Orosur Mining Inc reports 1,161% Net Income decline and 77.7 pp EBITDA Margin decline from 27.9% to -49.7%
20.08.2015 • About Orosur Mining Inc (
$OMI) • By InTwits
Orosur Mining Inc reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Orosur Mining Inc doesn't have a profitable business model yet: FY2015 ROIC is -84.1%
- EBITDA Margin is quite volatile: -49.7% in FY2015, 27.9% in FY2014, 17.3% in FY2013, 14.8% in FY2012, 29.0% in FY2011
- Orosur Mining Inc has high CAPEX intensity: 5 year average CAPEX/Revenue was 30.4%. At the same time it's a lot of higher than industry average of 17.8%.
- CAPEX is quite volatile: 13.0 in FY2015, 11.3 in FY2014, 31.3 in FY2013, 50.4 in FY2012, 27.3 in FY2011
- The company has unprofitable business model: ROIC is at -84.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Orosur Mining Inc ($OMI) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 78.7 | 93.7 | 105.9 | 80.4 | 65.9 | -18.0% |
| Gross Profit | 26.7 | 20.4 | 8.2 | 7.5 | -3.8 | -151.5% |
| SG&A | | | | | 2.9 | |
| EBITDA | 22.9 | 13.9 | 18.4 | 22.5 | -32.8 | -245.9% |
| Net Income | 16.1 | 1.2 | -14.8 | 5.1 | -54.4 | -1,161.4% |
Balance Sheet
|
|---|
| Cash | 14.2 | 11.5 | 5.6 | 10.8 | 4.8 | -55.7% |
| Short Term Debt | 0.0 | 3.4 | 4.2 | 4.0 | 1.1 | -71.6% |
| Long Term Debt | 0.0 | 2.8 | 4.8 | 1.0 | 0.4 | -63.4% |
Cash flow
|
|---|
| Capex | 27.3 | 50.4 | 31.3 | 11.3 | 13.0 | 14.2% |
Ratios
|
|---|
| Revenue growth | 32.1% | 19.0% | 13.0% | -24.1% | -18.0% | |
| EBITDA growth | 163.8% | -39.3% | 32.2% | 22.4% | -245.9% | |
| Gross Margin | 33.9% | 21.8% | 7.8% | 9.3% | -5.8% | -15.1% |
| EBITDA Margin | 29.0% | 14.8% | 17.3% | 27.9% | -49.7% | -77.7% |
| Net Income Margin | 20.4% | 1.3% | -14.0% | 6.4% | -82.6% | -88.9% |
| SG&A, % of revenue | | | | | 4.4% | 4.4% |
| CAPEX, % of revenue | 34.7% | 53.8% | 29.6% | 14.1% | 19.7% | 5.6% |
| ROIC | 22.0% | 3.8% | -1.5% | 4.5% | -84.1% | -88.7% |
| ROE | 22.9% | 1.4% | -17.4% | 6.4% | -93.1% | -99.4% |
| Net Debt/EBITDA | -0.6x | -0.4x | 0.2x | -0.3x | | 0.3x |
Revenue and profitability
The company's Revenue dropped on 18.0% in FY2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 77.7 pp from 27.9% to -49.7% in FY2015.
Gross Margin dropped on 15.1 pp from 9.3% to -5.8% in FY2015.
Net Income marign dropped on 88.9 pp from 6.4% to -82.6% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 19.7% in FY2015. CAPEX/Revenue dropped on 34.1 pp from 53.8% in FY2012 to 19.7% in FY2015. For the last three years the average CAPEX/Revenue was 21.1%.
Return on investment
The company operates at negative ROIC (-84.15%) and ROE (-93.06%). ROIC dropped on 88.7 pp from 4.5% to -84.1% in FY2015. ROE dropped on 99.4 pp from 6.4% to -93.1% in FY2015.
Leverage (Debt)
Debt level is -1.2x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA surged on 0.3x from -0.3x to in FY2015. Debt dropped on 70.0% in FY2015 while cash dropped on 55.7% in FY2015.
Appendix 1: Peers in Mining
Below we provide Orosur Mining Inc benchmarking against other companies in Mining 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Rambler Metals & Mining ($RAB) | | -65.4% | 2,744.1% | 79.2% | |
| Kirkland Lake Gold Inc ($KGI) | | 54.7% | -5.1% | 14.2% | 26.9% |
| Centamin ($CEE) | 817.1% | 25.2% | 18.2% | -6.2% | |
| China Gold International Resources Corp Ltd ($CGG) | | | -9.0% | -8.2% | 22.4% |
| Caledonia Mining Corp ($CAL) | 159.1% | 33.6% | -16.0% | -15.4% | |
| |
|---|
| Median (7 companies) | 29.0% | 6.0% | -5.1% | -8.2% | 24.6% |
|---|
| Orosur Mining Inc ($OMI) | | 19.0% | 13.0% | -24.1% | -18.0% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Rambler Metals & Mining ($RAB) | 50.2% | 44.7% | 39.6% | 52.2% | |
| China Gold International Resources Corp Ltd ($CGG) | | 37.6% | 33.7% | 35.6% | 18.5% |
| Caledonia Mining Corp ($CAL) | 57.6% | 54.4% | 45.9% | 34.7% | |
| Centamin ($CEE) | 62.3% | 60.2% | 44.9% | 24.2% | |
| Minera Irl Ltd ($IRL) | 47.3% | 41.0% | 20.7% | 22.7% | |
| |
|---|
| Median (7 companies) | 48.7% | 42.9% | 36.6% | 24.2% | 20.6% |
|---|
| Orosur Mining Inc ($OMI) | 33.9% | 21.8% | 7.8% | 9.3% | -5.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Gold International Resources Corp Ltd ($CGG) | | 41.7% | 38.3% | 47.3% | 33.7% |
| Rambler Metals & Mining ($RAB) | -26.1% | -194.4% | 29.6% | 45.1% | |
| Centamin ($CEE) | 61.9% | 61.4% | 44.9% | 35.6% | |
| Caledonia Mining Corp ($CAL) | 49.0% | 31.9% | 38.9% | 27.1% | |
| Kirkland Lake Gold Inc ($KGI) | 25.6% | 34.9% | 16.4% | 13.6% | 32.5% |
| |
|---|
| Median (8 companies) | 45.8% | 34.9% | 38.3% | 20.3% | 33.1% |
|---|
| Orosur Mining Inc ($OMI) | 29.0% | 14.8% | 17.3% | 27.9% | -49.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Gold International Resources Corp Ltd ($CGG) | | 64.7% | 156.1% | 95.6% | 81.4% |
| Kirkland Lake Gold Inc ($KGI) | 54.9% | 44.6% | 72.9% | 47.7% | 21.6% |
| Serabi Gold ($SBI) | 3,151.4% | | | 44.5% | |
| Centamin ($CEE) | 41.0% | 55.9% | 55.8% | 18.7% | |
| Rambler Metals & Mining ($RAB) | 640.5% | 820.8% | 24.2% | 13.9% | |
| |
|---|
| Median (8 companies) | 41.0% | 44.6% | 24.2% | 16.3% | 51.5% |
|---|
| Orosur Mining Inc ($OMI) | 34.7% | 53.8% | 29.6% | 14.1% | 19.7% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Caledonia Mining Corp ($CAL) | 61.7% | 37.6% | 34.9% | 18.1% | |
| Rambler Metals & Mining ($RAB) | -1.5% | -2.6% | 3.3% | 16.7% | |
| Centamin ($CEE) | 30.2% | 24.6% | 15.7% | 6.6% | |
| China Gold International Resources Corp Ltd ($CGG) | | 5.9% | 4.0% | 3.0% | 1.5% |
| Minera Irl Ltd ($IRL) | 13.6% | 6.0% | -0.4% | -0.0% | |
| |
|---|
| Median (8 companies) | 11.3% | 6.0% | 3.4% | 1.5% | 5.3% |
|---|
| Orosur Mining Inc ($OMI) | 22.0% | 3.8% | -1.5% | 4.5% | -84.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Minera Irl Ltd ($IRL) | -0.0x | 1.0x | 4.2x | 10.0x | |
| China Gold International Resources Corp Ltd ($CGG) | | 0.2x | 3.4x | 4.7x | 7.3x |
| Kirkland Lake Gold Inc ($KGI) | -1.0x | -0.3x | 3.2x | 4.1x | 0.6x |
| Rambler Metals & Mining ($RAB) | | | 2.5x | 0.6x | |
| Centamin ($CEE) | -0.8x | -0.6x | -0.5x | -0.7x | |
| |
|---|
| Median (6 companies) | -0.8x | -0.4x | 2.5x | 2.4x | 4.0x |
|---|
| Orosur Mining Inc ($OMI) | -0.6x | -0.4x | 0.2x | -0.3x | |
