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Legend Mining Limited (AU:LEG)
ASX: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.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
5.57K50.80K13.07K26.70K21.38K
Gross Profit
-74.52K50.80K-66.21K-51.59K-39.17K
EBIT
-1.36M-2.43M-1.21M-299.28K-1.23M
EBITDA
-1.43M-5.33M-897.57K-220.99K-780.48K
Net Income Common Stockholders
-5.25M-5.02M-1.49M-66.18K-1.06M
Balance SheetCash, Cash Equivalents and Short-Term Investments
11.20M11.53M12.71M18.26M25.24M
Total Assets
49.55M55.22M64.29M63.54M56.14M
Total Debt
73.88K110.10K63.74K106.63K55.73K
Net Debt
-11.03M-11.42M-12.65M-18.15M-25.14M
Total Liabilities
748.49K1.28M12.13M10.12M6.28M
Stockholders Equity
48.80M53.94M52.16M53.42M49.86M
Cash FlowFree 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 Flow
370.86K-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 (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUCHN
55
Neutral
€550.47M-16.63%57.93%
AUSYA
54
Neutral
$196.24M-17.81%87.89%-344.44%
AUMEI
54
Neutral
AU$303.79M-139.84%50.28%
51
Neutral
$2.04B-1.15-21.37%3.64%2.88%-30.57%
AUAIS
48
Neutral
AU$164.61M6.838.30%-7.16%
AULEG
41
Neutral
AU$21.84M-10.22%-5.88%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:LEG
Legend Mining Limited
0.01
0.00
0.00%
AU:SYA
Sayona Mining
0.02
-0.02
-54.05%
AU:CHN
Chalice Mining
1.46
0.04
2.46%
AU:AIS
Aeris Resources Limited
0.17
-0.06
-26.09%
AU:MEI
Meteoric Resources NL
0.13
-0.05
-27.78%

Legend Mining Limited Corporate Events

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.

Leadership Changes Announced at Legend Mining Limited
Mar 17, 2025

Legend Mining Limited announced the resignation of Managing Director Oliver Kiddie, effective after the 2025 Annual General Meeting. Mark Wilson, the current Executive Chair and former Managing Director, will reassume the role without changes to his remuneration. Additionally, Tony Walsh will be appointed as a director, reflecting a strategic shift in the company’s leadership structure.

Legend Mining Limited Announces 2025 AGM with Key Resolutions
Mar 14, 2025

Legend Mining Limited has announced its Annual General Meeting (AGM) scheduled for May 2, 2025, at The Celtic Club in West Perth. Key resolutions to be discussed include the re-election of Ms. Hilary Macdonald as a director, the adoption of the remuneration report, renewal of proportional takeover provisions, and approval of a mandate to issue equity securities. These resolutions are crucial for the company’s governance and strategic direction, potentially impacting shareholder value and the company’s market positioning.

Legend Mining Limited Upholds High Corporate Governance Standards
Mar 14, 2025

Legend Mining Limited has reaffirmed its commitment to high standards of corporate governance, aligning its practices with the latest ASX Corporate Governance Council’s Principles and Recommendations. The company has consistently updated its governance charters, codes, and policies to reflect best practices and ensure compliance with applicable laws and regulations. The Board of Legend Mining Limited has approved the Corporate Governance Statement for 2025, emphasizing transparency and accountability in its operations. By adhering to the ASX guidelines and providing full disclosure when deviating from recommendations, Legend Mining aims to maintain trust and integrity with its stakeholders.

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.