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Noram Lithium Corp (TSE:NRM)
:NRM

Noram Lithium Corp (NRM) AI Stock Analysis

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Noram Lithium Corp

(NRM)

Rating:37Underperform
Price Target:
Noram Lithium Corp's overall score is low due to its exploration-stage status with no revenue generation and significant cash burn. Although the balance sheet is stable with minimal debt, the technical indicators suggest a bearish trend, and the valuation remains speculative. The company's financial health is typical for its industry stage, but the lack of immediate revenue prospects and reliance on external financing pose potential risks.

Noram Lithium Corp (NRM) vs. iShares MSCI Canada ETF (EWC)

Noram Lithium Corp Business Overview & Revenue Model

Company DescriptionNoram Lithium Corp. engages in the acquisition, exploration, and development of mineral properties in the United States. Its flagship property is the Zeus Lithium project that covers an area of approximately 1,113 hectares located in Clayton Valley, Nevada. The company was formerly known as Noram Ventures Inc. and changed its name to Noram Lithium Corp. in July 2021. Noram Lithium Corp. was incorporated in 2010 and is headquartered in Vancouver, Canada.
How the Company Makes MoneyNoram Lithium Corp makes money through the exploration and potential development of lithium resources. The company's revenue model is primarily based on the identification and enhancement of lithium properties, which are then either developed into operational mines or sold to larger mining entities. Key revenue streams include the sale of lithium, either directly or through joint ventures and partnerships with other mining companies. Additionally, Noram Lithium may generate income through strategic partnerships or agreements that provide funding for exploration activities in exchange for a stake in the projects or future lithium supply. Factors such as lithium market prices, successful resource discoveries, and favorable regulatory environments significantly contribute to its earnings potential.

Noram Lithium Corp Financial Statement Overview

Summary
Noram Lithium Corp's financial statements reflect the typical profile of an exploration-stage mining company with no revenue generation and reliance on equity for financing. While the balance sheet is stable with low debt, the cash flow situation requires attention due to significant cash burn. Continued reliance on external financing could pose risks if asset development does not progress as planned.
Income Statement
15
Very Negative
Noram Lithium Corp's income statement shows a lack of revenue generation, typical for exploration-stage mining companies. The company has been unable to generate any revenue over recent periods, resulting in persistent negative net income and gross profit. EBIT and EBITDA margins are negative, indicating high operational costs relative to nonexistent revenue, which is expected for a company still in development. Revenue growth analysis is not applicable due to zero revenue.
Balance Sheet
40
Negative
The balance sheet reflects a solid equity position with a low debt-to-equity ratio, showing financial stability with minimal leverage. However, the company's total assets have decreased over time, reflecting potential challenges in asset management or investment strategy. The equity ratio is strong, suggesting a high reliance on equity financing, which mitigates financial risk.
Cash Flow
30
Negative
Cash flow analysis indicates negative operating and free cash flows, which is common for companies in the exploration phase. The company heavily relies on financing activities to support operations and investing activities. Free cash flow has been consistently negative, showing a high cash burn rate without sufficient operating cash inflow.
BreakdownTTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income Statement
Total Revenue0.000.000.000.000.000.00
Gross Profit-57.70K-56.73K-56.21K-59.61K-55.81K-56.97K
EBITDA-3.19M-6.30M-5.17M-5.26M-4.93M-450.34K
Net Income-3.25M-5.66M-4.18M-5.32M-5.01M-570.64K
Balance Sheet
Total Assets6.40M8.43M14.24M5.94M5.04M3.20M
Cash, Cash Equivalents and Short-Term Investments823.30K3.64M12.22M1.60M1.62M10.87K
Total Debt10.51K55.68K110.90K160.88K50.60K104.47K
Total Liabilities231.45K480.54K694.47K550.13K341.03K294.61K
Stockholders Equity6.17M7.95M13.55M5.39M4.70M2.90M
Cash Flow
Free Cash Flow-4.76M-4.88M-5.99M-2.39M-1.31M-300.88K
Operating Cash Flow-2.94M-4.88M-3.97M-1.64M-1.07M-298.83K
Investing Cash Flow2.04M4.33M-11.17M-1.50M-990.16K-241.71K
Financing Cash Flow-25.14K-63.30K16.61M2.37M2.92M299.71K

Noram Lithium Corp Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.12
Price Trends
50DMA
0.11
Positive
100DMA
0.10
Positive
200DMA
0.11
Positive
Market Momentum
MACD
>-0.01
Negative
RSI
64.23
Neutral
STOCH
97.22
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:NRM, the sentiment is Positive. The current price of 0.12 is above the 20-day moving average (MA) of 0.10, above the 50-day MA of 0.11, and above the 200-day MA of 0.11, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 64.23 is Neutral, neither overbought nor oversold. The STOCH value of 97.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:NRM.

Noram Lithium Corp Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
$14.83B9.706.36%5.32%4.16%-65.92%
TSLLG
61
Neutral
C$10.16M0.88-18.56%
39
Underperform
C$13.57M-144.76%48.54%
TSNRM
37
Underperform
C$10.29M-45.87%72.76%
TSLIS
35
Underperform
C$13.22M-35.15%41.41%
TSILC
32
Underperform
C$2.68M5.004.47%-41.58%
$5.75M-15.62%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:NRM
Noram Lithium Corp
0.10
-0.17
-62.96%
TSE:ILC
International Lithium
0.01
-0.01
-50.00%
TSE:LLG
Mason Graphite
0.06
-0.04
-40.00%
TSE:LIS
Lithium South Development
0.12
-0.11
-47.83%
ULTHF
United Lithium
0.12
-0.10
-45.45%
TSE:LBNK
LithiumBank Resources Corp.
0.23
-0.53
-69.74%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Feb 22, 2025