Jaguar Mining Inc Net Income dropped on 109% in 2015 and Revenue decreased on 8.5%
22.03.2016 • About Jaguar Mining Inc (
$JAG) • By InTwits
Jaguar Mining Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Jaguar Mining Inc is a company in decline: 2015 revenue growth was -8.5%, 5 years revenue CAGR was -9.0%
- Jaguar Mining Inc motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 was 0.0%. On average EBITDA Margin was -22.7% for the sames years0
- Jaguar Mining Inc has high CAPEX intensity: 5 year average CAPEX/Revenue was 26.2%. At the same time it's in pair with industry average of 28.7%.
- CAPEX is quite volatile: 18.9 in 2015, 22.4 in 2014, 23.8 in 2013, 52.8 in 2012, 111 in 2011
- The company has unprofitable business model: ROIC is at -6.1%
- It operates with high leverage: Net Debt/EBITDA is 3.2x while industry average is 2.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Jaguar Mining Inc ($JAG) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 243.1 | 172.4 | 134.1 | 116.4 | 106.5 | -8.5% |
| Gross Profit | 89.8 | 44.6 | 12.8 | -4.6 | 22.7 | -593.8% |
| SG&A | 25.5 | 18.9 | 16.7 | 12.9 | 10.9 | -15.9% |
| EBITDA | 53.4 | 19.3 | -161.2 | -95.3 | 8.1 | -108.5% |
| Net Income | -65.6 | -84.5 | -249.3 | 130.9 | -11.2 | -108.6% |
Balance Sheet
|
|---|
| Cash | 74.5 | 13.9 | 9.0 | 7.2 | 15.3 | 113.9% |
| Short Term Debt | 22.5 | 27.4 | 316.1 | 29.4 | 13.6 | -53.8% |
| Long Term Debt | 308.9 | 244.6 | 5.9 | 1.5 | 27.6 | 1,692.8% |
Cash flow
|
|---|
| Capex | 110.8 | 52.8 | 23.8 | 22.4 | 18.9 | -15.9% |
Ratios
|
|---|
| Revenue growth | 42.4% | -29.1% | -22.2% | -13.3% | -8.5% | |
| EBITDA growth | 141.2% | -63.8% | -933.7% | -40.9% | -108.5% | |
| Gross Margin | 36.9% | 25.9% | 9.5% | -3.9% | 21.3% | 25.2% |
| EBITDA Margin | 22.0% | 11.2% | -120.2% | -81.9% | 7.6% | 89.5% |
| Net Income Margin | -27.0% | -49.0% | -185.9% | 112.5% | -10.5% | -123.0% |
| SG&A, % of revenue | 10.5% | 11.0% | 12.4% | 11.1% | 10.2% | -0.9% |
| CAPEX, % of revenue | 45.6% | 30.6% | 17.8% | 19.3% | 17.7% | -1.6% |
| ROIC | 1.1% | -4.0% | -55.3% | -64.1% | -6.1% | 58.0% |
| ROE | -24.4% | -43.2% | | | -11.5% | -11.5% |
| Net Debt/EBITDA | 4.8x | 13.3x | | | 3.2x | 3.2x |
Revenue and profitability
Jaguar Mining Inc's Revenue decreased on 8.5% in 2015. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin jumped on 89.5 pp from -81.9% to 7.6% in 2015.
Gross Margin jumped on 25.2 pp from -3.9% to 21.3% in 2015. SG&A as a % of Revenue decreased slightly on 0.90 pp from 11.1% to 10.2% in 2015.
Net Income marign dropped on 123 pp from 112% to -10.5% in 2015.
Capital expenditures (CAPEX) and working capital investments
Jaguar Mining Inc's CAPEX/Revenue was 17.7% in 2015. CAPEX/Revenue dropped on 12.9 pp from 30.6% in 2012 to 17.7% in 2015. For the last three years the average CAPEX/Revenue was 18.3%.Jaguar Mining Inc has spent a lot to CAPEX (233% of EBITDA) which didn't stop revenue from falling.
Return on investment
The company operates at negative ROIC (-6.12%) and ROE (-11.54%). ROIC jumped on 58.0 pp from -64.1% to -6.1% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 3.2x and Debt / EBITDA is 5.1x. Net Debt / EBITDA surged3.2x from to 3.2x in 2015. Debt surged on 33.0% in 2015 while cash surged on 114% in 2015.
Management team
Jaguar Mining Inc's CEO is Rodney D Lamond "Rod". Rodney D Lamond "Rod" is a founder and has 2 years tenure at the company. The company's CFO is Hashim Ahmed. Hashim Ahmed has 2 years tenure at the company.
Appendix 1: Peers in Basic Materials
Below you can find Jaguar Mining Inc 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 ($VMS) | | | | | 139.7% |
| |
|---|
| Median (110 companies) | 39.5% | 8.5% | -5.0% | -0.8% | -0.4% |
|---|
| Jaguar Mining Inc ($JAG) | | -29.1% | -22.2% | -13.3% | -8.5% |
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% | 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 ($RGL) | 68.9% | 71.5% | 70.6% | 57.6% | 86.0% |
| |
|---|
| Median (133 companies) | 30.1% | 32.0% | 21.8% | 17.6% | 15.5% |
|---|
| Jaguar Mining Inc ($JAG) | 36.9% | 25.9% | 9.5% | -3.9% | 21.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Labrador Iron Ore Royalty Corp ($LIF) | | | | | 72.8% |
| Silver Wheaton Corp ($SLW) | 84.8% | 82.6% | 75.3% | 69.6% | 65.8% |
| 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% |
| Lucara Diamond Corp ($LUC) | | 7.6% | 57.3% | 57.5% | 60.0% |
| |
|---|
| Median (110 companies) | 23.3% | 18.6% | 11.7% | 9.9% | 6.6% |
|---|
| Jaguar Mining Inc ($JAG) | 22.0% | 11.2% | -120.2% | -81.9% | 7.6% |
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 ($FNV) | 9.3% | 3.7% | 35.5% | 201.6% | 230.0% |
| |
|---|
| Median (139 companies) | 23.9% | 26.3% | 25.5% | 16.0% | 13.9% |
|---|
| Jaguar Mining Inc ($JAG) | 45.6% | 30.6% | 17.8% | 19.3% | 17.7% |
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 ($CFX) | 103.5% | 4.9% | 13.2% | 21.3% | 24.1% |
| |
|---|
| Median (143 companies) | 7.0% | 4.9% | 0.1% | 0.6% | -3.6% |
|---|
| Jaguar Mining Inc ($JAG) | 1.1% | -4.0% | -55.3% | -64.1% | -6.1% |
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) | -0.1x | 0.3x | 0.8x | 0.9x | 1.3x |
|---|
