Barkerville Gold Mines Ltd EBITDA dropped on 2,711% in 2016 and Revenue dropped on 57.7%
17.06.2016 • About Barkerville Gold Mines Ltd (
$BGM) • By InTwits
Barkerville Gold Mines Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Barkerville Gold Mines Ltd doesn't have a profitable business model yet: FY2016 ROIC is -49.0%
- The company operates at negative EBITDA Margin: -99.3%
- Barkerville Gold Mines Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 was 0.0%. On average EBITDA Margin was -92.4% for the sames years0
- Barkerville Gold Mines Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 1,456.3%. At the same time it's a lot of higher than industry average of 24.1%.
- CAPEX is quite volatile: 3.0 in FY2016, 0.99 in FY2015, 2.6 in FY2014, 0.75 in FY2013, 6.1 in FY2012
- The company has unprofitable business model: ROIC is at -49.0%
- It operates with high leverage: Net Debt/EBITDA is 18.3x while industry average is 0.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Barkerville Gold Mines Ltd ($BGM) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 15.942 | 1.503 | 0.037 | 31.202 | 13.192 | -57.7% |
| Gross Profit | 5.000 | 0.631 | 0.018 | 7.535 | 8.258 | 9.6% |
| SG&A | | | | 3.464 | 5.809 | 67.7% |
| EBITDA | -25.676 | -10.447 | -8.437 | 0.502 | -13.103 | -2,711.1% |
| Net Income | -29.734 | -12.539 | -12.704 | -21.308 | -8.060 | |
Balance Sheet
|
|---|
| Cash | 6.732 | 0.129 | 0.352 | 0.477 | 25.091 | 5,160.6% |
| Short Term Debt | 4.652 | 0.000 | 6.107 | 19.823 | 0.034 | -99.8% |
| Long Term Debt | 0.000 | 0.000 | 6.845 | 0.106 | 0.070 | -33.7% |
Cash flow
|
|---|
| Capex | 6.139 | 0.750 | 2.637 | 0.991 | 2.995 | 202.4% |
Ratios
|
|---|
| Revenue growth | 97.4% | -90.6% | -97.6% | 84,715.6% | -57.7% | |
| EBITDA growth | 30.0% | -59.3% | -19.2% | -105.9% | -2,711.1% | |
| Gross Margin | 31.4% | 42.0% | 48.1% | 24.1% | 62.6% | 38.4% |
| EBITDA Margin | -161.1% | -695.3% | -22,935.4% | 1.6% | -99.3% | -100.9% |
| Net Income Margin | -186.5% | -834.5% | -34,533.0% | -68.3% | -61.1% | 7.2% |
| SG&A, % of revenue | | | | 11.1% | 44.0% | 32.9% |
| CAPEX, % of revenue | 38.5% | 49.9% | 7,166.9% | 3.2% | 22.7% | 19.5% |
| ROIC | -93.7% | -41.1% | -38.4% | -15.9% | -49.0% | -33.0% |
| ROE | -117.6% | -48.4% | -71.4% | -276.1% | -44.2% | 231.9% |
| Net Debt/EBITDA | | | | 38.8x | | -38.8x |
Revenue and profitability
Barkerville Gold Mines Ltd's Revenue dropped on 57.7%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 101 pp from 1.6% to -99.3% in FY2016.
Gross Margin jumped on 38.4 pp from 24.1% to 62.6% in FY2016. SG&A as a % of Revenue jumped on 32.9 pp from 11.1% to 44.0% in FY2016.
Net Income marign increased on 7.2 pp from -68.3% to -61.1% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 22.7%. Barkerville Gold Mines Ltd showed big decline in CAPEX/Revenue of 27.2 pp from 49.9% in FY2013 to 22.7% in FY2016. Average CAPEX/Revenue for the last three years was 2,398%.
Return on investment
The company operates at negative ROIC (-48.95%) and ROE (-44.19%). ROIC dropped on 33.0 pp from -15.9% to -49.0% in FY2016. ROE jumped on 232 pp from -276% to -44.2% in FY2016.
Leverage (Debt)
Debt level is 18.3x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA dropped on 38.8x from 38.8x to in FY2016. Debt dropped on 99.5% while cash surged on 5,161%.
Appendix 1: Peers in Basic Materials
Below you can find Barkerville Gold Mines Ltd 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Avino Silver & Gold Mines Ltd ($ASM) | | 613.6% | 19.9% | -1.1% | 109.1% |
| Trevali Mining Corp ($TV) | | | | 12.9% | 86.4% |
| Geodrill Ltd ($GEO) | | -43.3% | -4.3% | 34.6% | 53.1% |
| Tahoe Resources Inc ($THO) | | | | 48.4% | 50.9% |
| Osisko Gold Royalties Ltd ($OR) | | | | 164.4% | 38.0% |
| |
|---|
| Median (83 companies) | 100.8% | -2.9% | 1.9% | -1.8% | 6.2% |
|---|
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Nevsun Resources Ltd ($NSU) | 89.9% | 94.8% | 95.5% | 82.3% | 79.7% |
| Labrador Iron Ore Royalty Corp ($LIF) | 80.2% | 80.2% | 80.2% | 80.3% | 80.3% |
| Lucara Diamond Corp ($LUC) | 42.5% | 57.4% | 66.7% | 60.9% | 65.6% |
| Trevali Mining Corp ($TV) | | | 49.0% | 59.3% | |
| Perseus Mining Ltd ($PRU) | 52.5% | 50.9% | 32.0% | 53.7% | 26.3% |
| |
|---|
| Median (95 companies) | 32.1% | 22.4% | 18.6% | 16.5% | 24.8% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Labrador Iron Ore Royalty Corp ($LIF) | | | | 72.8% | 73.5% |
| Silver Wheaton Corp ($SLW) | 82.6% | 75.3% | 69.6% | 65.8% | 59.7% |
| Franco-Nevada Corp ($FNV) | 62.1% | 44.6% | 72.3% | 60.8% | 70.3% |
| Lucara Diamond Corp ($LUC) | 7.6% | 57.3% | 57.5% | 60.0% | 62.4% |
| Sandstorm Gold Ltd ($SSL) | 74.3% | 49.9% | 62.1% | 56.5% | 64.6% |
| |
|---|
| Median (101 companies) | 18.6% | 11.3% | 10.6% | 7.0% | 23.5% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Largo Resources Ltd ($LGO) | | | | 567.6% | |
| Sandstorm Gold Ltd ($SSL) | 152.1% | 118.8% | 49.4% | 412.7% | 17.3% |
| Silver Wheaton Corp ($SLW) | 75.5% | 286.8% | 22.5% | 279.2% | 90.3% |
| Franco-Nevada Corp ($FNV) | 3.7% | 35.5% | 201.6% | 230.0% | 122.4% |
| Avino Silver & Gold Mines Ltd ($ASM) | 211.7% | 5.6% | 89.8% | 163.3% | |
| |
|---|
| Median (101 companies) | 27.8% | 26.9% | 17.5% | 16.7% | 17.9% |
|---|
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Lucara Diamond Corp ($LUC) | -2.9% | 41.3% | 54.7% | 39.6% | 58.5% |
| Western Forest Products Inc ($WEF) | 9.0% | 25.1% | 15.7% | 16.4% | 25.1% |
| Geodrill Ltd ($GEO) | 8.6% | -3.5% | -9.3% | 3.6% | 20.3% |
| Supremex Inc ($SXP) | 14.1% | 18.5% | 16.5% | 23.4% | 19.3% |
| Canfor Pulp Products Inc ($CFX) | 4.9% | 13.2% | 21.3% | 24.1% | 17.0% |
| |
|---|
| Median (100 companies) | 4.9% | 0.7% | 1.6% | -3.6% | 4.4% |
|---|
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Canam Group Inc ($CAM) | 4.2x | 2.6x | 3.2x | 1.8x | 13.9x |
| Taseko Mines Ltd ($TKO) | 7.4x | 5.9x | 10.2x | 5.9x | 11.0x |
| Methanex Corp ($MX) | 5.2x | 0.7x | 0.9x | 3.0x | 5.2x |
| Copper Mountain Mining Corp ($CUM) | 3.9x | 5.0x | 5.4x | 30.6x | 5.1x |
| Cameco Corp ($CCO) | 2.0x | 2.1x | 2.5x | 1.9x | 5.1x |
| |
|---|
| Median (58 companies) | 0.3x | 0.8x | 1.1x | 1.6x | 0.6x |
|---|
