IMPACT Silver Corp EBITDA surged on 160% in 2016 and EBITDA Margin increased on 4.1 pp from 3.2% to 7.4%
14.03.2017 • About IMPACT Silver Corp (
$IPT) • By InTwits
IMPACT Silver Corp reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- IMPACT Silver Corp doesn't have a profitable business model yet: 2016 ROIC is -2.1%
- EBITDA Margin is quite volatile: 7.4% in 2016, 3.2% in 2015, -15.0% in 2014, -9.0% in 2013, 15.7% in 2012
- IMPACT Silver Corp has high CAPEX intensity: 5 year average CAPEX/Revenue was 46.2%. At the same time it's a lot of higher than industry average of 24.1%.
- CAPEX is quite volatile: 3.1 in 2016, 2.3 in 2015, 3.1 in 2014, 12.8 in 2013, 12.8 in 2012
- The company has unprofitable business model: ROIC is at -2.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
IMPACT Silver Corp ($IPT) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 15.934 | 14.106 | 12.008 | 14.638 | 16.685 | 14.0% |
| Gross Profit | 5.620 | 0.111 | -2.614 | -0.101 | 1.369 | |
| EBITDA | 2.501 | -1.275 | -1.797 | 0.473 | 1.230 | 159.9% |
| Net Income | -1.145 | -8.519 | -3.487 | -1.428 | -1.939 | |
Balance Sheet
|
|---|
| Cash | 16.013 | 3.485 | 0.575 | 0.717 | 8.125 | 1,032.6% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 12.773 | 12.812 | 3.088 | 2.299 | 3.105 | 35.1% |
Ratios
|
|---|
| Revenue growth | -34.3% | -11.5% | -14.9% | 21.9% | 14.0% | |
| EBITDA growth | -78.7% | -151.0% | 40.9% | -126.3% | 159.9% | |
| Gross Margin | 35.3% | 0.8% | -21.8% | -0.7% | 8.2% | 8.9% |
| EBITDA Margin | 15.7% | -9.0% | -15.0% | 3.2% | 7.4% | 4.1% |
| Net Income Margin | -7.2% | -60.4% | -29.0% | -9.8% | -11.6% | -1.9% |
| CAPEX, % of revenue | 80.2% | 90.8% | 25.7% | 15.7% | 18.6% | 2.9% |
| ROIC | 1.4% | -5.7% | -7.6% | -3.1% | -2.1% | 0.9% |
| ROE | -2.0% | -15.1% | -6.7% | -2.9% | -4.0% | -1.1% |
| Net Debt/EBITDA | -6.4x | | | -1.5x | -6.6x | -5.1x |
IMPACT Silver Corp ($IPT) key quoterly financial indicators
| mln. CAD | 16Q1 | 16Q2 | 16Q3 | 16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 4 | 4 | 5 | 4 | -3.8% | 60.6% | 15.1% | -2.1% |
| EBITDA | 0 | 1 | 0 | -0 | 59.2% | | -86.9% | -141.6% |
| Net Income | -0 | -0 | -1 | -1 | | | | -577.4% |
Balance Sheet
|
|---|
| Cash | 1 | 8 | 8 | 8 | 109.4% | 938.6% | 916.1% | 1,032.6% |
| Short Term Debt | 0 | 0 | 0 | 0 | | | | |
| Long Term Debt | 0 | 0 | 0 | 0 | | | | |
Ratios
|
|---|
| Gross Margin | 7.2% | 16.6% | 12.4% | -5.8% | 2.0% | 44.4% | 5.3% | -10.0% |
| EBITDA Margin | 11.2% | 19.8% | 1.5% | -3.5% | 4.4% | 43.6% | -11.7% | -11.7% |
| Net Income Margin | -8.3% | -3.3% | -14.3% | -21.1% | -1.1% | 34.9% | -7.8% | -25.5% |
Revenue and profitability
IMPACT Silver Corp's Revenue jumped on 14.0%. Revenue growth showed slow down in 16Q4 - it was -2.1% YoY. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.2 pp from 5.6% to 7.8% in FY2016.
Gross Margin increased on 8.9 pp from -0.69% to 8.2% in 2016.
Net Income marign decreased slightly on 1.9 pp from -9.8% to -11.6% in 2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 18.6% in 2016. IMPACT Silver Corp showed big decline in CAPEX/Revenue of 72.2 pp from 90.8% in 2013 to 18.6% in 2016. It's average level of CAPEX/Revenue for the last three years was 20.0%.To secure this fast growth IMPACT Silver Corp made large investments to CAPEX (252% of EBITDA).
Return on investment
The company operates at negative ROIC (-2.14%) and ROE (-4.00%). ROIC increased slightly on 0.92 pp from -3.1% to -2.1% in 2016. ROE decreased slightly on 1.1 pp from -2.9% to -4.0% in 2016.
Leverage (Debt)
The company has no debt. Cash surged on 1,033%.
Appendix 1: Peers in Basic Materials
Below you can find IMPACT Silver 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% | -2.5% | 2.0% | -2.9% | 5.7% |
|---|
| IMPACT Silver Corp ($IPT) | | -11.5% | -14.9% | 21.9% | 14.0% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Nevsun Resources Ltd ($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) | 32.1% | 22.7% | 19.1% | 16.9% | 24.8% |
|---|
| IMPACT Silver Corp ($IPT) | 35.3% | 0.8% | -21.8% | -0.7% | 8.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Labrador Iron Ore Royalty Corp ($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% |
|---|
| IMPACT Silver Corp ($IPT) | 15.7% | -9.0% | -15.0% | 3.2% | 7.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Largo Resources Ltd ($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% | 26.5% | 17.5% | 17.2% | 17.5% |
|---|
| IMPACT Silver Corp ($IPT) | 80.2% | 90.8% | 25.7% | 15.7% | 18.6% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Lucara Diamond Corp ($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% | -3.8% | 4.8% |
|---|
| IMPACT Silver Corp ($IPT) | 1.4% | -5.7% | -7.6% | -3.1% | -2.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Canam Group Inc ($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 (57 companies) | 0.3x | 0.8x | 1.1x | 1.6x | 0.7x |
|---|
| IMPACT Silver Corp ($IPT) | -6.4x | | | -1.5x | -6.6x |
