DB:OAY3

Stock Analysis Report

Argentina Lithium & Energy

Executive Summary

Argentina Lithium & Energy Corp., a junior mineral exploration company, engages in the acquisition, exploration, and evaluation of natural resource properties in the Americas and Argentina.


Snowflake Analysis

Weak fundamentals or lack of information.

Share Price & News

How has Argentina Lithium & Energy's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: OAY3's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

20.0%

OAY3

-6.7%

DE Metals and Mining

-9.1%

DE Market


1 Year Return

-34.2%

OAY3

-26.8%

DE Metals and Mining

2.9%

DE Market

Return vs Industry: OAY3 underperformed the German Metals and Mining industry which returned -26.5% over the past year.

Return vs Market: OAY3 underperformed the German Market which returned 6.5% over the past year.


Shareholder returns

OAY3IndustryMarket
7 Day20.0%-6.7%-9.1%
30 Day84.6%-16.9%-7.2%
90 Day77.8%-13.8%-6.5%
1 Year-34.2%-34.2%-25.7%-26.8%6.1%2.9%
3 Yearn/a-51.7%-53.3%3.5%-5.6%
5 Yearn/a-49.3%-52.1%8.0%-6.8%

Price Volatility Vs. Market

How volatile is Argentina Lithium & Energy's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Argentina Lithium & Energy undervalued compared to its fair value and its price relative to the market?


In this section, we usually try to help investors determine whether Argentina Lithium & Energy is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Argentina Lithium & Energy 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 OAY3’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 Argentina Lithium & Energy regulatory filings.
  • Explore potentially undervalued companies in the Materials industry.

Future Growth

How is Argentina Lithium & Energy forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

12.9%

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 Argentina Lithium & Energy 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 Argentina Lithium & Energy performed over the past 5 years?

-61.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OAY3 is currently unprofitable.

Growing Profit Margin: OAY3 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: OAY3 is unprofitable, and losses have increased over the past 5 years at a rate of -61.5% per year.

Accelerating Growth: Unable to compare OAY3's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: OAY3 is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-8.4%).


Return on Equity

High ROE: OAY3's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Argentina Lithium & Energy's financial position?


Financial Position Analysis

Short Term Liabilities: OAY3 has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: OAY3 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: OAY3 has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: OAY3's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: OAY3 has a high level of physical assets or inventory.

Debt Coverage by Assets: OAY3 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.

Stable Cash Runway: OAY3 has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: OAY3 has less than a year of cash runway if free cash flow continues to reduce at historical rates of -49.4% each year


Next Steps

Dividend

What is Argentina Lithium & Energy's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.9%industryaverage7.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate OAY3's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate OAY3'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 OAY3's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if OAY3'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 OAY3'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?

4.5yrs

Average management tenure


CEO

Niko Cacos (52yo)

6.4yrs

Tenure

0

Mr. Nikolaos Cacos, B.Sc., M.I.M., has been the Chief Executive Officer and President of Blue Sky Uranium Corp. since September 2014. Mr. Cacos has been the President and Chief Executive Officer of Sunburs ...


Leadership Team

NamePositionTenureCompensationOwnership
Nikolaos Cacos
President6.4yrsno data2.26% CA$35.6k
Darren Urquhart
Chief Financial Officer5.8yrsCA$12.00kno data
Daniel Galli
Director of Technical Operations3.3yrsno datano data
Michael Clark
Controller0yrsno datano data
Connie Norman
Corporate Secretary1yrsno data0.32% CA$5.1k

4.5yrs

Average Tenure

47yo

Average Age

Experienced Management: OAY3's management team is considered experienced (4.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: OAY3 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 3.4%.


Top Shareholders

Company Information

Argentina Lithium & Energy Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Argentina Lithium & Energy Corp.
  • Ticker: OAY3
  • Exchange: DB
  • Founded: 2000
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: CA$2.320m
  • Listing Market Cap: CA$1.573m
  • Shares outstanding: 33.14m
  • Website: https://www.argentinalithium.com

Location

  • Argentina Lithium & Energy Corp.
  • 837 West Hastings Street
  • Suite 411
  • Vancouver
  • British Columbia
  • V6C 3N6
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OAY3DB (Deutsche Boerse AG)YesCommon SharesDEEURDec 2003
PNXL.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDDec 2003
LITTSXV (TSX Venture Exchange)YesCommon SharesCACADDec 2003

Biography

Argentina Lithium & Energy Corp., a junior mineral exploration company, engages in the acquisition, exploration, and evaluation of natural resource properties in the Americas and Argentina. It holds a 100% interest in the Incahuasi lithium project covering an area of approximately 23,700 hectares of granted mineral rights properties located in the Catamarca Province, Argentina. The company also holds a 100% interest in the Antofalla lithium project that covers an area of approximately 9,000 hectares of mining claims, as well as holds an option agreement to acquire a 100% interest in three additional properties covering an area of approximately 5,300 hectares situated on the Salar de Antofalla in Salta province, Argentina. The company was formerly known as Iron South Mining Corp. and changed its name to Argentina Lithium & Energy Corp. in September 2016. Argentina Lithium & Energy Corp. was incorporated in 2000 and is headquartered in Vancouver, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 20:33
End of Day Share Price2020/02/28 00:00
Earnings2019/09/30
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.