B2Gold Corp reports 126% Net Income growth
15.03.2017 • About B2Gold Corp (
$BTO) • By InTwits
B2Gold Corp reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- B2Gold Corp motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2012-2016 was 0.0%. On average EBITDA Margin was -0.2% for the sames years0
- It operates with high leverage: Net Debt/EBITDA is 1.1x while industry average is 0.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
B2Gold Corp ($BTO) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 259.1 | 544.3 | 486.6 | 553.7 | 683.3 | 23.4% |
| Gross Profit | 136.5 | 196.5 | 93.9 | | 210.1 | |
| SG&A | 17.6 | 31.9 | 38.0 | | 40.9 | |
| EBITDA | 117.7 | 204.2 | -624.8 | | 298.6 | |
| Net Income | 51.9 | 67.3 | -665.3 | -149.9 | 39.1 | |
Balance Sheet
|
|---|
| Cash | 67.9 | 252.7 | 132.6 | 85.1 | 144.7 | 69.9% |
| Short Term Debt | 4.2 | 13.0 | 10.5 | 11.7 | 13.9 | 18.8% |
| Long Term Debt | 0.0 | 300.4 | 368.8 | 451.5 | 472.8 | 4.7% |
Cash flow
|
|---|
| Capex | 141.0 | 295.7 | 311.7 | | 394.0 | |
Ratios
|
|---|
| Revenue growth | 15.0% | 110.1% | -10.6% | 13.8% | 23.4% | |
| EBITDA growth | 5.1% | 73.5% | -406.0% | | | |
| Gross Margin | 52.7% | 36.1% | 19.3% | | 30.7% | 30.7% |
| EBITDA Margin | 45.4% | 37.5% | -128.4% | 0.0% | 43.7% | 43.7% |
| Net Income Margin | 20.0% | 12.4% | -136.7% | -27.1% | 5.7% | 32.8% |
| SG&A, % of revenue | 6.8% | 5.9% | 7.8% | | 6.0% | 6.0% |
| CAPEX, % of revenue | 54.4% | 54.3% | 64.0% | | 57.7% | 57.7% |
| ROIC | 15.3% | 8.5% | -35.4% | | | 0.0% |
| ROE | 10.1% | 6.1% | -42.5% | | | 0.0% |
| Net Debt/EBITDA | -0.5x | 0.3x | | | 1.1x | 1.1x |
B2Gold Corp ($BTO) key quoterly financial indicators
| mln. $ | 16Q1 | 16Q2 | 16Q3 | 16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 144 | 165 | 193 | 181 | 3.9% | 20.7% | 38.6% | 30.3% |
| EBITDA | 62 | 76 | 92 | 68 | 54.6% | 101.5% | 143.4% | |
| Net Income | 8 | -10 | 35 | 6 | 32.8% | | | |
Balance Sheet
|
|---|
| Cash | 109 | 100 | 124 | 145 | -14.9% | -9.0% | 42.6% | 69.9% |
| Short Term Debt | 14 | 14 | 18 | 14 | 1.7% | 21.4% | 34.4% | 18.8% |
| Long Term Debt | 406 | 448 | 430 | 473 | 9.7% | 13.1% | 6.1% | 4.7% |
Ratios
|
|---|
| Gross Margin | 29.4% | 32.9% | 36.8% | 23.4% | 12.7% | 18.5% | 20.3% | |
| EBITDA Margin | 43.1% | 46.2% | 47.8% | 37.6% | 14.1% | 18.5% | 20.6% | 37.6% |
| Net Income Margin | 5.8% | -6.3% | 18.1% | 3.4% | 1.3% | 9.3% | 28.9% | 89.7% |
Revenue and profitability
The company's Revenue surged on 23.4%. Revenue growth showed acceleration in 16Q4 - it increased 30.3% YoY.
Net Income marign jumped on 32.8 pp from -27.1% to 5.7% in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 B2Gold Corp had CAPEX/Revenue of 57.7%. The company's CAPEX/Revenue increased on 3.3 pp from 54.3% in 2013 to 57.7% in 2016.B2Gold Corp has spent a lot to CAPEX (132% of EBITDA) to secure its growth.
Leverage (Debt)
Debt level is 1.1x Net Debt / EBITDA and 1.6x Debt / EBITDA. Net Debt / EBITDA surged1.1x from to 1.1x in 2016. Debt increased on 5.1% while cash surged on 69.9%.
Appendix 1: Peers in Basic Materials
Below we provide B2Gold 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 ($OR) | | | | 164.4% | 38.0% |
| |
|---|
| Median (82 companies) | 100.8% | -3.8% | 2.0% | -2.9% | 5.7% |
|---|
| B2Gold Corp ($BTO) | | 110.1% | -10.6% | 13.8% | 23.4% |
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% | 10.7% | 7.0% | 23.0% |
|---|
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 ($ASM) | 211.7% | 5.6% | 89.8% | 163.3% | |
| |
|---|
| Median (101 companies) | 27.4% | 26.5% | 17.5% | 16.7% | 17.5% |
|---|
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Lucara Diamond Corp ($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% | 1.6% | -3.6% | 4.4% |
|---|
| B2Gold Corp ($BTO) | 15.3% | 8.5% | -35.4% | | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Canam Group Inc ($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 | 0.9x | 1.1x | 1.6x | 0.6x |
|---|
| B2Gold Corp ($BTO) | -0.5x | 0.3x | | | 1.1x |
