TSX:LMC

Stock Analysis Report

Executive Summary

Leagold Mining Corporation engages in the acquisition of gold mining properties and other development projects in Latin America.

Snowflake

Fundamentals

Fair value with mediocre balance sheet.

Share Price & News

How has Leagold Mining's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.4%

LMC

-2.7%

CA Metals and Mining

-0.1%

CA Market


1 Year Return

38.7%

LMC

11.4%

CA Metals and Mining

0.9%

CA Market

Return vs Industry: LMC exceeded the Canadian Metals and Mining industry which returned 11.4% over the past year.

Return vs Market: LMC exceeded the Canadian Market which returned 0.9% over the past year.


Shareholder returns

LMCIndustryMarket
7 Day0.4%-2.7%-0.1%
30 Day-3.0%-2.9%-2.1%
90 Day28.4%-0.2%-1.6%
1 Year38.7%38.7%12.3%11.4%4.4%0.9%
3 Year-19.4%-19.4%-7.1%-8.8%15.5%5.2%
5 Year3770.0%3770.0%4.6%0.7%25.7%7.5%

Price Volatility Vs. Market

How volatile is Leagold Mining's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Leagold Mining undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: LMC (CA$2.58) is trading below our estimate of fair value (CA$8.28)

Significantly Undervalued: LMC is trading below fair value by more than 20%.


Price To Earnings Ratio

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

PE vs Market: LMC is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate LMC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: LMC is good value based on its PB Ratio (1.1x) compared to the CA Metals and Mining industry average (1.3x).


Next Steps

Future Growth

How is Leagold Mining forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

90.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LMC is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: LMC is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: LMC is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: LMC's revenue (15.7% per year) is forecast to grow faster than the Canadian market (5.7% per year).

High Growth Revenue: LMC's revenue (15.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if LMC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Leagold Mining performed over the past 5 years?

-11.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: LMC is unprofitable, and losses have increased over the past 5 years at a rate of -11.6% per year.

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

Earnings vs Industry: LMC is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-13.7%).


Return on Equity

High ROE: LMC has a negative Return on Equity (-10.19%), as it is currently unprofitable.


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is Leagold Mining's financial position?


Financial Position Analysis

Short Term Liabilities: LMC's short term assets ($226.9M) exceeds its short term liabilities ($117.7M)

Long Term Liabilities: LMC's short term assets (226.9M) do not cover its long term liabilities (421.2M)


Debt to Equity History and Analysis

Debt Level: LMC's debt to equity ratio (55.3%) is considered high

Reducing Debt: LMC had negative shareholder equity 5 years ago, but is now positive and has therefore improved.


Balance Sheet

Inventory Level: LMC has a high level of physical assets or inventory.

Debt Coverage by Assets: LMC's debt is not covered by short term assets (assets are 0.8x debt).


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: LMC has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: LMC has less than a year of cash runway if free cash flow continues to reduce at historical rates of -53.1% each year


Next Steps

Dividend

What is Leagold Mining's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%6.0%industryaverage1.2%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

Growing Dividend: Insufficient data to determine if LMC'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 LMC's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Neil Woodyer (76yo)

3.3yrs

Tenure

US$1,500,000

Compensation

Mr. Neil Woodyer, FCA, has been the Chief Executive Officer of Leagold Mining Corporation since July 11, 2016. Mr. Woodyer served as the Chief Executive Officer, President, Founding Partner and also served ...


CEO Compensation Analysis

Compensation vs. Market: Neil's total compensation ($USD1.50M) is about average for companies of similar size in the Canadian market ($USD1.06M).

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


Management Age and Tenure

2.3yrs

Average Tenure

61yo

Average Age

Experienced Management: LMC's management team is considered experienced (2.3 years average tenure).


Board Age and Tenure

2.9yrs

Average Tenure

68.5yo

Average Age

Experienced Board: LMC's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

SellUS$272,16018 Sep 19
Orion Mine Finance
EntityCompany
Shares100,000
Max PriceUS$2.72
SellUS$330,10316 Sep 19
Orion Mine Finance
EntityCompany
Shares118,300
Max PriceUS$2.85
SellUS$2,107,39205 Sep 19
Orion Mine Finance
EntityCompany
Shares744,100
Max PriceUS$3.00
SellUS$2,258,73228 Aug 19
Orion Mine Finance
EntityCompany
Shares785,100
Max PriceUS$2.88
BuyUS$772,30222 Aug 19
Fiore Financial Corporation, Asset Management Arm
EntityCompany
Shares325,000
Max PriceUS$2.46
BuyUS$1,125,25009 Aug 19
Fiore Financial Corporation, Asset Management Arm
EntityCompany
Shares500,000
Max PriceUS$2.25
BuyUS$439,30907 Aug 19
Frank Giustra
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares200,000
Max PriceUS$2.26
BuyUS$1,37225 Jul 19
Cornelius Lourens
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Operations - Brazil
Shares831
Max PriceUS$1.65
SellUS$166,98325 Jul 19
Cornelius Lourens
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Operations - Brazil
Shares81,495
Max PriceUS$2.05
BuyUS$161,64011 Jul 19
Fiore Financial Corporation, Asset Management Arm
EntityCompany
Shares80,000
Max PriceUS$2.02
BuyUS$206,11110 Jul 19
Fiore Financial Corporation, Asset Management Arm
EntityCompany
Shares101,000
Max PriceUS$2.04
BuyUS$120,00009 Jul 19
Fiore Financial Corporation, Asset Management Arm
EntityCompany
Shares60,000
Max PriceUS$2.00
BuyUS$370,07208 Jul 19
Fiore Financial Corporation, Asset Management Arm
EntityCompany
Shares181,500
Max PriceUS$2.04
BuyUS$120,00005 Jul 19
Fiore Financial Corporation, Asset Management Arm
EntityCompany
Shares60,000
Max PriceUS$2.00
BuyUS$181,46703 Jul 19
Fiore Financial Corporation, Asset Management Arm
EntityCompany
Shares90,000
Max PriceUS$2.02
BuyUS$104,44518 Jun 19
Frank Giustra
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares59,300
Max PriceUS$1.76
BuyUS$245,57817 Jun 19
Frank Giustra
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares140,700
Max PriceUS$1.75
BuyUS$244,52416 May 19
Adriaan Roux
EntityIndividual
Role
Chief Operating Officer
Chief Operating Officer
Shares150,000
Max PriceUS$1.65
BuyUS$131,73214 May 19
Cornelius Lourens
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Operations - Brazil
Shares80,664
Max PriceUS$1.63
BuyUS$290,76009 May 19
Frank Giustra
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares200,000
Max PriceUS$1.45
BuyUS$248,61029 Mar 19
Neil Woodyer
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares128,000
Max PriceUS$1.96
BuyUS$19,82928 Mar 19
Douglas Reddy
EntityIndividual
Role
Chief Technology Officer
Senior Vice President of Technical Services
Shares10,800
Max PriceUS$1.84
BuyUS$119,73021 Mar 19
Neil Woodyer
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares60,000
Max PriceUS$2.00
BuyUS$48,79021 Feb 19
Douglas Reddy
EntityIndividual
Role
Chief Technology Officer
Senior Vice President of Technical Services
Shares23,000
Max PriceUS$2.12
BuyUS$20,47512 Feb 19
Harpreet Dhaliwal
EntityIndividual
Role
Chief Financial Officer
VP of Finance & CFO
Shares9,950
Max PriceUS$2.12
BuyUS$36,10112 Feb 19
Douglas Bowlby
EntityIndividual
Role
Head of Corporate Development
Senior Vice President of Corporate Development
Shares16,900
Max PriceUS$2.20
BuyUS$19,41708 Feb 19
Douglas Bowlby
EntityIndividual
Role
Head of Corporate Development
Senior Vice President of Corporate Development
Shares9,600
Max PriceUS$2.02
BuyUS$5,97008 Feb 19
Harpreet Dhaliwal
EntityIndividual
Role
Chief Financial Officer
VP of Finance & CFO
Shares3,000
Max PriceUS$1.99
BuyUS$13,92807 Feb 19
Douglas Bowlby
EntityIndividual
Role
Head of Corporate Development
Senior Vice President of Corporate Development
Shares6,900
Max PriceUS$2.02
BuyUS$100,30021 Jan 19
Gordon Campbell
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares50,000
Max PriceUS$2.01
BuyUS$286,28610 Dec 18
Frank Giustra
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares200,000
Max PriceUS$1.49
BuyUS$816,00028 Nov 18
Frank Giustra
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares600,000
Max PriceUS$1.36
BuyUS$145,77018 Nov 18
Frank Giustra
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares100,000
Max PriceUS$1.46

Ownership Breakdown


Management Team

  • Neil Woodyer (76yo)

    CEO, President & Director

    • Tenure: 3.3yrs
    • Compensation: US$1.50m
  • Meghan Brown

    Vice President of Investor Relations

    • Tenure: 2.1yrs
  • Doug Reddy

    Senior Vice President of Technical Services

    • Tenure: 3.1yrs
    • Compensation: US$812.50k
  • Richard Thomas

    • Tenure: 2.3yrs
  • Doug Bowlby

    Senior Vice President of Corporate Development

    • Tenure: 3.1yrs
    • Compensation: US$812.50k
  • Attie Roux (61yo)

    Chief Operating Officer

    • Tenure: 1yrs
    • Compensation: US$627.55k
  • Richard Thomas

    Senior Vice President of Operations

    • Tenure: 2.3yrs
    • Compensation: US$1.67m
  • Harpreet Dhaliwal (37yo)

    VP of Finance & CFO

    • Tenure: 3.2yrs
    • Compensation: US$375.00k
  • Cornelius Lourens

    Senior Vice President of Operations - Brazil

    • Tenure: 1.3yrs
  • Peter Burger

    Senior Vice President of Operations - Mexico

    • Tenure: 1.4yrs

Board Members

  • Frank Giustra (61yo)

    Non-Executive Chairman

    • Tenure: 2.9yrs
    • Compensation: US$183.75k
  • Neil Woodyer (76yo)

    CEO, President & Director

    • Tenure: 3.3yrs
    • Compensation: US$1.50m
  • Wesley Clark (75yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$175.00k
  • Peter Marrone (59yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$90.66k
  • Gordon Campbell (71yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$160.00k
  • Miguel Rodriguez (66yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$225.00k
  • Tristan Garel-Jones

    Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: US$160.00k

Company Information

Leagold Mining Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Leagold Mining Corporation
  • Ticker: LMC
  • Exchange: TSX
  • Founded: 1981
  • Industry: Gold
  • Sector: Materials
  • Market Cap: CA$735.005m
  • Shares outstanding: 284.89m
  • Website: https://www.leagold.com

Number of Employees


Location

  • Leagold Mining Corporation
  • 595 Burrard Street
  • Suite 3043
  • Vancouver
  • British Columbia
  • V7X 1J1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LMCTSX (The Toronto Stock Exchange)YesCommon SharesCACADNov 1992
LMCN.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDNov 1992
0LGDB (Deutsche Boerse AG)YesCommon SharesDEEURNov 1992

Biography

Leagold Mining Corporation engages in the acquisition of gold mining properties and other development projects in Latin America. It holds interest in the Los Filos Mine located in Guerrero State, Mexico; a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 23:47
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.