Finance for Business Analysis Report

Finance for Business
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Table of Contents
Introduction:................................................................................................................................3
1...........................................................................................................................................4
2...........................................................................................................................................5
3...........................................................................................................................................7
4.................................................................................................................................................11
5.........................................................................................................................................14
6.........................................................................................................................................16
7.........................................................................................................................................17
8.........................................................................................................................................18
9.........................................................................................................................................19
10.......................................................................................................................................20
Conclusion:................................................................................................................................21
References:................................................................................................................................22
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Introduction:
This preparation of this report is essential for the proper acknowledge of financial
environment related to Lithium Australia NL (LIT) Company to concerning various issues
and financial matters which directly affects the decision of the company. This report includes
various facts such as dividend policy, dent ratio analysis, WACC and changes in share prices
based on financial performance of the company. A brief introduction to company’s core
activities, changes in management, factors that affect share prices movement, identification
those nature and components that impact company’s financial performance through ratio key
analysis. A deep discussion in company's position and whether it would be included in the
investment portfolio or not" included in this report to make proper recommendation to the
client for accordingly.
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1.
Prepare a brief description of the company.
Lithium Australia NL (LIT) is a company with one over-arching Goal; an application of the
disruptive processing technologies related to the production of Lithium Chemical on the scale
of a commercial economy at operating cost or at minimum Quartile. Company follows the
following concept to achieve its ends targets (Lithium Australia, 2017)
LIT is a management of: -
 Procuring access to get material with their lowest exposure to mining expenses.
 A procedure of material considered to be wasted by other miners.
 Developing strong strategic investment policies and partnerships goals.
 Maintenance of equity in resource projects globally.
Core activities of the company:
LIT engages in recognising the necessity and requirement for metal and lithium security while
developing exposure "SiLeach® processing hubs with the company's results and position
which would be taken into major Lithium Provinces Across the world. LIT is also negotiating
farm out position based on the plenty of exploration properties in return of refusal from that
field which is to be retained in accessing to the supply chain without evaluating and spending
high-risk dollars of exploration to revalue and release their reserves (Lithium Australia, 2017)
(Source: Lithium Australia, 2017)
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2.
Specify ownership-governance structure of the company.
(i) Substantial shareholders of a company:
 With higher than 20% of shareholdings
 With higher than 5% of shareholdings
Solution:
Substantial shareholders of the company was Lanstead Capital L.P. with 30,000,000 of
shareholding around 12.95% of total shares in 2016 annual report, this shareholding was
categorised in the second category of higher than 5% of shareholding but in FY17 company
has no substantial shareholder as on 20 September 2017 (Lithium Australia, 2017)
(ii) Name the main people involved in the firm governance:
a. Chairman
b. CEO
c. Board Members
Solution:
a. Name of the Chairman is George Bauk (Non-Executive Chairman).
b. CEO: there is no specific declaration in the name of CEO.
c. Board members:
Board members of the Company are:
Ranking Member name position
1 Adrian Griffin Managing Director
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2 George Bauk Non-Executive Chairman
3 Bryan Dixon Non-Executive Director
(Source: Lithium Australia, 2017)
Notes:
No, there is no specific people (board members) with the same surname under 20% or 5% of
shareholding, so this company cannot be considered as the family organisation. There is
specific interference of any family member in corporate governance of Lithium Australia
(NL).
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