Atlantic Lithium (ALL) AI Stock Analysis

• Market Cap: £46.44M
• Dividend Yield: N/A
• Average Volume (3M): 1.14M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.72
• Revenue Growth: N/A
• EPS Growth: 41.32%
• Country: UK
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 70
• Industry: Industrial Materials
• EPS (TTM): >-0.01
• Shares Outstanding: 693,147,340
• 10 Day Avg. Volume: 578,293
• 30 Day Avg. Volume: 1,141,505
• PEG Ratio: 0.35
• Price to Book (P/B): 9.48
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -10.58
• 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: £11.99
• Price Target Upside: 77.63% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 47 Neutral
• Price Target: ―

Atlantic Lithium's stock score is influenced by strong revenue growth and solid financial stability. However, significant operational inefficiencies and persistent negative cash flows weigh heavily on the overall assessment. The bearish technical indicators and lack of profitability further impact its valuation negatively. While corporate developments are promising, they do not yet materially influence the score.

Atlantic Lithium Business Overview & Revenue Model

Company Description

Atlantic Lithium Limited explores for and develops mineral properties in West Africa. It primarily explores for lithium deposits. The company's flagship project is the Ewoyaa lithium project located in Ghana. It also holds interest in a lithium property covering an area of 1,172 square kilometers in Côte d'Ivoire. The company was formerly known as IronRidge Resources Limited and changed its name to Atlantic Lithium Limited in November 2021. Atlantic Lithium Limited was incorporated in 2007 and is based in Sydney, Australia.

How the Company Makes Money

Atlantic Lithium makes money through the exploration and eventual development of lithium mining projects. The company generates revenue primarily by advancing its lithium projects to the production stage, at which point it can sell lithium concentrate to global markets. Key revenue streams include the sale of lithium products and potentially strategic partnerships or off-take agreements with battery manufacturers and other companies in the electric vehicle and energy storage sectors. The company may also raise funds through equity financing to support its exploration and development activities.

Atlantic Lithium Financial Statement Overview

Summary

Atlantic Lithium shows strong revenue growth and financial stability with minimal leverage. However, operational inefficiencies and negative cash flows, along with net losses, pose significant challenges. While equity is strong, improvements in operational efficiency and cash flow management are needed.

Income Statement

The company has shown a positive gross profit margin of 100% in the latest year due to its total revenue of $717,864, a significant improvement from previous years of no revenue. However, the net profit margin remains negative due to substantial net losses. Revenue growth is strong, but EBIT and EBITDA margins are negative, indicating operational inefficiencies and high costs relative to revenue.

Balance Sheet

The company maintains a low debt-to-equity ratio with minimal debt, enhancing financial stability. The equity ratio is strong at approximately 86%, indicating a solid financial structure. However, the persistent net losses have suppressed return on equity, presenting a challenge in leveraging shareholder investments effectively.

Cash Flow

Free cash flow remains highly negative, reflecting substantial capital expenditures, a concern for liquidity. The operating cash flow to net income ratio is negative, indicating cash flow issues. Despite this, financing activities have provided some relief through inflows, yet cash flow sustainability remains a challenge.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	717.86K	0.00	0.00	0.00	0.00
Gross Profit	717.86K	-26.20K	0.00	0.00	0.00
EBITDA	-11.40M	-10.75M	-16.86M	-4.04M	-6.27M
Net Income	-12.65M	-12.19M	-34.65M	-4.90M	-6.61M
Balance Sheet
Total Assets	41.19M	36.77M	39.13M	72.19M	42.50M
Cash, Cash Equivalents and Short-Term Investments	12.68M	15.35M	23.88M	19.14M	7.33M
Total Debt	611.35K	0.00	0.00	0.00	0.00
Total Liabilities	5.74M	6.49M	4.30M	3.95M	2.15M
Stockholders Equity	35.45M	30.22M	34.78M	68.24M	40.35M
Cash Flow
Free Cash Flow	-34.28M	-27.07M	-26.25M	-17.35M	-10.51M
Operating Cash Flow	-9.14M	-6.96M	-5.38M	-2.80M	-2.81M
Investing Cash Flow	-8.39M	-4.47M	-12.66M	-14.65M	-7.70M
Financing Cash Flow	15.05M	2.88M	23.49M	28.76M	10.99M

Atlantic Lithium Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ALL, the sentiment is Negative. The current price of 6.75 is below the 20-day moving average (MA) of 7.29, below the 50-day MA of 6.90, and below the 200-day MA of 10.39, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 45.46 is Neutral, neither overbought nor oversold. The STOCH value of 24.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:ALL.

Atlantic Lithium Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$10.29B	9.96	-0.15%	2.86%	2.14%	-32.15%
KOD	48 Neutral	£53.66M	2.14	47.34%	―	―	―
ALL	47 Neutral	£46.44M	―	-21.55%	―	―	41.32%
SAV		£80.83M	―	-13.18%	―	―	―
ZNWD	41 Neutral	£28.47M	―	-7.04%	―	―	9.26%
BHL		£4.10M	1.78	18.12%	―	―	―
FRG		£5.40M	―	-40.28%	―	―	―

Atlantic Lithium Corporate Events

Atlantic Lithium Advances Towards Ghana’s First Lithium Mine

Atlantic Lithium has secured all necessary permits for the construction of its flagship Ewoyaa Lithium Project in Ghana and is awaiting parliamentary ratification of the mining lease. The company has implemented strategic initiatives to conserve cash and advance the project towards a final investment decision, despite subdued lithium pricing. The Ewoyaa Project is expected to significantly impact the local economy and position Atlantic Lithium as a major player in the global lithium market.

Spark’s Take on GB:ALL Stock

According to Spark, TipRanks’ AI Analyst, GB:ALL is a Neutral.

Atlantic Lithium’s stock score reflects strong revenue growth and financial stability due to low leverage, but significant challenges such as operational inefficiencies and negative cash flows weigh heavily. Technical analysis indicates a bearish trend, and valuation is hindered by lack of profitability and low attractiveness for income investors. The absence of earnings call data and notable corporate events does not affect the score.

To see Spark’s full report on GB:ALL stock, click here.

Atlantic Lithium Seeks Fiscal Support Amidst Market Challenges

Atlantic Lithium has addressed recent media reports about its request for fiscal concessions from the Ghanaian Government to support the Ewoyaa Lithium Project amidst declining lithium prices. The company is actively engaging with stakeholders, including government representatives, to negotiate fiscal terms that align with the current market conditions. Despite the challenging global lithium market, Atlantic Lithium is committed to advancing the Ewoyaa project, aiming to deliver long-term benefits such as local employment and skills development in Ghana.

Spark’s Take on GB:ALL Stock

According to Spark, TipRanks’ AI Analyst, GB:ALL is a Neutral.

Atlantic Lithium’s stock score reflects strong revenue growth and financial stability due to low leverage, but significant challenges such as operational inefficiencies and negative cash flows weigh heavily. Technical analysis indicates a bearish trend, and valuation is hindered by lack of profitability and low attractiveness for income investors. The absence of earnings call data and notable corporate events does not affect the score.

To see Spark’s full report on GB:ALL stock, click here.