Orvana Minerals Corp reports 75.1% EBITDA decline and 16.4 pp EBITDA Margin decline from 23.1% to 6.7%
09.12.2015 • About Orvana Minerals Corp (
$ORV) • By InTwits
Orvana Minerals Corp reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Orvana Minerals Corp doesn't have a profitable business model yet: FY2015 ROIC is -15.2%
- EBITDA Margin is quite volatile: 6.7% in FY2015, 23.1% in FY2014, 32.3% in FY2013, 31.9% in FY2012, -21.0% in FY2011
- Orvana Minerals Corp has high CAPEX intensity: 5 year average CAPEX/Revenue was 58.8%. At the same time it's a lot of higher than industry average of 27.8%.
- CAPEX is quite volatile: 10.1 in FY2015, 14.5 in FY2014, 18.0 in FY2013, 37.7 in FY2012, 59.8 in FY2011
- The company has unprofitable business model: ROIC is at -15.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Orvana Minerals Corp ($ORV) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 25.1 | 145.6 | 162.2 | 142.4 | 121.4 | -14.7% |
| Gross Profit | 6.8 | 57.3 | 37.3 | 9.3 | -13.9 | -249.5% |
| SG&A | | | | | 5.1 | |
| EBITDA | -5.3 | 46.4 | 52.4 | 32.9 | 8.2 | -75.1% |
| Net Income | -21.3 | -2.4 | 32.6 | -29.7 | -16.7 | -43.7% |
Balance Sheet
|
|---|
| Cash | 12.2 | 13.2 | 13.0 | 16.5 | 17.2 | 4.2% |
| Short Term Debt | 17.8 | 25.2 | 28.1 | 25.3 | 1.5 | -94.1% |
| Long Term Debt | 40.6 | 45.3 | 31.2 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 59.8 | 37.7 | 18.0 | 14.5 | 10.1 | -30.1% |
Ratios
|
|---|
| Revenue growth | -22.4% | 480.3% | 11.4% | -12.2% | -14.7% | |
| EBITDA growth | -245.1% | -980.3% | 12.9% | -37.2% | -75.1% | |
| Gross Margin | 27.1% | 39.4% | 23.0% | 6.5% | -11.4% | -17.9% |
| EBITDA Margin | -21.0% | 31.9% | 32.3% | 23.1% | 6.7% | -16.4% |
| Net Income Margin | -84.9% | -1.6% | 20.1% | -20.9% | -13.8% | 7.1% |
| SG&A, % of revenue | | | | | 4.2% | 4.2% |
| CAPEX, % of revenue | 238.5% | 25.9% | 11.1% | 10.2% | 8.3% | -1.8% |
| ROIC | -5.8% | 15.5% | 12.6% | 0.9% | -15.2% | -16.1% |
| ROE | -18.0% | -1.9% | 22.9% | -20.7% | -13.8% | 6.8% |
| Net Debt/EBITDA | | 1.2x | 0.9x | 0.3x | -1.9x | -2.2x |
Revenue and profitability
The company's Revenue dropped on 14.7% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 16.4 pp from 23.1% to 6.7% in FY2015.
Gross Margin dropped on 17.9 pp from 6.5% to -11.4% in FY2015.
Net Income marign increased on 7.1 pp from -20.9% to -13.8% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Orvana Minerals Corp had CAPEX/Revenue of 8.3%. CAPEX/Revenue dropped on 17.6 pp from 25.9% in FY2012 to 8.3% in FY2015. It's average level of CAPEX/Revenue for the last three years was 9.9%.Battling declining revenue Orvana Minerals Corp made large investments to CAPEX (124% of EBITDA) but that didn't help at least in this year.
Return on investment
The company operates at negative ROIC (-15.19%) and ROE (-13.84%). ROIC dropped on 16.1 pp from 0.92% to -15.2% in FY2015. ROE increased on 6.8 pp from -20.7% to -13.8% in FY2015.
Leverage (Debt)
Debt level is -1.9x Net Debt / EBITDA and 0.2x Debt / EBITDA. Net Debt / EBITDA dropped on 2.2x from 0.3x to -1.9x in FY2015. Debt dropped on 94.1% in FY2015 while cash increased on 4.2% in FY2015.
Appendix 1: Peers in Basic Materials
Below you can find Orvana Minerals Corp benchmarking vs. other companies in Basic Materials industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
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 ($NSU) | | 3.3% | -72.5% | 256.5% | |
| |
|---|
| Median (129 companies) | 27.8% | 8.0% | -5.0% | -1.1% | 7.6% |
|---|
| Orvana Minerals Corp ($ORV) | | 480.3% | 11.4% | -12.2% | -14.7% |
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 ($RGL) | 68.9% | 71.5% | 70.6% | 57.6% | 86.0% |
| |
|---|
| Median (132 companies) | 31.2% | 31.4% | 21.3% | 17.2% | 10.6% |
|---|
| Orvana Minerals Corp ($ORV) | 27.1% | 39.4% | 23.0% | 6.5% | -11.4% |
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 ($NSU) | 81.0% | 76.8% | 54.5% | 60.4% | |
| |
|---|
| Median (136 companies) | 23.3% | 18.2% | 10.8% | 9.6% | 4.0% |
|---|
| Orvana Minerals Corp ($ORV) | -21.0% | 31.9% | 32.3% | 23.1% | 6.7% |
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 ($FNV) | 9.3% | 3.7% | 35.5% | 201.6% | |
| |
|---|
| Median (138 companies) | 23.9% | 26.3% | 25.4% | 16.1% | 8.7% |
|---|
| Orvana Minerals Corp ($ORV) | 238.5% | 25.9% | 11.1% | 10.2% | 8.3% |
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 ($CFX) | 103.5% | 4.9% | 13.2% | 21.3% | |
| |
|---|
| Median (142 companies) | 7.0% | 4.8% | -0.1% | -0.3% | -6.5% |
|---|
| Orvana Minerals Corp ($ORV) | -5.8% | 15.5% | 12.6% | 0.9% | -15.2% |
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 ($III) | -0.1x | 1.5x | 4.9x | 12.9x | |
| |
|---|
| Median (93 companies) | -0.1x | 0.3x | 0.7x | 0.9x | -0.3x |
|---|
| Orvana Minerals Corp ($ORV) | | 1.2x | 0.9x | 0.3x | -1.9x |
