Electric Royalties (ELEC) AI Stock Analysis

• Market Cap: C$23.52M
• Dividend Yield: N/A
• Average Volume (3M): 80.89K
• Price to Earnings (P/E): ―
• Beta (1Y): -1.16
• 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: 127,116,150
• 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: 54 Neutral
• Price Target: C$0.19 ▲(35.00% Upside)

The score is held back primarily by weak financial performance—large ongoing losses, negative operating/free cash flow, and increased leverage despite improving revenue and gross margin. Technicals are relatively strong with price above key moving averages and positive MACD, but momentum appears stretched (high Stochastic, RSI near 70). Valuation provides limited support due to negative earnings and no dividend yield data.

Positive Factors

Revenue Growth and Gross Margin

Sustained top-line growth combined with a strong gross margin indicates the company is achieving positive unit economics on its royalties. Over 2–6 months this improves the chance of converting scale into operating leverage if SG&A and financing costs are controlled, supporting a path toward durable profitability.

Royalty Business Model Lowers Operational Risk

A royalty model provides exposure to production upside without direct mining operations, reducing capital intensity and operational liabilities. This capital-efficient structure supports steadier long-term cash flows and the ability to expand a diversified royalty portfolio with lower balance-sheet risk than owning mines.

Secular Demand for Critical Minerals

Long-term structural growth in EVs and renewable storage drives durable demand for lithium and critical minerals. As an issuer of royalties, the company is positioned to capture ongoing production-linked revenue streams from multiple projects, benefiting from multi-year secular tailwinds independent of short-term price swings.

Negative Factors

Persistent Cash Burn

Ongoing negative operating and free cash flow is a structural weakness: it forces reliance on external financing to fund operations or acquisitions, risks shareholder dilution, and limits the company's ability to organically scale its royalty portfolio. Continued cash burn undermines long-term financial flexibility.

Rising Leverage

Elevated and rising leverage increases financial risk for a company still running losses. Interest and principal obligations constrain capital allocation, reduce capacity for opportunistic royalty deals, and raise the chance of covenant pressures during weak commodity cycles, impairing strategic optionality.

Deep Net Losses and Negative ROE

Extremely negative margins and ROE indicate current operations destroy shareholder value and require substantial margin improvement or scale to reverse. This structural profitability gap makes long-term sustainability dependent on sustained revenue growth and cost discipline; otherwise financing and dilution risks persist.

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

Revenue is growing strongly (+34.6% TTM) and gross margin has improved to ~44%, but the business remains far from profitable with extremely negative net margin (~-2,249%), ongoing large losses, and persistent cash burn (TTM FCF about -$5.4M). Leverage has increased to roughly debt-to-equity ~1.0, adding risk while returns remain negative (TTM ROE ~-62%).

Income Statement

TTM (Trailing-Twelve-Months) revenue improved sharply (+34.6%) and gross margin is positive (~44%), a meaningful step up versus prior years (including a negative gross margin in 2023). However, profitability remains very weak: TTM net margin is deeply negative (about -2,249%), with large operating losses (negative EBIT and EBITDA margins). Net losses have remained sizable across the annual periods, indicating the business is still far from scale and earnings stability.

Balance Sheet

The balance sheet shows a moderate asset base (~$20.0M) with equity roughly matching debt in TTM (debt-to-equity ~1.0), a notable increase in leverage versus 2022–2023 when debt was low. This higher leverage adds financial risk, particularly given ongoing losses and negative returns on equity (TTM ROE around -62%). Equity remains positive, but the trajectory points to rising balance-sheet pressure unless profitability improves.

Cash Flow

Cash generation is a key weakness: TTM operating cash flow is negative (~-$1.7M) and free cash flow is deeply negative (~-$5.4M), with free cash flow growth also negative. While free cash flow to net income is positive (driven by net losses), the core takeaway is persistent cash burn, which can increase reliance on financing and dilute shareholder value if it continues.

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 0.16, 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 64.79 is Neutral, neither overbought nor oversold. The STOCH value of 96.30 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
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ELEC	54 Neutral	C$23.52M	-3.11	-53.71%	―	2549.43%	17.73%
CELL	53 Neutral	C$7.74M	-2.17	-58.31%	―	―	4.17%
LLG	50 Neutral	C$16.08M	0.84	45.75%	―	―	158.45%
MN	49 Neutral	C$30.04M	-14.89	-78.78%	―	―	29.85%
LIT	45 Neutral	C$18.57M	-1.50	-24.07%	―	―	76.16%
AVE	40 Underperform	C$19.84M	-6.48	-24.93%	―	―	-6.45%

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.