Lithium Royalty Corp. (LIRC) AI Stock Analysis

• Market Cap: C$574.00M
• Dividend Yield: N/A
• Average Volume (3M): 17.95K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.63
• Revenue Growth: -45.88%
• EPS Growth: -39.13%
• Country: CA
• Employees: 8
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): -0.02
• Shares Outstanding: 24,379,335
• 10 Day Avg. Volume: 42,771
• 30 Day Avg. Volume: 17,950
• PEG Ratio: 1.75
• Price to Book (P/B): 1.56
• Price to Sales (P/S): 75.07
• P/FCF Ratio: -51.42
• 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$8.75
• Price Target Upside: -14.97% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: C$11.00 ▲(6.90% Upside)

The score is primarily held back by weak profitability and ongoing cash burn despite strong revenue growth, while a very strong balance sheet provides financial flexibility. Technicals show a strong uptrend but are overbought, and valuation support is limited due to negative earnings. Recent earnings updates and corporate events are constructive, including first revenue from a key project, a new producing royalty, and a takeout deal at a premium.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage provides financial flexibility, reducing refinancing risk and supporting long-term strategic initiatives.

Strategic Acquisitions

The acquisition of cash-flowing royalties like Goulamina enhances revenue stability and diversifies income sources, strengthening LRC's market position.

Revenue Growth

Significant revenue growth indicates successful project execution and market demand, supporting future cash flow and business expansion.

Negative Factors

Cash Flow Challenges

Negative cash flow indicates ongoing reliance on external funding, which could limit operational flexibility and growth investment.

Profitability Issues

Persistent profitability issues suggest that the cost base is too high relative to revenue, impacting long-term financial health.

Lithium Price Volatility

Price volatility in lithium can lead to unpredictable revenue streams, affecting financial planning and stability in the long term.

Lithium Royalty Corp. Business Overview & Revenue Model

Company Description

Lithium Royalty Corp. operates as a lithium-focused royalty company. The company has diversified portfolio of royalties on mineral properties worldwide. Its royalty portfolio consists of 30 royalties on 28 properties, including 2 properties in production, 4 properties in construction, and 22 properties in development or exploration. The company was incorporated in 2017 and is based in Toronto, Canada.

How the Company Makes Money

Lithium Royalty Corp. generates revenue through the acquisition of royalty interests in lithium projects worldwide. By investing in these projects, LIRC is entitled to a percentage of the revenue generated from the production and sale of lithium extracted from the mines where it holds royalty agreements. This model allows the company to earn passive income without directly involving itself in the operational aspects of mining. Additionally, LIRC may benefit from strategic partnerships with mining companies, enhancing its portfolio and maximizing returns through diversified royalty streams. The company's earnings are influenced by global demand for lithium, market prices, and the successful development and operation of the lithium projects in which it has invested.

Lithium Royalty Corp. Financial Statement Overview

Summary

Strong balance sheet (very low leverage, sizable equity base) supports runway, but this is offset by weak operating results: deeply negative EBIT/EBITDA, sizable losses, and persistent negative operating/free cash flow indicating ongoing cash burn.

Income Statement

TTM (Trailing-Twelve-Months) revenue is growing strongly (+21.9%) and gross margins remain very high (~81%), reflecting an attractive royalty-style economics profile. However, profitability is a clear weak point: EBIT and EBITDA are deeply negative and net losses are sizable, with the net margin highly negative in TTM, showing the cost base is still too heavy relative to current revenue. Annual results also show choppy growth (down in 2024 vs. 2023) and sustained operating losses, indicating the business has not yet reached consistent scale.

Balance Sheet

The balance sheet is a major strength, with extremely low leverage (debt-to-equity ~0.3% in TTM/2024) and a large equity base relative to assets. This provides meaningful financial flexibility and reduces refinancing risk. The key weakness is return generation: return on equity is negative in the most recent periods (TTM and 2024), signaling that despite strong capitalization, earnings power is not yet translating into shareholder returns.

Cash Flow

Cash flow is the main pressure point. TTM (Trailing-Twelve-Months) operating cash flow and free cash flow are both negative, and free cash flow has weakened versus the prior period (TTM free cash flow growth is negative). While free cash flow has at times compared favorably to net income (due to accounting losses and non-cash items), the consistent cash burn implies ongoing reliance on the balance sheet until operating performance improves.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.79M	3.02M	5.52M	1.68M	1.80M	1.12M
Gross Profit	1.45M	2.44M	4.59M	722.48K	767.00K	372.92K
EBITDA	-5.21M	-3.43M	-3.60M	-2.27M	784.45K	350.20K
Net Income	-4.48M	-2.73M	-5.04M	13.78M	10.72M	274.69K
Balance Sheet
Total Assets	144.69M	153.37M	155.03M	150.32M	101.18M	34.80M
Cash, Cash Equivalents and Short-Term Investments	27.93M	6.73M	11.76M	35.88M	15.02M	5.30M
Total Debt	430.96K	430.00K	0.00	0.00	0.00	0.00
Total Liabilities	2.82M	4.55M	5.01M	9.77M	1.42M	201.75K
Stockholders Equity	138.72M	145.61M	146.84M	137.44M	97.75M	33.04M
Cash Flow
Free Cash Flow	-3.16M	-4.42M	-61.22M	-17.62M	-27.75M	59.38K
Operating Cash Flow	-2.03M	-615.00K	-7.54M	-2.12M	779.45K	59.38K
Investing Cash Flow	26.64M	-3.80M	-53.61M	3.17M	-44.19M	0.00
Financing Cash Flow	-3.73M	-540.00K	35.83M	20.92M	53.41M	-80.02K

Lithium Royalty Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.29
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:LIRC, the sentiment is Positive. The current price of 10.29 is above the 20-day moving average (MA) of 9.49, above the 50-day MA of 7.81, and above the 200-day MA of 6.25, indicating a bullish trend. The MACD of 0.78 indicates Positive momentum. The RSI at 74.98 is Negative, neither overbought nor oversold. The STOCH value of 89.82 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:LIRC.

Lithium Royalty Corp. 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%
LIRC	58 Neutral	C$574.00M	-92.45	-3.63%	―	-45.88%	-39.13%
GQ	44 Neutral	C$4.17M	-1.27	-9999.00%	―	―	-17.96%
OWLI	43 Neutral	C$4.28M	-2.99	―	―	―	11.84%
MEGA	35 Underperform	C$931.26K	-0.21	-234.41%	―	―	10.75%
LEXI.H	35 Underperform	C$2.41M	-0.29	―	―	―	―
AWCM	33 Underperform	C$8.71M	-4.16	-17.86%	―	―	92.11%

Lithium Royalty Corp. Corporate Events

Lithium Royalty Corp. Buys Cash-Flowing Goulamina Royalty From Leo Lithium for A$40 Million

Lithium Royalty Corp. has signed a definitive agreement to acquire a 1.5% Trailing Product Sales Fee royalty on the producing Goulamina lithium project in Mali from Leo Lithium for A$40 million, adding immediate cash-flowing exposure to one of the world’s largest hard-rock lithium deposits operated by Chinese major Ganfeng Lithium. The royalty, capped at 500,000 tonnes of spodumene concentrate per year through 2045 and already generating quarterly payments, is expected to deliver material returns at current lithium prices, while the phased, two-tranche funding structure backed by internal cash and a bridge loan from Altius Minerals allows LRC to preserve financial flexibility and deepen its strategic relationship with Ganfeng as it expands its portfolio into a new African jurisdiction.

The most recent analyst rating on (TSE:LIRC) stock is a Buy with a C$9.00 price target. To see the full list of analyst forecasts on Lithium Royalty Corp. stock, see the TSE:LIRC Stock Forecast page.

Lithium Royalty Corp. to Be Acquired by Altius Minerals in C$521 Million Deal

Lithium Royalty Corp. has agreed to be acquired by Altius Minerals Corporation in a deal valuing LRC at approximately C$521 million, with shareholders offered a mix-and-match consideration of Altius shares, cash, or a combination, subject to overall caps on cash and stock. The transaction, which carries a premium of nearly 30% to LRC’s recent closing price and over 40% to its 30-day volume-weighted average price, follows a strategic review overseen by an independent committee and is unanimously supported by LRC’s board as well as major shareholders Royalty Capital Funds and Riverstone, together controlling about 84.7% of the stock. Management highlights that combining LRC’s portfolio of lithium and critical mineral royalties with Altius’ diversified royalty platform and strong free cash flow should enhance scale, liquidity and financial strength, potentially accelerating growth prospects within the critical minerals royalty sector once the deal closes, targeted for late first quarter 2026, pending customary approvals.

The most recent analyst rating on (TSE:LIRC) stock is a Buy with a C$9.00 price target. To see the full list of analyst forecasts on Lithium Royalty Corp. stock, see the TSE:LIRC Stock Forecast page.

Lithium Royalty Corp. to Be Acquired by Altius Minerals in C$521 Million Deal

Lithium Royalty Corp. has agreed to be acquired by Altius Minerals Corporation under a definitive arrangement that will see Altius purchase all outstanding common and convertible common shares of LRC for a mix of cash and/or Altius shares, valuing the deal at about C$521 million and offering shareholders a premium of roughly 30% to the latest closing price and over 40% to the 30-day volume-weighted average price. The transaction, which is not subject to financing conditions and is expected to close near the end of the first quarter of 2026 pending shareholder, court and regulatory approvals, follows a strategic review and has unanimous board backing, with major shareholders controlling about 84.7% of LRC’s stock already committed to support the deal; management highlights that combining LRC’s portfolio of lithium and critical mineral royalties with Altius’s diversified royalty platform and stronger cash flow base is intended to create greater scale, liquidity and financial capacity to advance LRC’s proprietary pipeline and strengthen its competitive position among royalty peers.

The most recent analyst rating on (TSE:LIRC) stock is a Buy with a C$9.00 price target. To see the full list of analyst forecasts on Lithium Royalty Corp. stock, see the TSE:LIRC Stock Forecast page.

Lithium Royalty Corp. Backs Li-FT’s Acquisition of Winsome Resources to Boost Adina Project

Lithium Royalty Corp. has announced its support for Li-FT Power Ltd.’s acquisition of Winsome Resources, which aims to consolidate the Adina project in Québec, Canada. This strategic move is expected to accelerate the development of the Adina project, enhancing its scale and economic potential, and unlocking significant royalty cash flows for LRC. The involvement of Avenir Minerals, a subsidiary of Agnico Eagle, further strengthens the project’s prospects, with plans for a C$40 million private placement to fund exploration and development. The acquisition and subsequent project development are anticipated to bolster LRC’s position in the lithium market, providing substantial benefits to its stakeholders.

The most recent analyst rating on (TSE:LIRC) stock is a Buy with a C$7.00 price target. To see the full list of analyst forecasts on Lithium Royalty Corp. stock, see the TSE:LIRC Stock Forecast page.

Lithium Royalty Corp. Applauds Power Metals’ Strategic Offtake Agreement with Albemarle

Lithium Royalty Corp. has announced its congratulations to Power Metals Corp. for securing a cesium concentrate offtake agreement with Albemarle Corporation, a leading global critical minerals producer. This agreement includes a prepayment of up to C$5 million, aiding Power Metals in meeting its 2026 production target at the Case Lake project. The project, which has a maiden inferred cesium mineral resource of 13,000 tonnes, is poised to contribute significantly to the cesium market, characterized by limited global production and high demand. The strategic partnership and low capital requirements position Power Metals as a potential near-term revenue contributor for LRC, highlighting the project’s importance in the critical minerals sector.

The most recent analyst rating on (TSE:LIRC) stock is a Buy with a C$7.00 price target. To see the full list of analyst forecasts on Lithium Royalty Corp. stock, see the TSE:LIRC Stock Forecast page.

Lithium Royalty Corp. Expands Portfolio with New Royalty Acquisition

Lithium Royalty Corp. has acquired a 1.0% net smelter revenue royalty on the Lucy claims at the Falcon West property in Manitoba, owned by Grid Metals Corp. This acquisition enhances LRC’s portfolio to 37 royalties, increasing its exposure to lithium and other critical metals. The Falcon West property, which hosts a historical resource of lithium and cesium, is undergoing extensive drilling to explore its potential. The acquisition is expected to strengthen LRC’s strategic position in the critical minerals market, offering potential for low capital expenditures and accelerated production, reflecting the company’s active pursuit of lithium and critical mineral royalties.

The most recent analyst rating on (TSE:LIRC) stock is a Buy with a C$7.00 price target. To see the full list of analyst forecasts on Lithium Royalty Corp. stock, see the TSE:LIRC Stock Forecast page.

Lithium Royalty Corp. Reports Strong Q3 Growth Amid Rising Demand

Lithium Royalty Corp. reported an 86% increase in revenue year-on-year for the third quarter of 2025, despite a decline in lithium prices. The company is experiencing significant organic growth with new projects like Zijin’s Tres Quebradas and Sinova Global’s Horse Creek mine commencing production. LRC also expanded its portfolio by acquiring a royalty on the Fox tungsten project. The company ended the quarter with $27.5 million in cash and no debt, positioning itself strongly in the market as lithium demand continues to rise.

The most recent analyst rating on (TSE:LIRC) stock is a Buy with a C$8.50 price target. To see the full list of analyst forecasts on Lithium Royalty Corp. stock, see the TSE:LIRC Stock Forecast page.