Executive Summary
Liontown Resources Limited engages in the exploration and evaluation of mineral properties in Australia. More Details
Risk Analysis
Snowflake Analysis
Flawless balance sheet with weak fundamentals.
Share Price & News
How has Liontown Resources's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: LTR's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-12.7%
LTR
-4.4%
AU Metals and Mining
-3.9%
AU Market
1 Year Return
128.6%
LTR
7.6%
AU Metals and Mining
-9.6%
AU Market
Return vs Industry: LTR exceeded the Australian Metals and Mining industry which returned 10.7% over the past year.
Return vs Market: LTR exceeded the Australian Market which returned -9.2% over the past year.
Shareholder returns
| LTR | Industry | Market | |
|---|---|---|---|
| 7 Day | -12.7% | -4.4% | -3.9% |
| 30 Day | 29.7% | -1.4% | 1.8% |
| 90 Day | 100.0% | -4.6% | 1.7% |
| 1 Year | 128.6%128.6% | 13.2%7.6% | -6.4%-9.6% |
| 3 Year | 867.7%860.0% | 45.8%25.5% | 12.3%-1.9% |
| 5 Year | 3,559.1%3,328.6% | 134.0%88.1% | 40.0%11.3% |
Price Volatility Vs. Market
How volatile is Liontown Resources's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 month ago | Simply Wall St
What Did Liontown Resources' (ASX:LTR) CEO Take Home Last Year?4 months ago | Simply Wall St
Is Liontown Resources Limited's (ASX:LTR) CEO Pay Fair?5 months ago | Simply Wall St
What Kind Of Shareholders Own Liontown Resources Limited (ASX:LTR)?Valuation
Is Liontown Resources undervalued compared to its fair value and its price relative to the market?
63.01x
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: Insufficient data to calculate LTR's fair value to establish if it is undervalued.
Significantly Below Fair Value: Insufficient data to calculate LTR's fair value to establish if it is undervalued.
Price To Earnings Ratio
PE vs Industry: LTR is unprofitable, so we can't compare its PE Ratio to the AU Metals and Mining industry average.
PE vs Market: LTR 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 LTR's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: LTR is overvalued based on its PB Ratio (63x) compared to the AU Metals and Mining industry average (2.5x).
Next Steps
Future Growth
How is Liontown Resources forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
2.7%
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 Liontown 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.
Next Steps
- Examine Liontown Resources'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.
- Liontown Resources 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 Liontown Resources performed over the past 5 years?
-47.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LTR is currently unprofitable.
Growing Profit Margin: LTR is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: LTR is unprofitable, and losses have increased over the past 5 years at a rate of 47.1% per year.
Accelerating Growth: Unable to compare LTR's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: LTR is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (38%).
Return on Equity
High ROE: LTR has a negative Return on Equity (-196.83%), as it is currently unprofitable.
Next Steps
Financial Health
How is Liontown Resources's financial position?
Financial Position Analysis
Short Term Liabilities: LTR's short term assets (A$7.0M) exceed its short term liabilities (A$745.2K).
Long Term Liabilities: LTR's short term assets (A$7.0M) exceed its long term liabilities (A$75.8K).
Debt to Equity History and Analysis
Debt Level: LTR is debt free.
Reducing Debt: LTR has no debt compared to 5 years ago when its debt to equity ratio was 0.04%.
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: LTR has sufficient cash runway for 4 months based on last reported free cash flow, but has since raised additional capital.
Forecast Cash Runway: LTR is forecast to have sufficient cash runway for 3 months based on free cash flow estimates, but has since raised additional capital.
Next Steps
Dividend
What is Liontown Resources's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate LTR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate LTR'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 LTR's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if LTR'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 LTR'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?
1.1yrs
Average management tenure
CEO
David Richards (59 yo)
10.42yrs
Tenure
AU$555,622
Compensation
Mr. David Ross Richards, BSc (Hons), MAIG, MAICD has been Managing Director of Liontown Resources Ltd. since May 1, 2010. He serves as Non-Executive Director at Woomera Mining Ltd. since October 14, 2020. ...
CEO Compensation Analysis
Compensation vs Market: David's total compensation ($USD389.69K) is about average for companies of similar size in the Australian market ($USD523.73K).
Compensation vs Earnings: David's compensation has increased whilst the company is unprofitable.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD & Executive Director | 10.42yrs | AU$555.62k | 0.47% A$ 1.9m | |
| CFO & Company Secretary | 0.33yr | AU$188.40k | 0.0058% A$ 24.0k | |
| Chief Operating Officer | 0.58yr | AU$498.86k | no data | |
| GM & Chief Representative for China | 1.58yrs | no data | no data |
1.1yrs
Average Tenure
Experienced Management: LTR's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD & Executive Director | 10.42yrs | AU$555.62k | 0.47% A$ 1.9m | |
| Independent Non-Executive Director | 1.75yrs | AU$180.23k | 0.48% A$ 2.0m | |
| Non-Executive Chairman | 14.58yrs | AU$304.43k | 18.09% A$ 75.4m | |
| Independent Non-Executive Director | 6.25yrs | AU$139.12k | 0.93% A$ 3.9m |
8.3yrs
Average Tenure
62.5yo
Average Age
Experienced Board: LTR's board of directors are considered experienced (8.3 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 diluted in the past year, with total shares outstanding growing by 2.8%.
Top Shareholders
Company Information
Liontown Resources Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Liontown Resources Limited
- Ticker: LTR
- Exchange: ASX
- Founded: 2006
- Industry: Diversified Metals and Mining
- Sector: Materials
- Market Cap: AU$416.832m
- Shares outstanding: 1.74b
- Website: https://www.ltresources.com.au
Location
- Liontown Resources Limited
- 1292 Hay Street
- Level 2
- West Perth
- Western Australia
- 6005
- Australia
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| LTR | ASX (Australian Securities Exchange) | Yes | Ordinary Shares | AU | AUD | Dec 2006 |
| LTR | CHIA (Chi-X Australia) | Yes | Ordinary Shares | AU | AUD | Dec 2006 |
| LIS | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Dec 2006 |
Biography
Liontown Resources Limited engages in the exploration and evaluation of mineral properties in Australia. The company explores for lithium, gold, vanadium, copper, and nickel deposits, as well as platinum g ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/10/30 10:32 |
| End of Day Share Price | 2020/10/30 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2020/06/30 |
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.