Grounded Lithium Reports Second Quarter 2026 Financial and Operating Results
Grounded’s ramp-up turns operating cash flow positive while its working capital deficit widens.
Grounded Lithium Corp. (GRD) reported its financial and operating results for the second quarter of 2026, covering the period ended June 30, 2026. The company posted a net comprehensive loss of $132,943, an increase from the $103,370 loss recorded in the same period last year. Cash flow from operating activities swung positive to $79,527, compared to a negative $45,658 in Q2 2025, a shift driven by oil and gas production.
Despite the positive operating cash flow, the working capital deficit widened to $(114,043), reversing the $94,710 surplus seen in Q2 2025. Funds flow used in operations rose to $82,807, up from $71,330 in the prior year period. Capital expenditures remained minimal at $1,462.
In a move to diversify its asset base and generate cash flow for the Kindersley Lithium Project (KLP), the company announced the strategic acquisition of additional oil and gas mineral rights from a Saskatchewan Crown land sale. The company’s resource base remains at approximately 1.0 million tonnes of Measured and Indicated resources and 3.2 million tonnes of Inferred resources, expressed in lithium carbonate equivalent (LCE). An updated Preliminary Economic Assessment (PEA) from November 2023 cites a Phase 1 Net Present Value (NPV8) of US$1.0 billion and an Internal Rate of Return (IRR) of 48.5%.
Grounded Lithium Corp. (GRD) reported that its Q2 2026 results validate the company's diversification thesis. The positive swing in operating cash flow to $79.5k was a direct result of the oil and gas production ramp-up, which reached 123 bpd in June, confirming that the shallow wells are generating revenue.
However, the widening working capital deficit to $(114,043) presents a notable risk. While operating cash flow is positive, the company's overall liquidity position has deteriorated compared to the prior year surplus.
The acquisition of new oil and gas mineral rights serves as a logical follow-up to the initial farmout and drilling program, aligning with previous guidance to use hydrocarbon cash flows to fund lithium development. The news is incremental and expected, representing confirmation of the operational execution of the oil and gas strategy rather than a fundamental shift in the company's trajectory.
Grounded Lithium Corp. (GRD) is a resource development company focused on the Kindersley Lithium Project (KLP) in Saskatchewan, Canada. The KLP targets lithium extraction from the Leduc/Duperow Formation using Direct Lithium Extraction (DLE) technology, specifically Li-Pro™ sorption technology. The project is currently in the Pre-Feasibility Study (PFS) stage, with a modular plant design planned for a capacity of 10,000-20,000 tonnes per year.
The company holds a partnership with Denison Mines Corp., which has an option to earn up to a 75% working interest by funding $15.15 million in total expenditures and cash payments. Concurrently, Grounded Lithium is developing a shallow oil and gas program near Marsden/Lloydminster to generate near-term cash flow and diversify its asset base.