Dynacor Gold Mines Inc CAPEX surged on 272% in 2015 while Revenue dropped on 10.5%
29.03.2016 • About Dynacor Gold Mines Inc (
$DNG) • By InTwits
Dynacor Gold Mines Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Dynacor Gold Mines Inc has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.6%. At the same time it's in pair with industry average of 6.7%.
- CAPEX is quite volatile: 14.3 in 2015, 3.9 in 2014, 5.9 in 2013, 2.4 in 2012, 2.1 in 2011
- The company has highly profitable business model: ROIC is at 18.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Dynacor Gold Mines Inc ($DNG) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 74.6 | 105.0 | 112.1 | 88.2 | 78.9 | -10.5% |
| Gross Profit | 11.0 | 17.8 | 20.5 | 16.5 | 12.6 | -23.4% |
| SG&A | | | | 5.3 | 5.2 | -0.8% |
| EBITDA | 7.2 | 13.9 | 15.7 | 12.8 | 9.2 | -28.5% |
| Net Income | 3.4 | 7.7 | 9.1 | 6.1 | 3.2 | -48.2% |
Balance Sheet
|
|---|
| Cash | 2.1 | 3.3 | 8.5 | 14.0 | 6.1 | -56.1% |
| Short Term Debt | 0.2 | 1.4 | 0.2 | 0.2 | 0.2 | 12.6% |
| Long Term Debt | 1.3 | 0.0 | 0.2 | 0.2 | 0.2 | 3.8% |
Cash flow
|
|---|
| Capex | 2.1 | 2.4 | 5.9 | 3.9 | 14.3 | 272.1% |
Ratios
|
|---|
| Revenue growth | 80.4% | 40.8% | 6.8% | -21.4% | -10.5% | |
| EBITDA growth | 43.7% | 92.8% | 13.2% | -18.5% | -28.5% | |
| Gross Margin | 14.8% | 17.0% | 18.3% | 18.7% | 16.0% | -2.7% |
| EBITDA Margin | 9.7% | 13.2% | 14.0% | 14.6% | 11.6% | -2.9% |
| Net Income Margin | 4.5% | 7.3% | 8.1% | 6.9% | 4.0% | -2.9% |
| SG&A, % of revenue | | | | 6.0% | 6.6% | 0.7% |
| CAPEX, % of revenue | 2.8% | 2.3% | 5.3% | 4.4% | 18.2% | 13.8% |
| ROIC | 45.6% | 62.8% | 50.9% | 31.3% | 18.2% | -13.1% |
| ROE | 27.8% | 42.3% | 33.7% | 17.5% | 7.8% | -9.7% |
| Net Debt/EBITDA | -0.1x | -0.1x | -0.5x | -1.1x | -0.6x | 0.4x |
Revenue and profitability
Dynacor Gold Mines Inc's Revenue dropped on 10.5% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 4.7 pp from -4.3% to 0.47% in FY2015.
Gross Margin decreased on 2.7 pp from 18.7% to 16.0% in 2015. SG&A as a % of Revenue increased slightly on 0.65 pp from 6.0% to 6.6% in 2015.
Net Income marign decreased on 2.9 pp from 6.9% to 4.0% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Dynacor Gold Mines Inc had CAPEX/Revenue of 18.2%. Dynacor Gold Mines Inc showed fast CAPEX/Revenue growth of 15.9 pp from 2.3% in 2012 to 18.2% in 2015. It's average CAPEX/Revenue for the last three years was 9.3%.Dynacor Gold Mines Inc has spent a lot to CAPEX (156% of EBITDA) which didn't stop revenue from falling.
Return on investment
The company operates at good ROIC (18.20%) while ROE is low (7.82%). ROIC dropped on 13.1 pp from 31.3% to 18.2% in 2015. ROE decreased on 9.7 pp from 17.5% to 7.8% in 2015.
Leverage (Debt)
Debt level is -0.6x Net Debt / EBITDA and 0.1x Debt / EBITDA. Net Debt / EBITDA jumped on 0.4x from -1.1x to -0.6x in 2015. Debt increased on 8.1% in 2015 while cash dropped on 56.1% in 2015.
Appendix 1: Peers in Basic Materials
Below we provide Dynacor Gold Mines Inc 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 ($VMS) | | | | | 139.7% |
| |
|---|
| Median (119 companies) | 2.8% | 8.0% | -5.1% | -0.8% | -4.0% |
|---|
| Dynacor Gold Mines Inc ($DNG) | | 40.8% | 6.8% | -21.4% | -10.5% |
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 ($PRU) | | 52.5% | 50.9% | 32.0% | 53.7% |
| |
|---|
| Median (113 companies) | 31.2% | 32.0% | 21.8% | 16.8% | 15.5% |
|---|
| Dynacor Gold Mines Inc ($DNG) | 14.8% | 17.0% | 18.3% | 18.7% | 16.0% |
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 ($LUC) | | 7.6% | 57.3% | 57.5% | 60.0% |
| |
|---|
| Median (119 companies) | 23.3% | 18.6% | 11.3% | 9.7% | 6.6% |
|---|
| Dynacor Gold Mines Inc ($DNG) | 9.7% | 13.2% | 14.0% | 14.6% | 11.6% |
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 ($KAT) | 48.4% | 95.8% | 86.8% | 53.7% | 81.0% |
| |
|---|
| Median (119 companies) | 24.1% | 26.3% | 25.5% | 16.3% | 15.7% |
|---|
| Dynacor Gold Mines Inc ($DNG) | 2.8% | 2.3% | 5.3% | 4.4% | 18.2% |
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 ($MRI.U) | 10.8% | 4.9% | 2.4% | 13.5% | 15.8% |
| |
|---|
| Median (121 companies) | 5.4% | 4.9% | -0.1% | -0.1% | -4.8% |
|---|
| Dynacor Gold Mines Inc ($DNG) | 45.6% | 62.8% | 50.9% | 31.3% | 18.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Barkerville Gold Mines Ltd ($BGM) | | | | | 38.8x |
| Copper Mountain Mining Corp ($CUM) | 17.2x | 3.9x | 5.0x | 5.4x | 30.6x |
| Resolute Forest Products Inc ($RFP) | 0.6x | 1.3x | 1.1x | 3.8x | 29.6x |
| Fortress Paper Ltd ($FTP) | 92.5x | | | | 18.8x |
| Jemi Fibre Corp ($JFI) | | | 5.5x | | 17.4x |
| |
|---|
| Median (77 companies) | -0.0x | 0.3x | 0.9x | 0.9x | 1.4x |
|---|
| Dynacor Gold Mines Inc ($DNG) | -0.1x | -0.1x | -0.5x | -1.1x | -0.6x |
