TSXV:LI

Stock Analysis Report

American Lithium

Executive Summary

American Lithium Corp., an exploration stage company, engages in the identification, acquisition, exploration for, and development of lithium deposits in the Americas.


Snowflake Analysis

Mediocre balance sheet with weak fundamentals.

Share Price & News

How has American Lithium's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LI's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

16.7%

LI

4.7%

CA Metals and Mining

0.2%

CA Market


1 Year Return

0%

LI

4.8%

CA Metals and Mining

4.6%

CA Market

Return vs Industry: LI underperformed the Canadian Metals and Mining industry which returned 4.8% over the past year.

Return vs Market: LI underperformed the Canadian Market which returned 4.6% over the past year.


Shareholder returns

LIIndustryMarket
7 Day16.7%4.7%0.2%
30 Day51.0%5.2%0.5%
90 Day285.0%13.4%4.0%
1 Year0%0%5.5%4.8%7.9%4.6%
3 Year-60.5%-60.5%-2.8%-4.4%17.8%7.2%
5 Year-14.4%-14.4%25.5%21.8%33.7%14.2%

Price Volatility Vs. Market

How volatile is American Lithium's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is American Lithium undervalued compared to its fair value and its price relative to the market?

55.73x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate LI's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate LI's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: LI is unprofitable, so we can't compare its PE Ratio to the Metals and Mining industry average.

PE vs Market: LI is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate LI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: LI is overvalued based on its PB Ratio (55.7x) compared to the CA Metals and Mining industry average (1.6x).


Next Steps

Future Growth

How is American Lithium forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

14.1%

Forecasted Materials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as American Lithium has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has American Lithium performed over the past 5 years?

-63.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LI is currently unprofitable.

Growing Profit Margin: LI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: LI is unprofitable, and losses have increased over the past 5 years at a rate of -63.9% per year.

Accelerating Growth: Unable to compare LI's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: LI is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (11.9%).


Return on Equity

High ROE: LI has a negative Return on Equity (-4618.27%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is American Lithium's financial position?


Financial Position Analysis

Short Term Liabilities: LI's short term assets (CA$278.9K) do not cover its short term liabilities (CA$489.8K).

Long Term Liabilities: LI has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: LI's debt to equity ratio (7.4%) is considered satisfactory.

Reducing Debt: LI had negative shareholder equity 5 years ago, but is now positive and has therefore improved.


Balance Sheet

Inventory Level: LI has a high level of physical assets or inventory.

Debt Coverage by Assets: LI's debt is covered by short term assets (assets are 8x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: LI has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: LI has less than a year of cash runway if free cash flow continues to reduce at historical rates of -46.6% each year


Next Steps

Dividend

What is American Lithium's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.4%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate LI's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate LI's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if LI's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if LI's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of LI's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.0yrs

Average management tenure


CEO

Mike Kobler (61yo)

3yrs

Tenure

CA$630,143

Compensation

Mr. Michael H. Kobler, also known as Mike, B.sc serves as a Technical Advisor of M2 Cobalt Corp. since January 2018. Mr. Kobler has been Director at Cerro Mining Corp. since February 2020. He has served in ...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD0.00) is below average for companies of similar size in the Canadian market ($USD154.65K).

Compensation vs Earnings: Insufficient data to compare Mike's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Michael Kobler
COO, Interim CEO & Director3yrsCA$630.14k0.24% CA$73.8k
Andrew Bowering
Director & Interim CFO2.7yrsno data2.56% CA$792.5k
Dana Brock
Vice President of Geosciences & Engineering3.8yrsno datano data

3.0yrs

Average Tenure

Experienced Management: LI's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Kobler
COO, Interim CEO & Director3yrsCA$630.14k0.24% CA$73.8k
Andrew Bowering
Director & Interim CFO2.7yrsno data2.56% CA$792.5k
Andrew Squires
Independent Director3.8yrsno datano data
Jerry Aiken
Member of Technical Advisory Board1.3yrsno datano data
David Swan
Member of Advisory Board3.7yrsno datano data

3.7yrs

Average Tenure

61yo

Average Age

Experienced Board: LI's board of directors are considered experienced (3.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: LI insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 58%.


Top Shareholders

Company Information

American Lithium Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: American Lithium Corp.
  • Ticker: LI
  • Exchange: TSXV
  • Founded: 1974
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: CA$30.955m
  • Shares outstanding: 80.40m
  • Website: https://www.americanlithiumcorp.com

Location

  • American Lithium Corp.
  • 1030 West Georgia Street
  • Suite 1507
  • Vancouver
  • British Columbia
  • V6E 2Y3
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LITSXV (TSX Venture Exchange)YesCommon SharesCACADSep 1988
LIAC.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDSep 1988
5LA1DB (Deutsche Boerse AG)YesCommon SharesDEEURSep 1988

Biography

American Lithium Corp., an exploration stage company, engages in the identification, acquisition, exploration for, and development of lithium deposits in the Americas. The company holds a 100% interest in the Fish Lake Valley project covering a series of 98 placer claims comprising a total of 7,840 acres in Esmerelda County, Nevada; and Tonopah Lithium claims that comprise 200 lode claims covering an area of 4,000 acres located northeast of Tonopah Nevada. The company was formerly known as Menika Mining Ltd. and changed its name to American Lithium Corp. in April 2016. American Lithium Corp. was incorporated in 1974 and is headquartered in Vancouver, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 00:17
End of Day Share Price2020/02/21 00:00
Earnings2019/11/30
Annual Earnings2019/02/28


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.