Electric Royalties (ELEC) AI Stock Analysis

• Market Cap: $18.60M
• Dividend Yield: N/A
• Average Volume (3M): 80.89K
• Price to Earnings (P/E): ―
• Beta (1Y): -1.58
• Revenue Growth: 122.13%
• EPS Growth: 9.33%
• Country: CA
• Employees: 1
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): >-0.01
• Shares Outstanding: 119,973,290
• 10 Day Avg. Volume: 127,973
• 30 Day Avg. Volume: 80,886
• PEG Ratio: 0.00
• Price to Book (P/B): 1.62
• Price to Sales (P/S): 506.20
• P/FCF Ratio: -2.57
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 111.73
• Enterprise Value/Gross Profit: 347.02
• Enterprise Value/Ebitda: -4.47
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 46 Neutral
• Price Target: C$0.00 ▼(-100.00% Downside)

The overall stock score reflects significant financial challenges, including declining revenues and persistent losses. Technical analysis shows neutral momentum, while valuation metrics highlight a lack of profitability and dividend yield. These factors collectively suggest a cautious outlook for Electric Royalties.

Electric Royalties Business Overview & Revenue Model

Company Description

Electric Royalties (ELEC) is a company engaged in the innovative financing of mining projects through royalty agreements. It focuses on securing revenue streams from the production of minerals critical to the electric vehicle (EV) and renewable energy sectors, such as lithium, cobalt, and nickel. By investing in and acquiring royalties on various mining operations, Electric Royalties provides an alternative funding mechanism for mining companies while offering investors exposure to the growth of the electric economy.

How the Company Makes Money

Electric Royalties generates revenue primarily through its royalty agreements with mining companies. When these companies produce minerals, Electric Royalties receives a percentage of the revenue generated from the sale of these minerals, which constitutes its key revenue stream. Additionally, the company may earn income from the acquisition of new royalty interests, which can diversify its portfolio and enhance its earnings potential. Strategic partnerships with mining firms and investment in high-demand mineral projects are significant factors contributing to its financial growth and stability.

Electric Royalties Financial Statement Overview

Summary

Electric Royalties faces significant financial challenges, with declining revenues and persistent losses impacting its income statement. The balance sheet is relatively stable but shows signs of weakening equity. Cash flow analysis reveals cash management issues, with reliance on financing activities for liquidity. The company needs to improve operational efficiency and revenue growth to enhance its financial health.

Income Statement

The company shows a lack of revenue growth, with total revenue significantly declining from 2023 to 2024. Gross and net profit margins remain negative, indicating ongoing operational challenges. The negative EBIT and EBITDA margins further highlight weak profitability and operational inefficiencies.

Balance Sheet

The debt-to-equity ratio is low, suggesting a conservative leverage position. However, the continuous decrease in stockholders' equity signals potential financial strain. The equity ratio is relatively stable, though the declining assets may pose a risk to future growth potential.

Cash Flow

The company exhibits declining free cash flow, with negative operating cash flow indicating cash management issues. The free cash flow to net income ratio is unfavorable, which could hinder reinvestment opportunities. However, financing cash flow remains positive, providing some liquidity support.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	211.37K	31.14K	165.81K	0.00	0.00	0.00
Gross Profit	68.06K	11.01K	-289.69K	-6.82K	-4.54K	0.00
EBITDA	-5.29M	-5.42M	-5.60M	-2.07M	-2.26M	-2.64M
Net Income	-6.59M	-6.36M	-6.00M	-1.92M	-2.30M	-2.64M
Balance Sheet
Total Assets	20.09M	20.16M	18.01M	18.41M	15.54M	5.22M
Cash, Cash Equivalents and Short-Term Investments	290.46K	28.08K	442.52K	1.24M	2.10M	2.58M
Total Debt	9.51M	9.19M	4.36M	25.32K	30.51K	0.00
Total Liabilities	9.63M	10.43M	4.49M	155.64K	367.73K	123.06K
Stockholders Equity	10.46M	9.74M	13.52M	18.25M	15.17M	5.09M
Cash Flow
Free Cash Flow	-5.62M	-6.13M	-5.34M	-3.99M	-2.00M	-3.03M
Operating Cash Flow	-1.94M	-1.18M	-1.38M	-2.04M	-1.50M	-1.78M
Investing Cash Flow	-3.34M	-4.72M	-3.85M	-1.64M	-1.01M	-1.23M
Financing Cash Flow	5.08M	5.48M	4.44M	2.82M	2.03M	5.50M

Electric Royalties Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.14
• 50DMA: Positive
• 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:ELEC, the sentiment is Positive. The current price of 0.14 is below the 20-day moving average (MA) of 0.15, below the 50-day MA of 0.14, and above the 200-day MA of 0.14, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 52.09 is Neutral, neither overbought nor oversold. The STOCH value of 44.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ELEC.

Electric Royalties Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PLAN	―	C$32.93M	11.41	19.67%	―	7.21%	526.19%
Sector *	―	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ILI	―	C$10.22M	―	-0.33%	―	―	-104.55%
ELEC	―	$18.60M	-2.49	-52.97%	―	122.13%	9.33%
TGOL	―	C$16.38M	―	-10.86%	―	―	-92.00%
ORNG	―	C$11.31M	―	-65.75%	―	―	-351.70%

Electric Royalties Corporate Events

Electric Royalties Sees Revenue Boost and Expands Critical Mineral Portfolio

Electric Royalties Ltd. has reported an increase in royalty revenues from the Punitaqui Copper Mine in Chile, with expectations for further revenue growth as production ramps up. The company also provided updates on several other key projects, including advancements in the Seymour Lake Lithium Project and the Battery Hill Manganese Project, among others. These developments highlight Electric Royalties’ strategic positioning in the critical minerals market, potentially enhancing its operational footprint and offering significant implications for stakeholders as the company continues to expand its portfolio of 43 royalties.

Electric Royalties Converts Interest to Shares, Strengthening Financial Position

Electric Royalties Ltd. announced that Gleason & Sons LLC has converted C$536,500 of accrued interest from the company’s convertible credit facility into 3,700,000 common shares at a conversion price of C$0.145 per share. This conversion eliminates all accrued interest prior to the previous week and reflects the ongoing support from its largest shareholder, Stefan Gleason. The transaction, classified as a ‘Shares for Debt’ transaction, is pending approval from the TSX Venture Exchange. This move is expected to strengthen Electric Royalties’ financial position as it continues to develop its portfolio, which includes a cash-flowing royalty on the Punitaqui copper mine in Chile.