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Lefroy Exploration Ltd. (AU:LEX)
ASX:LEX
Australian Market

Lefroy Exploration Ltd. (LEX) AI Stock Analysis

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AU

Lefroy Exploration Ltd.

(Sydney:LEX)

Rating:43Neutral
Price Target:
Lefroy Exploration Ltd.'s overall stock score reflects significant financial challenges, including consistent losses and no revenue generation. While the balance sheet is stable with low debt, persistent negative cash flows are concerning. Technical indicators show mixed signals, but valuation remains unattractive with a negative P/E ratio.

Lefroy Exploration Ltd. (LEX) vs. iShares MSCI Australia ETF (EWA)

Lefroy Exploration Ltd. Business Overview & Revenue Model

Company DescriptionLefroy Exploration Limited engages in the exploration and evaluation of mineral properties in Western Australia. The company explores for gold, copper, and nickel deposits. Its flagship project is the 100% owned Lefroy Gold project that covers an area of approximately 607 square kilometers located to the southeast of Kalgoorlie. The company was formerly known as U.S. Masters Holdings Limited and changed its name to Lefroy Exploration Limited in September 2016. Lefroy Exploration Limited was incorporated in 1990 and is headquartered in Road Town, British Virgin Islands.
How the Company Makes MoneyLefroy Exploration Ltd. generates revenue primarily through the exploration and potential development of mineral resources, with a focus on gold and base metals in Western Australia. The company's primary revenue streams include joint ventures and partnerships with other mining companies who might provide funding in exchange for a stake in future discoveries. Additionally, LEX may earn income through the sale or optioning of its exploration projects to larger mining firms interested in further development. The company may also benefit from government grants or incentives for mineral exploration, which can reduce operational costs and enhance profitability.

Lefroy Exploration Ltd. Financial Statement Overview

Summary
Lefroy Exploration Ltd. faces significant financial challenges with no revenue and consistent losses. The balance sheet is relatively stable with low leverage, but negative cash flows and lack of profitability present substantial risks.
Income Statement
15
Very Negative
Lefroy Exploration Ltd. has consistently reported zero revenue in recent years, with significant negative net income, indicating ongoing operational challenges. The absence of revenue growth and negative profit margins reflect a weak income statement performance.
Balance Sheet
45
Neutral
The balance sheet shows a relatively strong equity position with low debt levels, resulting in a favorable debt-to-equity ratio. However, the low asset turnover and ongoing losses diminish the overall strength, though the company maintains adequate liquidity with a positive net debt position.
Cash Flow
25
Negative
The company faces negative operating and free cash flows, indicating ongoing cash burn. While there is evidence of financing activities to support operations, the cash flow situation remains a critical concern with no signs of improvement in operating cash flows.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue1.00K0.000.0010.00K0.000.00
Gross Profit-85.00K-97.00K-81.00K-57.00K0.00-26.00K
EBITDA-2.75M-3.08M-2.91M-2.31M-1.15M-655.00K
Net Income-3.58M-3.19M-3.00M-2.38M-1.13M-379.00K
Balance Sheet
Total Assets26.18M24.99M21.37M20.44M15.29M11.69M
Cash, Cash Equivalents and Short-Term Investments2.75M1.35M442.00K4.25M3.35M1.30M
Total Debt142.00K175.00K236.00K295.00K0.000.00
Total Liabilities731.00K973.00K1.25M1.44M601.00K453.00K
Stockholders Equity25.45M24.02M20.13M19.00M14.68M11.23M
Cash Flow
Free Cash Flow-3.64M-5.88M-7.07M-5.62M-3.84M-2.97M
Operating Cash Flow-2.22M-2.83M-1.83M-1.67M-986.00K-465.00K
Investing Cash Flow-2.00M-2.10M-5.24M-3.39M-1.05M-2.52M
Financing Cash Flow2.75M5.84M3.26M5.95M4.48M3.52M

Lefroy Exploration Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.11
Price Trends
50DMA
0.09
Positive
100DMA
0.09
Positive
200DMA
0.08
Positive
Market Momentum
MACD
<0.01
Positive
RSI
65.97
Neutral
STOCH
22.92
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:LEX, the sentiment is Positive. The current price of 0.11 is above the 20-day moving average (MA) of 0.10, above the 50-day MA of 0.09, and above the 200-day MA of 0.08, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 65.97 is Neutral, neither overbought nor oversold. The STOCH value of 22.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:LEX.

Lefroy Exploration Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
44
Neutral
C$979.74M-6.70-13.35%2.68%17.20%-32.62%
AULEX
43
Neutral
AU$24.84M-14.26%8.16%
DE58M
€14.23M
AUG6M
AU$25.10M
AUWAK
43
Neutral
AU$27.93M-139.33%65.38%-46.00%
AUWCE
34
Underperform
AU$20.29M-132.46%-4.09%
AUGEN
AU$23.07M-38.00%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:LEX
Lefroy Exploration Ltd.
0.11
<0.01
10.00%
DE:58M
Mineral Commodities Ltd
0.01
0.00
0.00%
AU:G6M
Group 6 Metals Limited
0.02
>-0.01
-33.33%
AU:WAK
WA Kaolin Ltd.
0.04
0.00
0.00%
AU:WCE
Errawarra Resources Ltd.
0.08
0.00
0.00%
AU:GEN
Genmin Ltd.
0.03
-0.09
-75.00%

Lefroy Exploration Ltd. Corporate Events

Lefroy Exploration Enters Profit-Sharing Agreement for Lucky Strike Gold Project
Apr 28, 2025

Lefroy Exploration Limited has entered into a profit-sharing mining agreement with BML Ventures Pty Ltd for the Lucky Strike Gold Project, which is located southeast of Kalgoorlie. This agreement allows BML to manage and fund all mining activities, with net profits to be shared equally between the two companies. The agreement aims to accelerate the development of the Lucky Strike Project, with mining operations expected to commence in the latter half of 2025.

Lefroy Exploration Reports Quarterly Cash Flow and Financing Activities
Apr 28, 2025

Lefroy Exploration Limited’s quarterly cash flow report for the period ending March 31, 2025, reveals a net cash outflow from operating activities of $296,000 and a net cash outflow from investing activities of $339,000. Despite these outflows, the company raised $504,000 from equity securities, offset by transaction costs, resulting in a net cash inflow from financing activities of $294,000. This financial activity indicates a strategic focus on securing funds to support ongoing exploration and evaluation efforts, potentially impacting the company’s future growth and stakeholder interests.

Lefroy Exploration Ltd. Targets Gold Production in 2025
Apr 1, 2025

Lefroy Exploration Ltd. has announced its target for gold production in the calendar year 2025. This strategic move is expected to enhance the company’s operational capabilities and market positioning in the mining exploration industry, potentially impacting stakeholders by advancing towards production and possibly increasing shareholder value.

Lefroy Exploration Advances Lucky Strike Project with Promising Drilling Results
Mar 26, 2025

Lefroy Exploration Ltd. has successfully completed its resource infill and extensional drilling program at the Lucky Strike Gold Project, achieving key goals ahead of schedule and under budget. The drilling results indicate significant growth potential outside the current resource model, with numerous intersections of gold mineralization. The company is now moving forward with final pit optimizations, mine plan designs, and securing key operational partners, positioning itself for the commencement of operations at Lucky Strike.

Lefroy Exploration Ltd. Releases Half-Year Financial Report
Mar 13, 2025

Lefroy Exploration Ltd. has released its financial report for the half-year ending December 31, 2024. The report includes comprehensive financial statements such as the consolidated statement of profit or loss, financial position, changes in equity, and cash flows, alongside notes to the financial statements and an independent auditor’s review. This release provides stakeholders with insights into the company’s financial health and operational performance over the period.

Lefroy Exploration Commences Drilling at Lucky Strike Gold Project
Feb 25, 2025

Lefroy Exploration Ltd. has initiated a 3000-meter reverse circulation drilling program at its Lucky Strike Gold Project to refine and extend the gold resource model. This effort is part of a profit-sharing agreement with BML Ventures Pty Ltd, aimed at advancing mine planning and optimizing pit shell designs. The drilling outcomes will support the submission of a Clearing Permit Application in April, with the goal of commencing mining operations in the second half of 2025. The program targets shallow mineralization within 50 meters of the surface, focusing on high-grade zones around tight folds in the banded iron formation.

Lefroy Exploration’s Director Increases Shareholding
Feb 12, 2025

Lefroy Exploration Limited announced a change in the director’s interest, with David Kelly acquiring 571,430 fully paid ordinary shares via a shareholder-approved placement. This change highlights a significant increase in Kelly’s holdings, indicating confidence in the company’s future prospects and potentially impacting stakeholder perceptions.

Lefroy Exploration Expands Market Footprint with New Securities Quotation
Feb 12, 2025

Lefroy Exploration Limited has announced the quotation of 3,857,145 fully paid ordinary securities on the Australian Securities Exchange (ASX), as part of a previously disclosed transaction. This issuance is expected to enhance the company’s market presence and provide additional capital for ongoing exploration activities, potentially benefiting stakeholders by increasing the company’s operational capabilities.

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 29, 2025