ASX:LIT

Stock Analysis Report

Executive Summary

Lithium Australia NL engages in the acquisition, exploration, and development of mineral properties.

Snowflake

Fundamentals

Adequate balance sheet and overvalued.

Risks

  • Lithium Australia has significant price volatility in the past 3 months.
  • Lithium Australia is not covered by any analysts.

Share Price & News

How has Lithium Australia's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

LIT

1.5%

AU Metals and Mining

1.0%

AU Market


1 Year Return

-60.0%

LIT

14.5%

AU Metals and Mining

6.9%

AU Market

LIT underperformed the Metals and Mining industry which returned 14.5% over the past year.

LIT underperformed the Market in Australia which returned 6.9% over the past year.


Share holder returns

LITIndustryMarket
7 Day0%1.5%1.0%
30 Day-8.0%6.2%4.2%
90 Day-25.8%-3.6%1.6%
1 Year-59.6%-60.0%22.6%14.5%13.0%6.9%
3 Year-75.6%-75.8%77.8%54.7%39.6%20.9%
5 Year144.3%142.1%61.7%25.2%52.8%18.7%

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

Valuation

Is Lithium Australia undervalued based on future cash flows and its price relative to the stock market?

0.81x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for Lithium Australia to establish if it is available at moderate discount.

Unable to calculate intrinsic value for Lithium Australia to establish if it is available at substantial discount.


Price Based on Earnings

Lithium Australia is loss making, we can't compare its value to the AU Metals and Mining industry average.

Lithium Australia is loss making, we can't compare the value of its earnings to the Australia market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Lithium Australia, we can't assess if its growth is good value.


Price Based on Value of Assets

Lithium Australia is good value based on assets compared to the AU Metals and Mining industry average.


Next Steps

Future Growth

How is Lithium Australia expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

3.4%

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

Past Performance

How has Lithium Australia performed over the past 5 years?

-41.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Lithium Australia does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Lithium Australia's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Lithium Australia's 1-year growth to the AU Metals and Mining industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Lithium Australia has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Lithium Australia has efficiently used its assets last year compared to the AU Metals and Mining industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Lithium Australia improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Lithium Australia's financial position?


Financial Position Analysis

Lithium Australia is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Lithium Australia has no long term commitments.


Debt to Equity History and Analysis

Lithium Australia has no debt.

Lithium Australia currently has no debt however we can't compare to 5 years ago as we have no data for that period.


Balance Sheet

High level of physical assets or inventory.

Lithium Australia has no debt, it does not need to be 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.

Lithium Australia has less than a year of cash runway based on current free cash flow.

Lithium Australia has less than a year of cash runway if free cash flow continues to grow at historical rates of 33.1% each year.


Next Steps

Dividend

What is Lithium Australia's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate Lithium Australia's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Lithium Australia's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Lithium Australia has not reported any payouts.

Unable to verify if Lithium Australia's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Lithium Australia has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Lithium Australia's salary, the management and board of directors tenure and is there insider trading?

8.7yrs

Average board tenure


CEO

Adrian Griffin (66yo)

8.7yrs

Tenure

AU$704,739

Compensation

Mr. Adrian Christopher Griffin, BSc (Hons), MAusIMM, M GSA, has been the Managing Director and Executive Director of Lithium Australia NL (formerly, Midwinter Resources NL) since February 1, 2011. Mr. Grif ...


CEO Compensation Analysis

Adrian's remuneration is higher than average for companies of similar size in Australia.

Adrian's compensation has increased whilst company is loss making.


Board Age and Tenure

8.7yrs

Average Tenure

49yo

Average Age

The tenure for the Lithium Australia board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Adrian Griffin (66yo)

    MD & Director

    • Tenure: 8.7yrs
    • Compensation: AU$704.74k
  • Barry Woodhouse

    CFO & Company Secretary

    • Tenure: 4.1yrs
    • Compensation: AU$304.58k

Board Members

  • Adrian Griffin (66yo)

    MD & Director

    • Tenure: 8.7yrs
    • Compensation: AU$704.74k
  • Bryan Garrie Dixon (47yo)

    Non-Executive Director

    • Tenure: 9.8yrs
    • Compensation: AU$185.37k
  • George Bauk (49yo)

    Non-Executive Chairman

    • Tenure: 4.2yrs
    • Compensation: AU$207.87k

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$24.577m
  • Shares outstanding: 534.27m
  • Website: https://www.lithium-au.com

Location

  • Lithium Australia NL
  • 675 Murray Street
  • Level 1
  • West Perth
  • Western Australia
  • 6005
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LITASX (Australian Securities Exchange)YesOrdinary SharesAUAUDOct 2007
LITCHIA (Chi-X Australia)YesOrdinary SharesAUAUDOct 2007
LMMF.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 2007
3MWDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2007
LITCEASX (Australian Securities Exchange)Partly Paid Shares 25 CentsAUAUDAug 2016

Biography

Lithium Australia NL engages in the acquisition, exploration, and development of mineral properties. The company is primarily involved in the extraction and recovery of lithium. It holds interests in vario ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/21 10:35
End of Day Share Price2019/09/20 00:00
Earnings2019/06/30
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.