Company DescriptionGalan Lithium Limited acquires, explores for, evaluates, and develops mineral projects. It primarily explores for lithium and other deposits. The company holds 100% interests in the Hombre Muerto West project that comprises seven concessions covering an area of approximately 11,600 hectares located in the Catamarca province in Argentina; and the Candelas comprises fourteen exploration permits project covering an area of 24,072 hectares located in the Catamarca province, Argentina. It also holds 80% interest in the Greenbushes South lithium project covering an area of approximately 353 square kilometers located to the south of the Greenbushes mine. The company was formerly known as Dempsey Minerals Limited and changed its name to Galan Lithium Limited in August 2018. Galan Lithium Limited was incorporated in 2011 and is based in West Perth, Australia.

How the Company Makes Money

Galan Lithium Limited Financial Statement Overview

Summary

Galan Lithium Limited is in a challenging financial position with persistent operational losses and negative cash flows. While the company maintains a low debt level and strong equity base, its ability to generate revenue and positive cash flow remains a significant concern. The company's financial health is vulnerable, requiring strategic adjustments to improve its income generation and cash flow management to support growth and stability.

Income Statement

Negative

Galan Lithium Limited shows a weak income statement with consistently negative net income and EBIT. The company has experienced a significant decline in revenue from 2023 to 2024, with revenue dropping from 3,622 to 941. The gross profit margin is effectively zero due to minimal revenue. Net profit margin is negative, reflecting ongoing losses. The EBIT and EBITDA margins are also negative, indicating operational inefficiency.

Balance Sheet

Neutral

The balance sheet indicates moderate financial stability. The debt-to-equity ratio is low, suggesting limited leverage, and stockholders' equity has grown over time, currently at 159,842,363. However, the equity ratio is relatively high, showing that the company is largely equity-funded. The company's asset base has expanded, but cash reserves have decreased significantly from 2023 to 2024, which could pose liquidity risks.

Cash Flow

Negative

The cash flow statement reflects negative free cash flow and operating cash flow, highlighting weak cash generation. Free cash flow has declined substantially, indicating increased capital expenditure without proportional revenue growth. The operating cash flow to net income ratio is negative, further emphasizing cash flow challenges.

TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Breakdown
Income Statement		Total Revenue
941.00	941.00	3.62K	0.00	2.51K	0.00
	Gross Profit
941.00	-255.17K	-169.28K	-15.37K	439.00	-2.87K
	EBIT
-9.03M	-8.50M	-8.43M	-4.94M	-3.13M	-2.65M
	EBITDA
-9.20M	-8.66M	-7.44M	-4.56M	-2.85M	-2.45M
	Net Income Common Stockholders
-10.50M	-9.51M	-7.62M	-5.08M	-907.89K	-2.26M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.61M	4.33M	45.15M	53.89M	15.57M	1.65M
	Total Assets
211.30M	174.26M	128.04M	90.12M	39.10M	21.25M
	Total Debt
528.90K	605.72K	749.43K	0.00	0.00	0.00
	Net Debt
-3.08M	-3.73M	-44.40M	-53.89M	-15.57M	-1.65M
	Total Liabilities
22.01M	14.42M	11.59M	3.26M	754.28K	480.09K
	Stockholders Equity
189.29M	159.84M	116.45M	86.86M	38.35M	20.77M
Cash Flow		Free Cash Flow
-75.53M	-77.52M	-36.33M	-11.75M	-3.70M	-5.84M
	Operating Cash Flow
-2.85M	-2.78M	-1.91M	-2.02M	-1.49M	-1.66M
	Investing Cash Flow
-71.40M	-74.91M	-36.73M	-10.58M	-2.24M	-4.18M
	Financing Cash Flow
61.91M	36.87M	29.89M	50.93M	17.65M	4.91M

Galan Lithium Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (51)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9CH		€50.67M	―	-6.71%	―	―	―
Sector *	51 Neutral	$2.02B	-1.14	-21.37%	3.64%	2.88%	-30.57%
PILBF		$2.68B	22.94	-1.04%	―	―	―
CXOXF		$124.22M	―	-21.25%	―	―	―
SYAXF		$127.80M	―	-17.81%	―	―	―
LLKKF		$34.45M	―	-19.25%	―	―	―
MALRF		$3.01B	43.31	-33.95%	4.54%	―	―

* Basic Materials Sector Average

Performance Comparison

DE:9CH

Galan Lithium Limited

0.05

-0.07

-58.33%

PILBF

Pilbara Minerals

0.84

-1.53

-64.56%

CXOXF

Core Lithium Ltd

0.06

0.00

0.00%

SYAXF

Sayona Mining

0.01

-0.01

-50.00%

LLKKF

Lake Resources N.L.

0.02

-0.02

-50.00%

MALRF

Mineral Resources Limited

15.50

-29.50

-65.56%

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.