Executive Summary
Lithium Australia NL engages in the acquisition, exploration, and development of mineral properties, primarily lithium.
Risk Analysis
Earnings have declined by -41.56% per year over past 5 years
Currently unprofitable and not forecast to become profitable over the next 3 years
+ 3 more risks
Snowflake Analysis
Adequate balance sheet and overvalued.
Share Price & News
How has Lithium Australia's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: LIT's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
6.5%
LIT
0.2%
AU Metals and Mining
1.4%
AU Market
1 Year Return
-19.5%
LIT
7.9%
AU Metals and Mining
16.1%
AU Market
Return vs Industry: LIT underperformed the Australian Metals and Mining industry which returned 7.9% over the past year.
Return vs Market: LIT underperformed the Australian Market which returned 16.1% over the past year.
Shareholder returns
| LIT | Industry | Market | |
|---|---|---|---|
| 7 Day | 6.5% | 0.2% | 1.4% |
| 30 Day | -8.3% | -3.1% | 0.8% |
| 90 Day | 100.0% | 4.5% | 4.4% |
| 1 Year | -18.8%-19.5% | 13.4%7.9% | 21.2%16.1% |
| 3 Year | -58.4%-58.8% | 50.6%32.1% | 37.0%18.6% |
| 5 Year | 7.4%6.5% | 88.1%44.2% | 51.7%17.8% |
Price Volatility Vs. Market
How volatile is Lithium Australia's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 month ago | Simply Wall St
Those Who Purchased Lithium Australia (ASX:LIT) Shares Three Years Ago Have A 61% Loss To Show For It3 months ago | Simply Wall St
Can Lithium Australia (ASX:LIT) Afford To Invest In Growth?4 months ago | Simply Wall St
What Type Of Shareholder Owns Lithium Australia NL's (ASX:LIT)?Valuation
Is Lithium Australia undervalued compared to its fair value and its price relative to the market?
1.16x
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: Insufficient data to calculate LIT's fair value to establish if it is undervalued.
Significantly Below Fair Value: Insufficient data to calculate LIT's fair value to establish if it is undervalued.
Price To Earnings Ratio
PE vs Industry: LIT is unprofitable, so we can't compare its PE Ratio to the Metals and Mining industry average.
PE vs Market: LIT 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 LIT's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: LIT is good value based on its PB Ratio (1.2x) compared to the AU Metals and Mining industry average (1.4x).
Next Steps
Future Growth
How is Lithium Australia forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
0.7%
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 Lithium Australia 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 Lithium Australia'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.
- Lithium Australia 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 Lithium Australia performed over the past 5 years?
-41.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LIT is currently unprofitable.
Growing Profit Margin: LIT is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: LIT is unprofitable, and losses have increased over the past 5 years at a rate of -41.6% per year.
Accelerating Growth: Unable to compare LIT's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: LIT is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (19.1%).
Return on Equity
High ROE: LIT has a negative Return on Equity (-42.19%), as it is currently unprofitable.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Lithium Australia's financial position?
Financial Position Analysis
Short Term Liabilities: LIT's short term assets (A$4.1M) exceed its short term liabilities (A$1.6M).
Long Term Liabilities: LIT has no long term liabilities.
Debt to Equity History and Analysis
Debt Level: LIT is debt free.
Reducing Debt: LIT had no debt 5 years ago.
Balance Sheet
Inventory Level: LIT has a high level of physical assets or inventory.
Debt Coverage by Assets: Insufficient data to determine if LIT'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: LIT has less than a year of cash runway based on its current free cash flow.
Forecast Cash Runway: LIT has less than a year of cash runway if free cash flow continues to reduce at historical rates of -37.2% each year
Next Steps
Dividend
What is Lithium Australia's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: Unable to evaluate LIT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate LIT'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 LIT's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if LIT'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 LIT'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?
9.1yrs
Average board tenure
CEO
Adrian Griffin (66yo)
9.1yrs
Tenure
AU$634,860
Compensation
Mr. Adrian Christopher Griffin, BSc (Hons) MAusIMM, MGSA, TMS, has been the Managing Director and Executive Director of Lithium Australia NL (formerly, Midwinter Resources NL) since February 1, 2011. Mr. GÂ ...
CEO Compensation Analysis
Compensation vs Market: Adrian's total compensation ($USD426.57K) is above average for companies of similar size in the Australian market ($USD254.67K).
Compensation vs Earnings: Adrian's compensation has been consistent with company performance over the past year.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD & Director | 9.1yrs | AU$634.86k | 2.73% A$1.0m | |
| Non-Executive Director | 10.2yrs | AU$126.54k | 0.0032% A$1.2k | |
| Non-Executive Chairman | 4.6yrs | AU$156.54k | 0.28% A$102.9k |
9.1yrs
Average Tenure
49yo
Average Age
Experienced Board: LIT's board of directors are considered experienced (9.1 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 31.1%.
Top Shareholders
Company Information
Lithium Australia NL's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Lithium Australia NL
- Ticker: LIT
- Exchange: ASX
- Founded:
- Industry: Diversified Metals and Mining
- Sector: Materials
- Market Cap: AU$37.058m
- Shares outstanding: 561.48m
- Website: https://www.lithium-au.com
Location
- Lithium Australia NL
- 675 Murray Street
- Level 1
- West Perth
- Western Australia
- 6005
- Australia
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| LIT | ASX (Australian Securities Exchange) | Yes | Ordinary Shares | AU | AUD | Oct 2007 |
| LIT | CHIA (Chi-X Australia) | Yes | Ordinary Shares | AU | AUD | Oct 2007 |
| LMMF.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Oct 2007 |
| 3MW | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Oct 2007 |
| LITCE | ASX (Australian Securities Exchange) | Partly Paid Shares 25 Cents | AU | AUD | Aug 2016 |
Biography
Lithium Australia NL engages in the acquisition, exploration, and development of mineral properties, primarily lithium. It operates through Tenement exploration and evaluation; and Processing Technology segments. The company holds interests in various projects located in Western Australia, Queensland, Northern Territory, and South Australia in Australia; Mexico; Alaska; Germany; and Southern Africa. It also engages in the development of processing technology for lithium extraction; and battery material research and development activities. The company was formerly known as Cobre Montana NL and changed its name to Lithium Australia NL in July 2015. Lithium Australia NL is based in West Perth, Australia.Â
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/16 10:40 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/06/30 |
| 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.