Golden Minerals Co revenue returned to growth in 2015: increased 3,334% vs. 97.8% decline a year earliner
25.02.2016 • About Golden Minerals Co (
$AUM) • By InTwits
Golden Minerals Co reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Golden Minerals Co doesn't have a profitable business model yet: 2015 ROIC is -136.4%
- The company operates at negative EBITDA Margin: -318.2%
- Golden Minerals Co spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 is 0.0%. Average EBITDA Margin for the same period was -1,048.9%0
- Golden Minerals Co has high CAPEX intensity: 5 year average CAPEX/Revenue was 145.9%. At the same time it's a lot of higher than industry average of 26.4%.
- CAPEX is quite volatile: 0.044 in 2015, 0.50 in 2014, 1.8 in 2013, 9.6 in 2012, 8.5 in 2011
- The company has unprofitable business model: ROIC is at -136.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Golden Minerals Co ($AUM) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1.836 | 26.086 | 10.680 | 0.235 | 8.071 | 3,334.5% |
| Gross Profit | -7.042 | -17.295 | -13.781 | -1.420 | -1.994 | 40.4% |
| SG&A | 8.729 | 7.063 | 5.610 | 4.642 | 4.242 | -8.6% |
| EBITDA | -70.965 | -93.198 | -282.957 | -19.204 | -25.678 | 33.7% |
| Net Income | -62.671 | -92.025 | -240.380 | -18.823 | -25.383 | 34.9% |
Balance Sheet
|
|---|
| Cash | 48.649 | 44.406 | 19.146 | 8.579 | 4.077 | -52.5% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 3.702 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 8.490 | 9.620 | 1.797 | 0.500 | 0.044 | -91.2% |
Ratios
|
|---|
| Revenue growth | -83.6% | 1,320.8% | -59.1% | -97.8% | 3,334.5% | |
| EBITDA growth | 127.8% | 31.3% | 203.6% | -93.2% | 33.7% | |
| Gross Margin | -383.6% | -66.3% | -129.0% | -604.3% | -24.7% | 579.5% |
| EBITDA Margin | -3,865.2% | -357.3% | -2,649.4% | -8,171.9% | -318.2% | 7,853.8% |
| Net Income Margin | -3,413.5% | -352.8% | -2,250.7% | -8,009.8% | -314.5% | 7,695.3% |
| SG&A, % of revenue | 475.4% | 27.1% | 52.5% | 1,975.3% | 52.6% | -1,922.8% |
| CAPEX, % of revenue | 462.4% | 36.9% | 16.8% | 212.8% | 0.5% | -212.2% |
| ROIC | -31.4% | -33.1% | -174.8% | -56.4% | -136.4% | -80.0% |
| ROE | -26.7% | -29.5% | -144.9% | -47.5% | -125.3% | -77.8% |
Revenue and profitability
The company's Revenue surged on 3,334% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.61 pp from 6.8% to 7.4% in FY2015.
Gross Margin jumped on 580 pp from -604% to -24.7% in 2015. SG&A as a % of Revenue dropped on 1,923 pp from 1,975% to 52.6% in 2015.
Net Income marign jumped on 7,695 pp from -8,010% to -314% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 0.55%. CAPEX/Revenue dropped on 36.3 pp from 36.9% in 2012 to 0.55% in 2015. It's average level of CAPEX/Revenue for the last three years was 76.7%.
Return on investment
The company operates at negative ROIC (-136.44%) and ROE (-125.33%). ROIC dropped on 80.0 pp from -56.4% to -136% in 2015. ROE dropped on 77.8 pp from -47.5% to -125% in 2015.
Leverage (Debt)
Debt level is -5.3x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in 2015. Debt jumped while cash dropped on 52.5% in 2015.
Management team
Golden Minerals Co's CEO is Warren M Rehn. Warren M Rehn is a founder and has 3 years tenure at the company. Golden Minerals Co's CFO is Robert P Vogels. Robert P Vogels has 9 years tenure at the company.
Appendix 1: Peers in Basic Materials
Below we provide Golden Minerals Co 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 ($NSU) | | 3.3% | -72.5% | 256.5% | -35.7% |
| |
|---|
| Median (130 companies) | 39.5% | 8.0% | -5.0% | -0.8% | -5.1% |
|---|
| Golden Minerals Co ($AUM) | | 1,320.8% | -59.1% | -97.8% | 3,334.5% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Nevsun Resources Ltd ($NSU) | 90.3% | 89.9% | 94.8% | 95.5% | 82.3% |
| Franco-Nevada Corp ($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 ($RGL) | 68.9% | 71.5% | 70.6% | 57.6% | 86.0% |
| |
|---|
| Median (133 companies) | 31.2% | 32.0% | 21.8% | 17.6% | 15.5% |
|---|
| Golden Minerals Co ($AUM) | -383.6% | -66.3% | -129.0% | -604.3% | -24.7% |
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 ($NSU) | 81.0% | 76.8% | 54.5% | 60.4% | 38.6% |
| |
|---|
| Median (137 companies) | 23.3% | 18.6% | 11.7% | 9.9% | 6.8% |
|---|
| Golden Minerals Co ($AUM) | -3,865.2% | -357.3% | -2,649.4% | -8,171.9% | -318.2% |
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 ($III) | 28.2% | 69.2% | 185.7% | 280.2% | |
| Franco-Nevada Corp ($FNV) | 9.3% | 3.7% | 35.5% | 201.6% | |
| HudBay Minerals Inc ($HBM) | 27.7% | 77.7% | 199.9% | 175.5% | 55.4% |
| |
|---|
| Median (139 companies) | 23.9% | 26.3% | 25.5% | 16.0% | 15.8% |
|---|
| Golden Minerals Co ($AUM) | 462.4% | 36.9% | 16.8% | 212.8% | 0.5% |
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 ($NSU) | 89.8% | 52.2% | 8.8% | 35.0% | 10.4% |
| Dynacor Gold Mines Inc ($DNG) | 45.6% | 62.8% | 50.9% | 31.3% | |
| Canfor Pulp Products Inc ($CFX) | 103.5% | 4.9% | 13.2% | 21.3% | 24.1% |
| |
|---|
| Median (143 companies) | 7.0% | 4.9% | 0.1% | 0.6% | -3.6% |
|---|
| Golden Minerals Co ($AUM) | -31.4% | -33.1% | -174.8% | -56.4% | -136.4% |
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 | 1.4x |
|---|
