fully paid ordinary securities on the Australian Securities Exchange (ASX), under the code LIT. This move is part of previously announced transactions and marks a significant step in Livium Ltd’s efforts to enhance its market presence and liquidity, potentially impacting its stakeholders by increasing the company’s visibility and access to capital markets.

Livium Ltd Issues New Shares to Bolster Lithium Market Position
Mar 6, 2025

Livium Ltd has issued 32,592,593 ordinary shares as part of a placement without requiring shareholder approval under ASX Listing Rule 7.1. The company has complied with relevant provisions of the Corporations Act 2001 and confirms there is no undisclosed information that investors would expect in a disclosure document. This move is part of Livium’s strategy to strengthen its position in the lithium market and support its operations in battery recycling and lithium production.

Livium Ltd Issues Unquoted Equity Securities for Employee Incentive
Mar 4, 2025

Livium Ltd has announced the issuance of unquoted equity securities, specifically options expiring on December 31, 2028, with a total of 4,754,571 securities issued. This move is part of an employee incentive scheme, indicating the company’s commitment to rewarding and retaining its workforce. The issuance of these securities could potentially impact Livium Ltd’s financial structure and employee engagement, reflecting strategic efforts to align employee interests with long-term company goals.

Livium Ltd Director Increases Shareholding
Mar 4, 2025

Livium Ltd has announced a change in the director’s interest notice, with Director Simon Linge acquiring 2,272,727 ordinary shares through an on-market trade. This change reflects an increase in Linge’s direct and indirect holdings, potentially indicating confidence in the company’s future performance.

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.