Copper Mountain Mining Corp EBITDA surged on 408% in 2016 and EBITDA Margin surged on 18.2 pp from 5.3% to 23.5%
20.02.2017 • About Copper Mountain Mining Corp (
$CUM) • By InTwits
Copper Mountain Mining Corp reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 23.5% in 2016, 5.3% in 2015, 22.9% in 2014, 24.6% in 2013, 33.8% in 2012
- Copper Mountain Mining Corp has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.3%. At the same time it's a lot of higher than industry average of 45.3%.
- CAPEX is quite volatile: 4.8 in 2016, 3.7 in 2015, 39.7 in 2014, 11.4 in 2013, 19.3 in 2012
- The company has potentially unprofitable business model: ROIC is at 2.2%
- It operates with high leverage: Net Debt/EBITDA is 5.1x while industry average is 0.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Copper Mountain Mining Corp ($CUM) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 229.5 | 233.1 | 265.7 | 242.0 | 278.0 | 14.9% |
| Gross Profit | 55.6 | 31.0 | 31.8 | 2.4 | 27.6 | 1,069.2% |
| SG&A | | | | 6.1 | 5.6 | -8.9% |
| EBITDA | 77.5 | 57.4 | 60.9 | 12.8 | 65.2 | 407.8% |
| Net Income | 29.6 | -3.2 | -18.2 | -78.5 | 7.7 | |
Balance Sheet
|
|---|
| Cash | 24.3 | 42.3 | 21.6 | 12.2 | 31.4 | 157.7% |
| Short Term Debt | 18.8 | 16.5 | 17.4 | 33.1 | 46.4 | 40.2% |
| Long Term Debt | 304.2 | 311.2 | 332.9 | 371.6 | 319.8 | -14.0% |
Cash flow
|
|---|
| Capex | 19.3 | 11.4 | 39.7 | 3.7 | 4.8 | 29.1% |
Ratios
|
|---|
| Revenue growth | 244.9% | 1.6% | 14.0% | -8.9% | 14.9% | |
| EBITDA growth | 374.2% | -25.9% | 6.0% | -78.9% | 407.8% | |
| Gross Margin | 24.2% | 13.3% | 12.0% | 1.0% | 9.9% | 8.9% |
| EBITDA Margin | 33.8% | 24.6% | 22.9% | 5.3% | 23.5% | 18.2% |
| Net Income Margin | 12.9% | -1.4% | -6.9% | -32.4% | 2.8% | 35.2% |
| SG&A, % of revenue | | | | 2.5% | 2.0% | -0.5% |
| CAPEX, % of revenue | 8.4% | 4.9% | 14.9% | 1.5% | 1.7% | 0.2% |
| ROIC | 8.7% | 4.2% | 3.7% | -5.1% | 2.2% | 7.4% |
| ROE | 17.4% | -1.6% | -8.9% | -49.5% | 6.1% | 55.5% |
| Net Debt/EBITDA | 3.9x | 5.0x | 5.4x | 30.6x | 5.1x | -25.4x |
Copper Mountain Mining Corp ($CUM) key quoterly financial indicators
| mln. CAD | 16Q1 | 16Q2 | 16Q3 | 16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 59 | 63 | 72 | 85 | -17.8% | 10.1% | 13.3% | 69.0% |
| EBITDA | 11 | 11 | 15 | 28 | -31.0% | 19.6% | 70.1% | |
| Net Income | 14 | -2 | -6 | 2 | | -215.3% | | |
Balance Sheet
|
|---|
| Cash | 2 | 5 | 25 | 31 | -88.1% | -77.0% | 33.9% | 157.7% |
| Short Term Debt | 31 | 41 | 48 | 46 | 55.4% | 107.1% | 109.6% | 40.2% |
| Long Term Debt | 345 | 331 | 322 | 320 | -4.3% | -7.0% | -13.2% | -14.0% |
Ratios
|
|---|
| Gross Margin | 2.7% | 3.8% | 5.8% | 20.7% | -6.8% | 1.7% | 9.1% | 27.6% |
| EBITDA Margin | 19.4% | 17.7% | 20.7% | 32.8% | -3.7% | 1.4% | 6.9% | 76.4% |
| Net Income Margin | 23.2% | -3.0% | -8.4% | 2.5% | 56.7% | -5.9% | 24.6% | 72.6% |
Revenue and profitability
Copper Mountain Mining Corp's Revenue jumped on 14.9%. Revenue growth showed acceleration in 16Q4 - it increased 69.0% YoY. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 81.9 pp from -37.7% to 44.2% in 2016.
Gross Margin increased on 8.9 pp from 0.98% to 9.9% in 2016. SG&A as a % of Revenue decreased slightly on 0.52 pp from 2.5% to 2.0% in 2016.
Net Income marign jumped on 35.2 pp from -32.4% to 2.8% in 2016.
Capital expenditures (CAPEX) and working capital investments
Copper Mountain Mining Corp's CAPEX/Revenue was 1.7% in 2016. Copper Mountain Mining Corp showed decline in CAPEX/Revenue of 3.2 pp from 4.9% in 2013 to 1.7% in 2016. Average CAPEX/Revenue for the last three years was 6.1%.
Return on investment
The company operates at low ROIC (2.23%) and ROE (6.05%). ROIC increased on 7.4 pp from -5.1% to 2.2% in 2016. ROE surged on 55.5 pp from -49.5% to 6.1% in 2016.
Leverage (Debt)
Debt level is 5.1x Net Debt / EBITDA and 5.6x Debt / EBITDA. Net Debt / EBITDA dropped on 25.4x from 30.6x to 5.1x in 2016. Debt decreased on 9.5% while cash surged on 158%.
Appendix 1: Peers in Basic Materials
Below you can find Copper Mountain Mining Corp 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 (82 companies) | 100.8% | -3.8% | 1.8% | -1.7% | 5.7% |
|---|
| Copper Mountain Mining Corp ($CUM) | | 1.6% | 14.0% | -8.9% | 14.9% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Nevsun Resources Ltd ($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 (94 companies) | 32.2% | 22.7% | 19.1% | 16.9% | 24.8% |
|---|
| Copper Mountain Mining Corp ($CUM) | 24.2% | 13.3% | 12.0% | 1.0% | 9.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Labrador Iron Ore Royalty Corp ($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 (100 companies) | 17.4% | 10.8% | 10.3% | 7.3% | 24.1% |
|---|
| Copper Mountain Mining Corp ($CUM) | 33.8% | 24.6% | 22.9% | 5.3% | 23.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Largo Resources Ltd ($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 (100 companies) | 28.1% | 27.4% | 17.8% | 17.2% | 18.3% |
|---|
| Copper Mountain Mining Corp ($CUM) | 8.4% | 4.9% | 14.9% | 1.5% | 1.7% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Lucara Diamond Corp ($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% | 0.1% | 1.2% | -3.6% | 4.8% |
|---|
| Copper Mountain Mining Corp ($CUM) | 8.7% | 4.2% | 3.7% | -5.1% | 2.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Canam Group Inc ($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 |
| Cameco Corp ($CCO) | 2.0x | 2.1x | 2.5x | 1.9x | 5.1x |
| Resolute Forest Products Inc ($RFP) | 1.3x | 1.1x | 3.8x | 29.6x | 4.0x |
| |
|---|
| Median (57 companies) | 0.3x | 0.7x | 1.1x | 1.5x | 0.6x |
|---|
| Copper Mountain Mining Corp ($CUM) | 3.9x | 5.0x | 5.4x | 30.6x | 5.1x |
