Taseko Mines Ltd reports 90.8% EBITDA growth while 15.6% Revenue decline
23.02.2016 • About Taseko Mines Ltd (
$TKO) • By InTwits
Taseko Mines Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Taseko Mines Ltd doesn't have a profitable business model yet: 2015 ROIC is -0.1%
- EBITDA Margin is quite volatile: 16.9% in 2015, 7.5% in 2014, 11.7% in 2013, 6.3% in 2012, 27.3% in 2011
- Taseko Mines Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 29.7%. At the same time it's in pair with industry average of 28.3%.
- CAPEX is quite volatile: 19.0 in 2015, 38.8 in 2014, 98.5 in 2013, 193 in 2012, 51.8 in 2011
- The company has unprofitable business model: ROIC is at -0.1%
- It operates with high leverage: Net Debt/EBITDA is 5.9x while industry average is 3.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Taseko Mines Ltd ($TKO) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 251.9 | 253.6 | 290.1 | 342.9 | 289.3 | -15.6% |
| Gross Profit | 86.3 | 81.3 | 77.0 | 5.1 | 1.3 | -74.1% |
| SG&A | 21.1 | 19.1 | 16.2 | 16.1 | 15.8 | -1.9% |
| EBITDA | 68.8 | 15.9 | 34.0 | 25.6 | 48.9 | 90.8% |
| Net Income | 27.0 | -9.1 | -34.8 | -53.9 | -62.4 | 15.7% |
Balance Sheet
|
|---|
| Cash | 277.8 | 135.0 | 82.9 | 53.3 | 76.0 | 42.6% |
| Short Term Debt | 13.8 | 18.1 | 22.6 | 20.2 | 59.8 | 196.7% |
| Long Term Debt | 218.5 | 234.8 | 259.5 | 293.5 | 305.4 | 4.1% |
Cash flow
|
|---|
| Capex | 51.8 | 192.9 | 98.5 | 38.8 | 19.0 | -51.1% |
Ratios
|
|---|
| Revenue growth | -9.6% | 0.7% | 14.4% | 18.2% | -15.6% | |
| EBITDA growth | -65.6% | -76.8% | 113.5% | -24.7% | 90.8% | |
| Gross Margin | 34.3% | 32.1% | 26.5% | 1.5% | 0.5% | -1.0% |
| EBITDA Margin | 27.3% | 6.3% | 11.7% | 7.5% | 16.9% | 9.4% |
| Net Income Margin | 10.7% | -3.6% | -12.0% | -15.7% | -21.6% | -5.8% |
| SG&A, % of revenue | 8.4% | 7.5% | 5.6% | 4.7% | 5.5% | 0.8% |
| CAPEX, % of revenue | 20.6% | 76.1% | 34.0% | 11.3% | 6.6% | -4.8% |
| ROIC | 8.1% | -0.7% | -0.1% | -2.6% | -0.1% | 2.6% |
| ROE | 5.6% | -1.9% | -8.0% | -12.7% | -15.7% | -3.0% |
| Net Debt/EBITDA | -0.7x | 7.4x | 5.9x | 10.2x | 5.9x | -4.2x |
Revenue and profitability
Taseko Mines Ltd's Revenue dropped on 15.6% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 9.4 pp from 7.5% to 16.9% in 2015.
Gross Margin decreased slightly on 1.0 pp from 1.5% to 0.46% in 2015. SG&A as a % of Revenue increased slightly on 0.76 pp from 4.7% to 5.5% in 2015.
Net Income marign decreased on 5.8 pp from -15.7% to -21.6% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 6.6% in 2015. The company's CAPEX/Revenue dropped on 69.5 pp from 76.1% in 2012 to 6.6% in 2015. For the last three years the average CAPEX/Revenue was 17.3%.
Return on investment
The company operates at negative ROIC (-0.08%) and ROE (-15.73%). ROIC increased on 2.6 pp from -2.6% to -0.082% in 2015. ROE decreased on 3.0 pp from -12.7% to -15.7% in 2015.
Leverage (Debt)
Debt level is 5.9x Net Debt / EBITDA and 7.5x Debt / EBITDA. Net Debt / EBITDA dropped on 4.2x from 10.2x to 5.9x in 2015. Debt surged on 16.4% in 2015 while cash surged on 42.6% in 2015.
Management team
The company's CEO is Russell Edward Hallbauer. Russell Edward Hallbauer is a founder and has 13 years tenure at the company. Taseko Mines Ltd's CFO is Stuart D Mcdonald. Stuart D Mcdonald has 5 years tenure at the company.
Appendix 1: Peers in Basic Materials
Below we provide Taseko Mines Ltd 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 ($NSU) | | 3.3% | -72.5% | 256.5% | |
| |
|---|
| Median (130 companies) | 31.3% | 8.5% | -5.1% | -1.1% | -4.0% |
|---|
| Taseko Mines Ltd ($TKO) | | 0.7% | 14.4% | 18.2% | -15.6% |
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 ($RGL) | 68.9% | 71.5% | 70.6% | 57.6% | 86.0% |
| |
|---|
| Median (133 companies) | 30.1% | 31.5% | 20.7% | 17.6% | 15.4% |
|---|
| Taseko Mines Ltd ($TKO) | 34.3% | 32.1% | 26.5% | 1.5% | 0.5% |
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 ($NSU) | 81.0% | 76.8% | 54.5% | 60.4% | |
| |
|---|
| Median (137 companies) | 22.0% | 18.6% | 11.3% | 9.9% | 6.9% |
|---|
| Taseko Mines Ltd ($TKO) | 27.3% | 6.3% | 11.7% | 7.5% | 16.9% |
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 ($FNV) | 9.3% | 3.7% | 35.5% | 201.6% | |
| |
|---|
| Median (139 companies) | 24.1% | 26.3% | 25.2% | 16.3% | 12.1% |
|---|
| Taseko Mines Ltd ($TKO) | 20.6% | 76.1% | 34.0% | 11.3% | 6.6% |
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 ($CFX) | 103.5% | 4.9% | 13.2% | 21.3% | 24.1% |
| |
|---|
| Median (143 companies) | 5.4% | 4.9% | 0.1% | 0.6% | -3.5% |
|---|
| Taseko Mines Ltd ($TKO) | 8.1% | -0.7% | -0.1% | -2.6% | -0.1% |
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 ($III) | -0.1x | 1.5x | 4.9x | 12.9x | |
| |
|---|
| Median (94 companies) | -0.0x | 0.3x | 0.7x | 0.9x | 1.4x |
|---|
| Taseko Mines Ltd ($TKO) | -0.7x | 7.4x | 5.9x | 10.2x | 5.9x |
