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.

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

-1.0%

LTR

-1.4%

AU Metals and Mining

0.1%

AU Market


1 Year Return

296.0%

LTR

10.2%

AU Metals and Mining

11.9%

AU Market

Return vs Industry: LTR exceeded the Australian Metals and Mining industry which returned 10.2% over the past year.

Return vs Market: LTR exceeded the Australian Market which returned 11.9% over the past year.


Shareholder returns

LTRIndustryMarket
7 Day-1.0%-1.4%0.1%
30 Day4.2%-6.2%-1.1%
90 Day-31.7%-11.8%-1.4%
1 Year299.2%296.0%18.2%10.2%18.5%11.9%
3 Year221.9%219.4%57.7%38.7%36.4%18.1%
5 Year428.3%395.0%70.4%29.8%50.9%16.7%

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 compared to its fair value and its price relative to the 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 forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

2.5%

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

Earnings Trend: LTR is unprofitable, and losses have increased over the past 5 years at a rate of -33.9% 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 (14.4%).


Return on Equity

High ROE: LTR's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets

ROA vs Industry: LTR is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: LTR is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Liontown Resources's financial position?


Financial Position Analysis

Short Term Liabilities: LTR has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: LTR has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: LTR is debt free.

Reducing Debt: LTR's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: LTR has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if LTR's debt is 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.

Stable Cash Runway: LTR has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: LTR has less than a year of cash runway if free cash flow continues to reduce 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 vs Market

companyn/amarketbottom25%2.4%markettop25%5.6%industryaverage4.8%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

High Dividend: Unable to evaluate LTR's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

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

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

2.1yrs

Average management tenure


CEO

David Richards (58yo)

9.4yrs

Tenure

AU$390,048

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

Compensation vs. Market: David's total compensation ($USD267.78K) is about average for companies of similar size in the Australian market ($USD260.53K).

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


Management Age and Tenure

2.1yrs

Average Tenure

Experienced Management: LTR's management team is considered experienced (2.1 years average tenure).


Board Age and Tenure

9.4yrs

Average Tenure

65yo

Average Age

Experienced Board: LTR's board of directors are considered experienced (9.4 years average tenure).


Insider Trading

Insider Buying: LTR insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyAU$99,99902 Oct 19
Craig Williams
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares833,333
Max PriceAU$0.12
BuyAU$1,099,98901 Oct 19
Timothy Rupert Goyder
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares9,166,666
Max PriceAU$0.12
BuyAU$30,00001 Oct 19
David Richards
EntityIndividual
Role
Chief Executive Officer
MD & Executive Director
Shares250,000
Max PriceAU$0.12
BuyAU$99,99901 Oct 19
Anthony Cipriano
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares833,333
Max PriceAU$0.12
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: 9.4yrs
    • Compensation: AU$390.05k
  • Richard Hacker (46yo)

    Chief Financial Officer

    • Tenure: 0yrs
    • Compensation: AU$52.58k
  • Eileen Hao

    GM & Chief Representative for China

    • Tenure: 0.6yrs
  • Kym Verheyen

    Company Secretary

    • Tenure: 2.1yrs

Board Members

  • Craig Williams (67yo)

    Non-Executive Director

    • Tenure: 12.9yrs
    • Compensation: AU$90.91k
  • Steve Chadwick (66yo)

    Non-Executive Director

    • Tenure: 0.8yrs
    • Compensation: AU$104.93k
  • David Richards (58yo)

    MD & Executive Director

    • Tenure: 9.4yrs
    • Compensation: AU$390.05k
  • Tim Goyder (65yo)

    Non-Executive Chairman

    • Tenure: 13.7yrs
    • Compensation: AU$219.84k
  • Anthony Cipriano (52yo)

    Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: AU$90.91k

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$167.259m
  • Shares outstanding: 1.69b
  • 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 Analysis2019/10/23 10:33
End of Day Share Price2019/10/23 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.