Golden Star Resources Ltd CAPEX jumped on 73.9% in 2015 while Revenue dropped on 22.4%
23.02.2016 • About Golden Star Resources Ltd (
$GSC) • By InTwits
Golden Star Resources Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Golden Star Resources Ltd is a company in decline: 2015 revenue growth was -22.4%, 5 years revenue CAGR was -10.0%
- The company operates at negative EBITDA Margin: -15.8%
- Golden Star Resources Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 is 0.0%. Average EBITDA Margin for the same period was -8.1%0
- Golden Star Resources Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 19.4%. At the same time it's a lot of higher than industry average of 28.1%.
- CAPEX is quite volatile: 57.1 in 2015, 32.8 in 2014, 103 in 2013, 117 in 2012, 101 in 2011
- The company has unprofitable business model: ROIC is at -486.8%
- It operates with medium-size leverage: Net Debt/EBITDA is 3.4x while industry average is 3.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Golden Star Resources Ltd ($GSC) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 471.0 | 550.5 | 467.8 | 328.9 | 255.2 | -22.4% |
| Gross Profit | 50.9 | 177.0 | 90.7 | 24.0 | -27.6 | -215.2% |
| SG&A | 25.4 | 24.1 | 21.5 | 16.4 | 14.3 | -12.7% |
| EBITDA | 84.5 | 133.4 | -295.1 | -50.6 | -40.3 | -20.5% |
| Net Income | -2.1 | 7.2 | -265.9 | -73.1 | -67.7 | -7.4% |
Balance Sheet
|
|---|
| Cash | 103.6 | 78.9 | 65.6 | 39.4 | 35.1 | -10.8% |
| Short Term Debt | 128.5 | 7.0 | 10.9 | 17.2 | 22.4 | 30.6% |
| Long Term Debt | 10.8 | 110.5 | 83.4 | 85.8 | 91.9 | 7.1% |
Cash flow
|
|---|
| Capex | 101.4 | 117.3 | 102.9 | 32.8 | 57.1 | 73.9% |
Ratios
|
|---|
| Revenue growth | 8.9% | 16.9% | -15.0% | -29.7% | -22.4% | |
| EBITDA growth | -18.3% | 57.9% | -321.3% | -82.8% | -20.5% | |
| Gross Margin | 10.8% | 32.1% | 19.4% | 7.3% | -10.8% | -18.1% |
| EBITDA Margin | 17.9% | 24.2% | -63.1% | -15.4% | -15.8% | -0.4% |
| Net Income Margin | -0.4% | 1.3% | -56.8% | -22.2% | -26.5% | -4.3% |
| SG&A, % of revenue | 5.4% | 4.4% | 4.6% | 5.0% | 5.6% | 0.6% |
| CAPEX, % of revenue | 21.5% | 21.3% | 22.0% | 10.0% | 22.4% | 12.4% |
| ROIC | 2.1% | 8.1% | -118.4% | -90.6% | -486.8% | -396.2% |
| ROE | -0.5% | 1.8% | -129.0% | -200.5% | | 200.5% |
| Net Debt/EBITDA | 0.4x | 0.3x | | | | 0.0x |
Revenue and profitability
Golden Star Resources Ltd's Revenue dropped on 22.4% in 2015. EBITDA Margin showed almost no change in 2015.
Gross Margin dropped on 18.1 pp from 7.3% to -10.8% in 2015. SG&A as a % of Revenue increased slightly on 0.62 pp from 5.0% to 5.6% in 2015.
Net Income marign decreased on 4.3 pp from -22.2% to -26.5% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Golden Star Resources Ltd had CAPEX/Revenue of 22.4%. Golden Star Resources Ltd's CAPEX/Revenue increased slightly on 1.1 pp from 21.3% in 2012 to 22.4% in 2015. Average CAPEX/Revenue for the last three years was 18.1%.
Leverage (Debt)
Company's Net Debt / EBITDA is 3.4x and Debt / EBITDA is . Net Debt / EBITDA didn't change in 2015. Debt surged on 11.0% in 2015 while cash dropped on 10.8% in 2015.
Management team
The company's CEO is Samuel T Coetzer "Sam". Samuel T Coetzer "Sam" is a founder and has 5 years tenure at the company. Andre Van Niekerk is a The company's CFO. Andre Van Niekerk has spent 4 years at the company.
Appendix 1: Peers in Basic Materials
Below you can find Golden Star Resources Ltd 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 ($NSU) | | 3.3% | -72.5% | 256.5% | |
| |
|---|
| Median (130 companies) | 31.3% | 8.0% | -5.0% | -0.8% | -4.0% |
|---|
| Golden Star Resources Ltd ($GSC) | | 16.9% | -15.0% | -29.7% | -22.4% |
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% | 60.9% |
| Royal Gold Inc ($RGL) | 68.9% | 71.5% | 70.6% | 57.6% | 86.0% |
| |
|---|
| Median (133 companies) | 31.2% | 31.5% | 21.8% | 17.6% | 15.4% |
|---|
| Golden Star Resources Ltd ($GSC) | 10.8% | 32.1% | 19.4% | 7.3% | -10.8% |
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 ($NSU) | 81.0% | 76.8% | 54.5% | 60.4% | |
| |
|---|
| Median (137 companies) | 23.3% | 18.4% | 11.7% | 9.9% | 7.2% |
|---|
| Golden Star Resources Ltd ($GSC) | 17.9% | 24.2% | -63.1% | -15.4% | -15.8% |
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 ($FNV) | 9.3% | 3.7% | 35.5% | 201.6% | |
| |
|---|
| Median (139 companies) | 24.1% | 26.3% | 25.5% | 16.3% | 11.7% |
|---|
| Golden Star Resources Ltd ($GSC) | 21.5% | 21.3% | 22.0% | 10.0% | 22.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lucara Diamond Corp ($LUC) | -7.1% | -2.9% | 41.3% | 54.7% | 39.6% |
| CanAf Group Inc ($CAF) | 74.9% | 37.0% | 65.2% | 37.6% | 13.8% |
| 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 ($CFX) | 103.5% | 4.9% | 13.2% | 21.3% | 24.1% |
| |
|---|
| Median (143 companies) | 7.0% | 4.9% | 0.1% | 0.6% | -3.4% |
|---|
| Golden Star Resources Ltd ($GSC) | 2.1% | 8.1% | -118.4% | -90.6% | -486.8% |
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 | 1.5x |
|---|
