Eureka Lithium (ERKA) AI Stock Analysis

• Market Cap: C$9.95M
• Dividend Yield: N/A
• Average Volume (3M): 33.75K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.46
• Revenue Growth: N/A
• EPS Growth: 93.17%
• Country: CA
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): -0.02
• Shares Outstanding: 22,114,395
• 10 Day Avg. Volume: 9,123
• 30 Day Avg. Volume: 33,752
• PEG Ratio: <0.01
• Price to Book (P/B): 0.19
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.32
• 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: 47 Neutral
• Price Target: C$0.44 ▼(-13.14% Downside)

The score is weighed down primarily by weak financial performance (no revenue, large losses, and ongoing cash burn with shrinking equity/assets). Technicals are comparatively supportive with an improving trend and moderate momentum, but valuation signals remain weak due to continued losses and no dividend support.

Positive Factors

Low financial leverage

A debt-free balance sheet reduces fixed interest obligations and bankruptcy risk, giving management flexibility to pace development spending or raise capital on better terms. Over months, low leverage supports survival through pre-revenue operations and strategic optionality.

Improving cash burn trend

Year-over-year reduction in cash burn indicates improving operational discipline or cost control, which can extend runway and reduce near-term financing needs. If sustained, this trend materially lowers dilution risk and supports longer-term project execution.

Narrowing losses year-over-year

A smaller loss versus the prior year signals progress toward cost efficiency or milestone-driven de-risking. Over a 2–6 month horizon, continued narrowing could improve path to commercialization or reduce funding pressure, strengthening the viability of the business model.

Negative Factors

Pre-revenue operating model

Being pre-revenue with sustained large losses forces continued reliance on external financing and creates high dilution risk. Without demonstrated sales, long-term viability depends on successful project execution and capital access, raising execution and funding uncertainty.

Erosion of equity and assets

Meaningful declines in equity and asset base reflect value erosion from ongoing losses and cash burn. A shrinking capital buffer reduces resilience to adverse shocks, constrains borrowing capacity, and increases vulnerability if funding channels tighten over the medium term.

Persistently negative free cash flow

Sustained negative operating and free cash flow means the business consumes capital rather than generates it, necessitating repeated external funding. Over several months this raises refinancing and execution risk, limits reinvestment ability, and can materially dilute existing shareholders.

Eureka Lithium Business Overview & Revenue Model

Company Description

Eureka Lithium Corp., a junior mining company, engages in the acquisition, exploration, and development of mineral properties in Canada. It has an option to acquire a 75% interest in the North McKinney property comprises five mineral claims totaling 1,289 hectares located on the southeast slope of Mt. Baldy in southern British Columbia. The company was formerly known as Scout Minerals Corp. and changed its name to Eureka Lithium Corp. in June 2023. The company was incorporated in 2021 and is headquartered in Vancouver, Canada.

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

Pre-revenue with persistent, large operating and net losses and consistently negative operating/free cash flow. No debt reduces balance-sheet risk, but equity/assets have declined and cash burn remains material, implying continued reliance on external funding.

Income Statement

Across 2021–2024, the company reports no revenue and persistent operating losses, with net losses widening materially in 2023 and remaining very large in 2024. With no demonstrated sales base, profitability is structurally weak and earnings visibility is limited; the only relative positive is a smaller loss in 2024 versus 2023, but results remain deeply negative overall.

Balance Sheet

The balance sheet shows no debt, which reduces financial risk and interest burden. However, equity and assets declined meaningfully from 2023 to 2024, reflecting ongoing losses and cash burn, and returns on equity are sharply negative—signaling continued value erosion despite low leverage.

Cash Flow

Operating and free cash flow are consistently negative, indicating the business is consuming cash rather than generating it. Cash burn improved in 2024 versus 2023, but free cash flow remains materially negative and the multi-year trend shows heavy funding needs as the company operates pre-revenue.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00
Gross Profit	0.00	0.00	0.00	0.00	0.00
EBITDA	-1.10M	-4.49M	-6.06M	-189.61K	-5.02K
Net Income	-912.73K	-4.37M	-6.06M	-189.61K	-5.02K
Balance Sheet
Total Assets	6.46M	5.99M	10.08M	236.05K	197.09K
Cash, Cash Equivalents and Short-Term Investments	542.87K	41.76K	2.60M	173.55K	197.09K
Total Debt	0.00	0.00	0.00	0.00	0.00
Total Liabilities	138.04K	340.73K	948.17K	68.23K	5.01K
Stockholders Equity	6.32M	5.65M	9.13M	167.82K	192.08K
Cash Flow
Free Cash Flow	-1.65M	-3.39M	-6.50M	-176.65K	-9.00
Operating Cash Flow	-1.65M	-3.39M	-6.44M	-114.15K	-9.00
Investing Cash Flow	0.00	-20.00	-1.26M	-62.50K	0.00
Financing Cash Flow	1.04M	832.48K	10.13M	153.11K	197.10K

Eureka Lithium Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.51
• 50DMA: Positive
• 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 Positive. The current price of 0.51 is above the 20-day moving average (MA) of 0.39, above the 50-day MA of 0.28, and above the 200-day MA of 0.22, indicating a bullish trend. The MACD of 0.05 indicates Positive momentum. The RSI at 57.71 is Neutral, neither overbought nor oversold. The STOCH value of 56.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ERKA.

Eureka Lithium 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%
ILI	51 Neutral	C$10.22M	-33.33	-1.36%	―	―	-136.00%
GRD	48 Neutral	C$4.70M	-18.42	-13.76%	―	―	82.88%
ERKA	47 Neutral	C$9.95M	-5.53	-34.14%	―	―	93.17%
NRM	47 Neutral	C$12.52M	-5.62	-41.21%	―	―	48.66%
OWLI	43 Neutral	C$4.28M	-3.73	―	―	―	11.84%
AWCM	33 Underperform	C$16.32M	-8.18	-17.86%	―	―	92.11%

Eureka Lithium Corporate Events

Eureka Lithium to Acquire Titanium, Vanadium and Precious Metals Projects via Stairway Mining Deal

Eureka Lithium Corp. has entered into a share purchase agreement to acquire Stairway Mining Inc., giving it 100% ownership of the Tyee titanium-vanadium project in Quebec’s Havre-St-Pierre region and the Cabin Lake silver-gold-zinc-lead project in British Columbia’s Golden Triangle, in exchange for 12 million Eureka common shares. The Tyee project covers 10,136 hectares in a titanium‑prospective, infrastructure-advantaged district and includes several historically explored targets, while Cabin Lake spans 2,363 hectares in one of Canada’s premier precious and base metals belts, broadening Eureka’s portfolio beyond lithium into a wider suite of critical and strategic minerals pending customary regulatory approvals.

The most recent analyst rating on (TSE:ERKA) stock is a Hold with a C$0.39 price target. To see the full list of analyst forecasts on Eureka Lithium stock, see the TSE:ERKA Stock Forecast page.

Eureka Lithium Adds Experienced Advisor Cody Simpson to Board as Director Resigns

Eureka Lithium Corp. has appointed Cody Simpson, an enterprise sales manager with more than 13 years’ experience advising companies in the mining, construction, manufacturing and software sectors, to its board of directors, while director Meissam Hagh Panah has resigned. The board change brings additional operational, financial and strategic expertise to the company as it advances its substantial lithium land package in Quebec’s Nunavik region, potentially strengthening governance and execution capabilities in a competitive battery metals exploration landscape.

The most recent analyst rating on (TSE:ERKA) stock is a Hold with a C$0.40 price target. To see the full list of analyst forecasts on Eureka Lithium stock, see the TSE:ERKA Stock Forecast page.