Lithium Ionic Corp (LTH) AI Stock Analysis

• Market Cap: C$94.11M
• Dividend Yield: N/A
• Average Volume (3M): 174.58K
• Price to Earnings (P/E): ―
• Beta (1Y): 3.04
• Revenue Growth: N/A
• EPS Growth: 60.89%
• Country: CA
• Employees: N/A
• Sector: Technology
• Sector Strength: 78
• Industry: Industrial Materials
• EPS (TTM): -0.20
• Shares Outstanding: 154,274,150
• 10 Day Avg. Volume: 243,958
• 30 Day Avg. Volume: 174,576
• PEG Ratio: -0.13
• Price to Book (P/B): -34.76
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.08
• 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$3.50
• Price Target Upside: 473.77% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 30 Underperform
• Price Target: ―

The overall score is primarily weighed down by significant financial challenges, including persistent losses and cash flow issues. Technical indicators suggest a bearish trend, while valuation remains unattractive due to negative earnings. However, recent strategic corporate events may provide future growth opportunities, potentially offsetting some of the current financial weaknesses.

Positive Factors

Financial Support

LTH announced a non-binding LOI from the US Export-Import Bank for up to US$266M in debt financing for its Bandeira project, minimizing future equity dilution.

Project Development

The approval of the Bandeira project's Licença Ambiental Concomitante license is an upcoming catalyst, allowing construction activities to begin.

Resource Growth

The Baixa Grande project has shown a significant resource increase of approximately 32%, indicating strong growth potential.

Negative Factors

Market Competition

The loan commitment from EXIM is part of a program to ease supply chain competition from China, highlighting strategic backing for LTH.

Resource Uncertainty

The deposit at Baixa Grande remains open along strike and at depth, which suggests potential for further resource growth.

Lithium Ionic Corp Business Overview & Revenue Model

Company Description

Lithium Ionic Corp. engages in the acquisition, exploration, and development of mineral properties in Brazil. It owns a 100% ownership interest in the Itinga lithium project that comprises five mineral licenses covering an area of approximately 1,300 hectares in the prolific Aracuai lithium province. The company is headquartered in Toronto, Canada.

How the Company Makes Money

Lithium Ionic Corp generates revenue primarily through the exploration, extraction, and sale of lithium products. As a mining company, its key revenue streams include the sale of lithium ore, concentrates, and potentially refined lithium products to manufacturers and industries that produce batteries for electric vehicles and other energy storage solutions. The company may also engage in strategic partnerships or joint ventures with other mining or technology companies to enhance their production capabilities and market reach. Additionally, fluctuations in lithium demand, market prices, and successful expansion of their mining operations significantly contribute to their financial performance.

Lithium Ionic Corp Financial Statement Overview

Summary

The company exhibits severe financial difficulties, marked by negative profitability margins, negative equity, and cash burn issues. While recent financing efforts provide temporary relief, the lack of revenue growth and profitability remains a significant concern.

Income Statement

The company shows a negative revenue growth trend with no significant revenue generation in the past years. All profitability margins, including gross profit, EBIT, and net income, are deeply negative, indicating high operational costs without corresponding revenue.

Balance Sheet

The balance sheet reveals negative stockholders' equity, suggesting financial instability. The debt-to-equity ratio cannot be computed due to negative equity, but the presence of substantial liabilities relative to assets indicates potential leverage risks.

Cash Flow

Negative operating and free cash flows indicate a cash burn situation, potentially unsustainable without consistent external financing. However, the company has succeeded in raising financing in recent periods, which has supported cash balances.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement		Total Revenue
0.00	0.00	0.00	0.00
	Gross Profit
-357.17K	-305.25K	-33.15K	0.00
	EBIT
-28.86M	-63.52M	-21.36M	-779.37K
	EBITDA
-28.70M	-63.78M	-21.41M	0.00
	Net Income Common Stockholders
-29.19M	-64.32M	-30.88M	-779.37K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
23.76M	11.17M	31.49M	7.79M
	Total Assets
32.67M	13.20M	32.84M	7.83M
	Total Debt
211.01K	495.04K	247.57K	0.00
	Net Debt
-23.55M	-10.67M	-21.25M	-7.79M
	Total Liabilities
35.73M	5.02M	2.26M	945.96K
	Stockholders Equity
-3.06M	8.18M	30.58M	6.89M
Cash Flow		Free Cash Flow
-25.42M	-45.56M	-24.56M	182.16K
	Operating Cash Flow
-21.05M	-44.91M	-14.46M	182.16K
	Investing Cash Flow
-8.46M	6.60M	-9.40M	0.00
	Financing Cash Flow
41.03M	27.98M	37.56M	7.61M

Lithium Ionic Corp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.61
• 50DMA: Negative
• 100DMA: Negative
• 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:LTH, the sentiment is Negative. The current price of 0.61 is below the 20-day moving average (MA) of 0.68, below the 50-day MA of 0.79, and below the 200-day MA of 0.79, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 34.16 is Neutral, neither overbought nor oversold. The STOCH value of 35.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:LTH.

Lithium Ionic Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$11.28B	10.16	-6.88%	2.97%	7.41%	-8.93%
SGML	51 Neutral	$903.80M	―	-30.69%	―	11.53%	-154.63%
LAC	49 Neutral	$851.54M	―	-8.91%	―	―	―
CRE	41 Neutral	$84.96M	8.28	13.24%	―	―	―
LTH	30 Underperform	C$94.11M	―	-1139.82%	―	―	60.89%
LTHM	27 Underperform	C$2.79M	―	-1126.39%	―	―	14.62%

Lithium Ionic Corp Corporate Events

Lithium Ionic Partners with RTEK to Advance Bandeira Project

Lithium Ionic Corp has engaged RTEK International DMCC as a strategic advisor to expedite the development of its Bandeira Lithium Project in Brazil. This partnership aims to leverage RTEK’s extensive expertise in the lithium sector to optimize project timelines, reduce costs, and enhance operational readiness, positioning Bandeira as a significant player in the global lithium market.

Lithium Ionic Reports 32% Growth in Baixa Grande Mineral Resources

Lithium Ionic Corp. has announced a 32% growth in its updated Mineral Resource Estimate for the Baixa Grande Lithium Project in Minas Gerais, Brazil. The independent NI 43-101 technical report, prepared by GE21 Consultoria Mineral Ltda., highlights significant measured and indicated resources, further solidifying the company’s position as a leading lithium producer in the region. This development, alongside Pilbara Minerals’ recent acquisition in the area, underscores the global competitiveness of Brazil’s lithium deposits and enhances Lithium Ionic’s strategic positioning in the lithium market.

Lithium Ionic Corp Advances in Permitting for Bandeira Project

Lithium Ionic Corp has received a favorable technical report from the Minas Gerais State Department of Environment and Sustainable Development for its Bandeira Lithium Project in Brazil. This recommendation is a significant milestone in the permitting process, allowing the company to advance towards securing the necessary environmental license to begin construction and operations, which will include underground lithium mining and related infrastructure.