Anaconda Mining Inc reports 165% Net Income decline and 15.1 pp EBITDA Margin decline from 17.4% to 2.3%
26.08.2015 • About Anaconda Mining Inc (
$ANX) • By InTwits
Anaconda Mining Inc reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Anaconda Mining Inc doesn't have a profitable business model yet: FY2015 ROIC is -17.4%
- EBITDA Margin is quite volatile: 2.3% in FY2015, 17.4% in FY2014, 31.4% in FY2013, 30.0% in FY2012, -80.2% in FY2011
- Anaconda Mining Inc has high CAPEX intensity: 5 year average CAPEX/Revenue was 17.3%. At the same time it's in pair with industry average of 73.9%.
- CAPEX is quite volatile: 0.38 in FY2015, 1.3 in FY2014, 0.93 in FY2013, 0.31 in FY2012, 0.28 in FY2011
- The company has unprofitable business model: ROIC is at -17.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Anaconda Mining Inc ($ANX) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 7.116 | 19.313 | 24.173 | 20.175 | 22.234 | 10.2% |
| Gross Profit | -1.675 | 8.457 | 7.167 | 2.337 | 0.539 | -76.9% |
| SG&A | | | | | 2.032 | |
| EBITDA | -5.708 | 5.784 | 7.584 | 3.511 | 0.504 | -85.6% |
| Net Income | -9.234 | 3.298 | 7.622 | 4.292 | -2.775 | -164.6% |
Balance Sheet
|
|---|
| Cash | 0.291 | 0.679 | 0.467 | 2.754 | 1.435 | -47.9% |
| Short Term Debt | 2.536 | 0.360 | 0.173 | 0.097 | 0.018 | -81.0% |
| Long Term Debt | 6.130 | 3.342 | 0.089 | 0.032 | 0.042 | 34.4% |
Cash flow
|
|---|
| Capex | 1.889 | 2.839 | 3.477 | 3.104 | 3.491 | 12.4% |
Ratios
|
|---|
| Revenue growth | -37.4% | 171.4% | 25.2% | -16.5% | 10.2% | |
| EBITDA growth | 376.0% | -201.3% | 31.1% | -53.7% | -85.6% | |
| Gross Margin | -23.5% | 43.8% | 29.7% | 11.6% | 2.4% | -9.2% |
| EBITDA Margin | -80.2% | 30.0% | 31.4% | 17.4% | 2.3% | -15.1% |
| Net Income Margin | -129.8% | 17.1% | 31.5% | 21.3% | -12.5% | -33.8% |
| SG&A, % of revenue | | | | | 9.1% | 9.1% |
| CAPEX, % of revenue | 26.5% | 14.7% | 14.4% | 15.4% | 15.7% | 0.3% |
| ROIC | -36.1% | 24.3% | 24.1% | 0.9% | -17.4% | -18.3% |
| ROE | -96.8% | 31.4% | 43.5% | 18.0% | -11.2% | -29.3% |
| Net Debt/EBITDA | | 0.5x | -0.0x | -0.7x | -2.7x | -2.0x |
Revenue and profitability
Anaconda Mining Inc's Revenue jumped on 10.2% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 10.1 pp from -34.3% to -24.1% in 2015.
Gross Margin decreased on 9.2 pp from 11.6% to 2.4% in FY2015.
Net Income marign dropped on 33.8 pp from 21.3% to -12.5% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Anaconda Mining Inc's CAPEX/Revenue was 15.7% in FY2015. The company showed small growth in CAPEX/Revenue of 1.0 pp from 14.7% in FY2012 to 15.7% in FY2015. It's average CAPEX/Revenue for the last three years was 15.2%.Anaconda Mining Inc has spent a lot to CAPEX (693% of EBITDA) to fuel its growth.
Return on investment
The company operates at negative ROIC (-17.39%) and ROE (-11.23%). ROIC dropped on 18.3 pp from 0.95% to -17.4% in FY2015. ROE dropped on 29.3 pp from 18.0% to -11.2% in FY2015.
Leverage (Debt)
Debt level is -2.7x Net Debt / EBITDA and 0.1x Debt / EBITDA. Net Debt / EBITDA dropped on 2.0x from -0.7x to -2.7x in FY2015. Debt dropped on 52.7% in FY2015 while cash dropped on 47.9% in FY2015.
Appendix 1: Peers in Basic Materials
Below we provide Anaconda Mining 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Northern Sun Mining Corp ($NSC) | -93.3% | 315.4% | -99.4% | 8,924.9% | |
| Turquoise Hill Resources Ltd ($TRQ) | | | -34.0% | 3,268.9% | -5.8% |
| Asian Mineral Resources Ltd ($ASN) | | | | 859.1% | |
| Ur-Energy Inc ($URE) | | | | 285.4% | |
| Nevsun Resources Ltd ($NSU) | | 3.3% | -72.5% | 256.5% | |
| |
|---|
| Median (129 companies) | 27.8% | 8.0% | -5.0% | -1.1% | 18.5% |
|---|
| Anaconda Mining Inc ($ANX) | | 171.4% | 25.2% | -16.5% | 10.2% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Nevsun Resources Ltd ($NSU) | 90.3% | 89.9% | 94.8% | 95.5% | |
| Franco-Nevada Corp ($FNV) | 84.6% | 86.1% | 85.0% | 83.5% | |
| Labrador Iron Ore Royalty Corp ($LIF) | 80.2% | 80.2% | 80.2% | 80.2% | |
| Lucara Diamond Corp ($LUC) | | 42.5% | 57.4% | 66.7% | |
| Royal Gold Inc ($RGL) | 68.9% | 71.5% | 70.6% | 57.6% | 86.0% |
| |
|---|
| Median (132 companies) | 31.2% | 31.4% | 21.3% | 17.2% | 24.8% |
|---|
| Anaconda Mining Inc ($ANX) | -23.5% | 43.8% | 29.7% | 11.6% | 2.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Royal Gold Inc ($RGL) | 86.1% | 88.2% | 88.6% | 84.4% | 65.0% |
| Franco-Nevada Corp ($FNV) | 38.6% | 62.1% | 44.6% | 72.3% | |
| Silver Wheaton Corp ($SLW) | 84.8% | 82.6% | 75.3% | 69.6% | |
| Sandstorm Gold Ltd ($SSL) | 63.8% | 74.3% | 49.9% | 62.1% | |
| Nevsun Resources Ltd ($NSU) | 81.0% | 76.8% | 54.5% | 60.4% | |
| |
|---|
| Median (136 companies) | 23.3% | 18.2% | 10.8% | 9.6% | 5.4% |
|---|
| Anaconda Mining Inc ($ANX) | -80.2% | 30.0% | 31.4% | 17.4% | 2.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Barkerville Gold Mines Ltd ($BGM) | 123.7% | 38.5% | 49.9% | 7,166.9% | 3.2% |
| Marlin Gold Mining Ltd ($MLN) | | | | 508.8% | |
| Imperial Metals Corp ($III) | 28.2% | 69.2% | 185.7% | 280.2% | |
| Golden Minerals Co ($AUM) | 462.4% | 36.9% | 16.8% | 212.8% | |
| Franco-Nevada Corp ($FNV) | 9.3% | 3.7% | 35.5% | 201.6% | |
| |
|---|
| Median (138 companies) | 23.9% | 26.3% | 25.4% | 16.1% | 13.5% |
|---|
| Anaconda Mining Inc ($ANX) | 26.5% | 14.7% | 14.4% | 15.4% | 15.7% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lucara Diamond Corp ($LUC) | -7.1% | -2.9% | 41.3% | 54.7% | |
| CanAf Group Inc ($CAF) | 74.9% | 37.0% | 65.2% | 37.6% | |
| Nevsun Resources Ltd ($NSU) | 89.8% | 52.2% | 8.8% | 35.0% | |
| Dynacor Gold Mines Inc ($DNG) | 45.6% | 62.8% | 50.9% | 31.3% | |
| Canfor Pulp Products Inc ($CFX) | 103.5% | 4.9% | 13.2% | 21.3% | |
| |
|---|
| Median (142 companies) | 7.0% | 4.8% | -0.1% | -0.3% | -2.4% |
|---|
| Anaconda Mining Inc ($ANX) | -36.1% | 24.3% | 24.1% | 0.9% | -17.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| VMS Ventures Inc ($VMS) | | | | 86.7x | |
| Ur-Energy Inc ($URE) | | | | 55.1x | |
| Katanga Mining Ltd ($KAT) | 0.4x | 19.4x | 3.3x | 18.8x | |
| HudBay Minerals Inc ($HBM) | -2.8x | -4.8x | 2.0x | 14.0x | |
| Imperial Metals Corp ($III) | -0.1x | 1.5x | 4.9x | 12.9x | |
| |
|---|
| Median (93 companies) | -0.1x | 0.3x | 0.8x | 0.9x | -0.3x |
|---|
| Anaconda Mining Inc ($ANX) | | 0.5x | -0.0x | -0.7x | -2.7x |
