American Lithium (LI) AI Stock Analysis

• Market Cap: C$216.97M
• Dividend Yield: N/A
• Average Volume (3M): 467.80K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.40
• Revenue Growth: N/A
• EPS Growth: 59.70%
• Country: CA
• Employees: 55
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): 0.00
• Shares Outstanding: 255,254,640
• 10 Day Avg. Volume: 416,053
• 30 Day Avg. Volume: 467,798
• PEG Ratio: 0.09
• Price to Book (P/B): 0.60
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.36
• 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: 53 Neutral
• Price Target: C$0.86 ▲(30.76% Upside)

Overall score reflects a high-risk, pre-revenue financial profile with ongoing losses and cash burn that weigh heavily, partially offset by a low-debt balance sheet and improving loss/cash burn trends. Technicals are moderately supportive with price above key longer-term averages and neutral-to-positive momentum. Valuation is difficult to anchor due to negative earnings and no dividend support.

Positive Factors

Conservative Balance Sheet

Very low leverage and substantial equity reduce financial risk and interest burden, giving the company runway to advance exploration and development. This structural strength increases flexibility to fund projects or negotiate JV terms over the next 2–6 months without imminent solvency pressure.

Improving Loss Trajectory

Steady reduction in net losses indicates improving cost control or execution progress on projects. A clear downward earnings trend enhances financing prospects and reduces near-term dilution pressure, supporting sustained project advancement and credibility with partners over the medium term.

Strategic Battery-Metals Assets

Owning lithium and uranium projects in the U.S. and Peru provides structural exposure to long-term demand drivers (EV batteries, energy security). High-quality jurisdictional and commodity diversification offers optionality for offtakes, JV partnerships, or strategic financing as markets for battery metals persist.

Negative Factors

Pre-revenue Operations

Lack of operating revenue means value depends on exploration success and permitting milestones rather than cash-generating operations. This elevates execution and financing risk: failure to deliver project milestones or delays can materially impair long-term viability and require further capital raises.

Negative Cash Generation

Sustained negative operating and free cash flow forces reliance on external financing to fund development. Even with improved burn, continued negative cash generation increases likelihood of dilutive equity raises or costly debt, constraining project timelines and strategic optionality over coming months.

Negative Returns and Dilution Risk

Persistent negative ROE shows current capital deployment isn't value-accretive, undermining investor returns. If cash burn continues, management will likely need to issue equity, diluting shareholders and potentially weakening incentives; this structural risk can depress long-term shareholder value.

American Lithium Business Overview & Revenue Model

Company Description

American 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 Money

American 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

Financial profile is early-stage and pre-revenue with persistent operating losses and negative gross profit. Positives include improving net losses (FY2024 to FY2025 to TTM) and a conservatively financed balance sheet with very low leverage and substantial equity. The key constraint remains ongoing negative operating/free cash flow and reliance on external financing until revenue begins.

Income Statement

The company remains pre-revenue (revenue is 0 across all periods), with persistent operating losses and negative gross profit, indicating an early-stage/development profile rather than an operating business. Profitability has improved versus prior years (net loss narrowed from -39.9M in FY2024 to -25.0M in FY2025 and to -8.6M in TTM (Trailing-Twelve-Months)), which is a positive trajectory. However, the lack of revenue and ongoing negative earnings keep overall income statement quality weak and highly dependent on future project execution and funding.

Balance Sheet

The balance sheet looks conservatively financed with very low debt relative to equity (debt-to-equity near zero in recent periods), which reduces financial risk and interest burden. Equity remains substantial (TTM (Trailing-Twelve-Months) equity ~162.4M) and assets are largely equity-funded, offering flexibility to withstand losses in the near term. The main weakness is ongoing negative returns to shareholders (return on equity is negative across periods, though improving to about -8% in TTM (Trailing-Twelve-Months)), reflecting continued net losses and potential future dilution risk if cash burn persists.

Cash Flow

Cash generation is currently weak: operating cash flow and free cash flow are consistently negative, implying ongoing cash burn to fund operations and development. There is improvement in cash burn versus FY2024 (free cash flow improved from about -23.9M in FY2024 to about -10.8M in FY2025 and about -10.1M in TTM (Trailing-Twelve-Months)), which is constructive. Still, negative operating cash flow and free cash flow mean the business likely relies on external financing, and cash flow visibility remains limited until revenue-producing operations begin.

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	-282.68K	-283.25K	-297.00K	-92.07K	-34.06K	-1.13K
EBITDA	-7.96M	-23.73M	-38.78M	-35.48M	-23.36M	-12.96M
Net Income	-8.55M	-25.00M	-39.90M	-36.06M	-23.55M	-12.96M
Balance Sheet
Total Assets	164.19M	157.03M	173.59M	194.28M	193.49M	17.19M
Cash, Cash Equivalents and Short-Term Investments	10.65M	2.15M	16.34M	40.62M	55.86M	5.53M
Total Debt	45.31K	77.91K	176.92K	226.29K	1.18M	1.14M
Total Liabilities	1.74M	5.06M	4.25M	1.89M	2.69M	1.55M
Stockholders Equity	162.45M	151.97M	169.35M	192.39M	190.80M	15.64M
Cash Flow
Free Cash Flow	-10.10M	-10.82M	-23.95M	-24.42M	-13.47M	-9.11M
Operating Cash Flow	-10.07M	-10.74M	-23.23M	-24.40M	-13.43M	-9.09M
Investing Cash Flow	1.80M	-80.94K	22.26M	3.17M	-33.47M	-603.55K
Financing Cash Flow	9.29M	9.90K	758.15K	12.79M	61.23M	14.40M

American Lithium Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.66
• 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:LI, the sentiment is Neutral. The current price of 0.66 is below the 20-day moving average (MA) of 0.86, below the 50-day MA of 0.75, and above the 200-day MA of 0.55, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 54.17 is Neutral, neither overbought nor oversold. The STOCH value of 54.00 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

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%
LITH	56 Neutral	C$127.24M	-247.83	-0.96%	―	―	-107.23%
LI	53 Neutral	C$216.97M	-22.08	-7.81%	―	―	59.70%
LCE	52 Neutral	C$94.21M	-35.19	-4.48%	―	―	27.68%
FL	51 Neutral	C$225.96M	-16.44	-144.30%	―	―	34.36%
LTH	51 Neutral	C$197.04M	-56.35	-53.32%	―	―	93.58%
RCK	48 Neutral	C$119.94M	-9.30	-34.52%	―	―	36.48%

American Lithium Corporate Events

American Lithium to Spin Out Macusani Uranium Project Amid Favorable Market Conditions

American Lithium Corp. has announced its intention to spin out its Macusani Uranium Project in Peru into an independent public company. This move follows the resolution of legal matters concerning the project and aims to capitalize on the current favorable uranium market conditions. The spin-out is seen as a strategic step to unlock the full value of Macusani, recognized as one of the largest undeveloped uranium deposits globally. Concurrently, American Lithium is advancing technical work on the project, including a new Mineral Resource Estimate and Preliminary Economic Assessment, with results expected in early 2026. The spin-out is still in the planning stages and subject to various conditions, including shareholder and regulatory approvals.

American Lithium Secures Full Ownership of Peruvian Mining Concessions

American Lithium Corp. has received a favorable ruling from the Peruvian Supreme Court, which mandates full ownership of 32 mining concessions for its subsidiary, Macusani Yellowcake S.A.C. This decision provides legal security essential for the development of the Falchani and Macusani projects, allowing the company to advance its strategic critical-minerals projects with reduced risk and enhanced legal stability.

American Lithium Announces AGM Results and Strategic Approvals

American Lithium Corp. announced the results of its Annual General Meeting, where all nominated directors were elected, and key resolutions were approved, including the appointment of auditors and the re-approval of the company’s omnibus incentive plan. The meeting’s outcomes are expected to support the company’s strategic direction and operational stability, reinforcing its position in the lithium and uranium markets.