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LMG

Latrobe MagnesiumASX:LMG Stock Report

Market Cap

AU$40.8m

7D

10.7%

1Y

24.0%

Updated

22 Oct, 2021

Data

Company Financials
LMG fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance0/6
Financial Health5/6
Dividends0/6

LMG Overview

Latrobe Magnesium Limited engages in developing a magnesium production plant for the extraction of magnesium metal from fly ash resource in Germany.

Price History & Performance

Summary of all time highs, changes and price drops for Latrobe Magnesium
Historical stock prices
Current Share PriceAU$0.031
52 Week HighAU$0.016
52 Week LowAU$0.033
Beta1.31
1 Month Change29.17%
3 Month Change82.35%
1 Year Change24.00%
3 Year Change287.50%
5 Year Change24.00%
Change since IPO-74.17%

Recent News & Updates

Mar 17
Is Latrobe Magnesium (ASX:LMG) A Risky Investment?

Is Latrobe Magnesium (ASX:LMG) A Risky Investment?

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Shareholder Returns

LMGAU Metals and MiningAU Market
7D10.7%-0.3%0.7%
1Y24.0%12.5%21.4%

Return vs Industry: LMG exceeded the Australian Metals and Mining industry which returned 12.5% over the past year.

Return vs Market: LMG exceeded the Australian Market which returned 21.4% over the past year.

Price Volatility

Is LMG's price volatile compared to industry and market?
LMG volatility
LMG Beta1.31
Industry Beta0.97
Market Beta1

Stable Share Price: LMG is more volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 14% a week.

Volatility Over Time: LMG's weekly volatility (14%) has been stable over the past year, but is still higher than 75% of Australian stocks.

About the Company

FoundedEmployeesCEOWebsite
1986n/aDavid Patersonhttps://www.latrobemagnesium.com

Latrobe Magnesium Limited engages in developing a magnesium production plant for the extraction of magnesium metal from fly ash resource in Germany. It holds interests in the Latrobe magnesium project located in the Latrobe Valley in Victoria. The company was incorporated in 1986 and is based in Sydney, Australia.

Latrobe Magnesium Fundamentals Summary

How do Latrobe Magnesium's earnings and revenue compare to its market cap?
LMG fundamental statistics
Market CapAU$40.80m
Earnings (TTM)-AU$2.35m
Revenue (TTM)n/a

0x

P/S Ratio

-17.4x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LMG income statement (TTM)
RevenueAU$0
Cost of RevenueAU$0
Gross ProfitAU$0
ExpensesAU$2.35m
Earnings-AU$2.35m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.0018
Gross Margin0.00%
Net Profit Margin0.00%
Debt/Equity Ratio0%

How did LMG perform over the long term?

See historical performance and comparison

Valuation

Is Latrobe Magnesium undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LMG (A$0.03) is trading below our estimate of fair value (A$0.63)

Significantly Below Fair Value: LMG is trading below fair value by more than 20%.


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: LMG is overvalued based on its PB Ratio (24.2x) compared to the AU Metals and Mining industry average (2.6x).


Future Growth

How is Latrobe Magnesium forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

-0.07%

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 Latrobe Magnesium 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 Latrobe Magnesium performed over the past 5 years?

-11.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LMG is currently unprofitable.

Growing Profit Margin: LMG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: LMG is unprofitable, and losses have increased over the past 5 years at a rate of 11% per year.

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

Earnings vs Industry: LMG 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: LMG has a negative Return on Equity (-139.49%), as it is currently unprofitable.


Financial Health

How is Latrobe Magnesium's financial position?


Financial Position Analysis

Short Term Liabilities: LMG's short term assets (A$3.2M) exceed its short term liabilities (A$1.9M).

Long Term Liabilities: LMG's short term assets (A$3.2M) do not cover its long term liabilities (A$8.7M).


Debt to Equity History and Analysis

Debt Level: LMG is debt free.

Reducing Debt: LMG has no debt compared to 5 years ago when its debt to equity ratio was 5.4%.


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: Whilst unprofitable LMG has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: LMG is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 21.3% per year.


Dividend

What is Latrobe Magnesium current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate LMG'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 LMG's dividends per share have been stable in the past.

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

8.3yrs

Average management tenure


CEO

David Paterson (67 yo)

6.5yrs

Tenure

AU$311,604

Compensation

Mr. David Oliver Paterson serves as the Chief Executive Officer and Executive Director of Latrobe Magnesium Ltd. Mr. Paterson served as Managing Director of Latrobe Magnesium Ltd., from April 10, 2015 to 2...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD233.36K) is about average for companies of similar size in the Australian market ($USD303.33K).

Compensation vs Earnings: David's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: LMG's management team is seasoned and experienced (8.3 years average tenure).


Board Members

Experienced Board: LMG's board of directors are seasoned and experienced ( 18.1 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Latrobe Magnesium Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Latrobe Magnesium Limited
  • Ticker: LMG
  • Exchange: ASX
  • Founded: 1986
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: AU$40.801m
  • Shares outstanding: 1.32b
  • Website: https://www.latrobemagnesium.com

Location

  • Latrobe Magnesium Limited
  • 16-20 Barrack Street
  • Suite 307
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/22 15:35
End of Day Share Price2021/10/22 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.