Northern Sun Mining Corp revenue surged on 44.5% in 2015 while EBITDA Margin dropped on 386 pp from -74.8% to -461%
21.04.2016 • About Northern Sun Mining Corp (
$NSC) • By InTwits
Northern Sun Mining Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- The company operates at negative EBITDA Margin: -461.1%
- Northern Sun Mining Corp spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 is 0.0%. Average EBITDA Margin for the same period was -258.3%0
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Northern Sun Mining Corp ($NSC) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2.164 | 8.990 | 0.057 | 5.137 | 7.424 | 44.5% |
| Gross Profit | -13.654 | -18.427 | -12.549 | -5.677 | -2.843 | -49.9% |
| SG&A | | | | | 0.924 | |
| EBITDA | | -13.422 | -9.907 | -3.844 | -34.233 | 790.6% |
| Net Income | -26.763 | -64.383 | -28.912 | -28.746 | -64.758 | 125.3% |
Balance Sheet
|
|---|
| Cash | 1.304 | 0.607 | 0.557 | 0.566 | 0.899 | 58.8% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.050 | 0.032 | -36.9% |
| Long Term Debt | 0.000 | 0.000 | 0.055 | 0.064 | 0.034 | -46.3% |
Cash flow
|
|---|
| Capex | | 9.278 | 0.227 | 0.867 | 0.620 | -28.5% |
Ratios
|
|---|
| Revenue growth | -93.3% | 315.4% | -99.4% | 8,924.9% | 44.5% | |
| EBITDA growth | | | -26.2% | -61.2% | 790.6% | |
| Gross Margin | -630.9% | -205.0% | -22,047.2% | -110.5% | -38.3% | 72.2% |
| EBITDA Margin | 0.0% | -149.3% | -17,405.7% | -74.8% | -461.1% | -386.3% |
| Net Income Margin | -1,236.6% | -716.1% | -50,793.6% | -559.6% | -872.2% | -312.7% |
| SG&A, % of revenue | | | | | 12.4% | 12.4% |
| CAPEX, % of revenue | | 103.2% | 398.8% | 16.9% | 8.3% | -8.5% |
| ROIC | -209.8% | | | | | 0.0% |
Revenue and profitability
The company's Revenue jumped on 44.5% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.61 pp from 6.8% to 7.4% in FY2015.
Gross Margin surged on 72.2 pp from -111% to -38.3% in 2015.
Net Income marign dropped on 313 pp from -560% to -872% in 2015.
Capital expenditures (CAPEX) and working capital investments
Northern Sun Mining Corp's CAPEX/Revenue was 8.3% in 2015. The company showed big decline in CAPEX/Revenue of 94.9 pp from 103% in 2012 to 8.3% in 2015. Average CAPEX/Revenue for the last three years was 141%.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.5x and Debt / EBITDA is . Net Debt / EBITDA didn't change in 2015. Debt dropped on 42.2% in 2015 while cash surged on 58.8% in 2015.
Appendix 1: Peers in Basic Materials
Below we provide Northern Sun Mining 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 ($VMS) | | | | | 139.7% |
| |
|---|
| Median (134 companies) | -39.6% | 8.6% | -5.0% | -1.1% | -2.9% |
|---|
| Northern Sun Mining Corp ($NSC) | | 315.4% | -99.4% | 8,924.9% | 44.5% |
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% |
| Trevali Mining Corp ($TV) | | | | 49.0% | 59.3% |
| |
|---|
| Median (128 companies) | 30.7% | 31.8% | 21.3% | 17.2% | 15.6% |
|---|
| Northern Sun Mining Corp ($NSC) | -630.9% | -205.0% | -22,047.2% | -110.5% | -38.3% |
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 ($LUC) | | 7.6% | 57.3% | 57.5% | 60.0% |
| |
|---|
| Median (135 companies) | 22.0% | 18.5% | 11.5% | 9.8% | 6.3% |
|---|
| Northern Sun Mining Corp ($NSC) | | -149.3% | -17,405.7% | -74.8% | -461.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sandstorm Gold Ltd ($SSL) | 113.4% | 152.1% | 118.8% | 49.4% | 412.7% |
| Silver Wheaton Corp ($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 ($ARG) | 12.9% | 13.0% | 9.3% | 9.8% | 99.6% |
| |
|---|
| Median (135 companies) | 24.1% | 26.2% | 25.1% | 16.1% | 15.7% |
|---|
| Northern Sun Mining Corp ($NSC) | | 103.2% | 398.8% | 16.9% | 8.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lucara Diamond Corp ($LUC) | -7.1% | -2.9% | 41.3% | 54.7% | 39.6% |
| Canfor Pulp Products Inc ($CFX) | 103.5% | 4.9% | 13.2% | 21.3% | 24.1% |
| Supremex Inc ($SXP) | 13.9% | 14.1% | 18.5% | 16.5% | 23.4% |
| Claude Resources Inc ($CRJ) | 7.1% | 4.5% | -5.6% | 3.6% | 19.3% |
| Dynacor Gold Mines Inc ($DNG) | 45.6% | 62.8% | 50.9% | 31.3% | 18.2% |
| |
|---|
| Median (137 companies) | 7.0% | 4.9% | -0.1% | -0.1% | -5.3% |
|---|
| Northern Sun Mining Corp ($NSC) | -209.8% | | | | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Imperial Metals Corp ($III) | -0.1x | 1.5x | 4.9x | 12.9x | 67.5x |
| Barkerville Gold Mines Ltd ($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 |
| |
|---|
| Median (85 companies) | -0.1x | 0.3x | 0.8x | 0.9x | 1.4x |
|---|
