Orosur Mining Inc CAPEX dropped on 49.9% in 2016 and Revenue dropped on 34.9%
16.08.2016 • About Orosur Mining Inc (
$OMI) • By InTwits
Orosur Mining Inc reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Orosur Mining Inc is a company in decline: FY2016 revenue growth was -34.9%, 5 years revenue CAGR was -11.4%
- The company operates at negative EBITDA Margin: -3.9%
- EBITDA Margin is quite volatile: -3.9% in FY2016, -49.7% in FY2015, 27.9% in FY2014, 17.3% in FY2013, 14.8% in FY2012
- Orosur Mining Inc has high CAPEX intensity: 5 year average CAPEX/Revenue was 26.4%. At the same time it's a lot of higher than industry average of 17.3%.
- CAPEX is quite volatile: 6.5 in FY2016, 13.0 in FY2015, 11.3 in FY2014, 31.3 in FY2013, 50.4 in FY2012
- The company has unprofitable business model: ROIC is at -23.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Orosur Mining Inc ($OMI) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 93.7 | 105.9 | 80.4 | 65.9 | 42.9 | -34.9% |
| Gross Profit | 20.4 | 8.2 | 7.5 | -3.8 | 0.8 | -120.6% |
| SG&A | | | | 2.9 | 2.1 | -25.9% |
| EBITDA | 13.9 | 18.4 | 22.5 | -32.8 | -1.7 | -94.9% |
| Net Income | 1.2 | -14.8 | 5.1 | -54.4 | -1.2 | -97.8% |
Balance Sheet
|
|---|
| Cash | 11.5 | 5.6 | 10.8 | 4.8 | 4.3 | -9.8% |
| Short Term Debt | 3.4 | 4.2 | 4.0 | 1.1 | 0.3 | -77.6% |
| Long Term Debt | 2.8 | 4.8 | 1.0 | 0.4 | 0.1 | -71.9% |
Cash flow
|
|---|
| Capex | 50.4 | 31.3 | 11.3 | 13.0 | 6.5 | -49.9% |
Ratios
|
|---|
| Revenue growth | 19.0% | 13.0% | -24.1% | -18.0% | -34.9% | |
| EBITDA growth | -39.3% | 32.2% | 22.4% | -245.9% | -94.9% | |
| Gross Margin | 21.8% | 7.8% | 9.3% | -5.8% | 1.8% | 7.7% |
| EBITDA Margin | 14.8% | 17.3% | 27.9% | -49.7% | -3.9% | 45.8% |
| Net Income Margin | 1.3% | -14.0% | 6.4% | -82.6% | -2.8% | 79.7% |
| SG&A, % of revenue | | | | 4.4% | 5.0% | 0.6% |
| CAPEX, % of revenue | 53.8% | 29.6% | 14.1% | 19.7% | 15.1% | -4.5% |
| ROIC | 3.8% | -1.5% | 4.5% | -84.1% | -23.6% | 60.6% |
| ROE | 1.4% | -17.4% | 6.4% | -93.1% | -3.7% | 89.4% |
| Net Debt/EBITDA | -0.4x | 0.2x | -0.3x | | | 0.0x |
Revenue and profitability
Orosur Mining Inc's Revenue dropped on 34.9% in FY2016. Despite revenue decline the EBITDA margin expanded. EBITDA Margin jumped on 45.8 pp from -49.7% to -3.9% in FY2016.
Gross Margin increased on 7.7 pp from -5.8% to 1.8% in FY2016. SG&A as a % of Revenue increased slightly on 0.61 pp from 4.4% to 5.0% in FY2016.
Net Income marign surged on 79.7 pp from -82.6% to -2.8% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Orosur Mining Inc's CAPEX/Revenue was 15.1% in FY2016. Orosur Mining Inc showed big decline in CAPEX/Revenue of 14.4 pp from 29.6% in FY2013 to 15.1% in FY2016. For the last three years the average CAPEX/Revenue was 16.3%.
Return on investment
The company operates at negative ROIC (-23.59%) and ROE (-3.66%). ROIC jumped on 60.6 pp from -84.1% to -23.6% in FY2016. ROE jumped on 89.4 pp from -93.1% to -3.7% in FY2016.
Leverage (Debt)
Debt level is -0.3x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in FY2016. Debt dropped on 76.2% in FY2016 while cash decreased on 9.8% in FY2016.
Appendix 1: Peers in Mining
Below we provide Orosur Mining Inc benchmarking against other companies in Mining 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Serabi Gold ($SBI) | | | | 177.8% | |
| Anglo Pacific Group ($APY) | -56.3% | -2.8% | -76.4% | 149.4% | |
| Kirkland Lake Gold Inc ($KGI) | 54.7% | -5.1% | 14.2% | 26.9% | |
| China Gold International Resources Corp Ltd ($CGG) | | -9.0% | -8.2% | 22.4% | |
| Centamin ($CEE) | 25.2% | 18.2% | -6.2% | 7.6% | |
| |
|---|
| Median (8 companies) | 6.0% | -5.1% | -8.2% | 15.0% | |
|---|
| Orosur Mining Inc ($OMI) | | 13.0% | -24.1% | -18.0% | -34.9% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Serabi Gold ($SBI) | | | 2.3% | 32.8% | |
| Rambler Metals & Mining ($RAB) | 44.7% | 39.6% | 52.2% | 30.6% | |
| Caledonia Mining Corp ($CAL) | 54.4% | 45.9% | 34.7% | 26.9% | |
| Minera Irl Ltd ($IRL) | 41.0% | 20.7% | 22.7% | 23.7% | |
| Kirkland Lake Gold Inc ($KGI) | 38.5% | 18.3% | 6.1% | 22.8% | |
| |
|---|
| Median (7 companies) | 42.9% | 36.6% | 24.2% | 23.7% | |
|---|
| Orosur Mining Inc ($OMI) | 21.8% | 7.8% | 9.3% | -5.8% | 1.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Anglo Pacific Group ($APY) | 76.2% | 77.9% | -58.0% | 53.7% | |
| China Gold International Resources Corp Ltd ($CGG) | 41.7% | 38.3% | 47.3% | 33.7% | |
| Kirkland Lake Gold Inc ($KGI) | 34.9% | 16.4% | 13.6% | 32.5% | |
| Centamin ($CEE) | 61.4% | 44.9% | 35.6% | 30.4% | |
| Rambler Metals & Mining ($RAB) | -194.4% | 29.6% | 45.1% | 20.5% | |
| |
|---|
| Median (8 companies) | 34.9% | 38.3% | 20.3% | 25.4% | |
|---|
| Orosur Mining Inc ($OMI) | 14.8% | 17.3% | 27.9% | -49.7% | -3.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Gold International Resources Corp Ltd ($CGG) | 64.7% | 156.1% | 95.6% | 81.4% | |
| Caledonia Mining Corp ($CAL) | 10.5% | 18.0% | 11.5% | 33.8% | |
| Minera Irl Ltd ($IRL) | 4.5% | 10.9% | 7.5% | 24.8% | |
| Kirkland Lake Gold Inc ($KGI) | 44.6% | 72.9% | 47.7% | 21.6% | |
| Rambler Metals & Mining ($RAB) | 820.8% | 24.2% | 13.9% | 20.7% | |
| |
|---|
| Median (8 companies) | 44.6% | 24.2% | 16.3% | 21.1% | |
|---|
| Orosur Mining Inc ($OMI) | 53.8% | 29.6% | 14.1% | 19.7% | 15.1% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kirkland Lake Gold Inc ($KGI) | 19.7% | 1.5% | -0.7% | 9.2% | |
| Caledonia Mining Corp ($CAL) | 37.6% | 34.9% | 18.1% | 8.4% | |
| Centamin ($CEE) | 24.6% | 15.7% | 6.6% | 4.5% | |
| China Gold International Resources Corp Ltd ($CGG) | 5.9% | 4.0% | 3.0% | 1.5% | |
| Serabi Gold ($SBI) | -9.1% | -8.9% | -5.8% | 1.2% | |
| |
|---|
| Median (8 companies) | 6.0% | 3.4% | 1.5% | 1.3% | |
|---|
| Orosur Mining Inc ($OMI) | 3.8% | -1.5% | 4.5% | -84.1% | -23.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Gold International Resources Corp Ltd ($CGG) | 0.2x | 3.4x | 4.7x | 7.3x | |
| Rambler Metals & Mining ($RAB) | | 2.5x | 0.6x | 2.4x | |
| Serabi Gold ($SBI) | | | | 1.4x | |
| Kirkland Lake Gold Inc ($KGI) | -0.3x | 3.2x | 4.1x | 0.6x | |
| Anglo Pacific Group ($APY) | -2.1x | -1.4x | | 0.3x | |
| |
|---|
| Median (7 companies) | -0.4x | 2.5x | 2.4x | 0.6x | |
|---|
