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Arizona Lithium Limited (AU:AZL)
ASX:AZL

Arizona Lithium Limited (AZL) AI Stock Analysis

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AU

Arizona Lithium Limited

(Sydney:AZL)

45Neutral
Arizona Lithium Limited's overall stock score reflects substantial revenue growth coupled with significant profitability challenges, including negative margins and cash flows. The limited technical analysis data and negative valuation metrics further contribute to a cautious outlook. The company's strong equity position is a positive aspect, but reliance on external funding remains a key risk.

Arizona Lithium Limited (AZL) vs. S&P 500 (SPY)

Arizona Lithium Limited Business Overview & Revenue Model

Company DescriptionArizona Lithium Limited (AZL) is a mineral exploration company focused on the development of lithium resources. The company primarily operates in the lithium sector, targeting the growing demand for lithium as a key component in battery technology, particularly for electric vehicles and renewable energy storage solutions. AZL is dedicated to the exploration and development of its lithium project in Arizona, USA, where it aims to establish a sustainable supply of this critical mineral.
How the Company Makes MoneyArizona Lithium Limited generates revenue primarily through the exploration and development of lithium mining projects. The company focuses on increasing the value of its mineral assets by advancing its exploration activities, which can lead to the discovery and delineation of economically viable lithium deposits. Revenue is typically realized through the sale of lithium concentrate or lithium-bearing materials to battery manufacturers and other industrial users. Additionally, AZL may establish strategic partnerships or joint ventures to fund project development and share in the financial returns from successful mining operations. The company's earnings are influenced by lithium market prices, operational efficiency, and the successful commercialization of its mineral resources.

Arizona Lithium Limited Financial Statement Overview

Summary
Arizona Lithium Limited is experiencing significant revenue growth, but persistent net losses and negative margins indicate substantial profitability challenges. The low debt-to-equity ratio and strong equity base are positive, yet negative operating and free cash flows highlight ongoing financial strain and dependence on external financing.
Income Statement
35
Negative
Arizona Lithium Limited has shown significant revenue growth from 2023 to 2024, with revenue increasing from 4,103 to 1,357,820. However, despite this growth, the company continues to report large net losses, with a net profit margin of -1680% in 2024. The EBIT and EBITDA margins are also negative, indicating ongoing operational challenges and high expenses relative to revenue.
Balance Sheet
50
Neutral
The company's debt-to-equity ratio remains low, indicating limited leverage. However, the return on equity is negative due to net losses. The equity ratio is strong at approximately 91.5%, reflecting a strong capital base relative to total assets.
Cash Flow
40
Negative
Operating cash flow remains negative, reflecting ongoing cash burn from operations. Free cash flow is also negative, although there has been a decrease in free cash flow deficit from 2023 to 2024. The company relies significantly on financing activities to fund operations and capital expenditures.
Breakdown
Jun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
1.36M4.10K0.0026.70K15.38K
Gross Profit
1.36M-792.86K0.0026.70K15.38K
EBIT
-21.78M-14.96M-10.59M-3.44M-3.46M
EBITDA
-21.49M-13.56M0.000.000.00
Net Income Common Stockholders
-22.82M-14.36M-4.23M-3.46M-3.49M
Balance SheetCash, Cash Equivalents and Short-Term Investments
11.95M3.30M42.98M4.95M230.75K
Total Assets
90.73M81.12M44.12M5.38M612.81K
Total Debt
2.25M2.70M69.29K0.000.00
Net Debt
-9.70M-607.21K-42.91M-4.95M-230.75K
Total Liabilities
7.65M4.26M1.31M512.13K414.27K
Stockholders Equity
83.08M76.87M42.82M4.87M198.54K
Cash FlowFree Cash Flow
-13.62M-10.26M-4.94M-3.15M-2.71M
Operating Cash Flow
-8.69M-7.38M-4.87M-3.15M-2.71M
Investing Cash Flow
-7.66M-45.61M-110.13K0.00-33.40K
Financing Cash Flow
25.54M13.25M43.01M7.87M950.54K

Arizona Lithium Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AULKE
53
Neutral
$59.95M-19.25%65.04%
49
Neutral
$1.95B-1.37-21.43%3.74%0.84%-29.84%
AUMIN
48
Neutral
$4.08B50.78-33.95%4.54%2.22%-411.10%
AUPLS
46
Neutral
$4.76B23.42-1.04%-65.07%-102.37%
AUAZL
45
Neutral
AU$31.93M-0.56%96.00%
AUINR
38
Underperform
$318.02M-4.75%-175.00%
AUGLN
38
Underperform
€93.98M-6.71%23.72%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:AZL
Arizona Lithium Limited
0.01
-0.01
-50.00%
AU:INR
ioneer Limited
0.14
-0.06
-30.77%
AU:MIN
Mineral Resources Limited
20.90
-56.10
-72.86%
AU:PLS
Pilbara Minerals
1.48
-2.71
-64.68%
AU:GLN
Galan Lithium Limited
0.10
-0.17
-63.37%
AU:LKE
Lake Resources N.L.
0.03
-0.03
-45.16%

Arizona Lithium Limited Corporate Events

Arizona Lithium Advances Prairie Project with New Development Plan and Funding
Apr 30, 2025

Arizona Lithium Limited has announced a Commercial Development Plan for North America’s first lithium brine production facility at the Prairie Project, which will utilize Koch’s commercial-scale Direct Lithium Extraction technology. The company has successfully raised $1.3 million to fund the engineering design of the first production facility and has received approval to produce and dispose of brine for Phase 1 of the Prairie Project. This development positions Arizona Lithium as a significant player in the rapidly evolving lithium industry, with plans to expand production through a phased approach, ultimately leading to one of the world’s largest DLE facilities.

Arizona Lithium Limited Seeks Shareholder Approval for Strategic Resolutions
Apr 9, 2025

Arizona Lithium Limited has announced a General Meeting to seek shareholder approval for several resolutions, including the issuance of SPP shares and options. The meeting will address the participation of directors in the SPP offer and ratify a prior share issue to Acuity Capital. These resolutions are part of the company’s strategy to strengthen its financial position and support its growth initiatives in the lithium market.

Arizona Lithium Limited Announces Upcoming General Meeting for Shareholders
Apr 9, 2025

Arizona Lithium Limited has announced a General Meeting for its shareholders, scheduled for May 9, 2025, in West Perth, Australia. The company is encouraging shareholders to participate in the meeting by voting online or via proxy forms, as physical notices will not be dispatched unless specifically requested. This meeting is a significant event for stakeholders, as it provides an opportunity for shareholders to engage with the company’s strategic decisions and future directions.

Arizona Lithium Limited Updates Securities Issue Plan
Apr 4, 2025

Arizona Lithium Limited has announced an update to its proposed issue of securities, with changes to the dates of the offer. The company plans to apply a scale-back if the offer is oversubscribed, allowing directors the discretion to either increase the amount raised or scale back applications equitably. This strategic move is aimed at optimizing capital raising efforts while adhering to ASX Listing Rule parameters, potentially impacting the company’s financial flexibility and market positioning.

Arizona Lithium Limited Launches $2 Million Security Purchase Plan
Apr 3, 2025

Arizona Lithium Limited is offering a security purchase plan to raise up to $2,000,000 by issuing shares at $0.006 each, with additional options for shareholders. This initiative aims to strengthen the company’s financial position, potentially enhancing its market presence in the lithium industry, which could have implications for stakeholders interested in the growth of lithium resources and technologies.

Arizona Lithium Limited Announces New Securities Issue to Boost Capital
Mar 18, 2025

Arizona Lithium Limited has announced a proposed issue of securities under a securities purchase plan. The company plans to issue 333,333,333 ordinary fully paid shares and 222,222,222 unlisted options, exercisable at $0.012, expiring three years from the date of issue. This move is likely aimed at raising capital to support its operations and strengthen its position in the lithium market, potentially impacting stakeholders by enhancing the company’s financial flexibility and growth prospects.

Arizona Lithium Launches Share Purchase Plan to Boost Prairie Project
Mar 18, 2025

Arizona Lithium Limited has announced a Share Purchase Plan aimed at raising $2 million to advance its Prairie Lithium Project. This initiative is designed to reward existing shareholders and strengthen the company’s balance sheet, facilitating the project’s development. The plan allows eligible shareholders to purchase shares at a discounted rate, with the proceeds supporting construction milestones and potential strategic partnerships, thereby enhancing the company’s market positioning and operational capabilities.

Arizona Lithium Secures Key Approvals for Prairie Project Phase 1
Feb 24, 2025

Arizona Lithium Limited has achieved a significant milestone for its Prairie Lithium Project in Saskatchewan, Canada, securing necessary water rights and approvals from the Water Security Agency and local oil & gas companies to commence Phase 1 production and disposal. These approvals allow Arizona Lithium to submit the final Lithium Brine Project Application to the Ministry of Energy and Resources, advancing its positioning in the battery-grade lithium market and enhancing its potential impact on stakeholders by meeting the rising demand in both the Asian and North American markets.

Arizona Lithium Updates Development Plan for Lithium Brine Facility
Feb 17, 2025

Arizona Lithium Limited has updated its commercial development plan for the Prairie Lithium Project, intending to establish North America’s first lithium brine production facility. The phased development involves deploying a commercial-scale Direct Lithium Extraction unit in Phase I, with subsequent phases expanding production capabilities. The project is strategically positioned to supply battery-grade lithium to the Asian market, with multiple financing options being explored to support CAPEX requirements. This initiative marks a significant milestone for the company, aiming to de-risk and scale up production through a methodical approach.

Arizona Lithium Restructures Big Sandy Project Plans and Advances Prairie Project
Feb 17, 2025

Arizona Lithium has rescinded its approved Plan of Operations for the Sandy Valley Exploration Project as it plans to redevelop the Big Sandy Lithium Project with input from all stakeholders, including the Navajo Transitional Energy Company. The company is also progressing with the Prairie Lithium Project, which is in its construction phase and set to deploy a significant Direct Lithium Extraction unit this year, positioning Arizona Lithium as a key player in supplying battery-grade lithium to the global market.

Arizona Lithium to Lead with Commercial-Scale Lithium Extraction
Feb 10, 2025

Arizona Lithium Limited announced its agreement with Koch Technology Solutions to deploy the first commercial-scale Li-Pro direct lithium extraction unit at its Prairie Project in Saskatchewan. This partnership marks a significant milestone as it represents the largest DLE deployment to date and aims to position Arizona Lithium as a leader in lithium production from oil field brines. The initiative will start with a 150 TPA Lithium Carbonate Equivalent production capacity and is designed to de-risk and scale up the project in three phases, ultimately expanding production across multiple pads. This strategic move is expected to strengthen Arizona Lithium’s market position in the rapidly growing battery sectors in Asia and North America.

Arizona Lithium to Attend BMO Global Metals Conference
Feb 10, 2025

Arizona Lithium Limited announced its participation in the 34th Annual BMO Global Metals, Mining & Critical Minerals Conference in Florida, where it plans to engage with institutional investors and OEMs. This conference presents a significant opportunity for the company to strengthen its industry positioning and attract potential investment, as it is a key event in the metals and mining sector with extensive participation from industry experts and investors.

Arizona Lithium Unveils Phased Development Plan for North America’s First Lithium Brine Facility
Feb 6, 2025

Arizona Lithium Limited has announced an updated development plan for its Prairie Lithium Project, marking the company’s first commercial lithium brine production in North America. The phased development is designed to de-risk and scale operations, with Phase I commencing in 2025, and aims to produce 150 tonnes per annum of Lithium Carbonate Equivalent. The project is strategically positioned to supply the Asian battery market, with significant implications for Arizona Lithium’s market positioning as a leading developer in the lithium industry.

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.