Anaconda Mining Inc reports 724% EBITDA growth and 9.6% Revenue growth
26.08.2016 • About Anaconda Mining Inc (
$ANX) • By InTwits
Anaconda Mining Inc reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Anaconda Mining Inc doesn't have a profitable business model yet: FY2016 ROIC is 1.7%
- EBITDA Margin is quite volatile: 17.0% in FY2016, 2.3% in FY2015, 17.4% in FY2014, 31.4% in FY2013, 30.0% in FY2012
- Anaconda Mining Inc has high CAPEX intensity: 5 year average CAPEX/Revenue was 15.7%. At the same time it's a lot of higher than industry average of 24.1%.
- CAPEX is quite volatile: 5.2 in FY2016, 2.9 in FY2015, 6.7 in FY2014, 9.8 in FY2013, 18.8 in FY2012
- The company has potentially unprofitable business model: ROIC is at 1.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Anaconda Mining Inc ($ANX) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 19.313 | 24.173 | 20.175 | 22.234 | 24.361 | 9.6% |
| Gross Profit | 8.457 | 7.167 | 2.337 | 0.539 | 3.202 | 494.4% |
| SG&A | | | | 2.032 | 2.631 | 29.4% |
| EBITDA | 5.784 | 7.584 | 3.511 | 0.504 | 4.153 | 724.1% |
| Net Income | 3.298 | 7.622 | 4.292 | -2.775 | 0.195 | |
Balance Sheet
|
|---|
| Cash | 0.679 | 0.467 | 2.754 | 1.435 | 1.636 | 14.0% |
| Short Term Debt | 0.360 | 0.173 | 0.097 | 0.018 | 0.115 | 527.7% |
| Long Term Debt | 3.342 | 0.089 | 0.032 | 0.042 | 0.409 | 865.6% |
Cash flow
|
|---|
| Capex | 2.839 | 3.477 | 3.104 | 3.491 | 4.426 | 26.8% |
Ratios
|
|---|
| Revenue growth | 171.4% | 25.2% | -16.5% | 10.2% | 9.6% | |
| EBITDA growth | -201.3% | 31.1% | -53.7% | -85.6% | 724.1% | |
| Gross Margin | 43.8% | 29.7% | 11.6% | 2.4% | 13.1% | 10.7% |
| EBITDA Margin | 30.0% | 31.4% | 17.4% | 2.3% | 17.0% | 14.8% |
| Net Income Margin | 17.1% | 31.5% | 21.3% | -12.5% | 0.8% | 13.3% |
| SG&A, % of revenue | | | | 9.1% | 10.8% | 1.7% |
| CAPEX, % of revenue | 14.7% | 14.4% | 15.4% | 15.7% | 18.2% | 2.5% |
| ROIC | 24.3% | 24.1% | 0.9% | -17.4% | 1.7% | 19.1% |
| ROE | 31.4% | 43.5% | 18.0% | -11.2% | 0.8% | 12.1% |
| Net Debt/EBITDA | 0.5x | -0.0x | -0.7x | -2.7x | -0.3x | 2.5x |
Anaconda Mining Inc ($ANX) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 6 | 7 | 5 | 7 | 5.0% | 41.7% | -20.4% | 20.0% |
| EBITDA | 1 | 2 | 0 | 1 | 77.4% | | -85.0% | 64.1% |
| Net Income | -0 | 1 | -1 | 0 | | | | -65.2% |
Balance Sheet
|
|---|
| Cash | 1 | 1 | 1 | 2 | -73.6% | -29.0% | -46.3% | 14.0% |
| Short Term Debt | 0 | 0 | 0 | 0 | -31.7% | 72.6% | 348.2% | 527.7% |
| Long Term Debt | 0 | 0 | 0 | 0 | 11.6% | 243.2% | 746.5% | 865.6% |
Ratios
|
|---|
| Gross Margin | 7.1% | 19.6% | 6.5% | 16.7% | 7.4% | 26.7% | -4.1% | 12.6% |
| EBITDA Margin | 15.2% | 29.1% | 4.6% | 15.7% | 6.2% | 74.6% | -20.0% | 4.2% |
| Net Income Margin | -3.2% | 11.3% | -12.5% | 3.5% | -0.0% | 77.3% | -10.7% | -8.6% |
Revenue and profitability
Anaconda Mining Inc's Revenue increased on 9.6%. Revenue growth showed acceleration in FY16Q4 - it increased 20.0% YoY. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.6 pp from 23.8% to 26.4% in FY2016.
Gross Margin surged on 10.7 pp from 2.4% to 13.1% in FY2016. SG&A as a % of Revenue increased slightly on 1.7 pp from 9.1% to 10.8% in FY2016.
Net Income marign surged on 13.3 pp from -12.5% to 0.80% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Anaconda Mining Inc had CAPEX/Revenue of 18.2%. The company showed CAPEX/Revenue growth of 3.8 pp from 14.4% in FY2013 to 18.2% in FY2016. Average CAPEX/Revenue for the last three years was 16.4%.The company maintained rich investment policy and has spent a lot to CAPEX (107% of EBITDA).
Return on investment
The company operates at low ROIC (1.74%) and ROE (0.83%). ROIC jumped on 19.1 pp from -17.4% to 1.7% in FY2016. ROE jumped on 12.1 pp from -11.2% to 0.83% in FY2016.
Leverage (Debt)
Debt level is -0.3x Net Debt / EBITDA and 0.1x Debt / EBITDA. Net Debt / EBITDA surged on 2.5x from -2.7x to -0.3x in FY2016. Debt surged on 764% while cash surged on 14.0%.
Appendix 1: Peers in Basic Materials
Below we provide Anaconda Mining 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 | 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 |
|---|
