Electric Royalties (ELEC) AI Stock Analysis

• Market Cap: C$18.00M
• Dividend Yield: N/A
• Average Volume (3M): 80.89K
• Price to Earnings (P/E): ―
• Beta (1Y): -1.03
• Revenue Growth: 2549.43%
• EPS Growth: 17.73%
• Country: CA
• Employees: 1
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): >-0.01
• Shares Outstanding: 119,973,290
• 10 Day Avg. Volume: 127,973
• 30 Day Avg. Volume: 80,886
• PEG Ratio: 0.00
• Price to Book (P/B): 1.62
• Price to Sales (P/S): 506.20
• P/FCF Ratio: -2.57
• 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: 43 Neutral
• Price Target: C$0.14 ▼(-3.57% Downside)

The score is held down primarily by weak financial performance—large ongoing losses, negative operating/free cash flow, and increased leverage—despite improved revenue growth and gross margin. Technicals are mildly bearish/neutral with negative MACD and price below key short-to-mid-term moving averages, while valuation is difficult to assess meaningfully due to negative earnings and no dividend data.

Positive Factors

Business Model Strength

The royalty-based business model provides a steady cash flow while minimizing operational risks, aligning well with the growing demand for EV batteries.

Market Position

Positioning in the critical minerals sector for EVs offers growth potential as global demand for sustainable energy solutions rises.

Low Debt Levels

A low debt-to-equity ratio indicates financial stability, reducing risk and providing flexibility for future investments or downturns.

Negative Factors

Declining Revenue

Declining revenue suggests challenges in maintaining market competitiveness and could impact long-term financial health and growth prospects.

Negative Profit Margins

Negative profit margins highlight inefficiencies and profitability issues, which may hinder the company's ability to reinvest and grow sustainably.

Cash Flow Issues

Negative cash flow from operations limits the company's ability to fund growth initiatives and may necessitate external financing, increasing financial risk.

Electric Royalties Business Overview & Revenue Model

Company Description

Electric Royalties Ltd. focuses on acquiring royalties in mines and projects. The company primarily focuses on various commodities, including lithium, vanadium, manganese, tin, graphite, cobalt, nickel, and copper. Electric Royalties Ltd. is based in Vancouver, Canada.

How the Company Makes Money

Electric Royalties generates revenue primarily through its royalty agreements with mining companies. These agreements entitle Electric Royalties to a percentage of the revenue generated from the sale of minerals produced at the mines in which they have invested. As the demand for lithium and other critical minerals continues to rise, especially for use in EV batteries, the company's earnings are bolstered by the increasing production and sales from its partner mining operations. Additionally, Electric Royalties may benefit from strategic partnerships and collaborations with mining firms that enhance its portfolio and provide exposure to high-quality projects. The company's revenue model is designed to provide a steady cash flow while minimizing operational risks, positioning it favorably in the growing renewable energy sector.

Electric Royalties Financial Statement Overview

Summary

Electric Royalties faces significant financial challenges, with declining revenues and persistent losses impacting its income statement. The balance sheet is relatively stable but shows signs of weakening equity. Cash flow analysis reveals cash management issues, with reliance on financing activities for liquidity. The company needs to improve operational efficiency and revenue growth to enhance its financial health.

Income Statement

The company shows a lack of revenue growth, with total revenue significantly declining from 2023 to 2024. Gross and net profit margins remain negative, indicating ongoing operational challenges. The negative EBIT and EBITDA margins further highlight weak profitability and operational inefficiencies.

Balance Sheet

The debt-to-equity ratio is low, suggesting a conservative leverage position. However, the continuous decrease in stockholders' equity signals potential financial strain. The equity ratio is relatively stable, though the declining assets may pose a risk to future growth potential.

Cash Flow

The company exhibits declining free cash flow, with negative operating cash flow indicating cash management issues. The free cash flow to net income ratio is unfavorable, which could hinder reinvestment opportunities. However, financing cash flow remains positive, providing some liquidity support.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	284.50K	31.14K	165.81K	0.00	0.00	0.00
Gross Profit	126.23K	11.01K	-289.69K	-6.82K	-4.54K	0.00
EBITDA	-4.99M	-5.42M	-5.60M	-2.07M	-2.26M	-2.64M
Net Income	-6.40M	-6.36M	-6.00M	-1.92M	-2.30M	-2.64M
Balance Sheet
Total Assets	19.98M	20.16M	18.01M	18.41M	15.54M	5.22M
Cash, Cash Equivalents and Short-Term Investments	169.74K	28.08K	442.52K	1.24M	2.10M	2.58M
Total Debt	9.86M	9.19M	4.36M	25.32K	30.51K	0.00
Total Liabilities	9.99M	10.43M	4.49M	155.64K	367.73K	123.06K
Stockholders Equity	9.98M	9.74M	13.52M	18.25M	15.17M	5.09M
Cash Flow
Free Cash Flow	-5.39M	-6.13M	-5.34M	-3.99M	-2.00M	-3.03M
Operating Cash Flow	-1.71M	-1.18M	-1.38M	-2.04M	-1.50M	-1.78M
Investing Cash Flow	-3.31M	-4.72M	-3.85M	-1.64M	-1.01M	-1.23M
Financing Cash Flow	5.09M	5.48M	4.44M	2.82M	2.03M	5.50M

Electric Royalties Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.14
• 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:ELEC, the sentiment is Positive. The current price of 0.14 is below the 20-day moving average (MA) of 0.15, below the 50-day MA of 0.15, and above the 200-day MA of 0.14, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 51.69 is Neutral, neither overbought nor oversold. The STOCH value of 83.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ELEC.

Electric Royalties Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PLAN	74 Outperform	C$38.97M	12.03	21.19%	―	4.44%	156.52%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
NMI	51 Neutral	C$48.83M	-50.00	-3.86%	―	―	―
ILI	48 Neutral	C$10.22M	-33.33	-1.36%	―	―	-136.00%
ORNG	47 Neutral	C$9.35M	-1.42	-47.73%	―	―	-763.79%
TGOL	45 Neutral	C$13.86M	-18.97	-6.33%	―	―	6.45%
ELEC	43 Neutral	C$18.00M	-2.53	-53.71%	―	2549.43%	17.73%

Electric Royalties Corporate Events

Electric Royalties Converts Accrued Interest to Equity and Issues New Stock Options

Electric Royalties announced that its largest shareholder, Gleason & Sons LLC, has elected to convert C$420,000 of accrued interest under the company’s convertible credit facility into 3 million common shares at C$0.14 per share, a move that effectively eliminates nearly all interest accrued to date, subject to TSX Venture Exchange approval. The transaction, structured as a shares-for-debt deal and exempt from related party minority protection requirements, strengthens the company’s balance sheet as it heads into 2026 with growing cash flows from its Punitaqui copper royalty in Chile and renewed investment commitments supporting its Middle Tennessee Zinc royalty, while Electric Royalties also granted 700,000 stock options to consultants at an exercise price of C$0.14, further aligning incentives with the company’s growth in the critical minerals royalty space.

The most recent analyst rating on (TSE:ELEC) stock is a Hold with a C$0.14 price target. To see the full list of analyst forecasts on Electric Royalties stock, see the TSE:ELEC Stock Forecast page.

Electric Royalties Advances Critical Metals Portfolio with Key Project Updates

Electric Royalties has provided an update on its critical metals royalty portfolio, highlighting significant progress across several key projects. The Graphmada Graphite Mine is under review for expanded production, aligning with Western economies’ shift towards non-China sources for battery materials. Manganese X’s Battery Hill project has shown promising battery performance results, advancing to Phase 3 testing. Additionally, the Seymour Lake Lithium and Mont Sorcier Iron-Vanadium projects are progressing towards feasibility studies, indicating strong future potential. These developments underscore Electric Royalties’ strategic positioning to capitalize on the rising demand for critical minerals, promising long-term value for shareholders.

The most recent analyst rating on (TSE:ELEC) stock is a Hold with a C$0.16 price target. To see the full list of analyst forecasts on Electric Royalties stock, see the TSE:ELEC Stock Forecast page.