Recommendation: Speculative Buy
| Entry Date | Symbol | Recommendation | Entry Price (CAD) | Target 1 (CAD) | Target 2 (CAD) | Holding Duration | Potential Upside* |
|---|---|---|---|---|---|---|---|
| 27 Feb, 25 | ELBM | Speculative Buy | CAD 2.49 | CAD 2.63 | CAD 2.85 | 5 days | 14.5% |
*Potential Upside (%) indicates the expected percentage increase from the Entry Price to the Target 2 Price.
Data Powered by EOD Historical Data (“EODHD”).
Electra Battery Materials Corporation engages in the acquisition and exploration of resource properties in the United States and Canada. It primarily explores for cobalt, copper, and silver deposits. The company's flagship project comprises the Iron Creek cobalt-copper project that includes patented and unpatented claims totaling an area of approximately 3,260 hectares and 600 meters of underground drifting from three adits located in Lemhi County, Idaho. It also operates a hydrometallurgical 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.
US$20 Million Prepayment Facility – A term sheet for a US$20 million prepayment from a strategic battery materials partner provides crucial financial backing for project completion and operations.
US$20 Million Department of Defense Award – The company secured a significant US$20 million grant to support the construction of North America’s first cobalt sulfate refinery, reinforcing its strategic importance in the battery materials sector.
US$60 Million Funding Gap – Despite recent financing successes, Electra still requires approximately US$60 million to complete the refinery construction, posing a challenge to project execution.
C$3.4 Million in Cash & Marketable Securities – The company ended the quarter with only C$3.4 million in liquidity, highlighting short-term financial constraints.
Electra faces key investment risks including a US$60 million funding gap for refinery completion, liquidity constraints with only C$3.4 million in cash, execution risks in meeting project timelines, and market dependency on the evolving EV battery supply chain.
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 2.49 | 2.24 | 2.63 | 2.85 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
On the daily chart, ELBM stock is maintaining its position above the rising trendline support, repeatedly finding support at this level. The recent upward movement is backed by increasing trading volumes, reinforcing a bullish sentiment. Additionally, the 14-period RSI is currently around 55.83, indicating positive momentum. The stock is also trading above the 21-period simple moving average (SMA), which serves as a key support level, further strengthening the bullish outlook.
As per the above-mentioned technical indicators analysis, Electra Battery Materials Corporation (TSXV: ELBM) is looking technically well-placed on the chart, and a ‘Speculative Buy’ recommendation has been given on the stock at USD 2.49 as of 26 February, 2025.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Basic Materials Industry: Other Industrial Metals & Mining
| Company | Change (CAD) | Price (CAD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to EBITDA (x) | |
|---|---|---|---|---|---|---|---|---|
| ELBM Electra Battery Materials Corp |
-0.03 1.94% | 1.52 | - | 13.04 | - | 0.63 | -2.9057 | |
| SGML Sigma Lithium Resources Corp |
-0.5 3.33% | 14.50 | 117.60 | 12.59 | 6.64 | 11.00 | 7.33 | 37.02 |
| AFM Alphamin Res |
0.02 4.08% | 0.51 | 15.50 | 9.43 | 3.68 | 3.24 | 2.67 | 5.64 |
| SLI Standard Lithium Ltd |
0.07 3.83% | 1.90 | 2.69 | - | - | 1.25 | 2.04 | |
| ALDE Aldebaran Resources Inc |
0.04 2.12% | 1.93 | - | - | - | 2.67 | -16.8764 |
Data Powered by EOD Historical Data (“EODHD”).
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is February 26,2025. The reference data in this report has been partly sourced from REFINITIV.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
Disclaimer :
This report has been issued by StockNextt which has an Ontario Business Identification Number 1000958347 and British Columbia registration Number FM1051529 is a trade name under Kalkine Canada Advisory Services Inc. having Business Number 761925130BC0001. Kalkine Canada Advisory Services Inc. and StockNextt are collectively referred to as “StockNextt”, “we”, “us”, and “our”. The website https://stocknextt.com and associated pages are published by StockNextt. The information in this report and on the StockNextt website has been prepared from a wide variety of sources, which StockNextt, to the best of its knowledge and belief, considers accurate. StcokNextt has made every effort to ensure the reliability of information contained in its reports, newsletters, and websites. All information represents our views at the date of publication and may change without notice. The information in this report does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products. Our reports contain general recommendations for investing in securities and other financial products. StockNextt does not offer financial advice based upon your personal financial situation or goals, and we shall not be held liable for any investment or trading losses you may incur by using the opinions expressed in our reports, publications, market updates, news alerts and corporate profiles. StockNextt does not intend to exclude any liability which it is not permitted to exclude under applicable law or regulation. StockNextt’s general advice does not in any way endorse or recommend individuals, investment products or services for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a professional authorised financial planner and adviser. You should be aware that the value of any investment and the income from it can go down as well as up and you may not get back the amount invested. Please also read our Terms and conditions for further information. Employees and/or associates of StockNextt and its related entities may hold an interest in the securities or other financial products covered in this report or on the StockNextt website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.
Copyright © 2023 Krish Capital Pty Ltd. All rights reserved. No part of this website, or its content, may be reproduced in any form without our prior consent.
