Legend Mining Limited (LEG) AI Stock Analysis

• Market Cap: AU$26.23M
• Dividend Yield: N/A
• Average Volume (3M): 702.70K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.33
• Revenue Growth: N/A
• EPS Growth: 60.00%
• Country: AU
• Employees: 8
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): >-0.01
• Shares Outstanding: 2,914,477,300
• 10 Day Avg. Volume: 1,543,504
• 30 Day Avg. Volume: 702,704
• PEG Ratio: -1.13
• Price to Book (P/B): 0.71
• Price to Sales (P/S): 6260.86
• P/FCF Ratio: -50.08
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 37 Underperform
• Price Target: <AU$0.01 ▼(-10.00% Downside)

Legend Mining Limited's overall stock score is significantly impacted by its poor financial performance, characterized by declining revenues and persistent losses. The technical analysis further indicates a bearish trend with overbought conditions, and the valuation metrics highlight a negative P/E ratio, suggesting unattractiveness. These factors collectively result in a low stock score.

Positive Factors

Strategic Project Expansion

The acquisition of new exploration licenses enhances Legend Mining's resource base, potentially increasing future revenue streams and strengthening its market position in the mining sector.

New Gold Anomalies

Discovery of new gold anomalies indicates potential for valuable mineral deposits, supporting long-term growth prospects and attracting investment interest.

Heritage Protection Agreement

The agreement facilitates future exploration activities, ensuring regulatory compliance and fostering positive community relations, which are crucial for sustainable operations.

Negative Factors

Declining Revenue

The sharp decline in revenue reflects operational challenges and market difficulties, which may hinder the company's ability to fund exploration and growth initiatives.

Negative Cash Flow

Persistent negative cash flow indicates financial strain, limiting the company's ability to invest in new projects and sustain operations without external funding.

Operational Inefficiencies

Severe operational inefficiencies and negative margins highlight the need for strategic improvements to achieve profitability and enhance shareholder value.

Legend Mining Limited Business Overview & Revenue Model

Company Description

Legend Mining Limited (LEG) is an Australian-based mining exploration company primarily focused on the discovery and development of high-quality mineral deposits, particularly nickel and copper resources. The company operates in the mineral exploration sector, utilizing advanced geological techniques and technologies to explore for base metals in promising regions. Legend Mining has strategic projects, including the Rockford Project in Western Australia, which is aimed at identifying significant mineral resources to support future mining operations.

How the Company Makes Money

Legend Mining Limited generates revenue primarily through the exploration and eventual development of mineral resources. The company focuses on identifying and acquiring promising land for mineral exploration, which can lead to the discovery of economically viable deposits. While the company is currently in the exploration phase and not yet generating revenue from mining operations, it may generate potential income through joint ventures, partnerships, or the sale of mining rights once significant resources are identified. Additionally, successful exploration results can lead to increased investor interest and funding opportunities, contributing to its financial stability and future revenue potential.

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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.57K	5.57K	50.80K	13.07K	26.70K	21.38K
Gross Profit	-73.53K	-74.52K	50.80K	-66.21K	-51.59K	-39.17K
EBITDA	-1.61M	-5.44M	-5.33M	-898.00K	-53.77K	-780.00K
Net Income	-3.58M	-5.25M	-5.02M	-1.49M	-66.18K	-1.06M
Balance Sheet
Total Assets	46.46M	49.55M	55.22M	64.29M	63.54M	56.14M
Cash, Cash Equivalents and Short-Term Investments	11.74M	11.20M	11.53M	12.71M	18.26M	25.24M
Total Debt	159.94K	73.88K	110.10K	63.74K	106.63K	55.73K
Total Liabilities	709.64K	748.49K	1.28M	12.13M	10.12M	6.28M
Stockholders Equity	45.75M	48.80M	53.94M	52.16M	53.42M	49.86M
Cash Flow
Free Cash Flow	-299.26K	-696.75K	-6.88M	-8.39M	-13.33M	-10.74M
Operating Cash Flow	-855.73K	-696.75K	-775.71K	-471.78K	222.57K	110.21K
Investing Cash Flow	-376.78K	370.86K	-6.10M	-4.98M	-10.17M	-10.77M
Financing Cash Flow	-100.25K	-99.15K	5.69M	-94.40K	3.02M	25.72M

Legend Mining Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
REE	52 Neutral	AU$23.36M	-5.58	-84.97%	―	-100.00%	8.51%
SUH	40 Underperform	AU$22.09M	-7.89	-108.41%	―	―	36.67%
COD	39 Underperform	AU$50.22M	-8.13	-19.61%	―	―	42.65%
LEG	37 Underperform	AU$26.23M	-8.33	-7.55%	―	―	60.00%
GBE	37 Underperform	AU$42.21M	-10.00	-10.78%	―	―	11.11%

Legend Mining Limited Corporate Events

Legend Mining Identifies New Gold Anomalies at Pinnacle Well

Legend Mining Limited has identified two new high priority gold soil anomalies at its Pinnacle Well Project in Western Australia. The company is conducting geophysical surveys over these anomalies to aid in drill planning and has signed a Heritage Protection Agreement with the Watarra Aboriginal Corporation, facilitating future exploration activities.

Legend Mining Expands Pinnacle Well Project with Strategic Acquisitions

Legend Mining Limited has expanded its Pinnacle Well Project by acquiring 100% interests in two exploration licenses, E37/1235 and E37/1417, and securing a Right of First Refusal over seven additional tenements in the Linger and Die Goldfield. This strategic acquisition enhances the project’s prospectivity and secures future exploration rights, potentially boosting Legend’s position in the Western Australian mining sector.

Legend Mining Limited Reports Quarterly Cash Flow with Focus on Exploration

Legend Mining Limited reported its quarterly cash flow, highlighting a net cash outflow from operating activities of $161,000, primarily due to administration and corporate costs. The company also experienced cash outflows from investing activities, totaling $478,000, mainly attributed to exploration and evaluation expenditures. Overall, the financial report indicates a decrease in cash and cash equivalents, reflecting ongoing investments in exploration and operational expenses.

Legend Mining Advances Pinnacle Well Project and Explores New Opportunities

Legend Mining Limited announced the settlement of the Pinnacle Well Project, where it has conducted extensive reviews of exploration data and plans to carry out further soil sampling and geophysical surveys. The company also continued negotiations for land access at Rockford and assessed new project opportunities to align with its corporate and technical strengths, following the termination of the IGO JV.