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Latrobe Magnesium

Executive Summary

Latrobe Magnesium Limited engages in developing a magnesium production plant in Victoria's Latrobe Valley and another plant near Cologne using its patented extraction process in Germany.


Snowflake Analysis

Overvalued with worrying balance sheet.

Share Price & News

How has Latrobe Magnesium's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: L2Q's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-33.3%

L2Q

8.3%

DE Metals and Mining

3.2%

DE Market


1 Year Return

100.0%

L2Q

-31.9%

DE Metals and Mining

0.01%

DE Market

Return vs Industry: L2Q exceeded the German Metals and Mining industry which returned -34.3% over the past year.

Return vs Market: L2Q exceeded the German Market which returned -0.1% over the past year.


Shareholder returns

L2QIndustryMarket
7 Day-33.3%8.3%3.2%
30 Day100.0%-0.2%4.7%
90 Day0%-16.2%-0.9%
1 Year100.0%100.0%-31.4%-31.9%1.7%0.01%
3 Year-60.0%-60.0%-62.7%-63.8%-6.8%-14.0%
5 Year-50.0%-50.0%-60.9%-63.0%3.9%-9.5%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Latrobe Magnesium undervalued compared to its fair value and its price relative to the market?

2.66x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate L2Q's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate L2Q's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: L2Q is unprofitable, so we can't compare its PE Ratio to the Metals and Mining industry average.

PE vs Market: L2Q is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate L2Q's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: L2Q is good value based on its PB Ratio (2.7x) compared to the DE Metals and Mining industry average (4.2x).


Next Steps

Future Growth

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

14.9%

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 Latrobe Magnesium 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 Latrobe Magnesium performed over the past 5 years?

-16.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: L2Q is currently unprofitable.

Growing Profit Margin: L2Q is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: L2Q is unprofitable, and losses have increased over the past 5 years at a rate of -16.3% per year.

Accelerating Growth: Unable to compare L2Q's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: L2Q is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-0.06%).


Return on Equity

High ROE: L2Q has a negative Return on Equity (-33.02%), as it is currently unprofitable.


Next Steps

Financial Health

How is Latrobe Magnesium's financial position?


Financial Position Analysis

Short Term Liabilities: L2Q's short term assets (A$815.6K) do not cover its short term liabilities (A$2.9M).

Long Term Liabilities: L2Q has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: L2Q's debt to equity ratio (54.8%) is considered high.

Reducing Debt: L2Q's debt to equity ratio has increased from 4.4% to 54.8% over the past 5 years.


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: L2Q has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if L2Q has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Latrobe Magnesium's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate L2Q's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate L2Q'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 L2Q's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if L2Q'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 L2Q's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.8yrs

Average management tenure


CEO

David Paterson (65yo)

5.08yrs

Tenure

AU$311,604

Compensation

Mr. David Oliver Paterson serves as the Chief Executive Officer of Latrobe Magnesium Ltd. Mr. Paterson served as Managing Director of Latrobe Magnesium Ltd. Mr. Paterson was a Founding Partner of Europacif ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD205.08K) is below average for companies of similar size in the German market ($USD430.63K).

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


Leadership Team

NamePositionTenureCompensationOwnership
David Paterson
CEO & Director 5.08yrsAU$311.60k9.49% A$735.1k
John Lee
Secretary & Director9.42yrsAU$24.31k0.50% A$38.6k
David Wandmaker
General Manager Operations3.33yrsno datano data
Jim Siemon
Director of Hazelwood Project & Consultant9.17yrsno datano data
D. Stewart
Technical Consultant15.17yrsno datano data

6.8yrs

Average Tenure

Experienced Management: L2Q's management team is seasoned and experienced (6.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Paterson
CEO & Director 5.08yrsAU$311.60k9.49% A$735.1k
John Lee
Secretary & Director9.42yrsAU$24.31k0.50% A$38.6k
Philip Bruce
Independent Non-Executive Director16.67yrsAU$24.31k0.99% A$76.8k
John Murray
Independent Non-Executive Chairman5yrsAU$52.50k1.26% A$97.7k
Kevin Torpey
Non-Executive Director18.08yrsAU$24.31k6.37% A$492.9k

16.7yrs

Average Tenure

70yo

Average Age

Experienced Board: L2Q's board of directors are seasoned and experienced ( 16.7 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Latrobe Magnesium Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Latrobe Magnesium Limited
  • Ticker: L2Q
  • Exchange: DB
  • Founded:
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: AU$12.965m
  • Listing Market Cap: AU$7.743m
  • Shares outstanding: 1.30b
  • Website: https://www.latrobemagnesium.com

Location

  • Latrobe Magnesium Limited
  • 16-20 Barrack Street
  • Suite 307
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LMGASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
L2QDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
LMGCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992

Biography

Latrobe Magnesium Limited engages in developing a magnesium production plant in Victoria's Latrobe Valley and another plant near Cologne using its patented extraction process in Germany. The company holds interests in the Latrobe magnesium project located in the Latrobe Valley in Victoria. It intends to extract and sell magnesium metal and cementitious material from industrial fly ash, a waste stream from brown coal power generation. Latrobe Magnesium Limited is based in Sydney, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/29 22:44
End of Day Share Price2020/05/29 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.