Lithium Chile Inc (LITH) AI Stock Analysis

• Market Cap: C$125.00M
• Dividend Yield: N/A
• Average Volume (3M): 270.13K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.26
• Revenue Growth: N/A
• EPS Growth: -107.23%
• Country: CA
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): <0.01
• Shares Outstanding: 223,222,470
• 10 Day Avg. Volume: 310,896
• 30 Day Avg. Volume: 270,130
• PEG Ratio: -0.03
• Price to Book (P/B): 3.61
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -162.28
• 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: 56 Neutral
• Price Target: C$0.58 ▲(4.91% Upside)

The score is held back primarily by development-stage fundamentals (no revenue, recurring operating losses, and persistent negative free cash flow). Offsetting factors include a low-leverage balance sheet and positive corporate developments (pending US$175M asset sale and fresh financing), while technicals show moderate improvement but not a strong long-term uptrend. Valuation remains unattractive due to negative earnings and no dividend support.

Positive Factors

Strategic Project Sale

The sale of a major stake in the Arizaro project for $180 million enhances liquidity and allows Lithium Chile to focus on other strategic initiatives, potentially improving financial stability and operational focus.

Expansion of Coipasa Holdings

Expanding Coipasa holdings under the National Lithium Strategy strengthens Lithium Chile's market position and potential for future revenue from lithium exploitation, aligning with global demand trends.

Zero Debt Position

A zero debt position provides financial flexibility and reduces risk, allowing the company to navigate market fluctuations and invest in growth opportunities without the burden of interest obligations.

Negative Factors

Negative Cash Flows

Persistent negative cash flows indicate challenges in generating cash from operations, potentially limiting the company's ability to fund projects and requiring reliance on external financing.

Lack of Revenue Generation

The lack of revenue generation highlights operational inefficiencies and challenges in monetizing assets, which could hinder long-term growth and investor confidence.

Operational Inefficiencies

Negative EBIT and EBITDA margins suggest ongoing operational inefficiencies, which may impede profitability and require strategic adjustments to improve cost management and operational execution.

Lithium Chile Inc Business Overview & Revenue Model

Company Description

Lithium Chile Inc. engages in the acquisition and development of mining properties in Chile and Argentina. The company explores for gold, silver, and copper deposits. It holds interests in a lithium property portfolio consisting of approximately 91,861 hectares of exploration claims in Chile and Argentina; and a copper-gold property portfolio comprising approximately 21,329 hectares of exploration claims in Chile. The company was formerly known as Kairos Capital Corporation and changed its name to Lithium Chile Inc. in December 2017. Lithium Chile Inc. was incorporated in 2010 and is headquartered in Calgary, Canada.

How the Company Makes Money

Lithium Chile Inc generates revenue primarily through the exploration and potential development of its lithium properties. The company aims to increase its value by advancing its exploration projects to the point where they become attractive for joint ventures or acquisitions by larger mining companies. Additionally, Lithium Chile may enter into strategic partnerships or earn-in agreements with other mining firms to co-develop specific projects, sharing both the risks and potential profits. Revenue may also be generated through the sale or optioning of its properties to interested parties seeking to exploit the lithium resources.

Lithium Chile Inc Financial Statement Overview

Summary

Lithium Chile Inc. has significant financial challenges, including no revenue generation and negative operating performance. The company benefits from zero debt and a strong equity base, but negative cash flows and operational inefficiencies undermine overall financial health.

Income Statement

Lithium Chile Inc. has faced consistent challenges in generating revenue, with no revenue reported in recent periods. Despite a positive net income of 6.54 million CAD in the latest TTM report, this is primarily due to non-operational gains. The company continues to record negative EBIT and EBITDA margins, reflecting operational inefficiencies and a lack of profitability from core activities.

Balance Sheet

The balance sheet shows a strong equity position with zero debt, resulting in a debt-to-equity ratio of 0. This indicates financial stability and low leverage risk. However, the equity ratio has declined slightly over time, and the return on equity is volatile due to fluctuating net income.

Cash Flow

Cash flow analysis reveals persistent negative operating cash flows and free cash flow, highlighting challenges in generating cash from operations. The operating cash flow to net income ratio indicates cash flow difficulties despite reported net income. The company has been relying heavily on financing activities to support its cash flow needs.

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	-34.07K	-43.15K	-35.57K	-9.55K	0.00	0.00
EBITDA	1.37M	-3.63M	-6.96M	-7.01M	-1.51M	-551.00K
Net Income	1.69M	7.17M	-1.11M	-2.12M	-4.50M	-549.00K
Balance Sheet
Total Assets	51.23M	53.31M	55.85M	54.54M	16.16M	8.95M
Cash, Cash Equivalents and Short-Term Investments	447.74K	2.04M	18.54M	38.18M	6.98M	568.34K
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	6.01M	5.21M	2.79M	1.63M	767.72K	432.10K
Stockholders Equity	40.73M	44.07M	51.49M	52.91M	15.39M	8.51M
Cash Flow
Free Cash Flow	-6.23M	-978.91K	-1.73M	-1.42M	-2.39M	-1.08M
Operating Cash Flow	-3.29M	51.86K	-1.05M	-771.17K	-2.26M	-417.20K
Investing Cash Flow	2.16M	-1.33M	-18.59M	-28.06M	-1.54M	-563.83K
Financing Cash Flow	198.00K	265.63K	5.76M	38.84M	10.17M	1.41M

Lithium Chile Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:LITH, the sentiment is Negative. The current price of 0.55 is below the 20-day moving average (MA) of 0.55, above the 50-day MA of 0.51, and below the 200-day MA of 0.56, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 51.20 is Neutral, neither overbought nor oversold. The STOCH value of 23.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:LITH.

Lithium Chile Inc 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$125.00M	-239.13	-0.96%	―	―	-107.23%
LI	52 Neutral	C$214.41M	-14.43	-7.81%	―	―	59.70%
RCK	46 Neutral	C$106.10M	-8.23	-34.52%	―	―	36.48%
ETL	45 Neutral	C$86.82M	-7.69	-20.41%	―	―	-2.52%
AVE	40 Underperform	C$23.29M	-9.09	-24.93%	―	―	-6.45%
LBNK	39 Underperform	C$34.22M	-2.12	-122.87%	―	―	-692.49%

Lithium Chile Inc Corporate Events

Lithium Chile Strikes US$175 Million Deal to Sell Argentine Arizaro Lithium Project

Lithium Chile Inc. has signed a definitive share purchase agreement with China Union Holdings Ltd. to sell 100% of its Argentine subsidiary, Argentum Lithium S.A., which indirectly holds interests in the Arizaro lithium project in Salta Province, for US$175 million in cash, subject to customary closing adjustments. The deal, which includes an initial guarantee deposit of US$5 million, an 18‑month escrow holdback on 7.5% of the price, various pre-closing steps to consolidate ownership in the Arizaro project, regulatory and shareholder approvals, and reciprocal US$17.5 million termination fees, is being positioned by management as a transformative transaction that will crystallize value from Arizaro, enable a capital return to shareholders, and refocus the company on advancing its Chilean lithium portfolio, subject to completion of all conditions and TSX Venture Exchange acceptance.

The most recent analyst rating on (TSE:LITH) stock is a Buy with a C$1.28 price target. To see the full list of analyst forecasts on Lithium Chile Inc stock, see the TSE:LITH Stock Forecast page.

Lithium Chile Secures $7.975 Million to Advance Projects

Lithium Chile Inc. has successfully closed a brokered private placement, raising $7,975,000 through the issuance of 15,950,000 units at $0.50 per unit. This capital will be used to further develop the company’s mineral properties in Argentina and Chile, as well as for general administrative expenses and working capital. The offering, led by Canaccord Genuity Corp., provides Lithium Chile with the financial resources to advance its high-potential projects, aiming to create long-term value for shareholders. The transaction also involved insider participation and was conducted under specific regulatory exemptions, highlighting the company’s strategic approach to funding and growth.

The most recent analyst rating on (TSE:LITH) stock is a Buy with a C$1.28 price target. To see the full list of analyst forecasts on Lithium Chile Inc stock, see the TSE:LITH Stock Forecast page.