Barrick Gold Corp CAPEX dropped on 29.6% in 2015 and Revenue dropped on 11.8%
17.02.2016 • About Barrick Gold Corp (
$ABX) • By InTwits
Barrick Gold Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Barrick Gold Corp is a company in decline: 2015 revenue growth was -11.8%, 5 years revenue CAGR was -3.9%
- The company operates at negative EBITDA Margin: -5.8%
- EBITDA Margin is quite volatile: -5.8% in 2015, -2.1% in 2014, -56.6% in 2013, 9.4% in 2012, 56.8% in 2011
- Barrick Gold Corp has high CAPEX intensity: 5 year average CAPEX/Revenue was 33.7%. At the same time it's in pair with industry average of 28.4%.
- CAPEX is quite volatile: 1,713 in 2015, 2,432 in 2014, 5,501 in 2013, 6,773 in 2012, 4,973 in 2011
- The company has unprofitable business model: ROIC is at -9.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Barrick Gold Corp ($ABX) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 14,236 | 14,394 | 12,527 | 10,239 | 9,029 | -11.8% |
| Gross Profit | 7,996 | 7,137 | 5,198 | 3,409 | 2,122 | -37.8% |
| SG&A | 166 | 503 | 390 | 385 | 233 | -39.5% |
| EBITDA | 8,092 | 1,348 | -7,087 | -220 | -520 | 136.4% |
| Net Income | 4,484 | -538 | -10,366 | -2,907 | -2,838 | -2.4% |
Balance Sheet
|
|---|
| Cash | 2,745 | 2,097 | 2,404 | 2,699 | 2,455 | -9.0% |
| Short Term Debt | 196 | 1,848 | 179 | 333 | 203 | -39.0% |
| Long Term Debt | 13,173 | 12,095 | 12,901 | 12,748 | 9,765 | -23.4% |
Cash flow
|
|---|
| Capex | 4,973 | 6,773 | 5,501 | 2,432 | 1,713 | -29.6% |
Ratios
|
|---|
| Revenue growth | 29.4% | 1.1% | -13.0% | -18.3% | -11.8% | |
| EBITDA growth | 27.4% | -83.3% | -625.7% | -96.9% | 136.4% | |
| Gross Margin | 56.2% | 49.6% | 41.5% | 33.3% | 23.5% | -9.8% |
| EBITDA Margin | 56.8% | 9.4% | -56.6% | -2.1% | -5.8% | -3.6% |
| Net Income Margin | 31.5% | -3.7% | -82.7% | -28.4% | -31.4% | -3.0% |
| SG&A, % of revenue | 1.2% | 3.5% | 3.1% | 3.8% | 2.6% | -1.2% |
| CAPEX, % of revenue | 34.9% | 47.1% | 43.9% | 23.8% | 19.0% | -4.8% |
| ROIC | 18.3% | -0.7% | -24.6% | -6.4% | -9.7% | -3.3% |
| ROE | 20.9% | -2.4% | -58.4% | -24.4% | -32.6% | -8.1% |
| Net Debt/EBITDA | 1.3x | 8.8x | | | | 0.0x |
Revenue and profitability
The company's Revenue dropped on 11.8% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 3.6 pp from -2.1% to -5.8% in 2015.
Gross Margin decreased on 9.8 pp from 33.3% to 23.5% in 2015. SG&A as a % of Revenue decreased slightly on 1.2 pp from 3.8% to 2.6% in 2015.
Net Income marign decreased on 3.0 pp from -28.4% to -31.4% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Barrick Gold Corp had CAPEX/Revenue of 19.0%. Barrick Gold Corp showed big decline in CAPEX/Revenue of 28.1 pp from 47.1% in 2012 to 19.0% in 2015. For the last three years the average CAPEX/Revenue was 28.9%.
Return on investment
The company operates at negative ROIC (-9.68%) and ROE (-32.57%). ROIC decreased on 3.3 pp from -6.4% to -9.7% in 2015. ROE decreased on 8.1 pp from -24.4% to -32.6% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.0x and Debt / EBITDA is . Net Debt / EBITDA didn't change in 2015. Debt dropped on 23.8% in 2015 while cash decreased on 9.0% in 2015.
Appendix 1: Peers in Basic Materials
Below we provide Barrick Gold Corp 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 ($NSU) | | 3.3% | -72.5% | 256.5% | |
| |
|---|
| Median (130 companies) | 30.1% | 8.5% | -5.0% | -0.8% | 0.6% |
|---|
| Barrick Gold Corp ($ABX) | | 1.1% | -13.0% | -18.3% | -11.8% |
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 ($RGL) | 68.9% | 71.5% | 70.6% | 57.6% | 86.0% |
| |
|---|
| Median (133 companies) | 30.1% | 31.5% | 20.7% | 16.8% | 15.5% |
|---|
| Barrick Gold Corp ($ABX) | 56.2% | 49.6% | 41.5% | 33.3% | 23.5% |
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 ($NSU) | 81.0% | 76.8% | 54.5% | 60.4% | |
| |
|---|
| Median (137 companies) | 22.0% | 18.6% | 11.7% | 9.9% | 7.9% |
|---|
| Barrick Gold Corp ($ABX) | 56.8% | 9.4% | -56.6% | -2.1% | -5.8% |
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 ($FNV) | 9.3% | 3.7% | 35.5% | 201.6% | |
| |
|---|
| Median (139 companies) | 23.9% | 26.3% | 25.2% | 16.0% | 8.5% |
|---|
| Barrick Gold Corp ($ABX) | 34.9% | 47.1% | 43.9% | 23.8% | 19.0% |
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 ($CFX) | 103.5% | 4.9% | 13.2% | 21.3% | 24.1% |
| |
|---|
| Median (143 companies) | 5.4% | 4.9% | 0.1% | 0.6% | -3.5% |
|---|
| Barrick Gold Corp ($ABX) | 18.3% | -0.7% | -24.6% | -6.4% | -9.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| VMS Ventures Inc ($VMS) | | | | 86.7x | 4.7x |
| Ur-Energy Inc ($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 (95 companies) | -0.1x | 0.3x | 0.8x | 0.9x | 1.7x |
|---|
