Avalon Advanced Materials (AVL) AI Stock Analysis

• Market Cap: C$66.77M
• Dividend Yield: N/A
• Average Volume (3M): 2.63M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.72
• Revenue Growth: N/A
• EPS Growth: -760.00%
• Country: CA
• Employees: 8
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): N/A
• Shares Outstanding: 834,638,800
• 10 Day Avg. Volume: 6,896,699
• 30 Day Avg. Volume: 2,630,570
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 50 Neutral
• Price Target: C$0.09 ▲(6.25% Upside)

The score is held back primarily by weak financial quality—persistent losses and negative cash flow outweigh strong revenue growth. Technicals are supportive with price above major moving averages, but overbought RSI reduces confidence. Valuation remains constrained by negative earnings and the absence of a dividend.

Positive Factors

Revenue Growth

Sustained 41% YoY revenue growth reflects material demand and traction in Avalon’s target markets. Over a multi-month horizon, this trend supports case for project advancement, partnership interest, and potential scale economies if the company can translate growth into repeatable project milestones.

Conservative Leverage

A low debt-to-equity position reduces bankruptcy and refinancing risk during long development cycles common in mining. This financial conservatism preserves strategic optionality to fund projects via partnerships or grants and provides resilience against commodity and funding-cycle volatility.

Exposure to Critical Minerals

Avalon’s portfolio concentrated on lithium, rare earths and other clean-tech inputs aligns with long-term secular growth in EVs, renewables and electronics. Structural demand for these materials increases the likelihood of durable off-take, strategic partnerships, and government support over the next several years.

Negative Factors

Negative Profitability

Persistent negative margins indicate the company is not yet operationally profitable and faces structural cost or scale issues. Over months, continued unprofitability constrains retained capital for project development, necessitating external funding that can dilute shareholders or slow execution.

Weak Cash Generation

Negative operating and free cash flow highlight an inability to convert operations into internally generated funding. This structural cash shortfall increases dependency on equity or JV financing, raising execution risk for multi-year project development and elevating potential dilution or project delays.

Limited Internal Resources

A very small employee base constrains Avalon’s internal technical, permitting and project-management capacity. Over the medium term this increases reliance on external contractors or partners, which can slow timelines, raise costs, and create execution risk across multiple simultaneous development projects.

Avalon Advanced Materials Business Overview & Revenue Model

Company Description

Avalon Advanced Materials Inc., together with its subsidiaries, engages in the acquisition, exploration, evaluation, and development of rare metal and mineral properties primarily in Canada. The company focuses on exploring lithium, tantalum, cesium, indium, gallium, germanium, tin, yttrium, and zirconium deposits, as well as rare earth elements. It holds 100% interests in the Nechalacho project comprises eight contiguous mining leases covering an area of 5,786 hectares located at Thor Lake in the Mackenzie Mining District of the Northwest Territories; the East Kemptville project that consists of an exploration license covering an area of approximately 1,165 hectares located to the northeast of Yarmouth, Nova Scotia; the Separation Rapids project, which includes nineteen mineral claims and one mining lease covering an area of approximately 4,414 hectares located in the Kenora in Ontario; and the Lilypad project comprising 14 claims, including 166 new claim units or cells covering an area of approximately 3,299 hectares in located to the northeast of the Pickle Lake in Ontario. The company was formerly known as Avalon Rare Metals Inc. and changed its name to Avalon Advanced Materials Inc. in February 2016. Avalon Advanced Materials Inc. was founded in 1991 and is headquartered in Toronto, Canada.

How the Company Makes Money

Avalon Advanced Materials generates revenue primarily through the exploration and development of its mineral resources, with a focus on selling high-value products derived from these minerals. The company's revenue model includes the sale of concentrate and refined materials to industries such as electronics, automotive, and energy storage. Key revenue streams involve partnerships and offtake agreements with manufacturers and end-users in sectors that require critical minerals. Additionally, Avalon may receive funding through joint ventures, government grants, and investments aimed at advancing its projects and technologies, contributing to its overall earnings.

Avalon Advanced Materials Financial Statement Overview

Summary

Avalon Advanced Materials shows strong revenue growth but faces significant profitability and cash flow challenges. Negative gross profit, net income, and EBIT margins, along with negative free cash flow, highlight operational inefficiencies and cash management issues.

Income Statement

Avalon Advanced Materials has experienced a significant revenue growth rate of 41.09% in the most recent year, which is a positive sign. However, the company is facing substantial challenges with negative gross profit, net income, and EBIT margins, indicating ongoing operational inefficiencies and profitability issues.

Balance Sheet

The company maintains a relatively low debt-to-equity ratio, suggesting conservative leverage. However, the negative return on equity indicates that the company is not generating sufficient returns on shareholders' investments, which is a concern for long-term sustainability.

Cash Flow

Avalon Advanced Materials shows a negative free cash flow growth rate and negative operating cash flow, highlighting cash management challenges. The free cash flow to net income ratio is not favorable, indicating difficulties in converting earnings into cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	49.94K	49.94K	109.83K	124.26K	21.77K	11.25K
Gross Profit	-216.07K	-216.07K	-149.00K	-107.00K	-147.00K	-102.00K
EBITDA	-3.12M	-4.07M	380.74K	-3.76M	-3.84M	-3.92M
Net Income	-5.20M	-5.20M	-635.00K	-3.32M	-3.95M	-3.75M
Balance Sheet
Total Assets	137.21M	137.21M	136.38M	131.05M	120.45M	118.47M
Cash, Cash Equivalents and Short-Term Investments	1.45M	1.45M	712.31K	2.58M	3.03M	1.82M
Total Debt	10.60M	10.60M	7.05M	3.30M	4.56M	3.68M
Total Liabilities	12.18M	12.18M	8.76M	4.91M	6.14M	4.84M
Stockholders Equity	125.03M	125.03M	127.62M	126.14M	114.31M	113.63M
Cash Flow
Free Cash Flow	-4.01M	-4.01M	-4.55M	-14.16M	-3.32M	-3.21M
Operating Cash Flow	-3.57M	-3.57M	-4.08M	-2.62M	-2.46M	-2.03M
Investing Cash Flow	-440.30K	-440.30K	-537.59K	-11.61M	-859.94K	-1.38M
Financing Cash Flow	4.75M	4.75M	2.75M	13.78M	4.52M	3.94M

Avalon Advanced Materials Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.08
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:AVL, the sentiment is Positive. The current price of 0.08 is above the 20-day moving average (MA) of 0.06, above the 50-day MA of 0.06, and above the 200-day MA of 0.05, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 63.23 is Neutral, neither overbought nor oversold. The STOCH value of 80.95 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:AVL.

Avalon Advanced Materials 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%
LIT	53 Neutral	C$26.14M	-2.51	-24.07%	―	―	76.16%
LCE	52 Neutral	C$95.87M	-39.51	-4.48%	―	―	27.68%
NMI	51 Neutral	C$52.16M	-50.00	-3.86%	―	―	―
AVL	50 Neutral	C$66.77M	-8.72	-4.00%	―	―	-760.00%
BKI	42 Neutral	C$39.81M	-12.90	―	―	―	-36.76%
LBNK	39 Underperform	C$44.25M	-2.70	-122.87%	―	―	-692.49%

Avalon Advanced Materials Corporate Events

Avalon and Engina Achieve Breakthrough in Rare Earth Extraction with New Technology

Avalon Advanced Materials Inc. and Engina Corporation have successfully tested a new Hybrid Supercritical Refining (HSR) process for rare earth element extraction at the Nechalacho Project in Canada. This innovative process, which achieves over 90% recovery rates, offers significant environmental benefits by reducing chemical consumption and emissions, positioning Avalon as a leader in sustainable rare earth processing. The collaboration underscores Canadian innovation in critical mineral processing and supports Avalon’s commitment to developing cleaner refining solutions.

Avalon Appoints New Manager to Bolster Public Affairs and Government Relations

Avalon Advanced Materials Inc. has appointed Vienna Psihos as Manager of Public Affairs & Government Relations. Psihos brings extensive experience in government decision-making, regulatory processes, and strategic communications, which will aid Avalon in advancing critical minerals projects across Canada. Her appointment is expected to strengthen Avalon’s government relationships and enhance its public affairs and communications efforts, aligning with the company’s strategic priorities to support Canada’s critical minerals strategy and global presence.

Avalon Advanced Materials Concludes Key Funding Agreement with Lind Global Fund II

Avalon Advanced Materials Inc. has successfully concluded its convertible security funding agreement with Lind Global Fund II, LP, marking a significant step in its capital management strategy. This development underscores Avalon’s commitment to strategic partnerships and the advancement of its rare earth and lithium initiatives, which are vital for the company’s growth and its role in strengthening the North American supply chain.

Avalon Secures C$18.65 Million to Boost Rare Earth and Lithium Projects

Avalon Advanced Materials Inc. has successfully closed a brokered private placement, raising approximately C$18.65 million to advance its rare earth and lithium projects in Canada. This financing is a significant milestone for Avalon, enabling the company to accelerate the development of its critical mineral assets, strengthen its financial position, and enhance its role in the North American critical minerals supply chain.

Avalon Advanced Materials to Present at ThinkEquity Conference

Avalon Advanced Materials announced its participation in the ThinkEquity Conference in New York City, with key executives presenting. This engagement highlights Avalon’s strategic efforts to strengthen its industry presence and communicate its role in securing domestic supply chains for critical minerals, which are vital for advanced technologies in various sectors.

Avalon Secures C$21 Million Financing for Rare Earth and Lithium Projects

Avalon Advanced Materials Inc. has announced a brokered private placement financing of up to C$21 million to advance its rare earth and lithium projects in Canada. The financing, led by Canaccord Genuity Corp., will support the company’s strategy to enhance project readiness and engage in strategic partnerships, potentially strengthening its position in the critical minerals supply chain.