Patagonia Lithium Limited (PL3) AI Stock Analysis

• Market Cap: AU$17.91M
• Dividend Yield: N/A
• Average Volume (3M): 129.63K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.29
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: AU
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): >-0.01
• Shares Outstanding: 179,115,540
• 10 Day Avg. Volume: 218,650
• 30 Day Avg. Volume: 129,631
• PEG Ratio: 0.18
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.32
• 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: 52 Neutral
• Price Target: AU$0.11 ▲(76.67% Upside)

The score is primarily held back by weak financial performance (no consistent revenue, ongoing losses, and continued cash burn), partially offset by a comparatively solid balance sheet with low leverage. Technicals are a positive, with the price above key moving averages and a positive MACD, while valuation remains unattractive/unclear due to the negative P/E and no dividend yield.

Positive Factors

Stronger capital base

A materially larger equity base and modest leverage provide a clearer runway for exploration activity and reduce near-term financing urgency. This stronger capital structure improves ability to fund project evaluation or negotiate joint ventures without immediate dilutive raises.

Narrowing losses

A sharply reduced net loss indicates improving cost control or lower operating burn, which enhances survival prospects through the exploration cycle. Sustained narrowing supports longer-term development planning and reduces the frequency and size of future capital raises.

Strategic lithium focus

Concentrating on lithium brines in Patagonia targets a structurally advantaged commodity with secular EV and storage demand. An explicit partnering strategy is capital-efficient, allowing project progress while transferring development execution and financing risk to larger industry players.

Negative Factors

No meaningful revenue

Absence of recurring revenue leaves the company reliant on financing rather than operating cash to sustain exploration. Without commercial sales, management must repeatedly secure capital, delaying project timelines and increasing dilution risk over the medium term.

Negative operating cash flow

Persistent negative operating and free cash flows mean the business cannot self-fund exploration or development. Continued cash burn necessitates external funding, which can constrain strategic choices, slow project advancement, and pressure the balance sheet over several quarters.

Negative returns on equity

A negative ROE signals the company is destroying shareholder capital rather than generating returns. Over time this undermines investor confidence, makes partnership negotiations harder, and can limit access to attractive financing unless operational performance meaningfully improves.

Patagonia Lithium Limited Business Overview & Revenue Model

Company Description

Patagonia Lithium Limited engages in the exploration and development of mineral properties in Argentina. It explores for lithium, borates, and other metals. The company was incorporated in 2021 and is based in Melbourne, Australia. Patagonia Lithium Limited operates as a subsidiary of 10 Bolivianos Pty Ltd.

How the Company Makes Money

Patagonia Lithium Limited Financial Statement Overview

Summary

Early-stage financial profile with no consistent revenue (2024 revenue fell to 0 from 130,109 in 2023), persistent losses, and ongoing operating/free cash flow burn despite improvement in 2024. Balance sheet is comparatively stronger with modest leverage (debt-to-equity ~0.10) and higher equity, but continued losses (ROE ~-4.9%) remain a key risk.

Income Statement

The income statement shows a very early-stage profile with no meaningful, consistent revenue (revenue was 0 in 2024 vs. 130,109 in 2023, a -100% change). Losses persist across periods, with negative EBIT and net income each year (2024 net loss of -414,294; 2023 net loss of -1,109,953; 2022 net loss of -1,469,060). A positive is that the net loss narrowed materially in 2024 versus 2023, but profitability and margin stability remain weak given the lack of steady sales.

Balance Sheet

The balance sheet is a relative bright spot: leverage is currently modest with debt-to-equity at ~0.10 in 2024 (up from ~0.02 in 2023 but far improved from ~0.67 in 2022). Equity has grown meaningfully (8.41M in 2024 vs. 7.12M in 2023 and 2.42M in 2022), providing a stronger capital base. The key weakness is ongoing negative returns on equity due to continued losses (ROE of about -4.9% in 2024), which can pressure the balance sheet over time if losses persist.

Cash Flow

Cash generation remains weak, with operating cash flow negative in all periods (about -965,154 in 2024; -1,042,343 in 2023; -279,855 in 2022), indicating the business is still consuming cash to operate. Free cash flow is also negative each year, though 2024 improved sharply versus 2023 (-965,150 vs. -1,838,891) and dramatically versus the very large 2022 outflow (-4,543,372). The main concern is that the company likely remains reliant on external funding until it achieves sustained revenue and reduces operating cash burn.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	0.00	0.00	130.11K	0.00
Gross Profit	0.00	0.00	130.11K	-140.10K
EBITDA	-306.29K	-360.94K	-1.10M	-1.21M
Net Income	-1.09M	-414.29K	-1.11M	-1.47M
Balance Sheet
Total Assets	10.99M	10.98M	7.33M	4.94M
Cash, Cash Equivalents and Short-Term Investments	137.52K	57.55K	2.65M	684.48K
Total Debt	0.00	867.21K	119.29K	1.61M
Total Liabilities	120.76K	2.57M	214.58K	2.52M
Stockholders Equity	10.87M	8.41M	7.12M	2.42M
Cash Flow
Free Cash Flow	-1.43M	-965.15K	-1.84M	-4.54M
Operating Cash Flow	-1.43M	-965.15K	-1.04M	-279.86K
Investing Cash Flow	-3.51M	-3.79M	-796.55K	-4.26M
Financing Cash Flow	4.78M	2.16M	3.57M	5.23M

Patagonia Lithium Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
PL3	52 Neutral	AU$17.91M	-7.58	-12.18%	―	―	―
EVG	49 Neutral	AU$15.60M	-2.81	-42.91%	―	―	-4.35%
LML	48 Neutral	AU$51.82M	-18.18	-31.20%	―	―	26.67%
EMT	45 Neutral	AU$5.10M	―	-29.48%	―	―	76.12%
RWD	42 Neutral	AU$12.07M	-6.29	―	―	―	93.44%
INF	40 Underperform	AU$7.19M	-0.38	-119.49%	―	―	-405.06%

Patagonia Lithium Limited Corporate Events

Patagonia Lithium Ends Formentera Well Early After Low-Porosity Clays, Reports 219 ppm Lithium at Shallower Depth

Patagonia Lithium has completed drilling of well JAM 25-05 at its Formentera concession to a depth of 401 metres, stopping short of the planned 600 metres after encountering compacted, low-porosity clay formations between 250 and 400 metres that yielded no statistically measurable brine flows. Three packer brine samples taken from shallower intervals returned lithium grades of up to 219 ppm at 165-170 metres with favourable low magnesium-to-lithium ratios, and six core samples have been sent to a Buenos Aires laboratory for porosity analysis; meanwhile, the company is preparing a drill pad for the next well, 26-06, south of JAM 24-02, to support a higher indicated mineral resource estimate, underlining both the geological complexity of the salar and the ongoing effort to delineate economically viable brine aquifers.

The most recent analyst rating on (AU:PL3) stock is a Hold with a A$0.13 price target. To see the full list of analyst forecasts on Patagonia Lithium Limited stock, see the AU:PL3 Stock Forecast page.

Patagonia Lithium Reaffirms 551,000-Tonne LCE Mineral Resource Estimate

Patagonia Lithium Limited has released a broker presentation confirming a current Mineral Resource Estimate of 103,500 tonnes of lithium metal, equivalent to 551,000 tonnes of lithium carbonate equivalent (LCE), for its lithium brine project. The company notes that this represents a previously reported 319% increase in its lithium carbonate resource and clarifies that the underlying assumptions, technical parameters and Competent Person findings remain unchanged, reinforcing the scale and continuity of its resource base for investors and other stakeholders.

The most recent analyst rating on (AU:PL3) stock is a Hold with a A$0.13 price target. To see the full list of analyst forecasts on Patagonia Lithium Limited stock, see the AU:PL3 Stock Forecast page.

Patagonia Lithium Secures Strategic Funding Partnership with Ameerex

Patagonia Lithium has entered a non-binding strategic partnership agreement with US-listed Ameerex Corporation to support investment in its flagship Formentera lithium project in Argentina, as well as its Brazilian niobium and rare earth projects. Ameerex, which is focused on co-investing in mining and clean-energy transition minerals, will assess and recommend how best to invest at both company and project level, potentially via private placements, providing Patagonia Lithium with an additional capital pathway beyond its recent A$2.68 million raising to advance drilling, resource definition and scoping studies on its growing lithium portfolio.

The most recent analyst rating on (AU:PL3) stock is a Hold with a A$0.06 price target. To see the full list of analyst forecasts on Patagonia Lithium Limited stock, see the AU:PL3 Stock Forecast page.

Patagonia Lithium Advances Formentera Drilling to 335m With Encouraging Brine Indicators

Patagonia Lithium has provided an operational update on its Formentera lithium brine project, confirming that drilling at well JAM 25-05 has reached a depth of 335 metres with stable conditions and encouraging brine volumes encountered in sandy and clay layers. The company has collected initial packer brine samples from shallow intervals for laboratory assay, extracted core samples for porosity analysis in Buenos Aires, hired a specialised double packer system to obtain uncontaminated brine samples at greater depths, and is gathering isotopic data required to complete its environmental plan, all of which mark important steps toward advancing resource definition and environmental approvals at the project.

The most recent analyst rating on (AU:PL3) stock is a Hold with a A$0.06 price target. To see the full list of analyst forecasts on Patagonia Lithium Limited stock, see the AU:PL3 Stock Forecast page.

Patagonia Lithium Shareholders Approve Director Performance Rights at General Meeting

Patagonia Lithium Ltd has confirmed that all resolutions put to shareholders at its 22 December 2025 general meeting were approved by poll, reflecting solid investor support for the company’s current governance and incentive structures. The key items passed were the issuance of director performance rights to Executive Chairman Phillip Thomas and non-executive directors Rick Anthon and Pablo Tarantini, a move that further aligns board remuneration with company performance and signals continued backing for management’s strategy from the shareholder base.

Patagonia Lithium Reports Promising Initial Drilling Results at Formentera

Patagonia Lithium Ltd has announced successful initial drilling results at its Formentera concession, with the first packer brine extraction test completed at a depth of 104 meters. The test revealed promising brine characteristics, including a specific gravity of 1.055 gm/cm3 and a flow rate of 1,286 liters per hour, indicating potential for high lithium concentration as drilling progresses. The results are in line with the company’s expectations and budget, suggesting positive implications for its operations and future lithium production potential.

Patagonia Lithium Initiates Deep Drilling to Boost Resource Estimates

Patagonia Lithium Ltd has commenced drilling at its Formentera concession, aiming to reach a depth of 600 meters to increase its mineral resource estimate. This drilling is expected to enhance the company’s resource confidence and potentially increase lithium production, as the well targets a geophysics-indicated area with high porosity and low resistivity, which are promising for lithium brine extraction.

Patagonia Lithium Ltd Announces Digital-First Approach for Upcoming Shareholder Meeting

Patagonia Lithium Ltd has announced a general meeting of its shareholders scheduled for December 22, 2025. The company will not be sending hard copies of the meeting notice unless specifically requested by shareholders, highlighting a move towards digital communication. This decision reflects a broader industry trend of adopting more sustainable and efficient practices, potentially impacting shareholder engagement and operational transparency.

Patagonia Lithium Reports Significant Increase in Resource Estimate

Patagonia Lithium Limited has reported a significant increase in its Mineral Resource Estimate (MRE) for lithium, with a 319% rise in lithium metal resources to 103,000 tonnes, equating to approximately 551,000 tonnes of lithium carbonate equivalent. This development enhances the company’s resource base and positions it more competitively in the lithium market. The company is implementing recommendations from the WSP June 2025 MRE report, including additional drilling and geophysical surveys, to further increase geological confidence and resource understanding. These efforts are expected to bolster Patagonia’s operational capabilities and potentially impact its market positioning positively.