Monument Mining Ltd reports 115% Net Income decline and 16.0 pp EBITDA Margin decline from 42.7% to 26.6%
28.09.2016 • About Monument Mining Ltd (
$MMY) • By InTwits
Monument Mining Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Monument Mining Ltd is a company in decline: FY2016 revenue growth was -47.4%, 5 years revenue CAGR was -14.7%
- EBITDA Margin is quite volatile: 26.6% in FY2016, 42.7% in FY2015, 33.1% in FY2014, 64.5% in FY2013, 72.1% in FY2012
- Monument Mining Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 64.5%. At the same time it's a lot of higher than industry average of 24.1%.
- CAPEX is quite volatile: 10.2 in FY2016, 17.6 in FY2015, 30.4 in FY2014, 52.4 in FY2013, 73.9 in FY2012
- The company has potentially unprofitable business model: ROIC is at 1.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Monument Mining Ltd ($MMY) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 61.709 | 91.276 | 48.583 | 44.838 | 23.595 | -47.4% |
| Gross Profit | 46.498 | 57.498 | 16.281 | 15.893 | 5.530 | -65.2% |
| EBITDA | 44.468 | 58.909 | 16.102 | 19.139 | 6.287 | -67.2% |
| Net Income | 59.561 | 32.838 | -2.631 | 11.383 | -1.680 | -114.8% |
Balance Sheet
|
|---|
| Cash | 19.400 | 41.933 | 24.734 | 29.353 | 20.913 | -28.8% |
| Short Term Debt | 0.016 | 0.015 | 0.259 | 0.238 | 0.138 | -42.0% |
| Long Term Debt | 5.930 | 0.000 | 0.452 | 0.147 | 0.000 | -100.0% |
Cash flow
|
|---|
| Capex | 73.863 | 52.445 | 30.399 | 17.605 | 10.216 | -42.0% |
Ratios
|
|---|
| Revenue growth | 17.8% | 47.9% | -46.8% | -7.7% | -47.4% | |
| EBITDA growth | 17.0% | 32.5% | -72.7% | 18.9% | -67.2% | |
| Gross Margin | 75.4% | 63.0% | 33.5% | 35.4% | 23.4% | -12.0% |
| EBITDA Margin | 72.1% | 64.5% | 33.1% | 42.7% | 26.6% | -16.0% |
| Net Income Margin | 96.5% | 36.0% | -5.4% | 25.4% | -7.1% | -32.5% |
| CAPEX, % of revenue | 119.7% | 57.5% | 62.6% | 39.3% | 43.3% | 4.0% |
| ROIC | 30.7% | 24.3% | 3.0% | 4.9% | 1.0% | -3.9% |
| ROE | 52.4% | 17.9% | -1.2% | 4.9% | -0.7% | -5.6% |
| Net Debt/EBITDA | -0.3x | -0.7x | -1.5x | -1.5x | -3.3x | -1.8x |
Monument Mining Ltd ($MMY) key quoterly financial indicators
| mln. $ | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 8 | 6 | 4 | 5 | 1.8% | -58.9% | -64.2% | -50.5% |
| EBITDA | 3 | 2 | 2 | 0 | -0.2% | -73.3% | -71.6% | -93.5% |
| Net Income | 0 | -5 | 3 | 0 | -92.4% | -249.9% | -31.0% | -90.9% |
Balance Sheet
|
|---|
| Cash | 26 | 24 | 22 | 21 | 23.8% | -5.8% | -19.7% | -28.8% |
| Short Term Debt | 0 | 0 | 0 | 0 | -19.4% | -12.1% | -15.5% | -42.0% |
| Long Term Debt | 0 | 0 | 0 | 0 | -80.6% | -93.4% | -100.0% | -100.0% |
Ratios
|
|---|
| Gross Margin | 28.0% | 27.0% | 25.4% | 10.3% | 2.3% | -5.8% | -12.9% | -33.0% |
| EBITDA Margin | 34.3% | 26.6% | 35.9% | 6.3% | -0.7% | -14.2% | -9.3% | -41.8% |
| Net Income Margin | 1.4% | -80.7% | 56.1% | 5.6% | -17.3% | -102.8% | 27.0% | -25.0% |
Revenue and profitability
Monument Mining Ltd's Revenue dropped on 47.4%. Revenue decline showed acceleration in FY16Q4 - it was 50.5% YoY. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 16.0 pp from 42.7% to 26.6% in FY2016.
Gross Margin dropped on 12.0 pp from 35.4% to 23.4% in FY2016.
Net Income marign dropped on 32.5 pp from 25.4% to -7.1% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Monument Mining Ltd's CAPEX/Revenue was 43.3% in FY2016. The company's CAPEX/Revenue dropped on 14.2 pp from 57.5% in FY2013 to 43.3% in FY2016. It's average CAPEX/Revenue for the last three years was 48.4%.Battling declining revenue Monument Mining Ltd made large investments to CAPEX (162% of EBITDA) but that didn't help at least in this year.
Return on investment
The company operates at low but positive ROIC (1.00%) and negative ROE (-0.70%). ROIC decreased on 3.9 pp from 4.9% to 1.0% in FY2016. ROE decreased on 5.6 pp from 4.9% to -0.70% in FY2016.
Leverage (Debt)
Debt level is -3.3x Net Debt / EBITDA and 0.0x Debt / EBITDA. Net Debt / EBITDA dropped on 1.8x from -1.5x to -3.3x in FY2016. Debt dropped on 64.2% while cash dropped on 28.8%.
Appendix 1: Peers in Basic Materials
Below you can find Monument Mining 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 |
|---|
