Leading Edge Materials (LEM) AI Stock Analysis

• Market Cap: $63.74M
• Dividend Yield: N/A
• Average Volume (3M): 210.42K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.21
• Revenue Growth: N/A
• EPS Growth: 17.24%
• Country: CA
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): >-0.01
• Shares Outstanding: 249,950,450
• 10 Day Avg. Volume: 468,173
• 30 Day Avg. Volume: 210,418
• PEG Ratio: 0.55
• Price to Book (P/B): 0.87
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.82
• Enterprise Value/Market Cap: 0.55
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -609.91
• Enterprise Value/Ebitda: -14.06
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Underperform
• Price Target: ―

Leading Edge Materials faces significant financial challenges with no revenue and increasing losses. Despite a debt-free balance sheet, negative cash flows and eroding equity underscore financial instability. Technical analysis shows mixed signals, with some positive momentum but potential overbought conditions. Valuation remains unattractive due to negative earnings. However, strategic developments in key projects offer potential upside if executed successfully.

Leading Edge Materials Business Overview & Revenue Model

Company Description

Leading Edge Materials Corp. explores for and develops a portfolio of raw material projects in Europe. The company primarily explores for graphite, lithium, nickel, cobalt, and rare earth elements. It holds a 100% interest in the Woxna graphite project that includes four concessions consisting of Kringelgruven, Mattsmyra, Gropabo, and Mansberg located in Gavleborg County, central Sweden. The company also holds interests in the Norra Karr HREE project located in south-central Sweden; and a 51% interest in the Bihor Sud nickel cobalt exploration alliance located in Romania. Leading Edge Materials Corp. was formerly known as Flinders Resources Limited and changed its name to Leading Edge Materials Corp. in August 2016. The company is headquartered in Vancouver, Canada.

How the Company Makes Money

Leading Edge Materials generates revenue primarily through the exploration, development, and potential sale of critical raw material assets. The company's key revenue streams include the sale of extracted minerals, joint ventures with strategic partners in the high-tech and renewable energy sectors, and potential licensing or royalties from developed technologies. Significant partnerships and collaborations with industry leaders and government bodies also contribute to its earnings by enhancing its exploration and production capabilities, thereby increasing the value of its material assets.

Leading Edge Materials Financial Statement Overview

Summary

Leading Edge Materials is struggling financially, with no reported revenues and consistent net losses over several periods. The balance sheet shows some strength in terms of no debt, but negative cash flows and eroding equity highlight significant financial challenges. Immediate focus on revenue generation and cost management is crucial for improving financial health.

Income Statement

Leading Edge Materials has reported zero revenue over multiple periods, indicating a lack of operational income. The company is experiencing significant losses, with a negative gross profit and increasing net losses. The EBIT and EBITDA margins are also negative, reflecting poor operational efficiency and profitability.

Balance Sheet

The company maintains a debt-free balance sheet, which is a positive indicator of financial stability. The equity ratio is relatively healthy, indicating a solid capital structure with a high proportion of equity financing. However, the continuous net losses are eroding stockholders' equity, which poses a risk to long-term financial stability.

Cash Flow

Operating cash flow remains negative, highlighting challenges in covering operational expenses through business activities. Free cash flow is also negative, exacerbated by significant capital expenditures. The company has relied on financing activities to support cash flow, which is unsustainable in the long run without revenue generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	34.59K	93.64K
Gross Profit	-57.71K	-156.58K	-128.06K	-64.87K	-33.70K	-53.75K
EBITDA	-2.50M	-2.53M	-2.12M	-2.44M	-1.14M	-1.69M
Net Income	-2.78M	-2.69M	-2.58M	-3.61M	-1.21M	-1.72M
Balance Sheet
Total Assets	29.50M	29.34M	25.39M	23.83M	28.76M	27.22M
Cash, Cash Equivalents and Short-Term Investments	916.21K	3.48M	2.58M	1.35M	2.30M	3.44M
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	7.30M	6.21M	5.00M	5.50M	10.15M	7.50M
Stockholders Equity	22.20M	23.14M	20.39M	18.34M	18.60M	19.71M
Cash Flow
Free Cash Flow	-3.46M	-3.44M	-2.55M	-2.04M	-2.84M	-1.59M
Operating Cash Flow	-1.10M	-1.33M	-1.63M	-1.52M	-2.53M	-1.51M
Investing Cash Flow	-3.07M	-2.12M	-919.34K	-327.03K	387.78K	-69.26K
Financing Cash Flow	1.27M	4.48M	3.78M	1.73M	101.70K	4.54M

Leading Edge Materials Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.26
• 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:LEM, the sentiment is Positive. The current price of 0.26 is above the 20-day moving average (MA) of 0.25, above the 50-day MA of 0.25, and above the 200-day MA of 0.21, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 52.58 is Neutral, neither overbought nor oversold. The STOCH value of 37.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:LEM.

Leading Edge Materials 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%
NBM	53 Neutral	C$86.52M	-15.33	-450.88%	―	―	-38.68%
LLG	50 Neutral	C$16.08M	0.84	45.75%	―	―	158.45%
NEXT	49 Neutral	C$83.21M	-2.16	-67.77%	―	―	-156.65%
NGC	47 Neutral	C$36.10M	-1.07	―	―	2.76%	-1.06%
RCK	46 Neutral	C$103.80M	-7.87	-34.52%	―	―	36.48%
LEM	40 Underperform	$63.74M	-21.25	-12.25%	―	―	17.24%

Leading Edge Materials Corporate Events

Leading Edge Materials Joins EIT RawMaterials as Project Partner

Leading Edge Materials has been accepted as a Project Partner by EIT RawMaterials, a prominent European network focused on advancing the raw materials sector. This partnership aligns with the company’s commitment to contributing to Europe’s critical raw materials ecosystem, providing significant networking opportunities and potential strategic benefits. The collaboration is expected to enhance Leading Edge Materials’ industry positioning and support its operations in developing sustainable raw materials solutions.

Leading Edge Materials Advances Norra Kärr Mining Lease with CAB Endorsements

Leading Edge Materials Corp. announced that its Swedish subsidiary, Greenna Minerals AB, has received endorsements from the County Administrative Boards of Jönköping and Östergötland for its application for a 25-year mining lease at the Norra Kärr site. This endorsement is a crucial step in the permitting process, allowing the Mining Inspectorate to make the final decision without government intervention. The approval signifies compliance with permitting procedures and moves the company closer to securing exclusive rights to develop the deposit, pending an environmental permit.

Leading Edge Materials Advances Norra Kärr Project Amidst Global Rare Earth Shortage

Leading Edge Materials Corp. has provided an update on its Norra Kärr Heavy Rare Earth Elements Project in Sweden amidst a global shortage of heavy rare earth elements like Dysprosium and Terbium. The project is strategically important for Europe, as it could significantly enhance the continent’s supply of these critical minerals. The Swedish Geological Survey has highlighted Norra Kärr as one of Europe’s richest deposits, and the company is awaiting a decision on its mining lease application. The project is expected to produce substantial quantities of Dysprosium and Terbium annually, positioning it as a key player in the European rare earth market.