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Legend Mining Limited (AU:LEG)
:LEG
Australian Market

Legend Mining Limited (LEG) AI Stock Analysis

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AU

Legend Mining Limited

(Sydney:LEG)

Rating:41Neutral
Price Target:
Legend Mining Limited's stock is under significant pressure due to poor financial performance characterized by ongoing losses and negative cash flows. The absence of technical and valuation attractiveness further contributes to a low overall score. The company's challenges in profitability and liquidity are the most significant factors impacting the stock's prospects.

Legend Mining Limited (LEG) vs. iShares MSCI Australia ETF (EWA)

Legend Mining Limited Business Overview & Revenue Model

Company DescriptionLegend Mining Limited (LEG) is an Australian-based mineral exploration company focused on the discovery of base metal and precious metal deposits. Operating primarily in the Fraser Range region of Western Australia, Legend Mining's core activities involve the exploration and development of mineral projects, with a primary focus on nickel-copper and gold deposits. The company is dedicated to creating value for its shareholders through strategic exploration initiatives and potential partnerships with other mining entities.
How the Company Makes MoneyLegend Mining Limited generates revenue primarily through successful exploration and development of mineral resources. The company's main revenue streams include the sale of mineral rights and interests, as well as potential joint ventures and partnerships with larger mining companies. By identifying and developing high-potential mineral deposits, Legend Mining can negotiate favorable terms for selling or partnering on projects, thus generating income. Additionally, the company might receive royalties or other forms of compensation from ongoing operations on properties where they retain a stake. Key factors contributing to its earnings include successful exploration results, favorable market conditions for base and precious metals, and strategic alliances with industry players.

Legend Mining Limited Financial Statement Overview

Summary
Legend Mining Limited's financial performance is concerning, with ongoing losses and negative cash flows. Despite a strong equity base, the company struggles with profitability and liquidity, which significantly impacts its financial health.
Income Statement
30
Negative
Legend Mining Limited's recent financials show a concerning trend in profitability metrics. The company has consistently reported negative EBIT and net income over the years, leading to negative profit margins. The revenue growth was volatile, with a significant drop in 2024 compared to previous years, indicating potential challenges in sustaining revenue streams. The negative EBIT and EBITDA margins further highlight ongoing operating inefficiencies.
Balance Sheet
45
Neutral
The balance sheet reveals a relatively stable financial position with a high equity ratio, reflecting strong equity financing. However, the company's debt-to-equity ratio is low, indicating minimal reliance on debt. Despite this, the persistent negative net income over the years raises concerns about the company's ability to generate sufficient returns on equity.
Cash Flow
40
Negative
The cash flow analysis shows a consistent pattern of negative free cash flow, indicating challenges in generating cash from operations after capital expenditures. The operating cash flow to net income ratio is negatively impacted by ongoing losses, and the free cash flow to net income ratio remains unfavorable. These metrics suggest potential liquidity issues and the need for external financing to support operations.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue5.57K50.80K13.07K26.70K21.38K
Gross Profit-74.52K50.80K-66.21K-51.59K-39.17K
EBITDA-1.43M-5.33M-898.00K-53.77K-780.00K
Net Income-5.25M-5.02M-1.49M-66.18K-1.06M
Balance Sheet
Total Assets49.55M55.22M64.29M63.54M56.14M
Cash, Cash Equivalents and Short-Term Investments11.20M11.53M12.71M18.26M25.24M
Total Debt73.88K110.10K63.74K106.63K55.73K
Total Liabilities748.49K1.28M12.13M10.12M6.28M
Stockholders Equity48.80M53.94M52.16M53.42M49.86M
Cash Flow
Free Cash Flow-696.75K-6.88M-8.39M-13.33M-10.74M
Operating Cash Flow-696.75K-775.71K-471.78K222.57K110.21K
Investing Cash Flow370.86K-6.10M-4.98M-10.17M-10.77M
Financing Cash Flow-99.15K5.69M-94.40K3.02M25.72M

Legend Mining Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (43)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUREE
52
Neutral
AU$17.48M-111.05%-100.00%33.33%
43
Neutral
AU$1.42B-6.27-40.74%4.05%-3.45%-41.76%
AULEG
41
Neutral
AU$21.86M-10.22%-5.88%
AUSUH
40
Underperform
AU$25.77M-222.68%34.85%
AUCOD
39
Underperform
AU$19.96M-18.44%45.75%
AUGBE
37
Underperform
AU$22.23M-10.14%18.64%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:LEG
Legend Mining Limited
0.01
0.00
0.00%
AU:GBE
Globe Metals & Mining Limited
0.03
-0.02
-40.74%
AU:COD
Coda Minerals Ltd
0.08
-0.05
-38.46%
AU:REE
RareX Limited
0.02
0.00
0.00%
AU:SUH
Southern Hemisphere Mining Limited
0.03
0.00
0.00%

Legend Mining Limited Corporate Events

Legend Mining Limited Issues New Shares Under Employee Incentive Plan
Jul 3, 2025

Legend Mining Limited announced the issuance of 3,000,000 fully paid ordinary shares following the exercise of zero exercise price options granted under its employee incentive plan. This move, compliant with ASX Listing Rules, reflects the company’s commitment to rewarding its employees and potentially enhancing its market position by increasing share availability.

Legend Mining Limited Issues 3 Million New Securities
Jul 3, 2025

Legend Mining Limited has announced the issuance of 3,000,000 fully paid ordinary securities, which will be quoted on the Australian Securities Exchange (ASX) as of July 3, 2025. This move could potentially enhance the company’s liquidity and provide additional capital for its exploration activities, thereby strengthening its position in the mining industry.

Legend Mining Finalizes Acquisition of Pinnacle Well Project
Jul 1, 2025

Legend Mining Limited has completed the acquisition of the Pinnacle Well Project, a 110 km² area located in the mineral-rich Leonora district of Western Australia, known for its potential in gold and base metals. With the acquisition finalized, Legend is set to begin exploration activities, having already started assessing previous exploration data. This strategic move is expected to enhance Legend’s position in the mining sector by expanding its exploration footprint and potentially increasing its resource base.

Legend Mining Expands into Leonora with Pinnacle Well Acquisition
Jun 24, 2025

Legend Mining Limited has signed Binding Term Sheets to acquire a 100% interest in the Pinnacle Well Project, located 25 km NNE of Leonora, Western Australia. This acquisition marks Legend’s strategic entry into the mineral-rich Leonora district, known for its significant gold and base metal deposits. The company plans to conduct extensive exploration activities, including data compilation and geophysical surveys, to identify potential drill targets, thereby enhancing its operational footprint and market positioning in the region.

Legend Mining Limited Appoints New Director Tony Walsh
May 2, 2025

Legend Mining Limited has announced the appointment of Tony Walsh as a director, effective from May 2, 2025. Mr. Walsh holds 3,000,000 zero exercise price incentive options and 3,400,000 ordinary shares through his controlled entity, Tony Walsh Corporate Services Pty Ltd. This appointment and the associated securities holdings reflect strategic moves to strengthen the company’s leadership and align with its growth objectives.

Legend Mining Announces Director Departure and Shareholding Changes
May 2, 2025

Legend Mining Limited has announced the cessation of Oliver Kiddie as a director, effective May 2, 2025. This change affects his holdings, including 6,000,000 ordinary shares and options that have lapsed due to his departure. The announcement may impact the company’s governance structure and stakeholder perceptions.

Legend Mining Limited Announces AGM Results and Leadership Changes
May 2, 2025

Legend Mining Limited announced the successful passing of all resolutions at its Annual General Meeting held on May 2, 2025. Key changes in leadership were also confirmed, with Mark Wilson taking over as Managing Director and Tony Walsh being appointed as a director. These changes in the company’s leadership structure are expected to influence its strategic direction and operational management.

Legend Mining Issues New Shares Under Employee Incentive Plan
Apr 17, 2025

Legend Mining Limited announced the issuance of 2,000,000 fully paid ordinary shares following the exercise of vested options under its employee incentive plan. This move, conducted without disclosure to investors under specific provisions of the Corporations Act, is part of the company’s strategy to enhance its capital structure and incentivize employees, potentially impacting its operational and financial positioning.

Legend Mining Limited Applies for Quotation of 2 Million Securities
Apr 17, 2025

Legend Mining Limited has announced the application for quotation of 2,000,000 fully paid ordinary securities on the Australian Securities Exchange (ASX). This move is part of the company’s strategy to enhance its market presence and potentially attract more investors by increasing the liquidity of its shares.

Legend Mining Limited Reports Positive Operating Cash Flow Amid Exploration Expenses
Apr 9, 2025

Legend Mining Limited reported a net positive cash flow from operating activities for the quarter ending March 31, 2025, primarily due to a significant research and development refund. Despite this, the company experienced a net cash outflow from investing activities, mainly due to exploration and evaluation expenses. The financial report indicates a stable cash position at the beginning of the period, with a slight decrease in cash equivalents by the end of the quarter.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 08, 2025