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Latrobe Magnesium Limited (AU:LMG)
ASX:LMG
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Latrobe Magnesium Limited (LMG) AI Stock Analysis

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AU:LMG

Latrobe Magnesium Limited

(Sydney:LMG)

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Neutral 49 (OpenAI - 5.2)
Rating:49Neutral
Price Target:
AU$0.01
▲(0.00% Upside)
Action:Reiterated
Date:07/31/26
The score is primarily held back by weak financial performance driven by persistent operating and net losses, despite a supportive balance sheet and recent improvement in operating cash flow/free cash flow. Technical conditions are notably bearish with the price below all major moving averages. Valuation is moderate based on the provided P/E, but the lack of a dividend yield offers no offsetting support.
Positive Factors
Improving leverage and equity cushion
Leverage has fallen to ~0.16 in FY2025 from much higher levels earlier, giving Latrobe more balance‑sheet flexibility. A lower debt burden and larger equity base provide durable financial runway for project development, reducing refinancing and solvency pressure over the medium term.
Negative Factors
Persistent operating losses
Despite the first meaningful revenue in FY2025, the company remains loss‑making with significant operating and net losses. Persistent negative profitability means the capital base has not yet translated into returns, requiring sustained margin improvement and scale to achieve long‑term viability.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving leverage and equity cushion
Leverage has fallen to ~0.16 in FY2025 from much higher levels earlier, giving Latrobe more balance‑sheet flexibility. A lower debt burden and larger equity base provide durable financial runway for project development, reducing refinancing and solvency pressure over the medium term.
Read all positive factors

Latrobe Magnesium Limited (LMG) vs. iShares MSCI Australia ETF (EWA)

Latrobe Magnesium Limited Business Overview & Revenue Model

Company Description
Latrobe Magnesium Limited, an Australian firm founded in Sydney in 1986, is actively pursuing the establishment of a magnesium production facility. This plant is intended for the extraction of magnesium metal, utilizing fly ash originating from Ge...
How the Company Makes Money
LMG’s intended revenue model is based on commercial production and sale of magnesium metal produced from fly ash feedstock, with additional revenue expected from sales of co-products generated during processing. If/when its facilities operate at s...

Latrobe Magnesium Limited Financial Statement Overview

Summary
Overall financials reflect an early-stage profile: the income statement remains weak with ongoing operating and net losses despite FY2025 revenue emergence, while the balance sheet is comparatively supportive with modest and improving leverage. Cash flow has improved recently with positive operating cash flow in FY2024–FY2025 and positive free cash flow in FY2025, but volatility and inconsistent free cash flow trends remain a key risk.
Income Statement
24
Negative
Balance Sheet
63
Positive
Cash Flow
52
Neutral
BreakdownTTMJun 2025Jun 2024Jun 2023Jun 2022Jun 2021
Income Statement
Total Revenue0.002.73M0.000.000.000.00
Gross Profit2.74M2.73M-41.68K-55.28K-199.00K-136.00K
EBITDA-4.19M-2.46M-5.36M-4.26M-2.99M-1.32M
Net Income-3.36M-2.66M-4.74M-2.44M-3.21M120.26K
Balance Sheet
Total Assets100.01M92.50M95.40M62.47M37.39M12.31M
Cash, Cash Equivalents and Short-Term Investments4.52M2.42M565.15K6.89M15.25M954.25K
Total Debt3.18M7.79M13.86M15.37M5.59M698.40K
Total Liabilities43.04M43.84M53.78M36.16M14.68M8.15M
Stockholders Equity56.96M48.67M41.63M26.31M22.71M4.16M
Cash Flow
Free Cash Flow-845.95K1.91M-15.85M-22.31M-9.42M4.53M
Operating Cash Flow3.44M8.10M11.50M-4.31M-3.74M5.89M
Investing Cash Flow8.07M-6.24M-16.98M-18.04M-5.69M-1.54M
Financing Cash Flow-5.27M6.24K-854.18K13.99M23.72M-3.43M

Latrobe Magnesium Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
49
Neutral
AU$27.32M-26.67-6.35%-1100.00%
46
Neutral
AU$28.85M-16.67-11.53%37.50%
43
Neutral
AU$65.61M-0.82-67.75%69.69%
43
Neutral
AU$23.55M-3.44-5.94%-99.74%-22.67%
42
Neutral
AU$73.30M-6.70-7.41%5472.73%40.17%
41
Neutral
AU$86.38M-11.99-9.03%-78.48%52.16%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:LMG
Latrobe Magnesium Limited
0.01
-0.02
-66.67%
AU:AVL
Australian Vanadium
0.22
-0.04
-14.00%
AU:E25
Element 25 Limited
0.28
-0.05
-16.67%
AU:HAS
Hastings Technology Metals Limited
0.28
-0.03
-9.09%
AU:VRC
Volt Resources Ltd
0.01
0.00
0.00%
AU:VML
Vital Metals Ltd
0.10
-0.09
-48.11%

Latrobe Magnesium Limited Corporate Events

Latrobe Magnesium advances Hazelwood plant build and secures funding
Jul 31, 2026
Latrobe Magnesium Limited reported solid progress on its Phase 1B magnesium metal installation at its Hazelwood North demonstration plant, with construction half complete by late July and strong safety performance, including a 97% HSE compliance r...
Latrobe Magnesium Clears Key Technical Risk as Demonstration Plant Reaches 50% Completion
Jul 28, 2026
Latrobe Magnesium has reported solid progress on Phase 1B of its Stage 1 Demonstration Plant, noting that overall construction has reached 50% and that it is tracking toward initial magnesium metal production in the second half of the year. The co...
Latrobe Magnesium names new CEO as founder retires and bolsters project oversight
Jul 23, 2026
Latrobe Magnesium Limited has announced the retirement of founder and long-standing chief executive David Paterson, who will step down on 30 September 2026 after two decades leading the development of its Hydromet process to magnesium oxide produc...
Latrobe Magnesium reshapes leadership as magnesium projects advance
Jul 23, 2026
Latrobe Magnesium Limited has announced a leadership transition with founder and long-standing CEO David Paterson retiring after nearly 20 years at the helm and agreeing to remain as a consultant. The board credits Paterson with driving the compan...
Latrobe Magnesium Issues 30 Million Unquoted Options to Expand Equity Base
Jul 13, 2026
Latrobe Magnesium Limited has notified the market of the issuance of 30,000,000 unquoted options, each exercisable at $0.0205 and expiring on July 13, 2031. The new options, which are part of previously announced transactions and are not intended ...
Latrobe Magnesium Raises $4m via Strategic Share Placement
Jul 13, 2026
Latrobe Magnesium Limited, an ASX-listed Australian magnesium producer based in Victoria, supplies magnesium metal primarily to industrial and manufacturing customers. The company focuses on developing and expanding its production capacity while m...
Latrobe Magnesium Plans Issue of 30 Million Unlisted Options
Jul 13, 2026
Latrobe Magnesium Limited has notified the ASX of a proposed issue of unlisted options, outlining its plan under the Appendix 3B framework. The company has applied to issue up to 30 million new unlisted options as part of a placement or similar ca...
Latrobe Magnesium Issues 30 Million Unlisted Options Linked to Share Placement
Jul 13, 2026
Latrobe Magnesium Limited has completed a placement of 285,714,286 shares at $0.014 per share as part of its ongoing capital management and funding strategy. As a component of the capital raising costs, the company is issuing 30,000,000 unlisted o...
Latrobe Magnesium Seeks ASX Quotation for 285.7 Million New Shares
Jul 13, 2026
Latrobe Magnesium Limited has applied to the ASX for quotation of 285,714,286 new fully paid ordinary shares. The securities, issued under a previously announced transaction, expand the company’s listed capital base and may provide additiona...
Latrobe Magnesium Plans Large Share Placement to Bolster Funding
Jul 13, 2026
Latrobe Magnesium Limited has lodged a notice with the ASX detailing a proposed placement of up to 285,714,286 ordinary fully paid shares, signaling a substantial equity issuance to support its corporate and project funding needs. The planned shar...
Latrobe Magnesium Secures Up to $16m Strategic Funding for Demonstration Plant
Jul 13, 2026
Latrobe Magnesium has secured a strategic funding facility of up to $16 million from Long State Investments to support completion and expansion of its magnesium demonstration plant. An initial $4 million share placement at 1.4 cents per share will...
Latrobe Magnesium Secures Funding Boost as Low-Carbon Magnesium Output Ramps Up
Apr 30, 2026
Latrobe Magnesium has secured a US$2 million prepayment from U.S. distributor Metal Exchange LLC against future magnesium metal deliveries, reinforcing its 100% offtake partnership and funding position as it advances its demonstration operations. ...
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: Jul 31, 2026