Rambler Metals & Mining reports 185% EBITDA decline and 1.3% Revenue decline
24.10.2016 • About Rambler Metals & Mining (
$RAB) • By InTwits
Rambler Metals & Mining reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Rambler Metals & Mining doesn't have a profitable business model yet: FY2016 ROIC is -17.1%
- The company operates at negative EBITDA Margin: -17.6%
- Rambler Metals & Mining has high CAPEX intensity: 5 year average CAPEX/Revenue was 180.5%. At the same time it's a lot of higher than industry average of 17.6%.
- CAPEX is quite volatile: 0.55 in FY2016, 0.29 in FY2015, 0.12 in FY2014, 1.4 in FY2013, 1.2 in FY2012
- The company has unprofitable business model: ROIC is at -17.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Rambler Metals & Mining ($RAB) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1.219 | 34.669 | 62.110 | 40.886 | 40.351 | -1.3% |
| Gross Profit | 0.545 | 13.733 | 32.426 | 12.492 | 11.526 | -7.7% |
| SG&A | | | | 4.157 | 3.851 | -7.4% |
| EBITDA | -2.370 | 10.255 | 27.996 | 8.389 | -7.108 | -184.7% |
| Net Income | -3.367 | 9.053 | 9.015 | -10.153 | -17.010 | 67.5% |
Balance Sheet
|
|---|
| Cash | 7.826 | 5.566 | 9.535 | 4.422 | 11.670 | 163.9% |
| Short Term Debt | 14.827 | 10.898 | 5.300 | 7.911 | 6.830 | -13.7% |
| Long Term Debt | 20.691 | 20.576 | 20.242 | 16.612 | 17.841 | 7.4% |
Cash flow
|
|---|
| Capex | 10.006 | 8.373 | 8.655 | 8.464 | 9.258 | 9.4% |
Ratios
|
|---|
| Revenue growth | -65.4% | 2,744.1% | 79.2% | -34.2% | -1.3% | |
| EBITDA growth | 157.9% | -532.7% | 173.0% | -70.0% | -184.7% | |
| Gross Margin | 44.7% | 39.6% | 52.2% | 30.6% | 28.6% | -2.0% |
| EBITDA Margin | -194.4% | 29.6% | 45.1% | 20.5% | -17.6% | -38.1% |
| Net Income Margin | -276.2% | 26.1% | 14.5% | -24.8% | -42.2% | -17.3% |
| SG&A, % of revenue | | | | 10.2% | 9.5% | -0.6% |
| CAPEX, % of revenue | 820.8% | 24.2% | 13.9% | 20.7% | 22.9% | 2.2% |
| ROIC | -2.6% | 3.3% | 16.7% | 0.5% | -17.1% | -17.6% |
| ROE | -5.2% | 12.5% | 10.9% | -12.3% | -21.2% | -8.8% |
| Net Debt/EBITDA | | 2.5x | 0.6x | 2.4x | | -2.4x |
Revenue and profitability
Rambler Metals & Mining's Revenue decreased slightly on 1.3% in FY2016. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 38.1 pp from 20.5% to -17.6% in FY2016.
Gross Margin decreased slightly on 2.0 pp from 30.6% to 28.6% in FY2016. SG&A as a % of Revenue decreased slightly on 0.62 pp from 10.2% to 9.5% in FY2016.
Net Income marign dropped on 17.3 pp from -24.8% to -42.2% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Rambler Metals & Mining had CAPEX/Revenue of 22.9%. The company's CAPEX/Revenue decreased slightly on 1.2 pp from 24.2% in FY2013 to 22.9% in FY2016. For the last three years the average CAPEX/Revenue was 19.2%.
Return on investment
The company operates at negative ROIC (-17.15%) and ROE (-21.18%). ROIC dropped on 17.6 pp from 0.46% to -17.1% in FY2016. ROE decreased on 8.8 pp from -12.3% to -21.2% in FY2016.
Leverage (Debt)
Debt level is -0.2x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA dropped on 2.4x from 2.4x to in FY2016. Debt increased slightly on 0.60% in FY2016 while cash jumped on 164% in FY2016.
Appendix 1: Peers in Mining
Below we provide Rambler Metals & Mining 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 ($CEE) | 25.2% | 18.2% | -6.2% | 7.6% | |
| |
|---|
| Median (8 companies) | 25.2% | -5.1% | -15.4% | 15.0% | -34.9% |
|---|
| Rambler Metals & Mining ($RAB) | | 2,744.1% | 79.2% | -34.2% | -1.3% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Serabi Gold ($SBI) | | | 2.3% | 32.8% | |
| Caledonia Mining Corp ($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% | |
| China Gold International Resources Corp Ltd ($CGG) | 37.6% | 33.7% | 35.6% | 18.5% | |
| |
|---|
| Median (7 companies) | 39.7% | 27.2% | 22.7% | 22.8% | 1.8% |
|---|
| Rambler Metals & Mining ($RAB) | 44.7% | 39.6% | 52.2% | 30.6% | 28.6% |
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% | |
| Serabi Gold ($SBI) | | | -12.6% | 19.1% | |
| |
|---|
| Median (8 companies) | 34.9% | 38.3% | 20.3% | 24.8% | -3.9% |
|---|
| Rambler Metals & Mining ($RAB) | -194.4% | 29.6% | 45.1% | 20.5% | -17.6% |
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% | |
| Orosur Mining Inc ($OMI) | 53.8% | 29.6% | 14.1% | 19.7% | 15.1% |
| |
|---|
| Median (8 companies) | 44.6% | 29.6% | 16.4% | 20.6% | 15.1% |
|---|
| Rambler Metals & Mining ($RAB) | 820.8% | 24.2% | 13.9% | 20.7% | 22.9% |
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 ($SBI) | -9.1% | -8.9% | -5.8% | 1.2% | |
| |
|---|
| Median (8 companies) | 6.0% | 2.5% | 1.5% | 1.3% | -23.6% |
|---|
| Rambler Metals & Mining ($RAB) | -2.6% | 3.3% | 16.7% | 0.5% | -17.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Gold International Resources Corp Ltd ($CGG) | 0.2x | 3.4x | 4.7x | 7.3x | |
| Serabi Gold ($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 | |
| Caledonia Mining Corp ($CAL) | -1.2x | -0.9x | -1.6x | -1.1x | |
| |
|---|
| Median (6 companies) | -0.4x | 0.2x | 1.9x | 0.5x | |
|---|
| Rambler Metals & Mining ($RAB) | | 2.5x | 0.6x | 2.4x | |
