Aura Minerals Inc Debt dropped on 67.3% in 2015 and Revenue dropped on 37.5%
24.03.2016 • About Aura Minerals Inc (
$ORA) • By InTwits
Aura Minerals Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Aura Minerals Inc doesn't have a profitable business model yet: 2015 ROIC is -4.6%
- EBITDA Margin is quite volatile: 1.7% in 2015, 8.1% in 2014, 9.4% in 2013, 5.4% in 2012, 14.6% in 2011
- Aura Minerals Inc has high CAPEX intensity: 5 year average CAPEX/Revenue was 11.1%. At the same time it's a lot of higher than industry average of 9.1%.
- CAPEX is quite volatile: 11.7 in 2015, 19.2 in 2014, 49.5 in 2013, 28.6 in 2012, 49.0 in 2011
- The company has unprofitable business model: ROIC is at -4.6%
- It operates with medium-size leverage: Net Debt/EBITDA is 2.9x while industry average is 2.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Aura Minerals Inc ($ORA) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 288.4 | 307.4 | 330.9 | 265.4 | 165.8 | -37.5% |
| Gross Profit | 24.2 | -15.3 | -5.7 | 10.7 | 14.2 | 32.5% |
| SG&A | | | | | 8.4 | |
| EBITDA | 42.2 | 16.6 | 31.1 | 21.6 | 2.8 | -87.0% |
| Net Income | -41.8 | -54.9 | -74.2 | -142.9 | -14.5 | -89.9% |
Balance Sheet
|
|---|
| Cash | 22.5 | 9.3 | 15.4 | 7.8 | 2.3 | -71.1% |
| Short Term Debt | 3.3 | 3.4 | 49.9 | 31.7 | 7.6 | -75.9% |
| Long Term Debt | 19.3 | 30.4 | 0.2 | 0.0 | 2.8 | |
Cash flow
|
|---|
| Capex | 49.0 | 28.6 | 49.5 | 19.2 | 11.7 | -38.8% |
Ratios
|
|---|
| Revenue growth | 76.3% | 6.6% | 7.6% | -19.8% | -37.5% | |
| EBITDA growth | -759.1% | -60.7% | 87.2% | -30.6% | -87.0% | |
| Gross Margin | 8.4% | -5.0% | -1.7% | 4.0% | 8.6% | 4.5% |
| EBITDA Margin | 14.6% | 5.4% | 9.4% | 8.1% | 1.7% | -6.4% |
| Net Income Margin | -14.5% | -17.9% | -22.4% | -53.8% | -8.7% | 45.1% |
| SG&A, % of revenue | | | | | 5.1% | 5.1% |
| CAPEX, % of revenue | 17.0% | 9.3% | 14.9% | 7.2% | 7.1% | -0.1% |
| ROIC | -3.7% | -11.5% | -7.8% | -1.6% | -4.6% | -3.0% |
| ROE | -12.9% | -17.6% | -29.8% | -101.8% | -18.7% | 83.1% |
| Net Debt/EBITDA | 0.0x | 1.5x | 1.1x | 1.1x | 2.9x | 1.8x |
Revenue and profitability
The company's Revenue dropped on 37.5% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 6.4 pp from 8.1% to 1.7% in 2015.
Gross Margin increased on 4.5 pp from 4.0% to 8.6% in 2015.
Net Income marign surged on 45.1 pp from -53.8% to -8.7% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 7.1% in 2015. The company showed decline in CAPEX/Revenue of 2.2 pp from 9.3% in 2012 to 7.1% in 2015. Average CAPEX/Revenue for the last three years was 9.7%.The company has spent a lot to CAPEX (418% of EBITDA) which didn't stop revenue from falling.
Return on investment
The company operates at negative ROIC (-4.56%) and ROE (-18.69%). ROIC decreased on 3.0 pp from -1.6% to -4.6% in 2015. ROE surged on 83.1 pp from -102% to -18.7% in 2015.
Leverage (Debt)
Debt level is 2.9x Net Debt / EBITDA and 3.7x Debt / EBITDA. Net Debt / EBITDA surged on 1.8x from 1.1x to 2.9x in 2015. Debt dropped on 67.3% in 2015 while cash dropped on 71.1% in 2015.
Appendix 1: Peers in Basic Materials
Below you can find Aura Minerals 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 ($VMS) | | | | | 139.7% |
| |
|---|
| Median (116 companies) | 13.6% | 8.5% | -5.1% | -0.8% | -1.5% |
|---|
| Aura Minerals Inc ($ORA) | | 6.6% | 7.6% | -19.8% | -37.5% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Royal Gold Inc ($RGL) | 68.9% | 71.5% | 70.6% | 57.6% | 86.0% |
| Nevsun Resources Ltd ($NSU) | 90.3% | 89.9% | 94.8% | 95.5% | 82.3% |
| 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% |
| Perseus Mining Ltd ($PRU) | | 52.5% | 50.9% | 32.0% | 53.7% |
| |
|---|
| Median (111 companies) | 31.2% | 32.0% | 21.8% | 17.6% | 15.7% |
|---|
| Aura Minerals Inc ($ORA) | 8.4% | -5.0% | -1.7% | 4.0% | 8.6% |
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 ($LUC) | | 7.6% | 57.3% | 57.5% | 60.0% |
| |
|---|
| Median (116 companies) | 23.3% | 18.6% | 11.7% | 9.9% | 6.4% |
|---|
| Aura Minerals Inc ($ORA) | 14.6% | 5.4% | 9.4% | 8.1% | 1.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Silver Wheaton Corp ($SLW) | 19.4% | 75.5% | 286.8% | 22.5% | 279.2% |
| Franco-Nevada Corp ($FNV) | 9.3% | 3.7% | 35.5% | 201.6% | 230.0% |
| Avino Silver & Gold Mines Ltd ($ASM) | | 211.7% | 5.6% | 89.8% | 163.3% |
| Amerigo Resources Ltd ($ARG) | 12.9% | 13.0% | 9.3% | 9.8% | 99.6% |
| Katanga Mining Ltd ($KAT) | 48.4% | 95.8% | 86.8% | 53.7% | 81.0% |
| |
|---|
| Median (116 companies) | 24.1% | 26.3% | 25.5% | 16.3% | 14.9% |
|---|
| Aura Minerals Inc ($ORA) | 17.0% | 9.3% | 14.9% | 7.2% | 7.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lucara Diamond Corp ($LUC) | -7.1% | -2.9% | 41.3% | 54.7% | 39.6% |
| Canfor Pulp Products Inc ($CFX) | 103.5% | 4.9% | 13.2% | 21.3% | 24.1% |
| Supremex Inc ($SXP) | 13.9% | 14.1% | 18.5% | 16.5% | 23.4% |
| Western Forest Products Inc ($WEF) | 7.5% | 9.0% | 25.1% | 15.7% | 16.4% |
| Mercer International Inc ($MRI.U) | 10.8% | 4.9% | 2.4% | 13.5% | 15.8% |
| |
|---|
| Median (118 companies) | 7.0% | 4.9% | 0.1% | 0.6% | -5.1% |
|---|
| Aura Minerals Inc ($ORA) | -3.7% | -11.5% | -7.8% | -1.6% | -4.6% |
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 ($III) | -0.1x | 1.5x | 4.9x | 12.9x | |
| |
|---|
| Median (94 companies) | -0.1x | 0.3x | 0.7x | 0.9x | 1.3x |
|---|
| Aura Minerals Inc ($ORA) | 0.0x | 1.5x | 1.1x | 1.1x | 2.9x |
