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American Lithium (TSE:LI)
:LI

American Lithium (LI) AI Stock Analysis

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American Lithium

(OTC:LI)

Rating:37Underperform
Price Target:
American Lithium faces substantial financial challenges, as evidenced by persistent losses and negative cash flows. Despite a positive corporate event indicating a boost in measured resources, the company's current financial instability and technical indicators suggest caution. The negative valuation metrics further reflect the company's ongoing profitability issues.

American Lithium (LI) vs. iShares MSCI Canada ETF (EWC)

American Lithium Business Overview & Revenue Model

Company DescriptionAmerican Lithium Corp., an exploration stage company, engages in the identification, acquisition, exploration, and development of resource properties in the United States. It principally focuses on the TLC Claystones project covering an area of approximately 5,052 hectares located in the town of Tonopah, Nevada; and the Falchani Lithium project and the Macusani Uranium project located in Puno, Peru. The company was formerly known as Menika Mining Ltd. and changed its name to American Lithium Corp. in April 2016. American Lithium Corp. was incorporated in 1974 and is headquartered in Vancouver, Canada.
How the Company Makes MoneyAmerican Lithium makes money primarily through the exploration and eventual production of lithium from its mining projects. The company generates revenue by extracting lithium and selling it to customers, including battery manufacturers and technology companies, who use lithium in the production of batteries for electric vehicles, consumer electronics, and energy storage solutions. Additionally, the company may engage in strategic partnerships with other mining companies or technology firms to enhance its exploration capabilities, expand its market reach, and secure long-term supply agreements. These partnerships and agreements can provide additional revenue streams and financial stability. American Lithium's success in generating revenue is heavily dependent on the market demand for lithium, the efficiency of its mining operations, and the global lithium price trends.

American Lithium Financial Statement Overview

Summary
American Lithium's financial health is under pressure with persistent losses and negative cash flows. The low debt levels provide some stability, but the lack of revenue generation and increasing operational costs highlight significant challenges ahead.
Income Statement
15
Very Negative
American Lithium has struggled with profitability as indicated by negative EBIT and net income over the years. The absence of revenue growth, combined with increasing losses, reflects challenges in achieving operational efficiency and market penetration.
Balance Sheet
40
Negative
The company maintains a relatively low debt-to-equity ratio, suggesting conservative leverage. However, the consistent decline in stockholders' equity and total assets indicates potential financial instability. Despite low debt levels, the lack of substantial asset growth remains a concern.
Cash Flow
20
Very Negative
Negative free cash flow growth and operating cash flow indicate liquidity issues. While the company has managed to secure some financing, its cash flow from operations remains weak, reflecting ongoing challenges in managing operational expenditures.
BreakdownTTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income Statement
Total Revenue0.000.000.000.000.000.00
Gross Profit-345.46K-297.00K-92.07K-34.06K-1.13K
EBITDA-23.82M-38.78M-35.48M-23.22M-12.96M5.73M
Net Income-24.20M-39.90M-36.06M-23.55M-12.96M-12.47M
Balance Sheet
Total Assets161.14M173.59M194.28M193.49M17.19M1.66M
Cash, Cash Equivalents and Short-Term Investments5.63M16.34M40.62M55.86M5.53M829.69K
Total Debt88.10K176.92K226.29K1.18M1.14M35.00K
Total Liabilities2.79M4.25M1.89M2.69M1.55M651.32K
Stockholders Equity158.35M169.35M192.39M190.80M15.64M1.01M
Cash Flow
Free Cash Flow-11.32M-23.95M-24.42M-13.47M-9.11M-2.89M
Operating Cash Flow-11.03M-23.23M-24.40M-13.43M-9.09M-2.80M
Investing Cash Flow3.71M22.26M3.17M-33.47M-603.55K-94.86K
Financing Cash Flow-47.78K758.15K12.79M61.23M14.40M2.66M

American Lithium Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.34
Price Trends
50DMA
0.35
Negative
100DMA
0.38
Negative
200DMA
0.58
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
49.16
Neutral
STOCH
71.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:LI, the sentiment is Neutral. The current price of 0.34 is below the 20-day moving average (MA) of 0.34, below the 50-day MA of 0.35, and below the 200-day MA of 0.58, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 49.16 is Neutral, neither overbought nor oversold. The STOCH value of 71.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:LI.

American Lithium Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
62
Neutral
$10.27B9.83-0.18%2.87%2.21%-32.50%
TSLCE
40
Underperform
C$44.85M-4.74%30.08%
39
Underperform
C$13.57M-144.76%48.54%
TSLI
37
Underperform
$76.05M-15.65%44.65%
TSRCK
36
Underperform
C$109.18M-37.93%48.98%
TSLIS
35
Underperform
C$19.83M-35.15%41.41%
TSLIT
31
Underperform
C$8.72M-35.03%62.18%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:LI
American Lithium
0.35
-0.40
-53.38%
TSE:LCE
Century Lithium
0.30
0.01
3.45%
TSE:LIT
Argentina Lithium & Energy
0.06
-0.10
-62.50%
TSE:LIS
Lithium South Development
0.18
-0.04
-18.18%
TSE:RCK
Rock Tech Lithium
1.01
-0.60
-37.27%
TSE:LBNK
LithiumBank Resources Corp.
0.23
-0.50
-68.49%

American Lithium Corporate Events

Business Operations and Strategy
American Lithium Boosts Measured Resources by 47% at Nevada Project
Positive
Feb 27, 2025

American Lithium has announced a significant update to its Mineral Resource Estimate for the Tonopah Lithium Claims project in Nevada, with a 47% increase in Measured Resources to 6.17 million tonnes of Lithium Carbonate Equivalent. This update enhances the resource confidence level and forms the core of the 2024 PEA Mine Plan, positioning the company strategically for an anticipated recovery in the battery metals market.

American Lithium Reports Q3 2024 Highlights and Strategic Updates
Jan 15, 2025

American Lithium reported its financial and operational highlights for the third quarter ending November 30, 2024. Key updates include a strategic letter to shareholders, detailing recent changes and priorities, and an operations update on its projects in Nevada and Peru. The company also strengthened its board with the appointment of Rona Sellers, enhancing its governance structure. Interim CEO Alex Tsakumis emphasized the company’s commitment to advancing projects amid a challenging battery metals market, with optimism for a near-future recovery.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Mar 11, 2025