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LCY

Legacy Iron OreASX:LCY Stock Report

Market Cap

AU$99.3m

7D

7.1%

1Y

87.5%

Updated

19 Oct, 2021

Data

Company Financials
LCY fundamental analysis
Snowflake Score
Valuation0/6
Future Growth0/6
Past Performance0/6
Financial Health6/6
Dividends0/6

LCY Overview

Legacy Iron Ore Limited engages in the exploration, evaluation, and development of mineral properties in Australia.

Price History & Performance

Summary of all time highs, changes and price drops for Legacy Iron Ore
Historical stock prices
Current Share PriceAU$0.015
52 Week HighAU$0.006
52 Week LowAU$0.079
Beta2.45
1 Month Change7.14%
3 Month Change-9.09%
1 Year Change87.50%
3 Year Change275.00%
5 Year Change200.00%
Change since IPO-95.00%

Recent News & Updates

Sep 08
We Think Legacy Iron Ore (ASX:LCY) Can Afford To Drive Business Growth

We Think Legacy Iron Ore (ASX:LCY) Can Afford To Drive Business Growth

We can readily understand why investors are attracted to unprofitable companies. By way of example, Legacy Iron Ore...

May 04
We're Not Worried About Legacy Iron Ore's (ASX:LCY) Cash Burn

We're Not Worried About Legacy Iron Ore's (ASX:LCY) Cash Burn

Even when a business is losing money, it's possible for shareholders to make money if they buy a good business at the...

Shareholder Returns

LCYAU Metals and MiningAU Market
7D7.1%3.9%1.7%
1Y87.5%13.3%20.3%

Return vs Industry: LCY exceeded the Australian Metals and Mining industry which returned 13.3% over the past year.

Return vs Market: LCY exceeded the Australian Market which returned 20.3% over the past year.

Price Volatility

Is LCY's price volatile compared to industry and market?
LCY volatility
LCY Beta2.45
Industry Beta0.97
Market Beta1

Stable Share Price: LCY is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: LCY's weekly volatility has decreased from 34% to 11% over the past year.

About the Company

FoundedEmployeesCEOWebsite
2007n/aRakesh Guptahttps://www.legacyiron.com.au

Legacy Iron Ore Limited engages in the exploration, evaluation, and development of mineral properties in Australia. It primarily explores for iron, gold, base metals, tungsten, and manganese, as well as rare earth metals. The company’s projects include the Mt Bevan iron ore project, and pilbara iron ore and manganese projects located in Western Australia; the South Laverton gold project covering an area of 460 square kilometers located in the South Laverton region; and the East Kimberley project comprising three exploration licenses located in the Halls Creek area.

Legacy Iron Ore Fundamentals Summary

How do Legacy Iron Ore's earnings and revenue compare to its market cap?
LCY fundamental statistics
Market CapAU$99.27m
Earnings (TTM)-AU$693.13k
Revenue (TTM)AU$321.12k

300.0x

P/S Ratio

-150.0x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LCY income statement (TTM)
RevenueAU$321.12k
Cost of RevenueAU$0
Gross ProfitAU$321.12k
ExpensesAU$1.01m
Earnings-AU$693.13k

Last Reported Earnings

Mar 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.00011
Gross Margin100.00%
Net Profit Margin-215.85%
Debt/Equity Ratio0%

How did LCY perform over the long term?

See historical performance and comparison

Valuation

Is Legacy Iron Ore undervalued compared to its fair value and its price relative to the market?

4.03x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate LCY's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate LCY's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: LCY is unprofitable, so we can't compare its PE Ratio to the Australian Metals and Mining industry average.

PE vs Market: LCY 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 LCY's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: LCY is overvalued based on its PB Ratio (4x) compared to the AU Metals and Mining industry average (2.5x).


Future Growth

How is Legacy Iron Ore forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

-0.2%

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 Legacy Iron Ore 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.


Past Performance

How has Legacy Iron Ore performed over the past 5 years?

11.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LCY is currently unprofitable.

Growing Profit Margin: LCY is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: LCY is unprofitable, but has reduced losses over the past 5 years at a rate of 11.7% per year.

Accelerating Growth: Unable to compare LCY's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: LCY is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (35.3%).


Return on Equity

High ROE: LCY has a negative Return on Equity (-2.9%), as it is currently unprofitable.


Financial Health

How is Legacy Iron Ore's financial position?


Financial Position Analysis

Short Term Liabilities: LCY's short term assets (A$10.5M) exceed its short term liabilities (A$273.6K).

Long Term Liabilities: LCY's short term assets (A$10.5M) exceed its long term liabilities (A$48.9K).


Debt to Equity History and Analysis

Debt Level: LCY is debt free.

Reducing Debt: LCY has not had any debt for past 5 years.


Balance Sheet


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: LCY has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: LCY has sufficient cash runway for 2 years if free cash flow continues to reduce at historical rates of 5.5% each year.


Dividend

What is Legacy Iron Ore current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate LCY's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate LCY's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if LCY's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if LCY'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 LCY'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?

6.8yrs

Average management tenure


CEO

Rakesh Gupta

6.75yrs

Tenure

AU$298,733

Compensation

Mr. Rakesh Gupta has been Chief Executive Officer of Legacy Iron Ore Ltd. since January 22, 2015. Mr. Gupta is an experienced mining engineer with a high level of engineering and project management skills...


CEO Compensation Analysis

Compensation vs Market: Rakesh's total compensation ($USD221.40K) is about average for companies of similar size in the Australian market ($USD301.95K).

Compensation vs Earnings: Rakesh's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: LCY's management team is seasoned and experienced (6.8 years average tenure).


Board Members

Experienced Board: LCY's board of directors are considered experienced (3.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: LCY insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.5%.


Top Shareholders

Company Information

Legacy Iron Ore Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Legacy Iron Ore Limited
  • Ticker: LCY
  • Exchange: ASX
  • Founded: 2007
  • Industry: Steel
  • Sector: Materials
  • Market Cap: AU$99.273m
  • Shares outstanding: 6.40b
  • Website: https://www.legacyiron.com.au

Location

  • Legacy Iron Ore Limited
  • 200 Adelaide Terrace
  • Level 6
  • Perth
  • Western Australia
  • 6000
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/19 07:03
End of Day Share Price2021/10/19 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.