Golden Minerals Co revenue dropped on 20.7% in 2016 while EBITDA Margin surged on 244 pp from -318% to -74.6%
28.02.2017 • About Golden Minerals Co (
$AUM) • By InTwits
Golden Minerals Co reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Golden Minerals Co doesn't have a profitable business model yet: 2016 ROIC is -63.7%
- The company operates at negative EBITDA Margin: -74.6%
- Golden Minerals Co motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2012-2016 was 0.0%. On average EBITDA Margin was -827.3% for the sames years0
- Golden Minerals Co has high CAPEX intensity: 5 year average CAPEX/Revenue was 53.6%. At the same time it's a lot of higher than industry average of 24.1%.
- CAPEX is quite volatile: 0.050 in 2016, 0.044 in 2015, 0.50 in 2014, 1.8 in 2013, 9.6 in 2012
- The company has unprofitable business model: ROIC is at -63.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Golden Minerals Co ($AUM) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 26.086 | 10.680 | 0.235 | 8.071 | 6.400 | -20.7% |
| Gross Profit | -17.295 | -13.781 | -1.420 | -1.994 | 4.354 | |
| SG&A | 7.063 | 5.610 | 4.642 | 4.242 | 3.890 | -8.3% |
| EBITDA | -93.198 | -282.957 | -19.204 | -25.678 | -4.773 | |
| Net Income | -92.025 | -240.380 | -18.823 | -25.383 | -10.659 | |
Balance Sheet
|
|---|
| Cash | 44.406 | 19.146 | 8.579 | 4.077 | 2.588 | -36.5% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 3.702 | 0.000 | -100.0% |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 9.620 | 1.797 | 0.500 | 0.044 | 0.050 | 13.6% |
Ratios
|
|---|
| Revenue growth | 1,320.8% | -59.1% | -97.8% | 3,334.5% | -20.7% | |
| EBITDA growth | 31.3% | 203.6% | -93.2% | 33.7% | -81.4% | |
| Gross Margin | -66.3% | -129.0% | -604.3% | -24.7% | 68.0% | 92.7% |
| EBITDA Margin | -357.3% | -2,649.4% | -8,171.9% | -318.2% | -74.6% | 243.6% |
| Net Income Margin | -352.8% | -2,250.7% | -8,009.8% | -314.5% | -166.5% | 147.9% |
| SG&A, % of revenue | 27.1% | 52.5% | 1,975.3% | 52.6% | 60.8% | 8.2% |
| CAPEX, % of revenue | 36.9% | 16.8% | 212.8% | 0.5% | 0.8% | 0.2% |
| ROIC | -33.1% | -174.8% | -56.4% | -136.4% | -63.7% | 72.7% |
| ROE | -29.5% | -144.9% | -47.5% | -125.3% | -132.1% | -6.8% |
Golden Minerals Co ($AUM) key quoterly financial indicators
| mln. $ | 16Q1 | 16Q2 | 16Q3 | 16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 1 | 2 | 2 | 2 | -37.4% | -19.6% | -3.3% | -17.8% |
| EBITDA | -2 | -2 | 0 | -1 | | | | |
| Net Income | -6 | -4 | -1 | 0 | | | | |
Balance Sheet
|
|---|
| Cash | 2 | 4 | 3 | 3 | -65.2% | 19.5% | 270.8% | -36.5% |
| Short Term Debt | 1 | 0 | 0 | 0 | | | | -100.0% |
| Long Term Debt | 0 | 0 | 0 | 0 | | | | |
Ratios
|
|---|
| Gross Margin | 67.6% | 71.1% | 68.2% | 65.2% | 154.6% | 112.6% | 113.5% | 49.8% |
| EBITDA Margin | -123.0% | -139.8% | 6.0% | -53.6% | 31.5% | 30.2% | 921.2% | 65.8% |
| Net Income Margin | -429.7% | -246.8% | -46.2% | 19.3% | -282.9% | -50.4% | 894.6% | 83.9% |
Revenue and profitability
The company's Revenue dropped on 20.7%. Annual revenue decline showed slowdown in 16Q4 - revenue dropped on 17.8%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin surged on 244 pp from -318% to -74.6% in 2016.
Gross Margin surged on 92.7 pp from -24.7% to 68.0% in 2016. SG&A as a % of Revenue increased on 8.2 pp from 52.6% to 60.8% in 2016.
Net Income marign jumped on 148 pp from -314% to -167% in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 Golden Minerals Co had CAPEX/Revenue of 0.78%. CAPEX/Revenue dropped on 16.0 pp from 16.8% in 2013 to 0.78% in 2016. It's average CAPEX/Revenue for the last three years was 71.4%.
Return on investment
The company operates at negative ROIC (-63.74%) and ROE (-132.14%). ROIC surged on 72.7 pp from -136% to -63.7% in 2016. ROE decreased on 6.8 pp from -125% to -132% in 2016.
Leverage (Debt)
The company paid down all the debt in 2016. Cash dropped on 36.5%.
Management team
Warren M Rehn is a Golden Minerals Co's CEO. Warren M Rehn is a founder and has spent 3 years at the company. Golden Minerals Co's CFO is Robert P Vogels. Robert P Vogels has 9 years tenure at the company.
Appendix 1: Peers in Basic Materials
Below we provide Golden Minerals Co 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 ($OR) | | | | 164.4% | 38.0% |
| |
|---|
| Median (82 companies) | 100.8% | -2.5% | 2.0% | -2.9% | 6.8% |
|---|
| Golden Minerals Co ($AUM) | | -59.1% | -97.8% | 3,334.5% | -20.7% |
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 ($PRU) | 52.5% | 50.9% | 32.0% | 53.7% | 26.3% |
| |
|---|
| Median (94 companies) | 32.2% | 22.7% | 19.1% | 16.9% | 24.7% |
|---|
| Golden Minerals Co ($AUM) | -66.3% | -129.0% | -604.3% | -24.7% | 68.0% |
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 ($SSL) | 74.3% | 49.9% | 62.1% | 56.5% | 64.6% |
| |
|---|
| Median (100 companies) | 18.6% | 11.5% | 10.7% | 7.3% | 24.5% |
|---|
| Golden Minerals Co ($AUM) | -357.3% | -2,649.4% | -8,171.9% | -318.2% | -74.6% |
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 ($ASM) | 211.7% | 5.6% | 89.8% | 163.3% | |
| |
|---|
| Median (100 companies) | 27.4% | 27.4% | 17.5% | 17.2% | 18.3% |
|---|
| Golden Minerals Co ($AUM) | 36.9% | 16.8% | 212.8% | 0.5% | 0.8% |
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 ($CFX) | 4.9% | 13.2% | 21.3% | 24.1% | 17.0% |
| |
|---|
| Median (99 companies) | 4.9% | 1.3% | 1.6% | -3.6% | 4.8% |
|---|
| Golden Minerals Co ($AUM) | -33.1% | -174.8% | -56.4% | -136.4% | -63.7% |
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 |
|---|
