Argentina Lithium & Energy (LIT) AI Stock Analysis

• Market Cap: C$30.95M
• Dividend Yield: N/A
• Average Volume (3M): 111.20K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.33
• Revenue Growth: N/A
• EPS Growth: 76.16%
• Country: CA
• Employees: 2
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): >-0.01
• Shares Outstanding: 137,566,270
• 10 Day Avg. Volume: 222,509
• 30 Day Avg. Volume: 111,201
• PEG Ratio: 0.01
• Price to Book (P/B): 0.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.70
• 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$0.19 ▲(48.46% Upside)

The score is primarily held back by weak financial performance (pre-revenue status, ongoing losses, and cash burn despite some TTM improvement). Technicals are a key offset with a clear uptrend, though overbought signals add near-term risk. Valuation remains unfavorable due to negative earnings and no dividend support.

Positive Factors

Lithium Brine Findings

The discovery of lithium brine at Rincon West enhances the company's asset portfolio, potentially increasing future revenue through development or partnerships.

Debt-Free Balance Sheet

Having no debt provides financial flexibility and reduces risk, allowing the company to focus resources on developing its lithium projects.

Strategic Market Position

Positioning in Argentina, a key lithium region, aligns with global demand trends for lithium in EVs and energy storage, supporting long-term growth potential.

Negative Factors

No Revenue Generation

The absence of revenue generation indicates challenges in monetizing assets, posing risks to financial sustainability and limiting operational growth.

Negative Cash Flows

Persistent negative cash flows threaten liquidity and operational viability, requiring urgent strategic action to stabilize finances.

High Operational Risks

Ongoing financial challenges and lack of income highlight operational risks, potentially impacting the company's ability to sustain and grow its projects.

Argentina Lithium & Energy Business Overview & Revenue Model

Company Description

Argentina Lithium & Energy Corp., a junior mineral exploration company, engages in the acquisition, exploration, and evaluation of natural resource properties in Argentina. The company holds 100% interest in the Incahuasi lithium project covering an area of approximately 13,372 hectares of granted mineral rights properties located in the Catamarca Province, Argentina. It also has an option to acquire 100% interest in Antofalla lithium project, and Pocitos project covering an area of 26,000 hectares, as well as Rincon West project covering an area of 2,370 hectares located in Salta, Argentina. The company was formerly known as Iron South Mining Corp. and changed its name to Argentina Lithium & Energy Corp. in September 2016. Argentina Lithium & Energy Corp. was incorporated in 2000 and is based in Vancouver, Canada.

How the Company Makes Money

Argentina Lithium & Energy makes money primarily through the exploration and development of lithium resources. The company's revenue model is centered around increasing the value of its lithium projects by identifying and proving the size and quality of lithium deposits. This value can then be monetized through various means such as selling the developed projects to larger mining companies, forming joint ventures, or entering into long-term supply agreements with manufacturers in the electric vehicle and energy storage sectors. Key revenue streams include exploration funding, project sales, and potential royalties from successful project developments. The company's earnings are significantly influenced by its ability to secure strategic partnerships, access to capital, and favorable market conditions for lithium.

Argentina Lithium & Energy Financial Statement Overview

Summary

Argentina Lithium & Energy is facing severe financial challenges with no revenue generation, high losses, and negative cash flows. While the balance sheet shows no debt, the lack of income and negative cash flow reflects significant operational and financial risks. The company needs to address these issues to achieve long-term viability.

Income Statement

The income statement reveals significant challenges, with no revenue generated over multiple periods. The company is experiencing large negative EBIT and net income, resulting in negative profit margins. There is an absence of revenue growth, and a consistent pattern of losses indicates potential financial instability.

Balance Sheet

The balance sheet shows a strong equity position with no debt, which is a positive indicator of financial health. However, the company's inability to generate revenue raises concerns about future sustainability. The equity ratio is relatively strong, but the lack of asset growth is a weakness.

Cash Flow

The cash flow statement indicates significant negative free cash flow and operating cash flow, with no sign of improvement over time. This situation poses a risk to liquidity and operational sustainability. The absence of free cash flow growth further underscores the financial challenges.

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	-34.21K	-9.31K	-216.00K	-44.22K	-33.35K	-9.69K
EBITDA	-15.24M	-21.96M	0.00	-8.07M	-1.93M	-199.71K
Net Income	-12.05M	-17.63M	-45.94M	-8.48M	-2.00M	-200.00K
Balance Sheet
Total Assets	57.42M	57.87M	81.83M	15.59M	8.56M	88.00K
Cash, Cash Equivalents and Short-Term Investments	431.26K	509.44K	6.13M	8.13M	6.43M	19.02K
Total Debt	2.78M	476.10K	0.00	0.00	0.00	101.00K
Total Liabilities	5.70M	3.28M	5.95M	1.93M	976.50K	306.68K
Stockholders Equity	44.14M	46.52M	63.44M	13.66M	7.59M	-218.68K
Cash Flow
Free Cash Flow	-359.17K	-9.05M	-109.05M	-10.81M	-1.92M	-217.25K
Operating Cash Flow	-249.95K	-8.97M	-96.52M	-5.74M	-1.59M	-212.94K
Investing Cash Flow	6.31M	2.07M	104.10M	-5.06M	-331.63K	-4.31K
Financing Cash Flow	2.78M	772.63K	344.75K	12.51M	8.33M	226.17K

Argentina Lithium & Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.13
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:LIT, the sentiment is Positive. The current price of 0.13 is below the 20-day moving average (MA) of 0.14, above the 50-day MA of 0.13, and above the 200-day MA of 0.09, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 76.26 is Negative, neither overbought nor oversold. The STOCH value of 93.48 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:LIT.

Argentina Lithium & Energy 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%
LIT	53 Neutral	C$30.95M	-2.51	-24.07%	―	―	76.16%
ILI	48 Neutral	C$10.22M	-33.33	-1.36%	―	―	-136.00%
NRM	47 Neutral	C$10.29M	-4.46	-41.21%	―	―	48.66%
ULTH	46 Neutral	C$16.31M	-4.85	-22.36%	―	―	-4.68%
ZIGY	45 Neutral	C$12.12M	-17.09	-23.38%	―	―	-3416.67%
SRA	39 Underperform	C$24.04M	43.88	16.97%	―	―	―

Argentina Lithium & Energy Corporate Events

Argentina Lithium Taps Chinese DLE Specialist Lanshen to Fast-Track Rincon West Project

Argentina Lithium & Energy has signed a non-binding memorandum of understanding with Xi’an Lanshen New Material Technology to deploy Lanshen’s direct lithium extraction technology and engineering expertise at the Rincon West Lithium Brine Project, targeting a feasibility study for a 5,000-tonnes-per-year battery-grade lithium carbonate plant with potential expansion to 15,000–20,000 tonnes annually. The collaboration, which includes a progressive earn-in for Lanshen into ALESA and plans for a definitive agreement covering technology exclusivity, governance and financing, is intended to accelerate development timelines, reduce technical risk and position Rincon West as a next-generation, cleaner, more efficient lithium project, further strengthening Argentina Lithium’s strategic positioning alongside its existing partnership with Stellantis in a highly competitive brine jurisdiction.

Argentina Lithium & Energy Corp. Releases First Mineral Resource Estimate for Rincon West Project

Argentina Lithium & Energy Corp. has filed a NI 43-101 Technical Report for its Rincon West lithium brine project in Salta Province, Argentina, marking the first mineral resource estimate for the project. This development is significant as it outlines the project’s potential resources, including lithium and potassium, which are crucial for battery production. The report’s release follows a strategic investment agreement with Stellantis, which includes a 19.9% stake in Argentina Lithium and a seven-year lithium offtake agreement, positioning the company to benefit from the increasing demand for lithium in the automotive industry.

Argentina Lithium & Energy Advances Rincon West Project with Stellantis Partnership

Argentina Lithium & Energy Corp. has made significant progress in its Rincon West lithium brine project, partnering with Stellantis to advance towards becoming a leading producer of battery-grade lithium. The company is transitioning from exploration to development readiness, focusing on regulatory engagement, DLE process selection, and securing project financing. Their strategic relationship with Stellantis, which holds a 19.9% ownership in their Argentine subsidiary, underscores confidence in their asset base and vision. The company is also preparing for pilot-scale testing of DLE technologies to enhance lithium recovery efficiency and reduce environmental impact, aligning with global energy transition goals.

Argentina Lithium Unveils Initial Resource Estimate for Rincon West Project

Argentina Lithium & Energy Corp. announced its initial Mineral Resource Estimate for the Rincon West lithium brine project in Salta Province, Argentina, marking a significant milestone for the company. The estimate reveals measured and indicated resources of 238,000 tonnes of Lithium Carbonate Equivalent (LCE) and inferred resources of 64,000 tonnes LCE, positioning the company strategically in a major lithium district. This development, alongside partnerships and neighboring projects, enhances Argentina Lithium’s potential to become a key supplier in the global EV and battery markets.