Richmont Mines Inc reports 126% CAPEX growth and 8.7% Revenue growth
22.02.2016 • About Richmont Mines Inc (
$RIC) • By InTwits
Richmont Mines Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 22.3% in 2015, 23.3% in 2014, 4.2% in 2013, 8.0% in 2012, 34.1% in 2011
- Richmont Mines Inc has high CAPEX intensity: 5 year average CAPEX/Revenue was 32.8%. At the same time it's in pair with industry average of 28.2%.
- CAPEX is quite volatile: 24.0 in 2015, 15.5 in 2014, 24.9 in 2013, 12.7 in 2012, 2.8 in 2011
- The company has potentially unprofitable business model: ROIC is at 5.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Richmont Mines Inc ($RIC) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 118.6 | 101.7 | 90.2 | 132.2 | 143.7 | 8.7% |
| Gross Profit | 46.9 | 27.9 | 4.4 | 20.3 | 25.4 | 25.1% |
| SG&A | | | | | 9.8 | |
| EBITDA | 40.5 | 8.2 | 3.8 | 30.8 | 32.1 | 4.1% |
| Net Income | 25.9 | -45.0 | -34.3 | 8.2 | 6.8 | -17.0% |
Balance Sheet
|
|---|
| Cash | 63.5 | 59.8 | 17.6 | 35.3 | 61.0 | 73.0% |
| Short Term Debt | 0.0 | 1.3 | 1.2 | 2.0 | 3.1 | 53.7% |
| Long Term Debt | 0.0 | 0.7 | 5.2 | 5.7 | 0.0 | -100.0% |
Cash flow
|
|---|
| Capex | 31.7 | 37.9 | 41.9 | 23.1 | 52.1 | 126.0% |
Ratios
|
|---|
| Revenue growth | 31.1% | -14.2% | -11.3% | 46.5% | 8.7% | |
| EBITDA growth | 105.1% | -79.9% | -53.2% | 706.5% | 4.1% | |
| Gross Margin | 39.5% | 27.4% | 4.9% | 15.4% | 17.7% | 2.3% |
| EBITDA Margin | 34.1% | 8.0% | 4.2% | 23.3% | 22.3% | -1.0% |
| Net Income Margin | 21.9% | -44.3% | -38.0% | 6.2% | 4.7% | -1.5% |
| SG&A, % of revenue | | | | | 6.8% | 6.8% |
| CAPEX, % of revenue | 26.7% | 37.2% | 46.4% | 17.4% | 36.2% | 18.8% |
| ROIC | 24.5% | -2.0% | -10.2% | 8.3% | 5.6% | -2.7% |
| ROE | 22.6% | -35.7% | -33.5% | 8.4% | 5.2% | -3.2% |
| Net Debt/EBITDA | -1.6x | -7.1x | -2.9x | -0.9x | -1.8x | -0.9x |
Revenue and profitability
The company's Revenue increased on 8.7% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 65.9 pp from 50.0% to -15.9% in FY2015.
Gross Margin increased on 2.3 pp from 15.4% to 17.7% in 2015.
Net Income marign decreased slightly on 1.5 pp from 6.2% to 4.7% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Richmont Mines Inc had CAPEX/Revenue of 36.2%. CAPEX/Revenue decreased slightly on 0.97 pp from 37.2% in 2012 to 36.2% in 2015. It's average level of CAPEX/Revenue for the last three years was 33.4%.The company investments to CAPEX were large: 162% of EBITDA.
Return on investment
The company operates at low ROIC (5.59%) and ROE (5.19%). ROIC decreased on 2.7 pp from 8.3% to 5.6% in 2015. ROE decreased on 3.2 pp from 8.4% to 5.2% in 2015.
Leverage (Debt)
Debt level is -1.8x Net Debt / EBITDA and 0.1x Debt / EBITDA. Net Debt / EBITDA dropped on 0.9x from -0.9x to -1.8x in 2015. Debt dropped on 60.3% in 2015 while cash jumped on 73.0% in 2015.
Appendix 1: Peers in Basic Materials
Below we provide Richmont Mines 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 ($NSU) | | 3.3% | -72.5% | 256.5% | |
| |
|---|
| Median (130 companies) | 27.6% | 8.5% | -5.0% | -1.1% | -0.6% |
|---|
| Richmont Mines Inc ($RIC) | | -14.2% | -11.3% | 46.5% | 8.7% |
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 ($RGL) | 68.9% | 71.5% | 70.6% | 57.6% | 86.0% |
| |
|---|
| Median (133 companies) | 30.1% | 32.0% | 21.8% | 17.6% | 15.5% |
|---|
| Richmont Mines Inc ($RIC) | 39.5% | 27.4% | 4.9% | 15.4% | 17.7% |
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 ($NSU) | 81.0% | 76.8% | 54.5% | 60.4% | |
| |
|---|
| Median (137 companies) | 22.0% | 18.6% | 11.7% | 9.7% | 6.8% |
|---|
| Richmont Mines Inc ($RIC) | 34.1% | 8.0% | 4.2% | 23.3% | 22.3% |
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 ($FNV) | 9.3% | 3.7% | 35.5% | 201.6% | |
| |
|---|
| Median (139 companies) | 23.9% | 26.3% | 25.2% | 16.0% | 11.7% |
|---|
| Richmont Mines Inc ($RIC) | 26.7% | 37.2% | 46.4% | 17.4% | 36.2% |
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 ($CFX) | 103.5% | 4.9% | 13.2% | 21.3% | 24.1% |
| |
|---|
| Median (143 companies) | 5.4% | 4.9% | 0.1% | -0.1% | -3.6% |
|---|
| Richmont Mines Inc ($RIC) | 24.5% | -2.0% | -10.2% | 8.3% | 5.6% |
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 ($III) | -0.1x | 1.5x | 4.9x | 12.9x | |
| |
|---|
| Median (94 companies) | -0.0x | 0.3x | 0.9x | 0.9x | 1.6x |
|---|
| Richmont Mines Inc ($RIC) | -1.6x | -7.1x | -2.9x | -0.9x | -1.8x |
