Avalon Advanced Materials (AVL) AI Stock Analysis

• Market Cap: $28.69M
• Dividend Yield: N/A
• Average Volume (3M): 720.51K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.39
• Revenue Growth: N/A
• EPS Growth: -10100.00%
• Country: CA
• Employees: 8
• Sector: Basic Materials
• Sector Strength: 68
• Industry: Industrial Materials
• EPS (TTM): >-0.01
• Shares Outstanding: 637,648,600
• 10 Day Avg. Volume: 1,266,417
• 30 Day Avg. Volume: 720,509
• PEG Ratio: 1.88
• Price to Book (P/B): 0.26
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.56
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 61 Neutral
• Price Target: C$0.00 ▼(-100.00%Downside)

Avalon Advanced Materials' stock score is driven by positive corporate events and stable technical analysis, despite significant financial challenges. The company's strategic initiatives and funding efforts provide a positive outlook, but operational inefficiencies and liquidity issues weigh on the financial performance.

Avalon Advanced Materials Business Overview & Revenue Model

Company Description

Avalon Advanced Materials (AVL) is a Canadian mineral development company specializing in the exploration and development of rare metals and minerals, with a particular focus on lithium, tin, and indium. The company is committed to sustainable mining practices and aims to supply critical minerals for clean technology applications, including renewable energy and electric vehicles. Avalon operates several projects in Canada, with its flagship project being the Separation Rapids Lithium Project in Ontario.

How the Company Makes Money

Avalon Advanced Materials makes money primarily through the exploration, development, and potential future production and sale of mineral resources such as lithium, tin, and indium. The company identifies and develops properties with significant mineral deposits and seeks to monetize these assets through various means, including joint ventures, partnerships, and direct sales of minerals. Additionally, Avalon may generate revenue through strategic partnerships with other companies involved in the clean technology and renewable energy sectors, leveraging its resource base to supply critical materials necessary for these industries. The company's revenue model is heavily reliant on the successful advancement of its mining projects to production stages and the establishment of off-take agreements with end users or manufacturers in the relevant sectors.

Avalon Advanced Materials Financial Statement Overview

Summary

Avalon Advanced Materials faces significant financial challenges, with negative revenue growth and ongoing losses. While the balance sheet shows low leverage, the income statement and cash flow issues indicate operational inefficiencies and liquidity concerns.

Income Statement

The company shows a negative revenue growth, with a sharp decrease in net income over the years. The gross profit margin is negative due to consistently lower revenues than costs, indicating instability and ongoing losses. There is no EBIT or EBITDA margin due to negative EBIT and EBITDA values, reflecting operational inefficiencies.

Balance Sheet

The balance sheet is relatively stable with a strong equity base compared to liabilities, indicated by a low debt-to-equity ratio. However, the return on equity is negative due to persistent net losses, which poses a risk to profitability. The company maintains a solid equity ratio, showcasing financial stability despite operational challenges.

Cash Flow

Cash flow analysis reveals negative free cash flow, impacting liquidity. The company struggles to generate positive cash flows from operations, relying heavily on financing activities. The free cash flow growth rate is negative, indicating cash flow challenges that might affect future operations.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	109.83K	124.26K	21.77K	11.25K	134.14K
Gross Profit	-149.00K	-107.00K	-147.00K	-102.00K	-29.15K
EBITDA	380.74K	-3.99M	-4.01M	-3.92M	-5.21M
Net Income	-635.00K	-3.32M	-3.95M	-3.75M	-5.37M
Balance Sheet
Total Assets	136.38M	131.05M	120.45M	118.47M	116.60M
Cash, Cash Equivalents and Short-Term Investments	712.31K	2.58M	3.03M	1.82M	1.30M
Total Debt	7.05M	3.30M	4.56M	3.68M	867.47K
Total Liabilities	8.76M	4.91M	6.14M	4.84M	2.10M
Stockholders Equity	127.62M	126.14M	114.31M	113.63M	114.50M
Cash Flow
Free Cash Flow	-4.55M	-14.16M	-3.32M	-3.21M	-2.66M
Operating Cash Flow	-4.08M	-2.62M	-2.46M	-2.03M	-1.92M
Investing Cash Flow	-537.59K	-11.61M	-859.94K	-1.38M	1.04M
Financing Cash Flow	2.75M	13.78M	4.52M	3.94M	300.04K

Avalon Advanced Materials Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.04
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 0.04 is below the 20-day moving average (MA) of 0.05, above the 50-day MA of 0.04, and above the 200-day MA of 0.04, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 50.24 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 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
PLAN	70 Outperform	C$25.79M	25.27	7.85%	―	-1.12%	―
AVL	61 Neutral	$28.69M	―	-4.61%	―	―	-10100.00%
GMA	59 Neutral	C$35.85M	―	-65.04%	―	-89.84%	-16.41%
FNC	54 Neutral	C$23.02M	4.22	10.15%	―	―	―
Sector *	44 Neutral	C$967.98M	-6.87	-13.73%	2.10%	17.43%	-32.84%
ABR	39 Underperform	C$18.16M	550.00	0.98%	―	―	85.65%
TN	37 Underperform	C$11.79M	―	-22.48%	―	―	6.12%

Avalon Advanced Materials Corporate Events

Avalon Secures Funding and Advances Sustainable Byproduct Project

Avalon Advanced Materials Inc. has secured $1,300,000 in funding from Lind Global Fund II, LP, which will be used to advance strategic projects and corporate initiatives. The company is also progressing its Analcime Utilization Project, aimed at enhancing the value of byproducts from lithium processing. This project, supported by Ontario’s Critical Minerals Innovation Fund, explores the use of analcime in improving concrete durability and reducing carbon emissions, aligning with sustainable construction efforts. The initiative positions Avalon as a leader in the critical minerals economy, contributing to Ontario’s economic future and infrastructure development.

Avalon Secures Additional Funding to Advance Critical Mineral Projects

Avalon Advanced Materials Inc. has announced a second drawdown of $1,300,000 from its $15,000,000 convertible security funding agreement with Lind Global Fund II, LP. This funding will support ongoing projects and general corporate purposes, with the convertible security having a two-year term and a 10% annual interest rate. The agreement includes a conversion option for Lind and a repurchase option for Avalon, alongside a closing fee and share purchase warrants for Lind. The move is expected to bolster Avalon’s project advancements and strengthen its position in the critical minerals industry.