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Aura Minerals Inc reports 231% Net Income growth while 11.8% Revenue decline

24.03.2017 • About Aura Minerals Inc ($ORA) • By InTwits

Aura Minerals Inc reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
  • Aura Minerals Inc is a company in decline: FY2016 revenue growth was -11.8%, 5 years revenue CAGR was -12.7%
  • EBITDA Margin is declining: in FY2016 vs. 1.7% in FY2015 vs. 5.4% in FY2012
  • It operates with high leverage: Net Debt/EBITDA is 10.9x while industry average is 0.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.

Aura Minerals Inc ($ORA) key annual financial indicators

mln. 201220132014201520162016/2015
Gross Profit-15.3-5.710.714.2-100.0%
Net Income-54.9-74.2-142.9-14.519.0
Balance Sheet
Short Term Debt3.449.931.77.6-100.0%
Long Term Debt30.
Cash flow
Revenue growth6.6%7.6%-19.8%-37.5%-11.8%
EBITDA growth-60.7%87.2%-30.6%-87.0%
Gross Margin-5.0%-1.7%4.0%8.6%-8.6%
EBITDA Margin5.4%9.4%8.1%1.7%0.0%-1.7%
Net Income Margin-17.9%-22.4%-53.8%-8.7%13.0%21.7%
SG&A, % of revenue5.1%-5.1%
CAPEX, % of revenue9.3%14.9%7.2%7.1%-7.1%
Net Debt/EBITDA1.5x1.1x1.1x2.9x-2.9x

Aura Minerals Inc ($ORA) key quoterly financial indicators

mln. FY16Q1FY16Q2FY16Q3FY16Q4YoY change
Net Income-0-2120-84.8%
Balance Sheet
Short Term Debt1113118-60.7%-42.1%-23.3%2.3%
Long Term Debt6111112344.0%
Gross Margin21.2%22.2%28.2%12.0%21.1%16.1%16.3%-6.1%
EBITDA Margin 18.5% 14.2% 16.4% 16.3%20.2%10.2%6.7%21.3%
Net Income Margin -0.1% -5.6% 1.8% 59.3%12.2%-1.7%-9.9%90.8%

Revenue and profitability

Aura Minerals Inc's Revenue dropped on 11.8%. Annual revenue decline showed slowdown in FY16Q4 - revenue decreased on 9.0%.

Net Income marign jumped on 21.7 pp from -8.7% to 13.0% in FY2016.

Appendix 1: Peers in Basic Materials

Below we provide Aura Minerals Inc benchmarking against other companies in Basic Materials industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.

Top companies by Revenue growth, %

Top 5 FY2012 FY2013 FY2014 FY2015 FY2016
Avino Silver & Gold Mines Ltd ($ASM)613.6%19.9%-1.1%109.1%
Trevali Mining Corp ($TV)12.9%86.4%
Geodrill Ltd ($GEO)-43.3%-4.3%34.6%53.1%
Tahoe Resources Inc ($THO)48.4%50.9%
Osisko Gold Royalties Ltd ($OR)164.4%38.0%
Median (82 companies)100.8%-3.8%2.0%-1.7%6.8%
Aura Minerals Inc ($ORA)7.6%-19.8%-37.5%-11.8%

Top companies by Gross margin, %

Top 5 FY2012 FY2013 FY2014 FY2015 FY2016
Nevsun Resources Ltd ($NSU)89.9%94.8%95.5%82.3%79.7%
Labrador Iron Ore Royalty Corp ($LIF)80.2%80.2%80.2%80.3%80.3%
Lucara Diamond Corp ($LUC)42.5%57.4%66.7%60.9%65.6%
Trevali Mining Corp ($TV)49.0%59.3%
Perseus Mining Ltd ($PRU)52.5%50.9%32.0%53.7%26.3%
Median (94 companies)32.2%22.7%19.1%16.9%24.8%
Aura Minerals Inc ($ORA)-5.0%-1.7%4.0%8.6%

Top companies by EBITDA margin, %

Top 5 FY2012 FY2013 FY2014 FY2015 FY2016
Labrador Iron Ore Royalty Corp ($LIF)72.8%73.5%
Silver Wheaton Corp ($SLW)82.6%75.3%69.6%65.8%59.7%
Franco-Nevada Corp ($FNV)62.1%44.6%72.3%60.8%70.3%
Lucara Diamond Corp ($LUC)7.6%57.3%57.5%60.0%62.4%
Sandstorm Gold Ltd ($SSL)74.3%49.9%62.1%56.5%64.6%
Median (100 companies)18.6%11.5%10.7%7.3%23.5%
Aura Minerals Inc ($ORA)5.4%9.4%8.1%1.7%

Top companies by CAPEX/Revenue, %

Top 5 FY2012 FY2013 FY2014 FY2015 FY2016
Largo Resources Ltd ($LGO)567.6%
Sandstorm Gold Ltd ($SSL)152.1%118.8%49.4%412.7%17.3%
Silver Wheaton Corp ($SLW)75.5%286.8%22.5%279.2%90.3%
Franco-Nevada Corp ($FNV)3.7%35.5%201.6%230.0%122.4%
Avino Silver & Gold Mines Ltd ($ASM)211.7%5.6%89.8%163.3%
Median (100 companies)28.1%27.4%17.8%17.2%17.9%
Aura Minerals Inc ($ORA)9.3%14.9%7.2%7.1%

Top companies by ROIC, %

Top 5 FY2012 FY2013 FY2014 FY2015 FY2016
Lucara Diamond Corp ($LUC)-2.9%41.3%54.7%39.6%58.5%
Western Forest Products Inc ($WEF)9.0%25.1%15.7%16.4%25.1%
Geodrill Ltd ($GEO)8.6%-3.5%-9.3%3.6%20.3%
Supremex Inc ($SXP)14.1%18.5%16.5%23.4%19.3%
Canfor Pulp Products Inc ($CFX)4.9%13.2%21.3%24.1%17.0%
Median (99 companies)4.9%1.3%1.6%-3.6%4.4%
Aura Minerals Inc ($ORA)-11.5%-7.8%-1.6%-4.6%

Top companies by Net Debt / EBITDA

Top 5 FY2012 FY2013 FY2014 FY2015 FY2016
Canam Group Inc ($CAM)4.2x2.6x3.2x1.8x13.9x
Taseko Mines Ltd ($TKO)7.4x5.9x10.2x5.9x11.0x
Methanex Corp ($MX)5.2x0.7x0.9x3.0x5.2x
Copper Mountain Mining Corp ($CUM)3.9x5.0x5.4x30.6x5.1x
Cameco Corp ($CCO)2.0x2.1x2.5x1.9x5.1x
Median (58 companies)0.3x0.7x1.2x1.5x0.6x