ASX:LTR

Stock Analysis Report

Liontown Resources

Executive Summary

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


Snowflake Analysis

Adequate 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

4.5%

LTR

4.3%

AU Metals and Mining

5.1%

AU Market


1 Year Return

218.2%

LTR

-18.7%

AU Metals and Mining

-19.0%

AU Market

Return vs Industry: LTR exceeded the Australian Metals and Mining industry which returned -18.7% over the past year.

Return vs Market: LTR exceeded the Australian Market which returned -19% over the past year.


Shareholder returns

LTRIndustryMarket
7 Day4.5%4.3%5.1%
30 Day-36.4%-11.4%-20.9%
90 Day-19.5%-21.2%-25.6%
1 Year218.2%218.2%-14.1%-18.7%-15.4%-19.0%
3 Year292.0%288.9%28.7%10.8%-3.3%-16.6%
5 Year1394.1%1300.0%63.2%24.2%6.9%-17.3%

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 compared to its fair value and its price relative to the market?

11.69x

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 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 (11.7x) compared to the AU Metals and Mining industry average (1x).


Next Steps

Future Growth

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

0.6%

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?

-48.5%

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 -48.5% 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 (-7%).


Return on Equity

High ROE: LTR has a negative Return on Equity (-155.71%), 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$12.3M) exceed its short term liabilities (A$2.4M).

Long Term Liabilities: LTR's short term assets (A$12.3M) exceed its long term liabilities (A$96.5K).


Debt to Equity History and Analysis

Debt Level: LTR is debt free.

Reducing Debt: LTR had no debt 5 years ago.


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 -41.5% each year


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 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.


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?

0.8yrs

Average management tenure


CEO

David Richards (58yo)

9.92s

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 ($USD234.39K) is about average for companies of similar size in the Australian market ($USD238.47K).

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


Leadership Team

NamePositionTenureCompensationOwnership
David Richards
MD & Executive Director9.92yrsAU$390.05k0.32% A$375.7k
Richard Hacker
Chief Financial Officerno dataAU$52.58k0.37% A$437.5k
Adam Smits
Chief Operating Officer0.083yrno datano data
Eileen Hao
GM & Chief Representative for China1.08yrsno datano data
Craig Hasson
Financial Controller & Company Secretary0.42yrno datano data

0.8yrs

Average Tenure

Experienced Management: LTR's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
David Richards
MD & Executive Director9.92yrsAU$390.05k0.32% A$375.7k
Craig Williams
Independent Non-Executive Director13.42yrsAU$90.91k1.27% A$1.5m
Steven Chadwick
Independent Non-Executive Director1.25yrsAU$104.93k0.45% A$532.0k
Timothy Rupert Goyder
Non-Executive Chairman14.17yrsAU$219.84k17.27% A$20.5m
Anthony Cipriano
Independent Non-Executive Director5.75yrsAU$90.91k0.62% A$733.5k

9.9yrs

Average Tenure

65yo

Average Age

Experienced Board: LTR's board of directors are considered experienced (9.9 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 43.2%.


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$118.579m
  • 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 Kathleen Valley project located in Perth, Western Australia. Liontown Resources Limited was incorporated in 2006 and is based in West Perth, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/05 10:35
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
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.