Avalon Advanced Materials (AVL) AI Stock Analysis

• Market Cap: $24.23M
• Dividend Yield: N/A
• Average Volume (3M): 610.28K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.44
• Revenue Growth: N/A
• EPS Growth: -10100.00%
• Country: CA
• Employees: 8
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): >-0.01
• Shares Outstanding: 637,648,600
• 10 Day Avg. Volume: 372,277
• 30 Day Avg. Volume: 610,279
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 891.21
• Enterprise Value/Gross Profit: -137.35
• Enterprise Value/Ebitda: -7.51
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 41 Neutral
• Price Target: C$0.00 ▼(-100.00% Downside)

Avalon Advanced Materials faces significant financial and operational challenges, with negative revenue growth and liquidity issues being the most impactful factors. Technical indicators suggest a bearish trend, and valuation metrics highlight ongoing profitability concerns. The lack of earnings call data and corporate events leaves these areas unaddressed.

Avalon Advanced Materials Business Overview & Revenue Model

Company Description

Avalon Advanced Materials Inc., together with its subsidiaries, engages in the acquisition, exploration, evaluation, and development of rare metal and mineral properties primarily in Canada. The company focuses on exploring lithium, tantalum, cesium, indium, gallium, germanium, tin, yttrium, and zirconium deposits, as well as rare earth elements. It holds 100% interests in the Nechalacho project comprises eight contiguous mining leases covering an area of 5,786 hectares located at Thor Lake in the Mackenzie Mining District of the Northwest Territories; the East Kemptville project that consists of an exploration license covering an area of approximately 1,165 hectares located to the northeast of Yarmouth, Nova Scotia; the Separation Rapids project, which includes nineteen mineral claims and one mining lease covering an area of approximately 4,414 hectares located in the Kenora in Ontario; and the Lilypad project comprising 14 claims, including 166 new claim units or cells covering an area of approximately 3,299 hectares in located to the northeast of the Pickle Lake in Ontario. The company was formerly known as Avalon Rare Metals Inc. and changed its name to Avalon Advanced Materials Inc. in February 2016. Avalon Advanced Materials Inc. was founded in 1991 and is headquartered in Toronto, Canada.

How the Company Makes Money

Avalon Advanced Materials generates revenue primarily through the exploration and development of its mineral resources, with a focus on selling high-value products derived from these minerals. The company's revenue model includes the sale of concentrate and refined materials to industries such as electronics, automotive, and energy storage. Key revenue streams involve partnerships and offtake agreements with manufacturers and end-users in sectors that require critical minerals. Additionally, Avalon may receive funding through joint ventures, government grants, and investments aimed at advancing its projects and technologies, contributing to its overall earnings.

Avalon Advanced Materials Financial Statement Overview

Summary

Avalon Advanced Materials faces significant financial challenges, with negative revenue growth and ongoing losses. The income statement reflects operational inefficiencies, while the cash flow analysis indicates liquidity issues. However, the balance sheet shows some strength with a low debt-to-equity ratio, providing a degree of financial stability.

Income Statement

The company shows a negative revenue growth, with a sharp decrease in net income over the years. The gross profit margin is negative due to consistently lower revenues than costs, indicating instability and ongoing losses. There is no EBIT or EBITDA margin due to negative EBIT and EBITDA values, reflecting operational inefficiencies.

Balance Sheet

The balance sheet is relatively stable with a strong equity base compared to liabilities, indicated by a low debt-to-equity ratio. However, the return on equity is negative due to persistent net losses, which poses a risk to profitability. The company maintains a solid equity ratio, showcasing financial stability despite operational challenges.

Cash Flow

Cash flow analysis reveals negative free cash flow, impacting liquidity. The company struggles to generate positive cash flows from operations, relying heavily on financing activities. The free cash flow growth rate is negative, indicating cash flow challenges that might affect future operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	26.79K	109.83K	124.26K	21.77K	11.25K	134.14K
Gross Profit	-173.83K	-149.00K	-107.00K	-147.00K	-102.00K	-29.15K
EBITDA	-3.18M	380.74K	-3.99M	-4.01M	-3.92M	-5.21M
Net Income	-4.82M	-635.00K	-3.32M	-3.95M	-3.75M	-5.37M
Balance Sheet
Total Assets	136.42M	136.38M	131.05M	120.45M	118.47M	116.60M
Cash, Cash Equivalents and Short-Term Investments	1.61M	712.31K	2.58M	3.03M	1.82M	1.30M
Total Debt	9.69M	7.05M	3.30M	4.56M	3.68M	867.47K
Total Liabilities	10.68M	8.76M	4.91M	6.14M	4.84M	2.10M
Stockholders Equity	125.73M	127.62M	126.14M	114.31M	113.63M	114.50M
Cash Flow
Free Cash Flow	-4.20M	-4.55M	-14.16M	-3.32M	-3.21M	-2.66M
Operating Cash Flow	-3.89M	-4.08M	-2.62M	-2.46M	-2.03M	-1.92M
Investing Cash Flow	-193.45K	-537.59K	-11.61M	-859.94K	-1.38M	1.04M
Financing Cash Flow	6.16M	2.75M	13.78M	4.52M	3.94M	300.04K

Avalon Advanced Materials Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.04
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:AVL, the sentiment is Negative. The current price of 0.04 is below the 20-day moving average (MA) of 0.04, below the 50-day MA of 0.04, and above the 200-day MA of 0.03, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.45 is Neutral, neither overbought nor oversold. The STOCH value of 53.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:AVL.

Avalon Advanced Materials Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PLAN	63 Neutral	32.93M	11.41	11.61%	―	7.21%	526.19%
GMA	59 Neutral	41.65M	-15.64	0.00%	―	-100.00%	-26.06%
FNC	54 Neutral	23.02M	3.28	0.00%	―	0.00%	302.78%
AVL	41 Neutral	$24.23M	―	-4.61%	―	―	-10100.00%
ABR	39 Underperform	16.51M	500.00	0.00%	―	0.00%	0.00%
TN	37 Underperform	9.17M	-7.78	0.00%	―	0.00%	61.21%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Avalon Advanced Materials Corporate Events

Avalon Advanced Materials to Present Strategic Transition at Symposium

Avalon Advanced Materials Inc. announced its participation in the Water Tower Research Small Cap Symposium Series, where its executives will discuss the company’s strategy to transition from an explorer to a strategic midstream processor and developer of critical mineral assets. This move is part of Avalon’s broader plan to enhance shareholder value and strengthen its position in the critical minerals industry, which is essential for North America’s supply chain security.

Avalon Advanced Materials Monitors Wildfire Near Nechalacho Property

Avalon Advanced Materials Inc. reported a forest fire near its Nechalacho property in the Northwest Territories, Canada. The company is collaborating with local partners and Vital Metals to monitor the situation and will provide updates if there are any significant impacts on timelines or costs. The announcement underscores Avalon’s commitment to safety and its proactive approach to managing potential risks, which is crucial for maintaining its operations and stakeholder confidence.

Avalon Advanced Materials Appoints New CFO to Drive Strategic Growth

Avalon Advanced Materials Inc. has appointed Lorin Crenshaw as its new Chief Financial Officer, succeeding Jim Andersen who will retire in September 2025. This strategic management change is part of Avalon’s efforts to accelerate its value creation strategy and strengthen its position in the critical minerals industry. Crenshaw brings extensive financial experience, particularly in the lithium and critical minerals sectors, which is expected to enhance Avalon’s role in building North America’s energy and defense supply chains.

Avalon Secures Funding and Advances Sustainable Byproduct Project

Avalon Advanced Materials Inc. has secured $1,300,000 in funding from Lind Global Fund II, LP, which will be used to advance strategic projects and corporate initiatives. The company is also progressing its Analcime Utilization Project, aimed at enhancing the value of byproducts from lithium processing. This project, supported by Ontario’s Critical Minerals Innovation Fund, explores the use of analcime in improving concrete durability and reducing carbon emissions, aligning with sustainable construction efforts. The initiative positions Avalon as a leader in the critical minerals economy, contributing to Ontario’s economic future and infrastructure development.

Avalon Secures Additional Funding to Advance Critical Mineral Projects

Avalon Advanced Materials Inc. has announced a second drawdown of $1,300,000 from its $15,000,000 convertible security funding agreement with Lind Global Fund II, LP. This funding will support ongoing projects and general corporate purposes, with the convertible security having a two-year term and a 10% annual interest rate. The agreement includes a conversion option for Lind and a repurchase option for Avalon, alongside a closing fee and share purchase warrants for Lind. The move is expected to bolster Avalon’s project advancements and strengthen its position in the critical minerals industry.