ASX:CXO

Stock Analysis Report

Executive Summary

Core Lithium Ltd engages in the exploration for lithium and base metals deposits in Northern Territory and South Australia.


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

CXOIndustryMarket
7 Day70.0%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 Year17.2%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

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

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

NamePositionTenureCompensationOwnership
Stephen Biggins
MD & Director9.58yrsAU$324.70k1.03% A$278.7k
Simon Iacopetta
Chief Financial Officer1.08yrsAU$94.20kno data
Blair Duncan
Chief Operating Officer2.67yrsAU$288.94kno data
David Rawlings
Exploration Manager4.08yrsAU$249.95k0.17% A$46.6k
Jaroslaw Kopias
Company Secretary8.83yrsAU$142.34k0.11% A$30.1k
Robert Sills
Commercial Marketing Manager1yrAU$48.65kno data

3.4yrs

Average Tenure

Experienced Management: CXO's management team is considered experienced (3.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stephen Biggins
MD & Director9.58yrsAU$324.70k1.03% A$278.7k
Malcolm McComas
Independent Non-Executive Director0.50yrno datano data
Heath Hellewell
Non-Executive Independent Director5.58yrsAU$43.26kno data
Gregory English
Non-Executive Chairman9.58yrsAU$63.26k0.79% 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CXOASX (Australian Securities Exchange)YesOrdinary SharesAUAUDFeb 2011
CXOCHIA (Chi-X Australia)YesOrdinary SharesAUAUDFeb 2011
7CXBST (Boerse-Stuttgart)YesOrdinary SharesDEEURFeb 2011
CXOX.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDFeb 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/05 10:38
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


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.