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LRS

Latin ResourcesASX:LRS Stock Report

Market Cap

AU$57.7m

7D

4.9%

1Y

126.3%

Updated

19 Oct, 2021

Data

Company Financials
LRS fundamental analysis
Snowflake Score
Valuation0/6
Future Growth0/6
Past Performance0/6
Financial Health4/6
Dividends0/6

LRS Overview

Latin Resources Limited engages in the exploration and evaluation of mining projects in Australia, Brazil, Peru, and Argentina.

Price History & Performance

Summary of all time highs, changes and price drops for Latin Resources
Historical stock prices
Current Share PriceAU$0.043
52 Week HighAU$0.015
52 Week LowAU$0.10
Beta2.36
1 Month Change-8.51%
3 Month Change-6.52%
1 Year Change126.32%
3 Year Change-65.60%
5 Year Change-87.71%
Change since IPO-98.96%

Recent News & Updates

Sep 16
Here's Why We're Watching Latin Resources' (ASX:LRS) Cash Burn Situation

Here's Why We're Watching Latin Resources' (ASX:LRS) Cash Burn Situation

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

LRSAU Metals and MiningAU Market
7D4.9%3.9%1.7%
1Y126.3%13.3%20.3%

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

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

Price Volatility

Is LRS's price volatile compared to industry and market?
LRS volatility
LRS Beta2.36
Industry Beta0.97
Market Beta1

Stable Share Price: LRS is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: LRS's weekly volatility has decreased from 17% to 10% over the past year.

About the Company

FoundedEmployeesCEOWebsite
2008n/aChris Galehttps://www.latinresources.com.au

Latin Resources Limited engages in the exploration and evaluation of mining projects in Australia, Brazil, Peru, and Argentina. The company primarily explores for lithium, silver, lead, copper, and gold deposits. Its flagship project is the Soft Rock Halloysite Project covering an area of 54 square kilometers located near Merredin, Western Australia.

Latin Resources Fundamentals Summary

How do Latin Resources's earnings and revenue compare to its market cap?
LRS fundamental statistics
Market CapAU$57.75m
Earnings (TTM)-AU$4.16m
Revenue (TTM)AU$165.85k

390.9x

P/S Ratio

-14.6x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LRS income statement (TTM)
RevenueAU$165.85k
Cost of RevenueAU$0
Gross ProfitAU$165.85k
ExpensesAU$4.32m
Earnings-AU$4.16m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.0029
Gross Margin100.00%
Net Profit Margin-2,507.56%
Debt/Equity Ratio0.0%

How did LRS perform over the long term?

See historical performance and comparison

Valuation

Is Latin Resources undervalued compared to its fair value and its price relative to the market?

4.37x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: LRS is overvalued based on its PB Ratio (4.4x) compared to the AU Metals and Mining industry average (2.5x).


Future Growth

How is Latin Resources 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 Latin Resources 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 Latin Resources performed over the past 5 years?

25.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LRS is currently unprofitable.

Growing Profit Margin: LRS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: LRS is unprofitable, but has reduced losses over the past 5 years at a rate of 25% per year.

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

Earnings vs Industry: LRS 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: LRS has a negative Return on Equity (-30%), as it is currently unprofitable.


Financial Health

How is Latin Resources's financial position?


Financial Position Analysis

Short Term Liabilities: LRS's short term assets (A$4.1M) exceed its short term liabilities (A$1.4M).

Long Term Liabilities: LRS has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: LRS is debt free.

Reducing Debt: LRS has no debt compared to 5 years ago when its debt to equity ratio was 36.6%.


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: LRS has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: LRS has less than a year of cash runway if free cash flow continues to grow at historical rates of 4.1% each year.


Dividend

What is Latin Resources's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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

3.6yrs

Average management tenure


CEO

Chris Gale

13.33yrs

Tenure

AU$342,312

Compensation

Mr. Christopher Peter Gale, also known as Chris, has been the Executive Chairman of OAR Resources Limited (formerly known as Oakdale Resources Limited) since May 16, 2019 and has been its Executive Directo...


CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD253.70K) is about average for companies of similar size in the Australian market ($USD301.95K).

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


Leadership Team

Experienced Management: LRS's management team is considered experienced (3.6 years average tenure).


Board Members

Experienced Board: LRS's board of directors are considered experienced (7.8 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 been substantially diluted in the past year, with total shares outstanding growing by 55.5%.


Top Shareholders

Company Information

Latin Resources Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Latin Resources Limited
  • Ticker: LRS
  • Exchange: ASX
  • Founded: 2008
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: AU$57.747m
  • Shares outstanding: 1.41b
  • Website: https://www.latinresources.com.au

Location

  • Latin Resources Limited
  • 32 Harrogate Street
  • Unit 3
  • West Leederville
  • Western Australia
  • 6007
  • 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
Earnings2021/06/30
Annual Earnings2020/12/31


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.