Avalon Advanced Materials (AVL) AI Stock Analysis

• Market Cap: C$58.42M
• Dividend Yield: N/A
• Average Volume (3M): 2.63M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.98
• Revenue Growth: N/A
• EPS Growth: -760.00%
• Country: CA
• Employees: 8
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): >-0.01
• Shares Outstanding: 834,638,800
• 10 Day Avg. Volume: 6,896,699
• 30 Day Avg. Volume: 2,630,570
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.22
• Price to Sales (P/S): 549.15
• P/FCF Ratio: -6.84
• 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: C$0.09 ▲(7.50% Upside)

The score is held down primarily by weak financial performance (declining revenue, deeply negative profitability, and persistent cash burn). Technical indicators are comparatively supportive, with price above key moving averages and positive momentum. Valuation is also a risk factor because earnings are negative (making P/E less informative) and there is no dividend yield.

Positive Factors

Strategic position in critical minerals

Avalon's project portfolio targets lithium and rare earths, materials central to EVs, renewables and electronics. This alignment with long-term decarbonization and electrification trends supports durable demand for any future production and strengthens project-level commercial prospects.

Relatively strong balance sheet (low leverage)

Low reported leverage provides financial flexibility to fund exploration and development without immediate solvency stress. With modest debt relative to equity, Avalon can access financing or partnerships from a stronger starting balance sheet while pursuing capital-intensive project stages.

Access to non-dilutive and partnership funding avenues

Potential to monetize projects via joint ventures, mineral-rights sales, or government grants offers alternatives to equity dilution. These structural funding routes can materially de-risk development timelines and preserve shareholder value if management executes strategic partnerships.

Negative Factors

Persistent cash burn and negative cash flow

Sustained negative operating and free cash flow forces reliance on external financing and erodes runway. Over months this raises execution risk for project advancement, increases financing costs or dilution risk, and can delay conversion of resources into producing assets.

Weak revenue trend and deeply negative profitability

Declining revenue and negative gross margins indicate the business is not covering direct costs, undermining path to sustainable operations. Without clear improvements in grades, costs, or commercialization, persistent operating losses limit reinvestment and threaten long-term project viability.

Rising debt and negative returns on equity

Increasing debt alongside negative ROE signals deteriorating capital efficiency: borrowing to fund losses reduces financial flexibility. If losses and cash burn persist, higher leverage will raise refinancing risk, raise costs, and could force asset sales or dilutive capital raises.

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

Overall financials are weak: revenue is down ~14% TTM, gross profit is negative, and operating/net losses remain large. Cash flow is also consistently negative (ongoing cash burn). The main offset is a relatively stronger balance sheet with modest leverage (debt-to-equity ~0.08), but rising debt and negative returns reflect continued loss-making operations.

Income Statement

The income statement is very weak, with TTM (Trailing-Twelve-Months) revenue down about 14% and profitability deeply negative. Gross profit is negative (costs exceeding revenue), and losses remain large at the operating level and net income level, indicating the business is not covering its core cost structure. While losses have fluctuated year to year, the overall trajectory shows persistent and severe margin pressure with no clear sustained turnaround in the latest period.

Balance Sheet

The balance sheet is a relative bright spot: debt is modest versus equity (debt-to-equity ~0.08 in the latest periods), and equity is large relative to total assets, suggesting low financial leverage. However, returns on equity are negative because the company is loss-making, and total debt has risen versus earlier years (notably from 2023 levels), which could become a concern if losses and cash burn continue.

Cash Flow

Cash flow quality is weak. Operating cash flow and free cash flow are consistently negative across the periods provided, including TTM (Trailing-Twelve-Months), indicating ongoing cash burn to sustain operations and investment needs. Free cash flow has been volatile (including a very large outflow in 2023), and while free cash flow is sometimes less negative than net income, the business is still not generating cash internally, increasing reliance on financing or balance sheet resources.

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

Avalon Advanced Materials Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:AVL, the sentiment is Neutral. The current price of 0.08 is above the 20-day moving average (MA) of 0.08, above the 50-day MA of 0.06, and above the 200-day MA of 0.05, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 46.34 is Neutral, neither overbought nor oversold. The STOCH value of 23.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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%
AVL	52 Neutral	C$58.42M	-8.33	-4.00%	―	―	-760.00%
LCE	52 Neutral	C$95.87M	-35.80	-4.48%	―	―	27.68%
NMI	51 Neutral	C$56.60M	-61.36	-3.86%	―	―	―
LIT	45 Neutral	C$19.26M	-1.56	-24.07%	―	―	76.16%
BKI	42 Neutral	C$39.81M	-14.52	―	―	―	-36.76%
LBNK	42 Neutral	C$28.62M	-3.12	-122.87%	―	―	-692.49%

Avalon Advanced Materials Corporate Events

Avalon Advances Lake Superior Lithium Project into Feasibility Phase

Avalon Advanced Materials has launched feasibility study engineering for its Lake Superior Lithium lithium hydroxide processing project in Thunder Bay, advancing the project beyond the preliminary economic assessment completed in 2024. The company has appointed Nordmin Engineering as lead consultant, supported by Primero Americas, Krech Ojard and Metso, forming an integrated NI 43-101-compliant team to finalize plant design, infrastructure and trade-off studies on whether lithium hydroxide or lithium carbonate will be the optimal end product. Building on a September 2024 PEA that outlined robust economics for a 30,000-tonne-per-year lithium hydroxide facility and supported by a C$18.65 million financing closed in October 2025, the feasibility work is targeted for completion in the first half of 2027, positioning Avalon to move toward construction readiness, deepen strategic partnerships and play a key role in reducing North America’s reliance on offshore lithium refining.

The most recent analyst rating on (TSE:AVL) stock is a Hold with a C$0.08 price target. To see the full list of analyst forecasts on Avalon Advanced Materials stock, see the TSE:AVL Stock Forecast page.

Avalon Commissions Updated Economic Study for Nechalacho Rare Earths Project

Avalon Advanced Materials has commissioned an updated Preliminary Economic Assessment for its Nechalacho rare earths and zirconium project in Canada’s Northwest Territories, aiming to modernize a 2013 feasibility study by integrating new processing technologies, refreshed cost assumptions, and current environmental and regulatory considerations. The work, led by engineering firm Wood Canada, is expected to be completed within six months and followed directly by a new Definitive Feasibility Study, positioning Nechalacho for construction readiness, project financing, and strategic partnerships at a time when governments and industry are seeking secure, allied supply chains for critical minerals. The move also signals Avalon’s execution on its recent financing commitments to advance core rare earth and lithium assets, and underscores Nechalacho’s potential strategic role as one of the few North American deposits with both light and heavy rare earths and high magnet-grade content, which could strengthen Western supply chains serving defense, clean energy, and advanced technology sectors.

The most recent analyst rating on (TSE:AVL) stock is a Hold with a C$0.09 price target. To see the full list of analyst forecasts on Avalon Advanced Materials stock, see the TSE:AVL Stock Forecast page.

Avalon to Outline North American Rare Earth and Lithium Strategy in Investor Webinar

Avalon Advanced Materials will brief investors on January 20 via a RedChip-hosted webinar where its CEO and CFO will outline the company’s North American rare earth and lithium strategy, including the strategic importance of its Nechalacho project for defense, clean energy and advanced technology supply chains and its plans to vertically integrate lithium processing in Ontario. By highlighting its flagship rare earth asset, the proposed Thunder Bay lithium hydroxide facility and related lithium projects, Avalon aims to position itself as a key contributor to secure domestic critical mineral supply chains, underscoring how current market and geopolitical dynamics could enhance its long-term value proposition for stakeholders in the EV and advanced-technology sectors.

The most recent analyst rating on (TSE:AVL) stock is a Hold with a C$0.09 price target. To see the full list of analyst forecasts on Avalon Advanced Materials stock, see the TSE:AVL Stock Forecast page.

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.