Argonaut Gold Inc revenue decline accelerated to 8.7% in FY2016 vs. 4.6% a year earliner
20.03.2017 • About Argonaut Gold Inc (
$AR) • By InTwits
Argonaut Gold Inc reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is declining: in FY2016 vs. -133.8% in FY2015 vs. 57.3% in FY2012
- It operates with medium-size leverage: Net Debt/EBITDA is 0.9x while industry average is 0.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Argonaut Gold Inc ($AR) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 187.1 | 165.1 | 166.3 | 158.6 | 144.8 | -8.7% |
| Gross Profit | 95.2 | 59.1 | 22.7 | -13.8 | | |
| SG&A | 9.5 | 12.5 | 13.0 | 10.5 | | -100.0% |
| EBITDA | 107.3 | 71.4 | 47.3 | -212.2 | | |
| Net Income | 64.9 | 4.6 | -4.2 | -202.7 | 4.3 | |
Balance Sheet
|
|---|
| Cash | 190.8 | 81.1 | 51.4 | 45.9 | | -100.0% |
| Short Term Debt | 0.0 | 6.0 | 3.8 | 4.3 | | -100.0% |
| Long Term Debt | 0.0 | 8.1 | 4.2 | 0.9 | | -100.0% |
Cash flow
|
|---|
| Capex | 49.6 | 99.5 | 47.9 | 37.0 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 78.9% | -11.8% | 0.7% | -4.6% | -8.7% | |
| EBITDA growth | 91.8% | -33.5% | -33.7% | -548.1% | | |
| Gross Margin | 50.9% | 35.8% | 13.6% | -8.7% | | 8.7% |
| EBITDA Margin | 57.3% | 43.3% | 28.5% | -133.8% | 0.0% | 133.8% |
| Net Income Margin | 34.7% | 2.8% | -2.5% | -127.8% | 3.0% | 130.8% |
| SG&A, % of revenue | 5.1% | 7.6% | 7.8% | 6.6% | | -6.6% |
| CAPEX, % of revenue | 26.5% | 60.3% | 28.8% | 23.3% | | -23.3% |
| ROIC | 14.0% | 5.1% | 0.8% | -36.3% | | 36.3% |
| ROE | 11.4% | 0.6% | -0.5% | -30.6% | | 30.6% |
| Net Debt/EBITDA | -1.8x | -0.9x | -0.9x | | | 0.0x |
Argonaut Gold Inc ($AR) key quoterly financial indicators
| mln. $ | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 35 | 39 | 35 | 35 | -30.7% | -10.1% | 9.1% | 10.4% |
| EBITDA | 14 | 11 | 9 | 10 | -17.0% | | 1,660.8% | |
| Net Income | 4 | -1 | 0 | 1 | 182.2% | | | |
Balance Sheet
|
|---|
| Cash | 47 | 54 | 50 | 42 | -27.3% | 24.0% | 15.3% | -8.2% |
| Short Term Debt | 3 | 2 | 1 | 1 | -24.9% | -31.2% | -56.5% | -78.8% |
| Long Term Debt | 0 | 0 | 0 | 0 | -86.3% | -100.0% | -100.0% | -100.0% |
Ratios
|
|---|
| Gross Margin | 25.2% | 19.9% | 19.6% | 19.9% | 11.9% | 12.2% | 37.9% | 33.8% |
| EBITDA Margin | 38.4% | 28.7% | 24.9% | 27.6% | 6.3% | 32.6% | 23.4% | 738.1% |
| Net Income Margin | 12.0% | -1.7% | 0.6% | 1.5% | 9.1% | 22.4% | 35.4% | 572.1% |
Revenue and profitability
The company's Revenue decreased on 8.7%. Annual revenue decline showed slowdown in FY16Q4 - revenue jumped on 10.4%.
Net Income marign surged on 131 pp from -128% to 3.0% in FY2016.
Management team
The company's CEO is Peter C Dougherty. Peter C Dougherty is a founder and has 8 years tenure at the company. David Ponczoch is a Argonaut Gold Inc's CFO. David Ponczoch has spent 5 years at the company.
Appendix 1: Peers in Basic Materials
Below we provide Argonaut Gold Inc 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 ($OR) | | | | 164.4% | 38.0% |
| |
|---|
| Median (82 companies) | 100.8% | -2.5% | 2.0% | -1.7% | 6.8% |
|---|
| Argonaut Gold Inc ($AR) | | -11.8% | 0.7% | -4.6% | -8.7% |
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 ($PRU) | 52.5% | 50.9% | 32.0% | 53.7% | 26.3% |
| |
|---|
| Median (94 companies) | 32.1% | 22.1% | 19.1% | 16.9% | 24.8% |
|---|
| Argonaut Gold Inc ($AR) | 50.9% | 35.8% | 13.6% | -8.7% | |
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 ($SSL) | 74.3% | 49.9% | 62.1% | 56.5% | 64.6% |
| |
|---|
| Median (100 companies) | 17.4% | 10.8% | 10.3% | 7.3% | 23.5% |
|---|
| Argonaut Gold Inc ($AR) | 57.3% | 43.3% | 28.5% | -133.8% | |
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 ($ASM) | 211.7% | 5.6% | 89.8% | 163.3% | |
| |
|---|
| Median (100 companies) | 28.1% | 26.5% | 17.5% | 16.6% | 17.9% |
|---|
| Argonaut Gold Inc ($AR) | 26.5% | 60.3% | 28.8% | 23.3% | |
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 ($CFX) | 4.9% | 13.2% | 21.3% | 24.1% | 17.0% |
| |
|---|
| Median (99 companies) | 4.9% | 0.1% | 1.6% | -3.6% | 4.4% |
|---|
| Argonaut Gold Inc ($AR) | 14.0% | 5.1% | 0.8% | -36.3% | |
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 | 0.9x | 1.2x | 1.6x | 0.6x |
|---|
