Luna Gold Corp CAPEX dropped on 83.3% in 2015 and Revenue dropped on 30.8%
15.03.2016 • About Luna Gold Corp (
$LGC) • By InTwits
Luna Gold Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Luna Gold Corp doesn't have a profitable business model yet: 2015 ROIC is -11.3%
- The company operates at negative EBITDA Margin: -6.4%
- EBITDA Margin is quite volatile: -6.4% in 2015, -4.4% in 2014, 23.0% in 2013, 28.9% in 2012, 3.4% in 2011
- Luna Gold Corp has high CAPEX intensity: 5 year average CAPEX/Revenue was 32.9%. At the same time it's a lot of higher than industry average of 27.1%.
- CAPEX is quite volatile: 4.1 in 2015, 24.5 in 2014, 44.6 in 2013, 34.8 in 2012, 24.5 in 2011
- The company has unprofitable business model: ROIC is at -11.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Luna Gold Corp ($LGC) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 55.3 | 103.1 | 90.6 | 81.6 | 56.5 | -30.8% |
| Gross Profit | 15.2 | 52.5 | 36.2 | 4.0 | 3.8 | -5.2% |
| SG&A | | | | | 8.7 | |
| EBITDA | 1.9 | 29.8 | 20.9 | -3.6 | -3.6 | 1.0% |
| Net Income | -4.1 | 19.0 | 7.8 | -121.5 | -18.7 | -84.6% |
Balance Sheet
|
|---|
| Cash | 35.7 | 19.3 | 6.0 | 3.7 | 7.5 | 101.9% |
| Short Term Debt | 3.2 | 5.1 | 6.1 | 46.2 | 0.0 | -99.9% |
| Long Term Debt | 26.3 | 15.9 | 34.3 | 0.1 | 44.9 | 62,261.1% |
Cash flow
|
|---|
| Capex | 24.5 | 34.8 | 44.6 | 24.5 | 4.1 | -83.3% |
Ratios
|
|---|
| Revenue growth | 243.3% | 86.4% | -12.1% | -9.9% | -30.8% | |
| EBITDA growth | -114.2% | 1,480.1% | -30.0% | -117.0% | 1.0% | |
| Gross Margin | 27.5% | 50.9% | 39.9% | 4.8% | 6.6% | 1.8% |
| EBITDA Margin | 3.4% | 28.9% | 23.0% | -4.4% | -6.4% | -2.0% |
| Net Income Margin | -7.3% | 18.5% | 8.7% | -148.9% | -33.1% | 115.8% |
| SG&A, % of revenue | | | | | 15.4% | 15.4% |
| CAPEX, % of revenue | 44.3% | 33.8% | 49.2% | 30.0% | 7.3% | -22.8% |
| ROIC | -4.5% | 12.9% | 8.8% | -6.4% | -11.3% | -4.9% |
| ROE | -5.0% | 17.0% | 6.1% | -133.7% | -44.4% | 89.4% |
| Net Debt/EBITDA | -3.3x | 0.1x | 1.7x | | | 0.0x |
Revenue and profitability
Luna Gold Corp's Revenue dropped on 30.8% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased on 2.0 pp from -4.4% to -6.4% in 2015.
Gross Margin increased slightly on 1.8 pp from 4.8% to 6.6% in 2015.
Net Income marign jumped on 116 pp from -149% to -33.1% in 2015.
Capital expenditures (CAPEX) and working capital investments
Luna Gold Corp's CAPEX/Revenue was 7.3% in 2015. CAPEX/Revenue dropped on 26.5 pp from 33.8% in 2012 to 7.3% in 2015. It's average level of CAPEX/Revenue for the last three years was 28.8%.
Return on investment
The company operates at negative ROIC (-11.28%) and ROE (-44.36%). ROIC decreased on 4.9 pp from -6.4% to -11.3% in 2015. ROE jumped on 89.4 pp from -134% to -44.4% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.4x and Debt / EBITDA is . Net Debt / EBITDA didn't change in 2015. Debt decreased on 2.9% in 2015 while cash jumped on 102% in 2015.
Appendix 1: Peers in Basic Materials
Below we provide Luna Gold Corp 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 |
|---|
| 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 ($VMS) | | | | | 139.7% |
| |
|---|
| Median (105 companies) | 70.2% | 8.0% | -5.0% | -0.8% | 0.3% |
|---|
| Luna Gold Corp ($LGC) | | 86.4% | -12.1% | -9.9% | -30.8% |
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 ($RGL) | 68.9% | 71.5% | 70.6% | 57.6% | 86.0% |
| |
|---|
| Median (133 companies) | 31.2% | 31.5% | 20.7% | 17.6% | 15.5% |
|---|
| Luna Gold Corp ($LGC) | 27.5% | 50.9% | 39.9% | 4.8% | 6.6% |
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 ($NSU) | 81.0% | 76.8% | 54.5% | 60.4% | 38.6% |
| |
|---|
| Median (137 companies) | 23.3% | 18.4% | 11.3% | 9.9% | 6.8% |
|---|
| Luna Gold Corp ($LGC) | 3.4% | 28.9% | 23.0% | -4.4% | -6.4% |
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 ($FNV) | 9.3% | 3.7% | 35.5% | 201.6% | 230.0% |
| |
|---|
| Median (139 companies) | 23.9% | 26.3% | 25.2% | 16.0% | 13.4% |
|---|
| Luna Gold Corp ($LGC) | 44.3% | 33.8% | 49.2% | 30.0% | 7.3% |
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 ($CFX) | 103.5% | 4.9% | 13.2% | 21.3% | 24.1% |
| |
|---|
| Median (143 companies) | 7.0% | 4.9% | -0.1% | 0.6% | -3.5% |
|---|
| Luna Gold Corp ($LGC) | -4.5% | 12.9% | 8.8% | -6.4% | -11.3% |
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 | 0.7x | 0.9x | 1.3x |
|---|
