Eureka Lithium (ERKA) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: N/A
• Average Volume (3M): 42.71K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.14
• Revenue Growth: N/A
• EPS Growth: 78.05%
• Country: CA
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): >-0.01
• Shares Outstanding: 10,885,921
• 10 Day Avg. Volume: 86,064
• 30 Day Avg. Volume: 42,714
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 36 Underperform
• Price Target: ―

Eureka Lithium's overall score is heavily impacted by its non-revenue generating status and financial performance typical for an exploration-stage mining company. While the technical indicators suggest bearish momentum, recent corporate events like the private placement offer some optimism. However, the lack of profitability and cash flow challenges are significant risks, reflecting a speculative investment outlook dependent on future operational success.

Eureka Lithium Business Overview & Revenue Model

Company Description

Eureka Lithium (ERKA) is a company focused on the exploration and development of lithium resources, primarily catering to the growing demand in the electric vehicle and renewable energy sectors. The company aims to identify, acquire, and develop high-quality lithium projects to support the global transition to sustainable energy solutions.

How the Company Makes Money

Eureka Lithium makes money through the exploration and development of lithium resources, which are critical components in the production of batteries for electric vehicles and renewable energy storage. The company generates revenue by identifying promising lithium deposits, acquiring rights to these resources, and either developing them into productive mining operations or selling the rights to larger mining companies. Key revenue streams include the sale of lithium ore, collaboration agreements with major industry players for resource development, and potential government incentives for contributing to clean energy initiatives. Strategic partnerships and joint ventures with established mining and technology companies also play a significant role in enhancing the company's financial performance.

Eureka Lithium Financial Statement Overview

Summary

Eureka Lithium is in a developmental stage with no revenue generation, resulting in persistent losses and negative cash flows. The company maintains a debt-free balance sheet, which is a positive aspect in terms of financial stability. However, the lack of revenue and cash flow issues pose significant risks to sustainability without external funding or revenue breakthroughs.

Income Statement

Eureka Lithium has no revenue over the analyzed periods, resulting in negative EBIT, EBITDA, and net income. The company's financial performance is characterized by consistent operating losses, indicating a challenging operational environment typical for early-stage or pre-revenue industrial materials companies.

Balance Sheet

Eureka Lithium's balance sheet shows a strong equity position with zero debt, indicating a conservative capital structure. However, the company's total assets have declined, and the equity ratio has decreased over the TTM. The absence of debt reduces financial risk, but the trend of declining asset base could be concerning if it continues.

Cash Flow

The company has negative operating cash flow, reflecting ongoing operational challenges. The free cash flow is also negative, primarily due to operating losses, though financing activities provide some liquidity. The significant decrease in operating cash flow over time highlights cash management concerns.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	0.00	0.00	0.00	0.00
Gross Profit	0.00	0.00	0.00	0.00
EBITDA	-4.49M	-6.06M	-181.87K	-5.02K
Net Income	-4.37M	-6.06M	-189.61K	-5.02K
Balance Sheet
Total Assets	5.99M	10.08M	236.05K	197.09K
Cash, Cash Equivalents and Short-Term Investments	41.76K	2.60M	173.55K	197.09K
Total Debt	0.00	0.00	0.00	0.00
Total Liabilities	340.73K	948.17K	68.23K	5.01K
Stockholders Equity	5.65M	9.13M	167.82K	192.08K
Cash Flow
Free Cash Flow	-3.39M	-6.50M	-176.65K	-9.00
Operating Cash Flow	-3.39M	-6.44M	-114.15K	-9.00
Investing Cash Flow	-20.00	-1.26M	-62.50K	0.00
Financing Cash Flow	832.48K	10.13M	153.11K	197.10K

Eureka Lithium Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.24
• 50DMA: Negative
• 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:ERKA, the sentiment is Negative. The current price of 0.24 is below the 20-day moving average (MA) of 0.27, below the 50-day MA of 0.26, and above the 200-day MA of 0.19, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 43.16 is Neutral, neither overbought nor oversold. The STOCH value of 41.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ERKA.

Eureka Lithium Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SGML	51 Neutral	890.26M	-13.62	-47.88%	―	-25.68%	-637.02%
LAC	49 Neutral	1.06B	―	0.00%	―	0.00%	0.00%
AII	48 Neutral	1.44B	-9.43	-41.71%	―	9.87%	-955.17%
CRE	41 Neutral	88.23M	-72.32	0.00%	―	0.00%	-152.83%
ERKA	36 Underperform		―	-34.14%	―	―	78.05%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Eureka Lithium Corporate Events

Eureka Lithium Corp. Launches $400,000 Private Placement to Enhance Operations

Eureka Lithium Corp. has announced a non-brokered private placement offering, aiming to raise approximately $400,000 by issuing units priced at $0.0825 each. The funds raised will be allocated towards working capital and general corporate purposes, potentially strengthening the company’s financial position and supporting its ongoing operations in the lithium exploration sector. The private placement reflects Eureka’s strategic efforts to bolster its resources in a competitive market, with implications for its growth and development in the lithium industry.

Spark’s Take on TSE:ERKA Stock

According to Spark, TipRanks’ AI Analyst, TSE:ERKA is a Underperform.

Eureka Lithium’s overall score is heavily impacted by its non-revenue generating status and financial performance typical for an exploration-stage mining company. The technical indicators suggest bearish momentum, contributing to a lower score. Valuation metrics highlight the lack of profitability, further pressuring the overall assessment. The company’s potential lies in the successful transition to production, which is crucial for future improvements.

To see Spark’s full report on TSE:ERKA stock, click here.