Caledonia Mining Corp CAPEX surged on 111% in 2015 while Revenue dropped on 28.3%
21.03.2016 • About Caledonia Mining Corp (
$CAL) • By InTwits
Caledonia Mining Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 18.3% in 2015, 27.1% in 2014, 38.9% in 2013, 31.9% in 2012, 49.0% in 2011
- Caledonia Mining Corp has high CAPEX intensity: 5 year average CAPEX/Revenue was 17.8%. At the same time it's in pair with industry average of 20.9%.
- CAPEX is quite volatile: 0.45 in 2015, 0.37 in 2014, 0.32 in 2013, 0.12 in 2012, 0.075 in 2011
- The company has business model with low profitability: ROIC is at 8.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Caledonia Mining Corp ($CAL) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 56.346 | 75.274 | 63.230 | 53.513 | 38.351 | -28.3% |
| Gross Profit | 32.467 | 40.944 | 29.017 | 18.543 | 10.321 | -44.3% |
| SG&A | | | | | 5.968 | |
| EBITDA | 27.634 | 24.000 | 24.585 | 14.517 | 7.022 | -51.6% |
| Net Income | 12.270 | 8.726 | -2.967 | 4.435 | 3.742 | -15.6% |
Balance Sheet
|
|---|
| Cash | 9.528 | 28.085 | 23.732 | 23.106 | 9.089 | -60.7% |
| Short Term Debt | 0.423 | 0.000 | 1.690 | 0.000 | 1.221 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 8.626 | 7.915 | 11.399 | 6.146 | 12.973 | 111.1% |
Ratios
|
|---|
| Revenue growth | 159.1% | 33.6% | -16.0% | -15.4% | -28.3% | |
| EBITDA growth | 789.5% | -13.2% | 2.4% | -41.0% | -51.6% | |
| Gross Margin | 57.6% | 54.4% | 45.9% | 34.7% | 26.9% | -7.7% |
| EBITDA Margin | 49.0% | 31.9% | 38.9% | 27.1% | 18.3% | -8.8% |
| Net Income Margin | 21.8% | 11.6% | -4.7% | 8.3% | 9.8% | 1.5% |
| SG&A, % of revenue | | | | | 15.6% | 15.6% |
| CAPEX, % of revenue | 15.3% | 10.5% | 18.0% | 11.5% | 33.8% | 22.3% |
| ROIC | 61.7% | 37.6% | 34.9% | 18.1% | 8.4% | -9.7% |
| ROE | 36.5% | 17.9% | -5.6% | 8.9% | 9.0% | 0.0% |
| Net Debt/EBITDA | -0.3x | -1.2x | -0.9x | -1.6x | -1.1x | 0.5x |
Revenue and profitability
The company's Revenue dropped on 28.3% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 8.8 pp from 27.1% to 18.3% in 2015.
Gross Margin decreased on 7.7 pp from 34.7% to 26.9% in 2015.
Net Income marign increased slightly on 1.5 pp from 8.3% to 9.8% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 33.8%. CAPEX/Revenue surged on 23.3 pp from 10.5% in 2012 to 33.8% in 2015. For the last three years the average CAPEX/Revenue was 21.1%.The company has spent a lot to CAPEX (185% of EBITDA) which didn't stop revenue from falling.
Return on investment
The company operates at low ROIC (8.43%) and ROE (8.97%). ROIC decreased on 9.7 pp from 18.1% to 8.4% in 2015. ROE showed almost no change in 2015.
Leverage (Debt)
Debt level is -1.1x Net Debt / EBITDA and 0.2x Debt / EBITDA. Net Debt / EBITDA jumped on 0.5x from -1.6x to -1.1x in 2015. Debt jumped while cash dropped on 60.7% in 2015.
Appendix 1: Peers in Mining
Below we provide Caledonia Mining Corp benchmarking against other companies in Mining 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 |
|---|
| Rambler Metals & Mining ($RAB) | | -65.4% | 2,744.1% | 79.2% | -34.2% |
| Kirkland Lake Gold Inc ($KGI) | | 54.7% | -5.1% | 14.2% | 26.9% |
| Centamin ($CEE) | | 25.2% | 18.2% | -6.2% | 7.6% |
| China Gold International Resources Corp Ltd ($CGG) | | | -9.0% | -8.2% | 22.4% |
| Minera Irl Ltd ($IRL) | 29.0% | -13.2% | -22.4% | -16.4% | |
| |
|---|
| Median (7 companies) | 15.1% | 2.9% | -2.8% | -8.2% | 7.6% |
|---|
| Caledonia Mining Corp ($CAL) | | 33.6% | -16.0% | -15.4% | -28.3% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Rambler Metals & Mining ($RAB) | 50.2% | 44.7% | 39.6% | 52.2% | 30.6% |
| China Gold International Resources Corp Ltd ($CGG) | | 37.6% | 33.7% | 35.6% | 18.5% |
| Centamin ($CEE) | 62.3% | 60.2% | 44.9% | 24.2% | 18.1% |
| Minera Irl Ltd ($IRL) | 47.3% | 41.0% | 20.7% | 22.7% | |
| Orosur Mining Inc ($OMI) | 33.9% | 21.8% | 7.8% | 9.3% | -5.8% |
| |
|---|
| Median (7 companies) | 40.6% | 39.7% | 27.2% | 22.7% | 18.5% |
|---|
| Caledonia Mining Corp ($CAL) | 57.6% | 54.4% | 45.9% | 34.7% | 26.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Gold International Resources Corp Ltd ($CGG) | | 41.7% | 38.3% | 47.3% | 33.7% |
| Rambler Metals & Mining ($RAB) | -26.1% | -194.4% | 29.6% | 45.1% | 20.5% |
| Centamin ($CEE) | 61.9% | 61.4% | 44.9% | 35.6% | 30.4% |
| Orosur Mining Inc ($OMI) | 29.0% | 14.8% | 17.3% | 27.9% | -49.7% |
| Kirkland Lake Gold Inc ($KGI) | 25.6% | 34.9% | 16.4% | 13.6% | 32.5% |
| |
|---|
| Median (8 companies) | 29.0% | 34.9% | 29.6% | 20.8% | 30.4% |
|---|
| Caledonia Mining Corp ($CAL) | 49.0% | 31.9% | 38.9% | 27.1% | 18.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Gold International Resources Corp Ltd ($CGG) | | 64.7% | 156.1% | 95.6% | 81.4% |
| Kirkland Lake Gold Inc ($KGI) | 54.9% | 44.6% | 72.9% | 47.7% | 21.6% |
| Serabi Gold ($SBI) | 3,151.4% | | | 44.5% | |
| Centamin ($CEE) | 41.0% | 55.9% | 55.8% | 18.7% | 14.0% |
| Orosur Mining Inc ($OMI) | 34.7% | 53.8% | 29.6% | 14.1% | 19.7% |
| |
|---|
| Median (8 companies) | 41.0% | 53.8% | 29.6% | 16.4% | 20.7% |
|---|
| Caledonia Mining Corp ($CAL) | 15.3% | 10.5% | 18.0% | 11.5% | 33.8% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Rambler Metals & Mining ($RAB) | -1.5% | -2.6% | 3.3% | 16.7% | 0.5% |
| Centamin ($CEE) | 30.2% | 24.6% | 15.7% | 6.6% | 4.5% |
| Orosur Mining Inc ($OMI) | 22.0% | 3.8% | -1.5% | 4.5% | -84.1% |
| China Gold International Resources Corp Ltd ($CGG) | | 5.9% | 4.0% | 3.0% | 1.5% |
| Minera Irl Ltd ($IRL) | 13.6% | 6.0% | -0.4% | -0.0% | |
| |
|---|
| Median (8 companies) | 11.3% | 4.9% | 2.4% | 1.5% | 1.5% |
|---|
| Caledonia Mining Corp ($CAL) | 61.7% | 37.6% | 34.9% | 18.1% | 8.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Minera Irl Ltd ($IRL) | -0.0x | 1.0x | 4.2x | 10.0x | |
| China Gold International Resources Corp Ltd ($CGG) | | 0.2x | 3.4x | 4.7x | 7.3x |
| Kirkland Lake Gold Inc ($KGI) | -1.0x | -0.3x | 3.2x | 4.1x | 0.6x |
| Rambler Metals & Mining ($RAB) | | | 2.5x | 0.6x | 2.4x |
| Orosur Mining Inc ($OMI) | -0.6x | -0.4x | 0.2x | -0.3x | |
| |
|---|
| Median (6 companies) | -0.8x | -0.3x | 2.5x | 2.4x | 1.5x |
|---|
| Caledonia Mining Corp ($CAL) | -0.3x | -1.2x | -0.9x | -1.6x | -1.1x |
