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Lithium Australia NL (AU:LIT)
ASX:LIT
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Lithium Australia NL (LIT) AI Stock Analysis

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AU:LIT

Lithium Australia NL

(Sydney:LIT)

Rating:42Neutral
Price Target:
AU$0.00
▼(-100.00%Downside)
Lithium Australia NL faces significant financial instability with negative profitability and high debt levels. The technical analysis presents mixed signals with no clear momentum. The valuation suggests potential undervaluation, but risks are high due to ongoing operational challenges.

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 generates revenue through various streams within the lithium value chain. The company earns money from the extraction and sale of lithium resources, leveraging its proprietary extraction and processing technologies. Additionally, LIT focuses on the recycling of lithium-ion batteries, providing a source of recyclable materials and reducing environmental impact. Revenue is also derived from strategic partnerships and joint ventures that enhance its technological capabilities and market reach. Furthermore, by advancing its patented processing technologies, LIT potentially licenses these innovations to other companies, creating additional income.

Lithium Australia NL Financial Statement Overview

Summary
Lithium Australia NL faces significant financial challenges. Despite revenue growth, the company struggles with negative profit margins, high debt levels, and negative free cash flow, indicating operational and cash management issues. Improvement in profitability and stabilization of financials are crucial for 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.
BreakdownJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue6.71M5.49M2.94M1.18M374.38K
Gross Profit2.22M-9.75M-12.58M-9.31M-6.99M
EBITDA-9.27M-4.13M-17.41M-18.46M-7.87M
Net Income-10.77M-7.24M-20.63M-19.86M-8.53M
Balance Sheet
Total Assets18.48M25.08M21.93M32.55M27.92M
Cash, Cash Equivalents and Short-Term Investments5.92M15.61M5.87M11.60M4.25M
Total Debt4.21M1.29M1.77M793.53K1.04M
Total Liabilities15.11M7.72M10.71M8.95M3.34M
Stockholders Equity4.16M18.17M11.85M24.98M24.70M
Cash Flow
Free Cash Flow-10.12M-10.29M-12.70M-6.44M-5.38M
Operating Cash Flow-6.12M-8.61M-9.82M-4.72M-4.46M
Investing Cash Flow-759.79K1.21M-2.53M-1.71M-1.82M
Financing Cash Flow2.56M11.60M5.81M14.10M7.30M

Lithium Australia NL Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.01
Price Trends
50DMA
0.01
Negative
100DMA
0.01
Negative
200DMA
0.02
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
44.96
Neutral
STOCH
11.11
Positive
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 44.96 is Neutral, neither overbought nor oversold. The STOCH value of 11.11 is Positive, 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 (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
62
Neutral
$10.39B9.831.51%2.85%2.35%-34.25%
52
Neutral
AU$19.00M-111.05%-100.00%33.33%
42
Neutral
$16.91M-141.00%37.21%4.76%
AU$15.11M-17.86%
39
Underperform
AU$8.51M-8.43%48.86%
38
Underperform
AU$17.18M-8.45%-100.00%
31
Underperform
AU$17.75M-12.52%69.05%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:LIT
Lithium Australia NL
0.01
-0.01
-52.38%
AU:REE
RareX Limited
0.02
0.01
100.00%
AU:AKO
Akora Resources Ltd.
0.11
-0.03
-21.43%
AU:INF
Infinity Lithium Corporation Limited
0.02
-0.03
-60.00%
AU:DKM
Duketon Mining Ltd
0.14
0.03
27.27%
AU:LPD
Lepidico Limited
0.01
0.00
0.00%

Lithium Australia NL Corporate Events

Livium Ltd Announces Cessation of Performance Rights
Jul 10, 2025

Livium Ltd, a company listed on the Australian Securities Exchange (ASX) under the code LIT, has announced the cessation of certain securities. Specifically, a total of 16.2 million performance rights have lapsed due to conditions not being met or becoming incapable of being satisfied. This announcement may impact the company’s capital structure and investor perception, as it reflects on the company’s ability to meet performance conditions tied to these securities.

Livium Ltd Announces Quotation of 400,000 Securities on ASX
Jul 10, 2025

Livium Ltd has announced the quotation of 400,000 ordinary fully paid securities on the Australian Securities Exchange (ASX) under the code LIT, with the issue date of July 9, 2025. This move is part of an employee incentive scheme and indicates Livium Ltd’s efforts to enhance its market presence and potentially improve employee engagement by offering them a stake in the company.

Livium Ltd Strengthens Focus on Battery Recycling and Expansion
Jul 2, 2025

Livium Ltd has reaffirmed its strategic focus on becoming a recycling-centric organization, particularly in the lithium-ion battery sector, to drive long-term sustainable growth. The company plans to expand its processing capacity and establish new facilities to enhance its recycling capabilities. Additionally, Livium is exploring opportunities in rare earth element recycling and other sectors to diversify revenue sources and reduce reliance on key partners. The company is also progressing with its Battery Materials and Lithium Chemicals divisions, seeking funding and partnerships to support growth and shareholder value.

Livium Expands into Rare-Earth Element Extraction to Boost Circular Economy Efforts
Jun 10, 2025

Livium Ltd has initiated discussions with developers of rare-earth element (REE) extraction technologies to expand its circular economy portfolio. This move aligns with Livium’s strategy to leverage its recycling expertise and meet the increasing demand for REE recycling, particularly as automakers face shortages due to restricted Chinese exports. The global REE market is projected to reach $9.6 billion by 2026, presenting a significant opportunity for Livium to enhance its market position and supply chain capabilities, especially in clean energy and e-mobility sectors.

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.

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: Jul 18, 2025