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Lithium Ionic Corp (TSE:LTH)
:LTH
Canadian Market

Lithium Ionic Corp (LTH) AI Stock Analysis

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Lithium Ionic Corp

(LTH)

30Underperform
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
The EXIM funding covers the full capex estimate outlined in the feasibility study, showing strong financial support for the Bandeira project.
Resource Growth
The Baixa Grande project has shown a significant resource increase of approximately 32%, indicating strong growth potential.
Strategic Backing
The loan commitment from EXIM is part of a program to ease supply chain competition from China, highlighting strategic backing for LTH.
Negative Factors
Project Uncertainty
The Noé target within the Baixa Grande project has yielded an initial Inferred resource estimate, with follow-up drilling planned to confirm potential resource increase.
Regulatory Hurdles
The approval of the Bandeira project's Licença Ambiental Concomitante license is an upcoming catalyst, allowing construction activities to begin.

Lithium Ionic Corp (LTH) vs. S&P 500 (SPY)

Lithium Ionic Corp Business Overview & Revenue Model

Company DescriptionLithium Ionic Corp (LTH) is a mining and exploration company focused on the development and production of lithium resources. Operating primarily in the materials sector, the company is committed to harnessing the growing demand for lithium, a critical component in battery technology essential for electric vehicles and renewable energy storage systems. Their core activities include the acquisition, exploration, and development of lithium-rich properties, aiming to supply the global market with high-quality lithium products.
How the Company Makes MoneyLithium 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
Lithium Ionic Corp faces significant financial challenges with persistent losses, negative cash flows, and a weak balance sheet. Negative revenue growth, negative profitability margins, and high operational costs without corresponding revenue are evident. Reliance on external financing is not sustainable long-term without improving revenue and profitability metrics.
Income Statement
10
Very Negative
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
15
Very Negative
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
20
Very Negative
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 2023Dec 2022Dec 2021
Income StatementTotal Revenue
0.000.000.00
Gross Profit
-305.25K-33.15K0.00
EBIT
-63.52M-21.36M-779.37K
EBITDA
-63.78M-21.41M0.00
Net Income Common Stockholders
-64.32M-30.88M-779.37K
Balance SheetCash, Cash Equivalents and Short-Term Investments
11.17M31.49M7.79M
Total Assets
13.20M32.84M7.83M
Total Debt
495.04K247.57K0.00
Net Debt
-10.67M-21.25M-7.79M
Total Liabilities
5.02M2.26M945.96K
Stockholders Equity
8.18M30.58M6.89M
Cash FlowFree Cash Flow
-45.56M-24.56M182.16K
Operating Cash Flow
-44.91M-14.46M182.16K
Investing Cash Flow
6.60M-9.40M0.00
Financing Cash Flow
27.98M37.56M7.61M

Lithium Ionic Corp Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.73
Price Trends
50DMA
0.86
Negative
100DMA
0.86
Negative
200DMA
0.78
Negative
Market Momentum
MACD
-0.04
Negative
RSI
41.91
Neutral
STOCH
30.36
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 0.73 is below the 20-day moving average (MA) of 0.74, below the 50-day MA of 0.86, and below the 200-day MA of 0.78, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 41.91 is Neutral, neither overbought nor oversold. The STOCH value of 30.36 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

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
60
Neutral
$10.94B10.58-7.08%2.98%7.52%-12.04%
53
Neutral
$1.24B-40.19%32.63%-58.81%
TSLAC
49
Neutral
$824.45M-4.13%
TSCRE
41
Neutral
$86.05M8.3913.24%
TSLTH
30
Underperform
C$112.91M-1139.82%60.89%
27
Underperform
C$2.79M-788.70%14.62%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:LTH
Lithium Ionic Corp
0.73
-0.08
-9.88%
TSE:CRE
Critical Elements
0.40
-0.58
-59.28%
TSE:SGML
Sigma Lithium
11.47
-10.59
-48.01%
TSE:LTHM
Idaho Champion Gold Mines Canada Inc
0.01
-0.05
-83.33%
TSE:LAC
Lithium Americas Corp.
4.06
-2.02
-33.22%

Lithium Ionic Corp Corporate Events

Business Operations and Strategy
Lithium Ionic Partners with RTEK to Advance Bandeira Project
Positive
Apr 2, 2025

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.

Business Operations and Strategy
Lithium Ionic Reports 32% Growth in Baixa Grande Mineral Resources
Positive
Feb 27, 2025

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.

Business Operations and StrategyRegulatory Filings and Compliance
Lithium Ionic Corp Advances in Permitting for Bandeira Project
Positive
Feb 19, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.