Frontier Lithium (FL) AI Stock Analysis

• Market Cap: C$129.98M
• Dividend Yield: N/A
• Average Volume (3M): 63.39K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.66
• Revenue Growth: N/A
• EPS Growth: 25.32%
• Country: CA
• Employees: 19
• Sector: Energy
• Sector Strength: 47
• Industry: Industrial Materials
• EPS (TTM): -0.08
• Shares Outstanding: 228,027,040
• 10 Day Avg. Volume: 49,348
• 30 Day Avg. Volume: 63,389
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 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: C$2.50
• Price Target Upside: 338.60% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Frontier Lithium's stock score is primarily impacted by its weak financial performance and valuation, reflecting ongoing profitability and cash flow issues. However, strategic corporate events, such as government funding and infrastructure development, provide a positive outlook for future growth, somewhat balancing the overall score.

Frontier Lithium Business Overview & Revenue Model

Company Description

Frontier Lithium Inc. is a Canadian mining company focused on the exploration and development of high-quality lithium resources. The company operates primarily in the mining and materials sector, with a strategic emphasis on the production of lithium, a critical component in the rapidly growing battery and electric vehicle industries. Frontier Lithium is committed to advancing its flagship project, the PAK Lithium Project, which is located in Ontario, Canada and aims to supply the increasing global demand for lithium compounds.

How the Company Makes Money

Frontier Lithium generates revenue primarily through the exploration, development, and eventual sale of lithium resources extracted from its mining operations. The company's key revenue streams are expected to include the sale of lithium concentrate and lithium chemical products, which are essential for the manufacturing of batteries used in electric vehicles, consumer electronics, and energy storage systems. Significant factors contributing to Frontier Lithium's earnings include strategic partnerships with industry players for the development and commercialization of lithium projects, as well as favorable market conditions driven by the global shift towards renewable energy and electric transportation. The company also benefits from its focus on high-quality, high-purity lithium resources, which are in high demand for premium applications.

Frontier Lithium Financial Statement Overview

Summary

Frontier Lithium is struggling with profitability, as indicated by its income statement, and relies heavily on external financing to manage cash flows. While the balance sheet shows some stability through low leverage, the overall financial health is weak due to persistent losses and cash flow issues.

Income Statement

Frontier Lithium has consistently generated no revenue, indicating challenges in achieving profitability. The company has experienced increasing net losses, with negative gross profit and EBIT margins, signaling ongoing operational inefficiencies.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio, suggesting limited leverage. Frontier Lithium has maintained a positive equity ratio, demonstrating some financial stability. However, the increasing liabilities and declining equity raise concerns about future solvency.

Cash Flow

Negative operating and free cash flows indicate cash burn issues, while significant financing cash inflows suggest heavy reliance on external funding. The lack of free cash flow growth points to potential liquidity challenges.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00
	Gross Profit
-406.00K	-14.19M	-4.26M	-77.97K	-70.95K
	EBIT
-25.43M	-24.19M	-11.38M	-6.73M	-1.81M
	EBITDA
-24.10M	-23.87M	-11.27M	-8.23M	-1.74M
	Net Income Common Stockholders
-24.53M	-24.23M	-10.95M	-6.66M	-1.65M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
12.07M	27.37M	17.69M	10.32M	569.32K
	Total Assets
21.71M	35.20M	24.63M	25.14M	13.55M
	Total Debt
66.00K	120.00K	108.00K	71.79K	0.00
	Net Debt
-1.21M	-27.25M	-17.57M	-10.24M	-565.95K
	Total Liabilities
7.55M	1.96M	1.31M	1.38M	665.47K
	Stockholders Equity
14.16M	33.24M	23.32M	23.75M	12.89M
Cash Flow		Free Cash Flow
-15.71M	-17.82M	-11.49M	-2.71M	-3.16M
	Operating Cash Flow
-14.29M	-17.35M	-7.34M	-1.04M	-1.50M
	Investing Cash Flow
-1.43M	-365.00K	-4.15M	-1.51M	-1.70M
	Financing Cash Flow
915.00K	27.40M	18.83M	12.29M	3.11M

Frontier Lithium Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.57
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:FL, the sentiment is Positive. The current price of 0.57 is above the 20-day moving average (MA) of 0.55, below the 50-day MA of 0.59, and above the 200-day MA of 0.56, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 51.77 is Neutral, neither overbought nor oversold. The STOCH value of 78.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:FL.

Frontier Lithium Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	56 Neutral	$6.99B	3.72	-4.39%	5.90%	-0.24%	-48.44%
TGOL	44 Neutral	C$14.79M	―	-12.23%	―	―	-52.78%
FL	42 Neutral	C$129.98M	―	-82.26%	―	―	25.32%
LITH	41 Neutral	C$120.88M	18.40	10.97%	―	―	-7.56%
ETL	39 Underperform	$48.17M	―	-18.02%	―	―	3.30%
RCK	36 Underperform	C$117.83M	―	-41.17%	―	―	48.98%
LTH	30 Underperform	C$112.91M	―	-1139.82%	―	―	60.89%

Frontier Lithium Corporate Events

Frontier Lithium Secures $6 Million Federal Funding for PAK Project Infrastructure

Frontier Lithium has secured up to $6 million in non-repayable federal funding through the Critical Minerals Infrastructure Fund, which will support infrastructure projects essential for the development of its PAK Lithium Project in Northwestern Ontario. This funding, which includes grants for mine access road development and power transmission infrastructure, highlights the importance of collaboration in advancing Canada’s critical minerals sector and strengthening its position in the global electric vehicle and energy storage markets.

Frontier Lithium Secures Government Support for Thunder Bay Facility

Frontier Lithium has announced that both the Federal and Provincial governments have expressed their intent to support the company’s proposed lithium conversion facility in Thunder Bay, Ontario, through non-binding Letters of Intent. While these letters indicate a willingness to collaborate, they do not guarantee funding, and discussions are ongoing. The development of this facility is part of Frontier’s broader strategy to enhance its industry positioning by expanding its lithium production capabilities, potentially impacting the supply chain for electric vehicles and energy storage solutions.

Government Support for Frontier Lithium’s Thunder Bay Facility

Frontier Lithium has announced that the Canadian Federal and Ontario Provincial governments intend to support the company’s planned Lithium Conversion Facility in Thunder Bay, Ontario. This facility aims to convert lithium from Frontier’s PAK mine project into approximately 20,000 tonnes of lithium salts annually, supporting the production of batteries for around 500,000 electric vehicles each year. The government’s support is contingent upon contribution agreements and represents a significant step in aligning Canada’s critical minerals strategy. The facility will be the first of its kind in Canada, enhancing North America’s energy and critical minerals supply chain and reducing reliance on foreign lithium sources.

Frontier Lithium Secures Funding and Strategic Land for Lithium Facility in Thunder Bay

Frontier Lithium has successfully closed a $3.35 million convertible loan and completed the acquisition of a 183-acre industrial site in Thunder Bay, Ontario, previously a coal-fired power station. This strategic acquisition is intended for a proposed lithium conversion facility, enhancing Frontier’s role in the battery materials sector and supporting the regional lithium supply chain. The investment underscores Thunder Bay’s potential as a critical mineral processing hub, with significant economic opportunities anticipated for the region.

Frontier Lithium Secures Financing for Thunder Bay Facility Expansion

Frontier Lithium has secured a $3.35 million unsecured convertible loan from a related party, which will be used to purchase industrial land in Thunder Bay, Ontario, for a planned lithium conversion facility. This strategic move positions Frontier Lithium to enhance its operational capabilities and market presence, leveraging Thunder Bay’s infrastructure and proximity to the company’s PAK lithium deposit to potentially expand its reach in the lithium market.