Electric Royalties (ELEC) AI Stock Analysis

• Market Cap: C$14.40M
• Dividend Yield: N/A
• Average Volume (3M): 27.90K
• Price to Earnings (P/E): ―
• Beta (1Y): -1.13
• Revenue Growth: -2.32%
• EPS Growth: -1.25%
• Country: CA
• Employees: 1
• Sector: Basic Materials
• Sector Strength: 67
• Industry: Industrial Materials
• EPS (TTM): N/A
• Shares Outstanding: 119,973,290
• 10 Day Avg. Volume: 13,586
• 30 Day Avg. Volume: 27,902
• PEG Ratio: 0.31
• Price to Book (P/B): 0.88
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.18
• 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

• Rating: 47 Neutral
• Price Target: C$0.00 ▼(-100.00%Downside)

The overall stock score reflects significant financial challenges, with ongoing operational inefficiencies and negative profitability. While corporate events provide a positive outlook due to strategic initiatives and market positioning, financial struggles and weak technical signals limit the positive impact.

Electric Royalties Business Overview & Revenue Model

Company Description

Electric Royalties (ELEC) is a royalty company focused on a diverse portfolio of commodities integral to the electrification and battery storage markets. The company primarily operates in the mining sector, acquiring royalty interests in minerals such as lithium, vanadium, manganese, tin, graphite, cobalt, nickel, and copper, which are essential for electric vehicles, renewable energy, and battery technology industries.

How the Company Makes Money

Electric Royalties generates revenue by acquiring and managing royalty interests in mining projects. The company's primary revenue stream comes from receiving a percentage of the revenue or profits generated by the mining operations of these projects, without having to bear the operational costs and risks associated with mining. By strategically acquiring royalties in projects with high potential demand for electrification-related minerals, Electric Royalties benefits from the increasing global shift towards green energy and electric mobility. Significant partnerships with mining operators and investment in projects with strong growth prospects further contribute to the company's earnings.

Electric Royalties Financial Statement Overview

Summary

Electric Royalties faces significant financial challenges, characterized by poor profitability, increasing debt, and weak cash flow management. The lack of revenue growth and persistent losses suggest underlying operational inefficiencies. Despite some equity stability, the company's financial health remains precarious, with substantial room for improvement across all financial statements.

Income Statement

Electric Royalties shows weak income statement metrics. The company has had minimal revenue over the years, with significant negative net income. TTM (Trailing-Twelve-Months) revenue has declined from the previous year, and the company experiences consistent negative EBIT and EBITDA margins, indicating poor profitability and operational challenges.

Balance Sheet

The balance sheet shows moderate concerns, with a high debt-to-equity ratio and declining equity. While the company has managed some equity stability over the years, the increasing liabilities and decreasing cash reserves present potential risks. The equity ratio has decreased, suggesting a growing reliance on debt.

Cash Flow

Cash flow metrics indicate financial struggles. The company has negative free cash flow and operating cash flow, suggesting liquidity issues. The operating cash flow to net income ratio is unfavorable, and there is no positive trend in free cash flow growth, reflecting ongoing cash management challenges.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
10.74K	165.81K	0.00	0.00	0.00	0.00
	Gross Profit
-98.87K	-289.69K	-6.82K	-4.54K	0.00	0.00
	EBIT
-1.58M	-1.30M	-1.90M	-2.27M	-326.03K	-51.00K
	EBITDA
-6.10M	-5.60M	-2.07M	-2.26M	-326.03K	-51.00K
	Net Income Common Stockholders
-7.05M	-6.00M	-1.92M	-2.30M	-2.64M	-50.87K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
96.05K	442.52K	1.24M	2.10M	2.58M	96.05K
	Total Assets
102.31K	18.01M	18.41M	15.54M	5.22M	102.31K
	Total Debt
0.00	4.36M	25.32K	30.51K	0.00	0.00
	Net Debt
-96.05K	3.91M	-1.21M	-2.07M	-2.58M	-96.05K
	Total Liabilities
53.18K	4.49M	155.64K	367.73K	123.06K	53.18K
	Stockholders Equity
49.13K	13.52M	18.25M	15.17M	5.09M	49.13K
Cash Flow		Free Cash Flow
-3.07M	-5.34M	-3.99M	-2.00M	-3.03M	-76.00
	Operating Cash Flow
-1.33M	-1.38M	-2.04M	-1.50M	-1.78M	-76.00
	Investing Cash Flow
-1.68M	-3.85M	-1.64M	-1.01M	-1.23M	122.00
	Financing Cash Flow
2.99M	4.44M	2.82M	2.03M	5.50M	96.00K

Electric Royalties Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.12
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ELEC, the sentiment is Neutral. The current price of 0.12 is below the 20-day moving average (MA) of 0.12, below the 50-day MA of 0.13, and below the 200-day MA of 0.16, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 49.56 is Neutral, neither overbought nor oversold. The STOCH value of 44.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:ELEC.

Electric Royalties Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PLAN	70 Outperform	C$16.46M	16.13	7.85%	―	-1.12%	―
ILI	53 Neutral	C$5.10M	15.00	1.50%	―	―	―
Sector *	51 Neutral	$2.02B	-1.12	-21.36%	3.65%	2.87%	-30.54%
ELEC	47 Neutral	C$14.40M	―	-54.08%	―	-2.32%	-1.25%
TGOL	44 Neutral	C$12.51M	―	-12.23%	―	―	-52.78%
SUPR	32 Underperform	C$15.04M	―	-21.42%	―	―	9.29%

Electric Royalties Corporate Events

Electric Royalties Strengthens Position Amid China’s Mineral Export Ban

Electric Royalties Ltd. has strategically positioned itself to benefit from China’s recent export restrictions on critical minerals like germanium, gallium, and antimony, which are vital for clean energy and technology sectors. The company’s focus on projects in North America and other stable regions aligns with global efforts to secure alternative mineral sources, enhancing its appeal to investors and governments prioritizing sustainable supply chains. This strategic positioning is expected to capitalize on the growing demand for critical minerals essential for the energy transition.

The most recent analyst rating on (TSE:ELEC) stock is a Buy with a C$1.12 price target. To see the full list of analyst forecasts on Electric Royalties stock, see the TSE:ELEC Stock Forecast page.

Electric Royalties Boosts Investor Engagement with New Initiatives

Electric Royalties Ltd. has announced new marketing initiatives and long-term incentive grants aimed at boosting investor awareness and engagement. The company has engaged Jefferson Financial and Trusted Causes LLC to distribute articles across various investment-focused newsletters. Additionally, Electric Royalties has granted stock options, restricted share units, and deferred share units to its directors, officers, and consultants, subject to TSX Venture Exchange approval. These initiatives are expected to enhance the company’s market presence and align stakeholder interests with its growth strategy in the clean energy sector.

Electric Royalties Advances Key Mineral Projects, Enhancing Future Prospects

Electric Royalties has reported significant progress in its royalty portfolio, particularly highlighting developments in its lithium, manganese, vanadium, graphite, and copper assets. Key projects like Seymour Lake and Battery Hill have advanced with new economic assessments and feasibility studies, potentially increasing future cash flows. The integration of the Authier lithium royalty into the North American Lithium mine and the acquisition of the Zonia copper project by a European group are expected to enhance the company’s financial prospects and industry positioning.

Electric Royalties: Unrecognized Growth in Critical Metals Portfolio

Electric Royalties Ltd. has significantly increased its portfolio, yet its market capitalization does not reflect this growth. The company holds valuable royalties in projects like the Punitaqui copper-gold mine, Battery Hill manganese project, Mont Sorcier iron-vanadium deposit, Bissett Creek graphite project, and Seymour Lake, all of which show promising developments and potential future revenue streams.

Electric Royalties Appoints Craig Lindsay as New Chairman

Electric Royalties Ltd. has appointed Craig Lindsay as the new Chairman of the Board, succeeding Marchand Snyman. Lindsay, who has been an independent director since 2016, brings over 30 years of experience in corporate finance and public company management. His appointment comes at a pivotal time as the company seeks to advance its diversified royalty portfolio to support the global shift towards sustainable energy. The change in leadership is expected to further enhance shareholder value and support the company’s growth trajectory in the clean energy sector.