Electra Battery Materials Corp (ELBM) AI Stock Analysis

• Market Cap: C$25.15M
• Dividend Yield: N/A
• Average Volume (3M): 30.74K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.34
• Revenue Growth: N/A
• EPS Growth: 60.76%
• Country: CA
• Employees: 23
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Industrial Materials
• EPS (TTM): -0.86
• Shares Outstanding: 17,961,172
• 10 Day Avg. Volume: 14,998
• 30 Day Avg. Volume: 30,738
• PEG Ratio: -0.16
• Price to Book (P/B): 1.80
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.83
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$3.14
• Price Target Upside: 124.29% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Electra Battery Materials Corp's overall stock score is low due to its severe financial difficulties, including no revenue and high losses, and negative valuation metrics. While technical analysis indicates a bearish trend, recent corporate events show potential for future growth, but they are insufficient to offset current financial and operational challenges.

Electra Battery Materials Corp Business Overview & Revenue Model

Company Description

Electra Battery Materials Corporation acquires and explores for resource properties in the United States and Canada. It primarily explores for cobalt and silver deposits. The company's flagship project is the Iron Creek cobalt-copper project, which covers an area of approximately 5,900 acres located in Lemhi County, Idaho. It also operates a cobalt refinery for producing battery materials for the electric vehicle supply chain. The company was formerly known as First Cobalt Corp. and changed its name to Electra Battery Materials Corporation in December 2021. Electra Battery Materials Corporation was incorporated in 2011 and is headquartered in Toronto, Canada.

How the Company Makes Money

Electra Battery Materials Corp makes money through the production and sale of high-purity battery-grade materials, primarily cobalt and nickel, to manufacturers in the electric vehicle and energy storage industries. The company's revenue model is centered around refining these critical minerals, which are essential components in the production of lithium-ion batteries. Electra capitalizes on its strategic partnerships with automotive and battery manufacturers, leveraging its expertise in material processing and recycling to ensure a reliable and sustainable supply of these materials. The company's earnings are also influenced by market demand for electric vehicles, government policies promoting renewable energy, and technological advancements in battery production and recycling.

Electra Battery Materials Corp Financial Statement Overview

Summary

Electra Battery Materials Corp faces significant financial challenges, with zero revenue and high net losses. The balance sheet is moderately leveraged with increasing liabilities, and cash flow is negative, indicating operational inefficiencies.

Income Statement

Electra Battery Materials Corp has consistently reported zero revenue over the years, which is a significant concern for the income statement. There is a pattern of high net losses, with a TTM net income of -$67.63 million, indicating ongoing operational challenges. The gross profit margin is negative due to the lack of revenue, while EBIT and EBITDA margins are also negative, highlighting inefficiencies in operations and cost management.

Balance Sheet

The balance sheet shows a moderately leveraged position with a debt-to-equity ratio of approximately 0.83 in the TTM period, reflecting a reliance on debt but not excessively so. However, the equity ratio has declined over time, from 92.23% in 2020 to 45.25% in the TTM, indicating increasing liabilities relative to assets. The return on equity has been negative due to continuous losses, impacting shareholder value.

Cash Flow

Cash flow analysis reveals negative free cash flow in all periods, with a TTM free cash flow of -$16.7 million. This suggests the company is not generating sufficient cash to cover capital expenditures or operational costs. The operating cash flow to net income ratio is negative, underlying operational inefficiencies, and there is no free cash flow growth, indicating persistent cash flow challenges.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00	0.00
	Gross Profit
-43.00K	-56.00K	-48.00K	-2.00K	0.00	0.00
	EBIT
-11.76M	13.98K	-16.75M	-19.19M	-7.36M	-8.44M
	EBITDA
-46.28M	-13.34K	12.60M	-18.34M	-1.76M	-116.19M
	Net Income Common Stockholders
-67.63M	-64.67M	70.82M	-34.01M	-3.06M	-104.75M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.26M	8.15M	8.38M	60.39M	4.17M	4.42M
	Total Assets
204.60M	148.69M	187.52M	167.61M	103.68M	110.29M
	Total Debt
0.00	45.43M	29.66M	23.29M	6.66M	6.32M
	Net Debt
-3.26M	37.02M	21.70M	-35.34M	2.49M	1.90M
	Total Liabilities
6.22M	65.39M	61.02M	67.65M	11.53M	9.76M
	Stockholders Equity
198.38M	83.30M	126.51M	99.96M	92.15M	100.53M
Cash Flow		Free Cash Flow
-16.70M	-36.75M	-63.47M	-18.97M	-5.68M	-9.42M
	Operating Cash Flow
-16.90M	-23.05M	-15.85M	-16.88M	-5.68M	-9.11M
	Investing Cash Flow
1.46M	-14.05M	-43.55M	-8.08M	11.50K	2.23M
	Financing Cash Flow
5.15M	36.54M	8.48M	78.88M	5.54M	8.16M

Electra Battery Materials Corp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ELBM, the sentiment is Negative. The current price of 1.4 is below the 20-day moving average (MA) of 1.48, below the 50-day MA of 1.63, and below the 200-day MA of 2.43, indicating a bearish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 38.96 is Neutral, neither overbought nor oversold. The STOCH value of 12.99 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ELBM.

Electra Battery Materials Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GMA	51 Neutral	C$19.36M	―	-65.04%	―	-89.84%	-16.41%
Sector *	49 Neutral	$1.99B	-1.09	-21.26%	3.60%	1.47%	-31.20%
TWR	46 Neutral	C$20.14M	―	-5.86%	―	―	-100.00%
ELBM	34 Underperform	C$25.15M	―	-46.87%	―	―	60.76%

Electra Battery Materials Corp Corporate Events

Electra Battery Materials Closes $3.5M Private Placement to Boost Refinery Project

Electra Battery Materials Corporation announced the closing of its oversubscribed private placement, raising approximately $3.5 million. The funds will be used to advance the company’s refinery project in Temiskaming Shores, Ontario, and for general corporate purposes. The offering involved key company executives and directors, constituting a related party transaction. The transaction did not require formal valuation or minority shareholder approval due to its size relative to the company’s market capitalization. The offering is subject to final approval by the TSX Venture Exchange.

Spark’s Take on TSE:ELBM Stock

According to Spark, TipRanks’ AI Analyst, TSE:ELBM is a Underperform.

Electra Battery Materials Corp is struggling financially with no revenue and high losses, contributing to a low overall score. Technical indicators confirm a bearish trend, while valuation concerns due to negative earnings further weigh on the stock. The recent corporate event, although positive, does not yet offset these challenges.

To see Spark’s full report on TSE:ELBM stock, click here.

Electra Battery Materials Secures $3.08M in Oversubscribed Private Placement

Electra Battery Materials Corporation has successfully closed the first tranche of its oversubscribed private placement, raising approximately US$3.08 million. This funding will be used to advance the company’s Refinery project and for general corporate purposes. The participation of key company executives in the offering highlights confidence in Electra’s strategic direction. Additionally, Electra has engaged Independent Trading Group to provide market-making services, further strengthening its market presence.

Electra Battery Materials Advances Cobalt Refinery and Recycling Initiatives

Electra Battery Materials Corporation has made significant progress in 2024, securing over $50 million in non-dilutive funding to resume construction of its cobalt sulfate refinery, which is set to be the first of its kind in North America. The company has also advanced its battery recycling program, achieving high-purity outputs and forming strategic partnerships to ensure a steady supply of black mass feed. These developments enhance Electra’s position in the market, aligning with U.S. priorities for domestic supply chain security and sustainable innovation.

Electra Battery Materials’ Private Placement Fully Subscribed

Electra Battery Materials Corporation announced that its non-brokered private placement is fully subscribed, reflecting strong investor confidence in its strategy to support a North American critical minerals supply chain. The capital raised will be used to advance the company’s Refinery project site in Temiskaming Shores, Ontario, and for general corporate purposes, pending regulatory approvals and completion of closing documentation.

Electra Secures Federal Support for North America’s First Cobalt Refinery

Electra Battery Materials Corporation has received a Letter of Intent from the Canadian Federal Government for a proposed $20 million funding to complete North America’s first battery-grade cobalt refinery. This initiative is pivotal for the domestic production of electric vehicle batteries, aiming to reduce dependency on China and strengthen the North American supply chain. The refinery, located in Temiskaming Shores, Ontario, is expected to have the lowest carbon footprint globally and will produce enough cobalt to support up to one million electric vehicles annually. The project is part of Electra’s broader strategy to expand its battery materials production and recycling capabilities, contributing to Canada’s role in the global energy transition.

Electra Battery Materials Strengthens Board with Strategic Appointment

Electra Battery Materials Corporation has appointed Alden Greenhouse to its Board of Directors, highlighting the company’s strategic focus on enhancing its leadership team with experienced professionals in the critical minerals sector. Greenhouse’s extensive background in strategic minerals and financial markets is expected to bolster Electra’s efforts in building a sustainable and secure supply chain for battery materials in North America, positioning the company as a leader in reducing reliance on foreign sources and enhancing supply chain security.

Electra Battery Materials Unveils Promising Gold and Cobalt Exploration Results in Idaho

Electra Battery Materials Corporation has announced promising exploration results from its CAS Property in the Idaho Cobalt Belt, highlighting high-grade gold alongside cobalt and copper mineralization. With gold prices near all-time highs, the discovery enhances the economic potential of Electra’s holdings, providing strategic value and potential collaboration opportunities with gold-focused explorers. This development is significant for Electra’s strategy to expand its resource base in the U.S. and secure critical mineral supplies.