Capstone Mining Corp reports CAPEX growth
15.02.2017 • About Capstone Mining Corp (
$CS) • By InTwits
Capstone Mining Corp reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts: It operates with high leverage: Net Debt/EBITDA is 1.5x while industry average is 0.8x.
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Capstone Mining Corp ($CS) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 305.5 | 332.1 | 656.0 | 420.5 | 529.4 | 25.9% |
| Gross Profit | 178.7 | 128.3 | 251.1 | | 198.1 | |
| SG&A | 18.1 | 21.9 | 21.9 | | 20.1 | |
| EBITDA | 141.9 | 65.7 | 190.3 | | -33.0 | |
| Net Income | 58.0 | -10.9 | -21.1 | -202.7 | -140.0 | |
Balance Sheet
|
|---|
| Cash | 499.9 | 104.0 | 150.1 | 101.6 | 130.4 | 28.3% |
| Short Term Debt | 0.0 | 66.7 | 88.9 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 242.0 | 184.5 | 342.9 | 324.9 | -5.3% |
Cash flow
|
|---|
| Capex | 112.7 | 129.1 | 89.7 | | 74.8 | |
Ratios
|
|---|
| Revenue growth | -6.8% | 8.7% | 97.6% | -35.9% | 25.9% | |
| EBITDA growth | -21.1% | -53.7% | 189.5% | | | |
| Gross Margin | 58.5% | 38.6% | 38.3% | | 37.4% | 37.4% |
| EBITDA Margin | 46.4% | 19.8% | 29.0% | 0.0% | -6.2% | -6.2% |
| Net Income Margin | 19.0% | -3.3% | -3.2% | -48.2% | -26.5% | 21.7% |
| SG&A, % of revenue | 5.9% | 6.6% | 3.3% | | 3.8% | 3.8% |
| CAPEX, % of revenue | 36.9% | 38.9% | 13.7% | | 14.1% | 14.1% |
| ROIC | 6.2% | -0.2% | 3.1% | | | 0.0% |
| ROE | 5.3% | -1.0% | -2.0% | | | 0.0% |
| Net Debt/EBITDA | -3.5x | 3.1x | 0.6x | | | 0.0x |
Capstone Mining Corp ($CS) key quoterly financial indicators
| mln. $ | 16Q1 | 16Q2 | 16Q3 | 16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 126 | 100 | 140 | 163 | 22.7% | -10.9% | 23.9% | 77.1% |
| EBITDA | 24 | 14 | 51 | -122 | 19.4% | -34.7% | | |
| Net Income | -13 | -13 | 11 | -182 | | -1,029.5% | | |
Balance Sheet
|
|---|
| Cash | 121 | 100 | 120 | 130 | -1.3% | 2.6% | 10.9% | 28.3% |
| Short Term Debt | 0 | 0 | 0 | 0 | | | | |
| Long Term Debt | 343 | 344 | 344 | 325 | 15.0% | 15.2% | 6.4% | -5.3% |
Ratios
|
|---|
| Gross Margin | 28.2% | 23.1% | 42.1% | 49.3% | -0.8% | -1.6% | 32.4% | |
| EBITDA Margin | 18.9% | 13.6% | 36.5% | -74.6% | -0.5% | -5.0% | 208.2% | -74.6% |
| Net Income Margin | -10.1% | -13.2% | 8.1% | -111.9% | 6.4% | -14.4% | 156.7% | -90.9% |
Revenue and profitability
Capstone Mining Corp's Revenue surged on 25.9%. Revenue growth showed acceleration in 16Q4 - it increased 77.1% YoY.
Net Income marign jumped on 21.7 pp from -48.2% to -26.5% in 2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 14.1% in 2016. CAPEX/Revenue dropped on 24.8 pp from 38.9% in 2013 to 14.1% in 2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.5x and Debt / EBITDA is . Net Debt / EBITDA didn't change in 2016. Debt decreased on 5.3% while cash jumped on 28.3%.
Appendix 1: Peers in Basic Materials
Below we provide Capstone Mining Corp 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 ($OR) | | | | 164.4% | 38.0% |
| |
|---|
| Median (82 companies) | 100.8% | -3.8% | 1.8% | -1.7% | 5.7% |
|---|
| Capstone Mining Corp ($CS) | | 8.7% | 97.6% | -35.9% | 25.9% |
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 ($PRU) | 52.5% | 50.9% | 32.0% | 53.7% | 26.3% |
| |
|---|
| Median (95 companies) | 32.1% | 22.1% | 18.2% | 16.5% | 24.7% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Labrador Iron Ore Royalty Corp ($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) | 17.4% | 10.8% | 10.3% | 7.0% | 24.5% |
|---|
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 ($ASM) | 211.7% | 5.6% | 89.8% | 163.3% | |
| |
|---|
| Median (101 companies) | 27.4% | 26.5% | 17.8% | 16.7% | 18.3% |
|---|
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Lucara Diamond Corp ($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 (99 companies) | 4.9% | 1.3% | 1.2% | -3.6% | 4.4% |
|---|
| Capstone Mining Corp ($CS) | 6.2% | -0.2% | 3.1% | | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Canam Group Inc ($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 | 0.7x | 1.2x | 1.6x | 0.6x |
|---|
