Lithium-ion battery developer Magnis Energy [ASX:MNS] released its FY22 results on Monday.
MNS ended the year with a net loss of $61.7 million. Repayment of borrowings cost the firm $24.8 million alone during FY22.
Magnis Energy ended the year with $100.2 million in cash and cash equivalents.
MNS shares bucked the trend of its lithium peers, edging downwards on a day that Liontown Resources [ASX:LTR] and Core Lithium [ASX:CXO] went up.
MNS shares were down 5% in late afternoon trade.
Year to date, the Magnis Energy stock is down 40%.
Source: tradingview.com
Magnis Energy’s full-year results
Here are the key highlights from Magnis Energy’s FY22 results:
- Total expenditure came to $62,149,49 — a $49,665,589 increase on the $12,651,817 recorded in 2021.
- Net cash used in operating activities went up from $18,160,019 (2021) to $47,106,189 (2022).
- Net loss for the year was $61,697,819, compared with $12,032,230 in 2021
- Negative free cash flow rose to $98.4 million, following a $34.1 million purchase of plant and equipment during the year.
- Non-current borrowings rose from $65.2 million to $145.1 million.
Frank Poullas, Magnis Energy’s Executive Chairman, stated:
‘The last 12 months have been momentous for Magnis Energy Technologies. We have started commercial production at the iM3NY Lithium-ion Battery Plant based in Endicott, New York. Our wholly owned Nachu Graphite Project recently had its previous Bankable Feasibility Study updated and early infrastructure works have begun. We continue to work on commercialising new battery technologies through our partners C4V whilst moving closer to our ambition of producing anode materials.
‘The iM3NY team is working towards hitting its goal of 38GWh of annual capacity in 2030. The team continues to work on sourcing finance for its large-scale expansion plans and are expecting to have answers in the coming months from private and strategic investors along with government funding.’
MNS’ new CEO, David Taylor, commented:
‘The significant progress made on the iM3NY battery cell manufacturing plant has been a highlight of FY2022. Despite global issues such as supply chain constraints and labour impacts of COVID-19, the team has achieved an outstanding result in bringing the plant into commercial production in the early stages of FY2023.’
Magnis Energy’s outlook remains
Situated snugly in the US, the company has been primed to benefit on the pouring of support and resources from the local government intent on developing its EV battery industry.
The company looks forward to positive tailwinds benefitting the company’s growth, underpinned by growing EV demand despite recent global impacts affecting profits and expenses.
As Frank Poullas said:
‘The Lithium-ion battery industry continues to gain momentum and there has been a major emphasis from the Biden Administration to support US Based supply chain partners.
‘We continue to work on new technologies in partnership with C4V including next generation and fast charging batteries which we expect to be a game changer in the marketplace.’
Lithium and its intertwined fate with EV adoption
Analysts from Morgan Stanley showed that lithium remains a hot commodity for retail investors with a strong interest in juniors like Lake Resources.
Morgan Stanley analysts found that the retail value traded in lithium stocks rose past $3 billion in August, up from $500 million in August 2020.
Lithium stocks are still a central focus for many investors.
That makes it harder to find bargains and mispriced opportunities.
The easy money may already have been made.
But are there not any neglected ASX lithium stocks remaining?
Yes, according to Money Morning’s recent research report on the local lithium sector, which profiles three overlooked lithium players.
Regards,
Kiryll Prakapenka,
For Money Morning
