Ion Energy Ltd (ION) AI Stock Analysis

• Market Cap: C$3.10M
• Dividend Yield: N/A
• Average Volume (3M): 39.29K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.85
• Revenue Growth: N/A
• EPS Growth: -70.83%
• Country: CA
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): 0.00
• Shares Outstanding: 68,781,136
• 10 Day Avg. Volume: 40,439
• 30 Day Avg. Volume: 39,289
• PEG Ratio: 0.10
• Price to Book (P/B): 14.89
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -39.80
• 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: 48 Neutral
• Price Target: C$0.05 ▼(-10.00% Downside)

The score is held down primarily by weak fundamentals: a pre-revenue profile with persistent losses and negative free cash flow, plus a significantly weakened balance sheet with very low equity and elevated leverage. Technicals are moderately supportive with price above key moving averages and neutral-to-positive momentum, but valuation remains challenged by negative earnings and no dividend data.

Positive Factors

Improved cash burn

Operating cash outflows have fallen dramatically versus prior years, materially reducing near-term financing pressure. This improved cash discipline extends runway and gives management more time to execute commercialization or fundraising strategies without immediate dilutive financing.

Narrowing net losses

The company has meaningfully reduced its net loss trajectory, indicating stronger cost control or scaling efficiencies. For a pre-revenue firm, shrinking losses improve the sustainability of operations and lower future capital needs, improving odds of reaching commercialization with less dilution.

Relatively stable asset base

A stable asset base provides a tangible capital foundation to support future development or collateral for financing. While equity is eroded, consistent asset levels reduce variability in downside and can be leveraged to secure strategic funding or partnerships as operations scale.

Negative Factors

Pre-revenue business

Being pre-revenue means no proven demand or margin profile, making future profitability and cash generation uncertain. Long-term value hinges on successful commercialization, which is inherently risky and prolongs reliance on external capital and execution milestones.

Severely eroded equity cushion

Equity reduction to a very small base sharply weakens the company's ability to absorb shocks or fund operations internally. This increases insolvency and dilution risk when raising capital, limiting strategic flexibility and making long-term investments more challenging without external support.

Elevated leverage vs tiny equity

Leverage rising to multiple times a minimal equity base heightens financing and covenant risk. High debt service needs can strain constrained cash flows, reduce investment capacity, and force unfavorable financing terms or asset sales, undermining long-term strategic options.

Ion Energy Ltd Business Overview & Revenue Model

Company Description

Ion Energy Ltd. explores for and develops lithium assets in Asia. Its flagship property is the Baavhai Uul lithium brine project that covers 81,758 hectares located in Mongolia. The company was incorporated in 2017 and is headquartered in Toronto, Canada.

How the Company Makes Money

Ion Energy Ltd makes money through the exploration and development of lithium mining projects. The company's primary revenue stream comes from the sale of lithium extracted from its mining operations to manufacturers and suppliers in the battery and technology industries. Additionally, Ion Energy may enter into strategic partnerships or joint ventures with other mining companies or technology firms to enhance its operational capabilities and market reach. These partnerships can provide additional revenue through shared resources, technology, or expertise. Market demand for lithium, driven by the growing electric vehicle market and renewable energy sector, is a significant factor contributing to the company's earnings.

Ion Energy Ltd Financial Statement Overview

Summary

Pre-revenue with ongoing losses and negative free cash flow. Cash burn has improved markedly in recent periods, but balance-sheet strength is a key risk: equity has been largely eroded and leverage has risen sharply (debt-to-equity ~3.65x TTM), increasing financing/dilution risk.

Income Statement

Ion Energy Ltd remains a pre-revenue business across all periods shown (revenue is 0), with ongoing operating losses. Profitability is weak, but the loss profile has improved materially versus prior years: net loss narrowed from about -2.20M in 2024 and -2.39M in 2023 to about -1.89M in TTM (Trailing-Twelve-Months). The key weakness is the absence of revenue generation, which limits visibility into when margins can structurally improve.

Balance Sheet

The balance sheet has weakened meaningfully. Equity has fallen sharply (from ~2.20M in 2023 to ~176k in 2024 and ~48k in TTM (Trailing-Twelve-Months)), reflecting cumulative losses and leaving a thinner capital cushion. Leverage has risen quickly, with debt-to-equity moving from 0.29x in 2024 to ~3.65x in TTM (Trailing-Twelve-Months). Total assets are relatively stable (~1.34M–1.38M recently), but the high leverage versus a very small equity base increases financing risk.

Cash Flow

Cash burn has improved substantially versus earlier years. Operating cash outflow reduced from roughly -1.33M (2023) and -2.81M (2022) to about -16.8k (2024) and -45.8k in TTM (Trailing-Twelve-Months). Free cash flow is still negative (about -65.9k in 2024 and -71.5k in TTM), so the business remains dependent on external funding, but the scale of cash usage is currently far lower than the historical peak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00	0.00
Gross Profit	0.00	0.00	-704.00	-845.00	-845.00	-422.00
EBITDA	-1.78M	-699.67K	-2.26M	-2.46M	-2.22M	-1.71M
Net Income	-1.89M	-2.20M	-2.39M	-2.70M	-2.22M	-2.97M
Balance Sheet
Total Assets	1.34M	1.38M	3.40M	3.74M	6.47M	2.79M
Cash, Cash Equivalents and Short-Term Investments	23.59K	4.46K	63.03K	542.21K	3.97M	1.30M
Total Debt	175.86K	50.92K	0.00	0.00	0.00	0.00
Total Liabilities	1.29M	1.20M	1.19M	509.70K	790.70K	317.11K
Stockholders Equity	48.13K	176.15K	2.20M	3.23M	5.68M	2.47M
Cash Flow
Free Cash Flow	-71.52K	-65.91K	-1.62M	-3.50M	-2.68M	-2.00M
Operating Cash Flow	-45.82K	-16.77K	-1.33M	-2.81M	-2.28M	-1.46M
Investing Cash Flow	-75.91K	-49.14K	-287.26K	-688.09K	-402.85K	234.94K
Financing Cash Flow	143.02K	23.02K	1.12M	74.08K	5.35M	2.40M

Ion Energy Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.05
• 50DMA: Positive
• 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:ION, the sentiment is Positive. The current price of 0.05 is above the 20-day moving average (MA) of 0.04, above the 50-day MA of 0.04, and above the 200-day MA of 0.04, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 54.35 is Neutral, neither overbought nor oversold. The STOCH value of 61.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ION.

Ion Energy Ltd 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%
CELL	53 Neutral	C$7.74M	-2.17	-58.31%	―	―	4.17%
ION	48 Neutral	C$3.10M	-1.57	-189.13%	―	―	-70.83%
VRB	45 Neutral	C$2.75M	-4.59	-4.76%	―	―	84.01%
GEMC	45 Neutral	C$2.37M	-3.65	-15.45%	―	―	38.06%
QBAT	45 Neutral	C$2.78M	-2.58	-14.59%	―	―	-36.33%
GEL	45 Neutral	C$3.66M	-3.66	-96.85%	―	―	35.91%