Lithium Chile Inc (LITH) AI Stock Analysis

• Market Cap: C$127.24M
• 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 ▲(3.04% 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

Low leverage with no reported debt supports stability, but the company remains pre-revenue with ongoing operating losses and consistently negative free cash flow, including a worsening TTM FCF burn (~-$2.9M). Earnings appear volatile and not driven by core operations.

Income Statement

The company is still in a pre-revenue profile (revenue is 0 across all periods), with recurring operating losses: EBIT remains materially negative in every year shown and is also negative in TTM (Trailing-Twelve-Months). Net income is volatile—2024 shows a large profit despite no revenue, while TTM (Trailing-Twelve-Months) returns to a loss—suggesting earnings are likely driven by non-operating items rather than core business performance. The main positive is that losses have narrowed versus the deeper EBIT losses seen in 2022–2023, but profitability is not yet supported by revenue generation.

Balance Sheet

Balance sheet leverage appears low with total debt reported at 0 and a debt-to-equity ratio of 0, reducing financial risk and interest burden. The company maintains a sizeable equity base (TTM equity ~$38.2M) and meaningful assets (~$49.1M), though both are down from 2023–2024 levels, indicating some erosion. Returns on equity are inconsistent (strongly positive in 2024, negative in most other years and in TTM), reflecting uneven profitability and limited evidence of durable value creation so far.

Cash Flow

Cash generation is a key weakness: free cash flow is consistently negative across the full history and worsened in TTM (Trailing-Twelve-Months) to about -$2.9M (down sharply versus 2024). Operating cash flow is only slightly positive in TTM and small relative to net income, implying limited cash earnings quality and reliance on financing or balance sheet capacity to fund ongoing spending. While operating cash flow improved meaningfully versus the negative levels in 2021–2023, the business is not yet self-funding given persistent cash burn.

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	-14.11K	-43.15K	-35.57K	-9.55K	0.00	0.00
EBITDA	1.57M	-3.63M	-6.96M	-7.01M	-1.51M	-551.00K
Net Income	-473.75K	7.17M	-1.11M	-2.12M	-4.50M	-549.00K
Balance Sheet
Total Assets	49.07M	53.31M	55.85M	54.54M	16.16M	8.95M
Cash, Cash Equivalents and Short-Term Investments	245.12K	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	6.25M	5.21M	2.79M	1.63M	767.72K	432.10K
Stockholders Equity	38.20M	44.07M	51.49M	52.91M	15.39M	8.51M
Cash Flow
Free Cash Flow	-2.93M	-978.91K	-1.73M	-1.42M	-2.39M	-1.08M
Operating Cash Flow	11.82K	51.86K	-1.05M	-771.17K	-2.26M	-417.20K
Investing Cash Flow	-3.42M	-1.33M	-18.59M	-28.06M	-1.54M	-563.83K
Financing Cash Flow	426.74K	265.63K	5.76M	38.84M	10.17M	1.41M

Lithium Chile Inc Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.56
• 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:LITH, the sentiment is Neutral. The current price of 0.56 is below the 20-day moving average (MA) of 0.57, above the 50-day MA of 0.55, and above the 200-day MA of 0.55, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 51.25 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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$127.24M	-247.83	-0.96%	―	―	-107.23%
LI	53 Neutral	C$216.97M	-22.08	-7.81%	―	―	59.70%
LBNK	50 Neutral	C$29.21M	-3.02	-122.87%	―	―	-692.49%
RCK	48 Neutral	C$119.94M	-9.30	-34.52%	―	―	36.48%
ETL	47 Neutral	$105.06M	-9.31	-20.41%	―	―	-2.52%
AVE	40 Underperform	C$19.84M	-6.48	-24.93%	―	―	-6.45%

Lithium Chile Inc Corporate Events

Lithium Chile Clarifies Meeting Schedule as Arizaro Sale Advances and Cash Position Strengthens

Lithium Chile has clarified that its annual general and special shareholder meeting is scheduled for May 15, 2026, to address routine matters and provide details on a previously announced substantial issuer bid, while a separate special meeting to approve the sale of its Arizaro asset will be called as soon as all required regulatory approvals are received. The company reports that all necessary regulatory filings related to the planned US$175 million sale of the Arizaro asset have been submitted in Canada and China, and that it has strengthened its balance sheet with full repayment of a US$1 million loan to San Lorenzo Gold, lifting its cash position above US$5 million as it works toward closing the transaction.

The most recent analyst rating on (TSE:LITH) stock is a Hold with a C$0.55 price target. To see the full list of analyst forecasts on Lithium Chile Inc stock, see the TSE:LITH Stock Forecast page.

Lithium Chile Advances US$175 Million Sale of Arizaro Project, Weighs Capital Return to Shareholders

Lithium Chile Inc. has provided an update on the US$175 million sale of its Arizaro project in Argentina to China Union Holdings Ltd., confirming that a US$5 million buyer deposit has been placed in escrow and that both parties are working through regulatory and closing conditions with the aim of completing the transaction promptly. The company plans to seek shareholder approval for the deal at a May 15, 2026 special meeting and is evaluating a substantial issuer bid that could return a portion of the net proceeds to shareholders while meaningfully reducing shares outstanding and retaining sufficient capital to advance its Chilean projects; in parallel, Lithium Chile is maintaining Arizaro operations and stepping up market communications, arguing its shares trade below net asset value and that the transaction and potential capital return could help unlock value for investors.

The most recent analyst rating on (TSE:LITH) stock is a Hold with a C$0.55 price target. To see the full list of analyst forecasts on Lithium Chile Inc stock, see the TSE:LITH Stock Forecast page.

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.