IMPACT Silver Corp reports 25.6% CAPEX decline while 21.9% Revenue growth
15.03.2016 • About IMPACT Silver Corp (
$IPT) • By InTwits
IMPACT Silver Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- IMPACT Silver Corp doesn't have a profitable business model yet: 2015 ROIC is -3.1%
- EBITDA Margin is quite volatile: 3.2% in 2015, -15.0% in 2014, -9.0% in 2013, 15.7% in 2012, 48.4% in 2011
- IMPACT Silver Corp has high CAPEX intensity: 5 year average CAPEX/Revenue was 49.6%. At the same time it's a lot of higher than industry average of 27.1%.
- CAPEX is quite volatile: 2.3 in 2015, 3.1 in 2014, 12.8 in 2013, 12.8 in 2012, 8.7 in 2011
- The company has unprofitable business model: ROIC is at -3.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
IMPACT Silver Corp ($IPT) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 24.267 | 15.934 | 14.106 | 12.008 | 14.638 | 21.9% |
| Gross Profit | 12.867 | 5.620 | 0.111 | -2.614 | -0.101 | -96.1% |
| EBITDA | 11.746 | 2.501 | -1.275 | -1.797 | 0.473 | -126.3% |
| Net Income | 7.576 | -1.145 | -8.519 | -3.487 | -1.428 | -59.0% |
Balance Sheet
|
|---|
| Cash | 30.775 | 16.013 | 3.485 | 0.575 | 0.717 | 24.7% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 8.661 | 12.773 | 12.812 | 3.088 | 2.299 | -25.6% |
Ratios
|
|---|
| Revenue growth | 45.5% | -34.3% | -11.5% | -14.9% | 21.9% | |
| EBITDA growth | 75.8% | -78.7% | -151.0% | 40.9% | -126.3% | |
| Gross Margin | 53.0% | 35.3% | 0.8% | -21.8% | -0.7% | 21.1% |
| EBITDA Margin | 48.4% | 15.7% | -9.0% | -15.0% | 3.2% | 18.2% |
| Net Income Margin | 31.2% | -7.2% | -60.4% | -29.0% | -9.8% | 19.3% |
| CAPEX, % of revenue | 35.7% | 80.2% | 90.8% | 25.7% | 15.7% | -10.0% |
| ROIC | 19.5% | 1.4% | -5.7% | -7.6% | -3.1% | 4.5% |
| ROE | 15.3% | -2.0% | -15.1% | -6.7% | -2.9% | 3.8% |
| Net Debt/EBITDA | -2.6x | -6.4x | | | -1.5x | -1.5x |
Revenue and profitability
The company's Revenue jumped on 21.9% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 18.2 pp from -15.0% to 3.2% in 2015.
Gross Margin surged on 21.1 pp from -21.8% to -0.69% in 2015.
Net Income marign jumped on 19.3 pp from -29.0% to -9.8% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 IMPACT Silver Corp had CAPEX/Revenue of 15.7%. The company showed big decline in CAPEX/Revenue of 64.5 pp from 80.2% in 2012 to 15.7% in 2015. It's average CAPEX/Revenue for the last three years was 44.1%.To fuel this fast growth the company made large investments to CAPEX (486% of EBITDA).
Return on investment
The company operates at negative ROIC (-3.06%) and ROE (-2.88%). ROIC increased on 4.5 pp from -7.6% to -3.1% in 2015. ROE increased on 3.8 pp from -6.7% to -2.9% in 2015.
Leverage (Debt)
The company has no debt. Cash jumped on 24.7% in 2015.
Appendix 1: Peers in Basic Materials
Below you can find IMPACT Silver Corp 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 |
|---|
| Barkerville Gold Mines Ltd ($BGM) | | 97.4% | -90.6% | -97.6% | 84,715.6% |
| Golden Minerals Co ($AUM) | | 1,320.8% | -59.1% | -97.8% | 3,334.5% |
| Jemi Fibre Corp ($JFI) | | | | -27.3% | 375.3% |
| Osisko Gold Royalties Ltd ($OR) | | | | | 164.4% |
| VMS Ventures Inc ($VMS) | | | | | 139.7% |
| |
|---|
| Median (105 companies) | 70.2% | 8.5% | -5.0% | -0.8% | -1.1% |
|---|
| IMPACT Silver Corp ($IPT) | | -34.3% | -11.5% | -14.9% | 21.9% |
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% | 30.3% |
| Labrador Iron Ore Royalty Corp ($LIF) | 80.2% | 80.2% | 80.2% | 80.2% | 80.3% |
| Lucara Diamond Corp ($LUC) | | 42.5% | 57.4% | 66.7% | 60.9% |
| Royal Gold Inc ($RGL) | 68.9% | 71.5% | 70.6% | 57.6% | 86.0% |
| |
|---|
| Median (133 companies) | 30.1% | 31.5% | 21.8% | 17.6% | 15.5% |
|---|
| IMPACT Silver Corp ($IPT) | 53.0% | 35.3% | 0.8% | -21.8% | -0.7% |
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% | 60.8% |
| 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 ($NSU) | 81.0% | 76.8% | 54.5% | 60.4% | 38.6% |
| |
|---|
| Median (137 companies) | 22.0% | 18.6% | 11.7% | 9.9% | 6.8% |
|---|
| IMPACT Silver Corp ($IPT) | 48.4% | 15.7% | -9.0% | -15.0% | 3.2% |
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 ($III) | 28.2% | 69.2% | 185.7% | 280.2% | |
| Golden Minerals Co ($AUM) | 462.4% | 36.9% | 16.8% | 212.8% | 0.5% |
| Franco-Nevada Corp ($FNV) | 9.3% | 3.7% | 35.5% | 201.6% | 230.0% |
| |
|---|
| Median (139 companies) | 23.9% | 26.3% | 25.2% | 16.0% | 13.1% |
|---|
| IMPACT Silver Corp ($IPT) | 35.7% | 80.2% | 90.8% | 25.7% | 15.7% |
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 ($CFX) | 103.5% | 4.9% | 13.2% | 21.3% | 24.1% |
| |
|---|
| Median (143 companies) | 5.4% | 4.9% | 0.1% | 0.6% | -3.6% |
|---|
| IMPACT Silver Corp ($IPT) | 19.5% | 1.4% | -5.7% | -7.6% | -3.1% |
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 | 6.7x |
| 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) | -0.0x | 0.3x | 0.8x | 0.9x | 1.3x |
|---|
