Executive Summary
Core Lithium Ltd engages in the exploration for lithium and base metals deposits in Northern Territory and South Australia.
Risk Analysis
Earnings have declined by -14.26% per year over past 5 years
Currently unprofitable and not forecast to become profitable over the next 3 years
+ 2 more risks
Snowflake Analysis
Adequate balance sheet and overvalued.
Share Price & News
How has Core Lithium's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: CXO's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
70.0%
CXO
4.3%
AU Metals and Mining
5.1%
AU Market
1 Year Return
-38.2%
CXO
-18.7%
AU Metals and Mining
-19.0%
AU Market
Return vs Industry: CXO underperformed the Australian Metals and Mining industry which returned -22% over the past year.
Return vs Market: CXO underperformed the Australian Market which returned -19.4% over the past year.
Shareholder returns
| CXO | Industry | Market | |
|---|---|---|---|
| 7 Day | 70.0% | 4.3% | 5.1% |
| 30 Day | -2.9% | -11.4% | -20.9% |
| 90 Day | -2.9% | -21.2% | -25.6% |
| 1 Year | -38.2%-38.2% | -14.1%-18.7% | -15.4%-19.0% |
| 3 Year | -55.3%-55.3% | 28.7%10.8% | -3.3%-16.6% |
| 5 Year | 17.2%17.2% | 63.2%24.2% | 6.9%-17.3% |
Price Volatility Vs. Market
How volatile is Core Lithium's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 month ago | Simply Wall St
Here's Why We're A Bit Worried About Core Lithium's (ASX:CXO) Cash Burn Situation4 months ago | Simply Wall St
Here's Why Core Lithium (ASX:CXO) Must Use Its Cash Wisely6 months ago | Simply Wall St
Does The Core Lithium Ltd. (ASX:CXO) Share Price Tend To Follow The Market?Valuation
Is Core Lithium undervalued compared to its fair value and its price relative to the market?
0.93x
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: Insufficient data to calculate CXO's fair value to establish if it is undervalued.
Significantly Below Fair Value: Insufficient data to calculate CXO's fair value to establish if it is undervalued.
Price To Earnings Ratio
PE vs Industry: CXO is unprofitable, so we can't compare its PE Ratio to the Metals and Mining industry average.
PE vs Market: CXO is unprofitable, so we can't compare its PE Ratio to the Australian market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate CXO's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: CXO is good value based on its PB Ratio (0.6x) compared to the AU Metals and Mining industry average (1x).
Next Steps
Future Growth
How is Core Lithium forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
0.6%
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 Core 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
- Examine Core Lithium's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
- Core Lithium competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Materials industry.
Past Performance
How has Core Lithium performed over the past 5 years?
-14.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CXO is currently unprofitable.
Growing Profit Margin: CXO is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: CXO is unprofitable, and losses have increased over the past 5 years at a rate of -14.3% per year.
Accelerating Growth: Unable to compare CXO's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: CXO is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-7%).
Return on Equity
High ROE: CXO has a negative Return on Equity (-10.36%), as it is currently unprofitable.
Next Steps
Financial Health
How is Core Lithium's financial position?
Financial Position Analysis
Short Term Liabilities: CXO's short term assets (A$4.7M) exceed its short term liabilities (A$810.9K).
Long Term Liabilities: CXO's short term assets (A$4.7M) exceed its long term liabilities (A$65.6K).
Debt to Equity History and Analysis
Debt Level: CXO is debt free.
Reducing Debt: CXO has not had any debt for past 5 years.
Balance Sheet
Inventory Level: CXO has a high level of physical assets or inventory.
Debt Coverage by Assets: Insufficient data to determine if CXO's debt is covered by short term assets.
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: CXO has less than a year of cash runway based on its current free cash flow.
Forecast Cash Runway: Insufficient data to determine if CXO has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.
Next Steps
Dividend
What is Core Lithium's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate CXO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate CXO'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 CXO's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if CXO'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 CXO's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.4yrs
Average management tenure
CEO
Stephen Biggins (50yo)
9.58s
Tenure
AU$324,700
Compensation
Mr. Stephen Richard Biggins, Steve, B.Sc (Hons), MBA, MAusiMM, M ASEG, has been the Managing Director of Core Lithium Ltd (formerly known as Core Exploration Limited) since September 10, 2010. Mr. Biggins ...
CEO Compensation Analysis
Compensation vs Market: Stephen's total compensation ($USD199.19K) is about average for companies of similar size in the Australian market ($USD246.06K).
Compensation vs Earnings: Stephen's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD & Director | 9.58yrs | AU$324.70k | 1.03% A$278.7k | |
| Chief Financial Officer | 1.08yrs | AU$94.20k | no data | |
| Chief Operating Officer | 2.67yrs | AU$288.94k | no data | |
| Exploration Manager | 4.08yrs | AU$249.95k | 0.17% A$46.6k | |
| Company Secretary | 8.83yrs | AU$142.34k | 0.11% A$30.1k | |
| Commercial Marketing Manager | 1yr | AU$48.65k | no data |
3.4yrs
Average Tenure
Experienced Management: CXO's management team is considered experienced (3.4 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD & Director | 9.58yrs | AU$324.70k | 1.03% A$278.7k | |
| Independent Non-Executive Director | 0.50yr | no data | no data | |
| Non-Executive Independent Director | 5.58yrs | AU$43.26k | no data | |
| Non-Executive Chairman | 9.58yrs | AU$63.26k | 0.79% A$213.0k |
7.6yrs
Average Tenure
50yo
Average Age
Experienced Board: CXO's board of directors are considered experienced (7.6 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 25.6%.
Top Shareholders
Company Information
Core Lithium Ltd's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Core Lithium Ltd
- Ticker: CXO
- Exchange: ASX
- Founded: 2010
- Industry: Diversified Metals and Mining
- Sector: Materials
- Market Cap: AU$26.946m
- Shares outstanding: 792.52m
- Website: https://corelithium.com.au
Location
- Core Lithium Ltd
- 366 King William Street
- Level 1
- Adelaide
- South Australia
- 5000
- Australia
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CXO | ASX (Australian Securities Exchange) | Yes | Ordinary Shares | AU | AUD | Feb 2011 |
| CXO | CHIA (Chi-X Australia) | Yes | Ordinary Shares | AU | AUD | Feb 2011 |
| 7CX | BST (Boerse-Stuttgart) | Yes | Ordinary Shares | DE | EUR | Feb 2011 |
| CXOX.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Feb 2011 |
Biography
Core Lithium Ltd engages in the exploration for lithium and base metals deposits in Northern Territory and South Australia. The company primarily explores for copper, gold, iron, silver, uranium, lead, and zinc deposits. It targets lithium production through the development of its Finniss Lithium Project located to the south of Darwin port in the Northern Territory in Australia. The company was formerly known as Core Exploration Limited and changed its name to Core Lithium Ltd in November 2018. Core Lithium Ltd was incorporated in 2010 and is based in Adelaide, Australia.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/05 10:38 |
| End of Day Share Price | 2020/04/03 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/06/30 |
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.