Zinnwald Lithium Plc (ZNWD) AI Stock Analysis

• Market Cap: £39.59M
• Dividend Yield: N/A
• Average Volume (3M): 464.80K
• Price to Earnings (P/E): ―
• Beta (1Y): -1.35
• Revenue Growth: N/A
• EPS Growth: -19.57%
• Country: UK
• Employees: 20
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): >-0.01
• Shares Outstanding: 542,354,600
• 10 Day Avg. Volume: 355,804
• 30 Day Avg. Volume: 464,800
• PEG Ratio: 2.15
• Price to Book (P/B): 1.27
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.19
• 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: 7.50p ▲(27.12% Upside)

The score is anchored by a strong low-debt balance sheet, but is held back by pre-revenue operations, ongoing losses, and meaningful cash burn. Technicals are supportive with a strong uptrend, though overbought signals increase near-term pullback risk, while valuation is weak due to negative earnings and no dividend.

Positive Factors

Low Leverage / Strong Balance Sheet

Very low leverage and sizeable equity provide durable financial flexibility for an early-stage developer. This reduces short-term refinancing pressure, supports multi-year exploration and permitting timelines, and lowers solvency risk while the project advances toward commercialization.

Strategic Lithium Focus in Europe

A clear strategic focus on lithium near central European markets aligns with multi-year structural demand for battery materials. Proximity to European manufacturers can lower supply-chain complexity for eventual offtake and makes the project more relevant to regional sourcing efforts if it reaches production.

Improving Cash Flow Trend

A year-over-year improvement in free cash flow suggests management is tightening spending or phasing investment more efficiently. Sustained improvement can extend the funding runway and reduce near-term capital raises, improving the firm's ability to advance development milestones without excessive dilution.

Negative Factors

Pre-revenue Operations

Being pre-revenue means no commercial cash generation; the business must convert resource value into producing assets to reach profitability. This creates a multi-year execution and financing bridge with material risk that development, permitting, or capex timing will delay revenue realization.

Material Cash Burn and Negative FCF

Sustained negative operating and free cash flow indicate ongoing funding needs to progress the project. Over time this raises the probability of equity dilution, reliance on external capital markets or partnerships, and potential delays if financing conditions deteriorate, constraining long-term value capture.

Limited Internal Operating Scale

A very small employee base increases execution risk for complex geology, permitting, engineering and commercialisation tasks. Reliance on contractors and partners can raise costs, coordination burden and timelines, limiting the company's ability to run multiple development workstreams in parallel.

Zinnwald Lithium Plc Business Overview & Revenue Model

Company Description

Zinnwald Lithium Plc operates as a mineral exploration and development company in the United Kingdom, Ireland, and Germany. It primarily explores for zinc, lead, silver, and lithium deposits. The company's flagship project is the Zinnwald Lithium project covering an area of 256.5 hectare located in southeast Germany. It also holds 100% interests in the Abbeytown project that comprises five prospecting licenses covering approximately 136 square kilometers. The company was formerly known as Erris Resources Plc and changed its name to Zinnwald Lithium Plc in October 2020. Zinnwald Lithium Plc was founded in 2012 and is based in London, the United Kingdom.

How the Company Makes Money

Zinnwald Lithium Plc generates revenue primarily through the development and eventual sale of lithium and its compounds derived from its mining operations. The company’s business model is centered around extracting lithium from its Zinnwald project and selling it to battery manufacturers and other industrial clients. Revenue streams are expected to come from the sale of lithium products once production commences. Additionally, Zinnwald Lithium may form strategic partnerships or joint ventures with other companies in the battery manufacturing or automotive sectors to secure long-term supply agreements, thereby stabilizing and enhancing its revenue potential. As the demand for electric vehicles and renewable energy storage solutions increases, the company positions itself to capitalize on the growing need for lithium.

Zinnwald Lithium Plc Financial Statement Overview

Summary

Zinnwald Lithium Plc exhibits significant financial risks, primarily due to the absence of revenue and ongoing losses. The balance sheet is relatively stable with low leverage, but the cash flow and income statement raise concerns about long-term viability without a change in business operations or strategy.

Income Statement

Zinnwald Lithium Plc has consistently reported zero revenue over the years, indicating either a pre-revenue company or significant operational challenges. The negative EBIT and net income highlight ongoing losses, with no gross profit margin or net profit margin to evaluate due to lack of revenue.

Balance Sheet

The company maintains a positive stockholders' equity position, suggesting some financial stability. However, the lack of revenue generation is a concern. The debt-to-equity ratio is very low, which is positive, but the negative net income impacts return on equity, which cannot be calculated.

Cash Flow

Zinnwald's cash flow situation is challenging, with consistent negative operating and free cash flows, suggesting a high cash burn rate. The company appears to rely on financing activities for liquidity, which is unsustainable in the long run without revenue generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00	0.00
Gross Profit	0.00	0.00	0.00	0.00	-46.10K	-56.54K
EBITDA	-1.58K	-3.02M	-2.85M	-2.21M	-1.12M	-750.38K
Net Income	-3.12K	-2.74M	-2.64M	-2.35M	-1.73M	-2.22M
Balance Sheet
Total Assets	42.34M	40.50M	42.75M	22.95M	24.63M	10.42M
Cash, Cash Equivalents and Short-Term Investments	4.67M	5.22M	14.31M	3.16M	8.29M	4.85M
Total Debt	224.49K	283.34K	47.80K	187.94K	0.00	0.00
Total Liabilities	1.92M	2.77M	2.90M	2.15M	2.02M	58.83K
Stockholders Equity	40.42M	37.73M	39.85M	20.80M	22.61M	10.36M
Cash Flow
Free Cash Flow	-2.35K	-9.26M	-10.16M	-2.00K	-541.07K	-1.94M
Operating Cash Flow	-2.30K	-2.58M	-1.36M	-1.69K	-495.17K	-1.71M
Investing Cash Flow	-6.05K	-6.30M	-8.52M	-2.77K	-2.74M	-424.35K
Financing Cash Flow	3.86K	-206.98K	21.02M	―	6.68M	5.48M

Zinnwald Lithium Plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ZNWD, the sentiment is Positive. The current price of 5.9 is below the 20-day moving average (MA) of 6.30, below the 50-day MA of 6.18, and above the 200-day MA of 5.77, indicating a bullish trend. The MACD of 0.31 indicates Negative momentum. The RSI at 75.21 is Negative, neither overbought nor oversold. The STOCH value of 72.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:ZNWD.

Zinnwald Lithium Plc 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%
ZNWD	52 Neutral	£39.59M	-13.18	-7.78%	―	―	-19.57%
ALL	48 Neutral	£83.86M	-22.40	-17.14%	―	―	54.72%
KOD	47 Neutral	£92.28M	-10.00	-21.41%	―	―	-133.33%
SAV	47 Neutral	£123.56M	-26.67	-10.02%	―	―	―
IRON	45 Neutral	£6.89M	―	―	―	―	―

Zinnwald Lithium Plc Corporate Events

Zinnwald Lithium Clears Key Spatial Planning Hurdle for German Project

Zinnwald Lithium has completed the spatial impact assessment for its proposed integrated lithium mining and processing project in Germany, with the Saxony State Directorate concluding that the development concept outlined in the company’s pre-feasibility study—processing at Liebenau and ore transport via a conveyor tunnel—is the most favourable option for large-scale development and is spatially compatible. While the assessment is not a development approval, it provides the planning framework for the next phase, allowing the project to move into the environmental impact assessment and mining permitting processes led by the Saxon Mining Authority, marking a significant regulatory milestone that de-risks project development and supports Zinnwald’s strategic ambition to supply Europe’s battery industry.

The most recent analyst rating on (GB:ZNWD) stock is a Hold with a £6.00 price target. To see the full list of analyst forecasts on Zinnwald Lithium Plc stock, see the GB:ZNWD Stock Forecast page.

Zinnwald Lithium Gains German Federal Support for Strategic Project

Zinnwald Lithium plc has received strong support from the German Federal Government for its Zinnwald Lithium Project, aligning with Germany’s strategic raw materials priorities. This endorsement, coupled with backing from the State of Saxony, highlights the project’s potential to contribute to Europe’s critical raw materials supply chain amid geopolitical tensions. The project is seen as crucial for enhancing Germany’s industrial independence and ensuring secure raw material supply chains, with the potential to benefit from new European initiatives aimed at accelerating critical raw material projects.

Zinnwald Lithium Advances Permitting with ESIA Scoping Study Release

Zinnwald Lithium plc has announced the publication of its Environmental and Social Impact Assessment (ESIA) Scoping Study and related documents for its Zinnwald Lithium Project in Germany. This marks a significant step in the project’s permitting process, demonstrating the company’s commitment to sustainable development and stakeholder engagement. The documents, prepared with ERM, outline the framework for future environmental and social assessments and aim to meet international standards, supporting Europe’s energy transition and industrial resilience. The company is actively engaging with local communities and stakeholders through a consultation period, which will inform the final ESIA report expected in 2027.