Electric Royalties (ELEC) AI Stock Analysis

• Market Cap: $15.36M
• Dividend Yield: N/A
• Average Volume (3M): 18.15K
• 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: 61
• Industry: Industrial Materials
• EPS (TTM): N/A
• Shares Outstanding: 119,973,290
• 10 Day Avg. Volume: 10,945
• 30 Day Avg. Volume: 18,151
• PEG Ratio: 0.31
• Price to Book (P/B): 1.34
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.14
• 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: 50 Neutral
• Price Target: C$0.00 ▼(-100.00%Downside)

Electric Royalties' overall stock score is influenced by its weak financial performance and valuation, which are offset by positive corporate events. The company's strategic initiatives and executive changes are promising, but financial and technical indicators suggest caution. The score highlights the need for improved financial health to support long-term growth.

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, 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	31.14K	165.81K	0.00	0.00	0.00
Gross Profit	11.01K	-289.69K	-6.82K	-4.54K	0.00
EBITDA	-5.42M	-5.60M	-2.07M	-2.26M	-326.03K
Net Income	-6.36M	-6.00M	-1.92M	-2.30M	-2.64M
Balance Sheet
Total Assets	20.16M	18.01M	18.41M	15.54M	5.22M
Cash, Cash Equivalents and Short-Term Investments	28.08K	442.52K	1.24M	2.10M	2.58M
Total Debt	10.84K	4.36M	25.32K	30.51K	0.00
Total Liabilities	10.43M	4.49M	155.64K	367.73K	123.06K
Stockholders Equity	9.74M	13.52M	18.25M	15.17M	5.09M
Cash Flow
Free Cash Flow	-6.13M	-5.34M	-3.99M	-2.00M	-3.03M
Operating Cash Flow	-1.18M	-1.38M	-2.04M	-1.50M	-1.78M
Investing Cash Flow	-4.72M	-3.85M	-1.64M	-1.01M	-1.23M
Financing Cash Flow	5.48M	4.44M	2.82M	2.03M	5.50M

Electric Royalties Technical Analysis

• Technical Analysis Sentiment: Negative
• 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 Negative. 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 0.15, indicating a bearish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 44.61 is Neutral, neither overbought nor oversold. The STOCH value of 35.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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$23.60M	23.12	7.85%	―	-1.12%	―
ILI	53 Neutral	C$5.11M	15.00	-0.37%	―	―	―
ELEC	50 Neutral	$15.36M	―	-54.08%	―	-2.32%	-1.25%
TGOL	44 Neutral	C$12.51M	―	-12.23%	―	―	-52.78%
Sector *	44 Neutral	C$956.42M	-6.69	-13.35%	2.79%	17.55%	-32.18%
SUPR	32 Underperform	C$15.04M	―	-24.75%	―	―	9.29%

Electric Royalties Corporate Events

Electric Royalties Appoints New CFO to Drive Growth and Efficiency

Electric Royalties Ltd. announced the appointment of Robert Scott as the new Chief Financial Officer, succeeding Luqman Khan. Scott brings over 25 years of experience in finance and accounting, and his leadership is expected to support the company’s growth phase. The transition to Corex Management Inc., led by Scott, aims to reduce overhead and administrative costs while maintaining a focus on building a growth-oriented royalty portfolio. This strategic move is anticipated to strengthen Electric Royalties’ position in the market by enhancing operational efficiency and supporting its mission to invest in commodities essential for the electric revolution.

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 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.