ASX:LTR

Stock Analysis Report

Liontown Resources

Executive Summary

Liontown Resources Limited engages in the exploration and evaluation of mineral properties in Australia.

Snowflake

Fundamentals

Worrying balance sheet with weak fundamentals.

Risks

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

Share Price & News

How has Liontown Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-2.1%

ASX:LTR

1.8%

AU Metals and Mining

0.7%

AU Market


1 Year Return

248.1%

ASX:LTR

17.9%

AU Metals and Mining

6.2%

AU Market

LTR outperformed the Metals and Mining industry which returned 20.5% over the past year.

LTR outperformed the Market in Australia which returned 6.9% over the past year.


Share holder returns

LTRIndustryMarket
7 Day-2.1%1.8%0.7%
30 Day-14.5%3.7%3.8%
90 Day-14.5%-3.1%0.4%
1 Year250.9%248.1%26.2%17.9%12.4%6.2%
3 Year689.6%683.3%83.5%59.6%40.9%21.9%
5 Year401.6%370.0%60.1%23.6%49.8%16.3%

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

Valuation

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


In this section, we usually try to help investors determine whether Liontown Resources is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Liontown Resources has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of LTR’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the potential returns from the core activities, the size of each contract's opportunity, and the capacity of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through Liontown Resources regulatory filings.
  • Explore potentially undervalued companies in the Materials industry.

Future Growth

How is Liontown Resources 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 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

Past Performance

How has Liontown Resources performed over the past 5 years?

-33.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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

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

Unable to compare Liontown Resources'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 Liontown Resources has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.


Return on Assets

It is difficult to establish if Liontown Resources 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 Liontown Resources improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to its liabilities exceeding its assets.


Next Steps

Financial Health

How is Liontown Resources's financial position?


Financial Position Analysis

Liontown Resources's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Liontown Resources has no long term commitments.


Debt to Equity History and Analysis

Liontown Resources has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.

Irrelevant to check if Liontown Resources's debt level has increased considering it has negative shareholder equity.


Balance Sheet

Low level of unsold assets.

Liontown Resources has negative shareholder equity (liabilities exceed assets) therefore debt is not 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.

Liontown Resources has less than a year of cash runway based on current free cash flow.

Liontown Resources has less than a year of cash runway if free cash flow continues to grow at historical rates of 49.5% each year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

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

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

Unable to perform a dividend volatility check as Liontown Resources has not reported any payouts.

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


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Liontown Resources 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 Liontown Resources's salary, the management and board of directors tenure and is there insider trading?

2.0yrs

Average management tenure


CEO

David Richards (58yo)

9.3yrs

Tenure

AU$409,803

Compensation

Mr. David Ross Richards, BSc (Hons), MAIG, MAICD has been Managing Director of Liontown Resources Ltd. since May 1, 2010. Mr. Richards is a qualified geologist with over 30 years experience and a proven tr ...


CEO Compensation Analysis

David's remuneration is about average for companies of similar size in Australia.

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


Management Age and Tenure

2.0yrs

Average Tenure

The tenure for the Liontown Resources management team is about average.


Board Age and Tenure

9.3yrs

Average Tenure

65yo

Average Age

The tenure for the Liontown Resources board of directors is about average.


Insider Trading

More shares have been bought than sold by Liontown Resources individual insiders in the past 3 months.


Recent Insider Transactions

BuyAU$174,08901 Sep 19
Timothy Rupert Goyder
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares2,000,000
Max PriceAU$0.087
BuyAU$52,50011 Jul 19
Anthony Cipriano
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares500,000
Max PriceAU$0.10
BuyAU$54,44511 Jul 19
Craig Williams
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares500,000
Max PriceAU$0.11
BuyAU$904,71625 Mar 19
Timothy Rupert Goyder
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares45,236,998
Max PriceAU$0.02

Ownership Breakdown


Management Team

  • David Richards (58yo)

    MD & Executive Director

    • Tenure: 9.3yrs
    • Compensation: AU$409.80k
  • Richard Hacker (46yo)

    Chief Financial Officer

    • Tenure: 0yrs
    • Compensation: AU$11.57k
  • Eileen Hao

    GM & Chief Representative for China

    • Tenure: 0.5yrs
  • Kym Verheyen

    Company Secretary

    • Tenure: 2yrs

Board Members

  • Craig Williams (67yo)

    Non-Executive Director

    • Tenure: 12.8yrs
    • Compensation: AU$85.29k
  • Steve Chadwick (66yo)

    Non-Executive Director

    • Tenure: 0.7yrs
  • David Richards (58yo)

    MD & Executive Director

    • Tenure: 9.3yrs
    • Compensation: AU$409.80k
  • Tim Goyder (65yo)

    Non-Executive Chairman

    • Tenure: 13.6yrs
    • Compensation: AU$126.74k
  • Anthony Cipriano (52yo)

    Non-Executive Director

    • Tenure: 5.2yrs
    • Compensation: AU$85.29k

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$164.402m
  • Shares outstanding: 1.68b
  • Website: https://www.ltresources.com.au

Location

  • Liontown Resources Limited
  • 1292 Hay Street
  • Level 2
  • West Perth
  • Western Australia
  • 6005
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LTRASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 2006
LTRCHIA (Chi-X Australia)YesOrdinary SharesAUAUDDec 2006
LISDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2006

Biography

Liontown Resources Limited engages in the exploration and evaluation of mineral properties in Australia. The company explores for lithium, gold, vanadium, and nickel deposits. Its principal property is the ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/18 10:35
End of Day Share Price2019/09/18 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.