Primero Mining Corp CAPEX dropped on 11.2% in 2015 while Revenue increased on 6.1%
18.02.2016 • About Primero Mining Corp (
$P) • By InTwits
Primero Mining Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Primero Mining Corp doesn't have a profitable business model yet: 2015 ROIC is -9.9%
- The company operates at negative EBITDA Margin: -2.7%
- EBITDA Margin is quite volatile: -2.7% in 2015, -48.2% in 2014, 43.6% in 2013, 42.3% in 2012, 46.5% in 2011
- Primero Mining Corp has high CAPEX intensity: 5 year average CAPEX/Revenue was 30.5%. At the same time it's in pair with industry average of 28.1%.
- CAPEX is quite volatile: 99.7 in 2015, 112 in 2014, 71.5 in 2013, 39.7 in 2012, 31.1 in 2011
- The company has unprofitable business model: ROIC is at -9.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Primero Mining Corp ($P) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 156.5 | 182.9 | 200.3 | 274.6 | 291.3 | 6.1% |
| Gross Profit | 65.1 | 79.4 | 76.0 | 52.7 | 50.5 | -4.2% |
| SG&A | 18.9 | 30.0 | 24.5 | 36.8 | 20.0 | -45.5% |
| EBITDA | 72.8 | 77.4 | 87.3 | -132.3 | -7.9 | -94.0% |
| Net Income | 49.6 | 49.6 | -4.3 | -224.4 | -106.9 | -52.4% |
Balance Sheet
|
|---|
| Cash | 80.8 | 139.2 | 110.7 | 27.4 | 45.6 | 66.5% |
| Short Term Debt | 40.0 | 12.8 | 5.0 | 5.6 | 52.4 | 833.4% |
| Long Term Debt | 40.0 | 27.2 | 22.2 | 89.8 | 62.7 | -30.1% |
Cash flow
|
|---|
| Capex | 31.1 | 39.7 | 71.5 | 112.3 | 99.7 | -11.2% |
Ratios
|
|---|
| Revenue growth | 159.7% | 16.9% | 9.5% | 37.1% | 6.1% | |
| EBITDA growth | 467.8% | 6.3% | 12.8% | -251.4% | -94.0% | |
| Gross Margin | 41.6% | 43.4% | 37.9% | 19.2% | 17.3% | -1.9% |
| EBITDA Margin | 46.5% | 42.3% | 43.6% | -48.2% | -2.7% | 45.5% |
| Net Income Margin | 31.7% | 27.1% | -2.1% | -81.7% | -36.7% | 45.0% |
| SG&A, % of revenue | 12.1% | 16.4% | 12.2% | 13.4% | 6.9% | -6.5% |
| CAPEX, % of revenue | 19.9% | 21.7% | 35.7% | 40.9% | 34.2% | -6.7% |
| ROIC | 7.8% | 8.4% | 7.7% | -24.0% | -9.9% | 14.1% |
| ROE | 10.8% | 9.4% | -0.7% | -31.8% | -15.3% | 16.5% |
| Net Debt/EBITDA | -0.0x | -1.3x | -1.0x | | | 0.0x |
Revenue and profitability
Primero Mining Corp's Revenue increased on 6.1% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 34.3 pp from -78.0% to -43.7% in 2015.
Gross Margin decreased slightly on 1.9 pp from 19.2% to 17.3% in 2015. SG&A as a % of Revenue decreased on 6.5 pp from 13.4% to 6.9% in 2015.
Net Income marign surged on 45.0 pp from -81.7% to -36.7% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Primero Mining Corp had CAPEX/Revenue of 34.2%. The company's CAPEX/Revenue surged on 12.5 pp from 21.7% in 2012 to 34.2% in 2015. Average CAPEX/Revenue for the last three years was 36.9%.
Return on investment
The company operates at negative ROIC (-9.85%) and ROE (-15.31%). ROIC jumped on 14.1 pp from -24.0% to -9.9% in 2015. ROE surged on 16.5 pp from -31.8% to -15.3% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -4.7x and Debt / EBITDA is . Net Debt / EBITDA didn't change in 2015. Debt surged on 20.7% in 2015 while cash jumped on 66.5% in 2015.
Appendix 1: Peers in Basic Materials
Below we provide Primero Mining 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 ($NSU) | | 3.3% | -72.5% | 256.5% | |
| |
|---|
| Median (130 companies) | 30.9% | 8.0% | -5.1% | -1.1% | 0.6% |
|---|
| Primero Mining Corp ($P) | | 16.9% | 9.5% | 37.1% | 6.1% |
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 ($RGL) | 68.9% | 71.5% | 70.6% | 57.6% | 86.0% |
| |
|---|
| Median (133 companies) | 30.1% | 31.5% | 20.7% | 16.8% | 15.6% |
|---|
| Primero Mining Corp ($P) | 41.6% | 43.4% | 37.9% | 19.2% | 17.3% |
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 ($NSU) | 81.0% | 76.8% | 54.5% | 60.4% | |
| |
|---|
| Median (137 companies) | 22.0% | 18.4% | 11.3% | 9.9% | 8.0% |
|---|
| Primero Mining Corp ($P) | 46.5% | 42.3% | 43.6% | -48.2% | -2.7% |
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 ($FNV) | 9.3% | 3.7% | 35.5% | 201.6% | |
| |
|---|
| Median (139 companies) | 24.1% | 26.3% | 25.2% | 16.0% | 11.7% |
|---|
| Primero Mining Corp ($P) | 19.9% | 21.7% | 35.7% | 40.9% | 34.2% |
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 ($CFX) | 103.5% | 4.9% | 13.2% | 21.3% | 24.1% |
| |
|---|
| Median (143 companies) | 5.4% | 4.9% | -0.1% | 0.6% | -3.4% |
|---|
| Primero Mining Corp ($P) | 7.8% | 8.4% | 7.7% | -24.0% | -9.9% |
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 | 0.9x | 0.9x | 1.6x |
|---|
