Letlole La Rona risks that you need to know

There are 5 risks but only 1 major risk

Author

Boago Sephutho
September 28, 2024

LLR has some risks that you might need to consider before thinking of investing in it ( if you have not) let’s get into those risks

Minor Risks

  1. Profit margin has fallen by more than 30% from last year, this might be due to not having a competitive advantage or have not being able to establish itself from competition. Net Profit margin currently is at 1.8% compare to last year it was 98%.

  2. Dividends are not well covered by earnings (dividends over 12x earnings per share)

  3. Large one-offs items impacting financial results (costs that are paid once-off, may be negatively impacting financial results)

  4. Market cap is less than US$100m (800.8m market cap US$61.2m)

Major Risk

  1. Interest payments are not well covered by earnings ( 0.4x net interest cover)