Monument Mining Ltd reports 42.8% revenue growth in FY2020 and almost no change in EBITDA Margin of 33.6%
15.09.2020 • About Monument Mining Ltd (
$MMY) • By InTwits
Monument Mining Ltd reported FY2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 33.6% in FY2020, 33.8% in FY2019, 17.9% in FY2018, -10.7% in FY2017, 26.6% in FY2016
- Monument Mining Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 36.0%. At the same time it's a lot of higher than industry average of 22.7%.
- CAPEX is quite volatile: 2 CADm in FY2020, 7 CADm in FY2019, 1 CADm in FY2018, 15 CADm in FY2017, 36 CADm in FY2016
- The company has potentially unprofitable business model: ROIC is 2.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue jumped on 42.8%. Revenue growth showed slowdown in FY20Q4 - it was 3.7% YoY. Revenue decline was slowing down on average by 22.3 pp per annum in the last 5 years. EBITDA Margin showed almost no change in FY2020.
Gross Margin decreased slightly on 0.74 pp from 43.9% to 43.2% in FY2020. Gross Margin grew at 6.0 pp per annum in FY2016-FY2020.
Net Income margin increased slightly on 1.5 pp from -2.4% to -0.92% in FY2020. During FY2016-FY2020 Net Income margin bottomed in FY2017 at -45.8% and was growing since that time.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 18.3% in FY2020. The company's CAPEX/Revenue dropped on 27.8 pp from 46.0% in FY2017 to 18.3% in FY2020. It's average level of CAPEX/Revenue for the last three years was 30.2%. Monument Mining Ltd invested a big chunk of EBITDA (54.3%) to CAPEX to fuel its growth.
Return on investment
The company operates at low but positive ROIC (2.0%) and negative ROE (-0.1%). ROIC increased slightly on 0.72 pp from 1.2% to 2.0% in FY2020. ROE showed almost no change in FY2020. During the last 5 years ROIC bottomed in FY2017 at -2.6% and was growing since that time. During FY2016-FY2020 ROE bottomed in FY2017 at -3.1% and was growing since that time.
Leverage (Debt)
Debt level is -1.0x Net Debt / EBITDA and 0.0x Debt / EBITDA. Debt surged while cash increased on 8.4%.
Monument Mining Ltd has no short term refinancing risk: cash is higher than short term debt (26,644.7%).
Financial and operational results
FY ended 30.06.2020
Monument Mining Ltd ($MMY) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 23.595 | 15.719 | 19.250 | 20.993 | 29.971 | 42.8% |
| Gross Profit | 5.530 | 3.729 | 8.147 | 9.221 | 12.944 | 40.4% |
| EBITDA | 6.287 | -1.679 | 3.445 | 7.095 | 10.066 | 41.9% |
| Net Income | -1.680 | -7.205 | -4.749 | -0.499 | -0.275 | |
Balance Sheet
|
|---|
| Cash | 20.913 | 13.698 | 15.014 | 9.341 | 10.125 | 8.4% |
| Short Term Debt | 0.138 | 0.000 | 0.000 | 0.000 | 0.038 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.069 | |
Cash flow
|
|---|
| Capex | 10.216 | 7.237 | 6.763 | 7.812 | 5.470 | -30.0% |
Ratios
|
|---|
| Revenue growth | -47.4% | -33.4% | 22.5% | 9.1% | 42.8% | |
| EBITDA growth | -67.2% | -126.7% | -305.2% | 106.0% | 41.9% | |
|
|---|
| Gross Margin | 23.4% | 23.7% | 42.3% | 43.9% | 43.2% | -0.7% |
| EBITDA Margin | 26.6% | -10.7% | 17.9% | 33.8% | 33.6% | -0.2% |
| Net Income Margin | -7.1% | -45.8% | -24.7% | -2.4% | -0.9% | 1.5% |
| CAPEX, % of revenue | 43.3% | 46.0% | 35.1% | 37.2% | 18.3% | -19.0% |
|
|---|
| ROIC | 1.0% | -2.6% | -0.4% | 1.2% | 2.0% | 0.7% |
| ROE | -0.7% | -3.1% | -2.1% | -0.2% | -0.1% | 0.1% |
| Net Debt/EBITDA | -3.3x | | -4.4x | -1.3x | -1.0x | 0.3x |
Monument Mining Ltd ($MMY) key quoterly financial indicators
| mln. $ | FY20Q1 | FY20Q2 | FY20Q3 | FY20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 6 | 7 | 12 | 5 | | 14.7% | 16.7% | 153.1% | 3.7% |
| EBITDA | 2 | 2 | 4 | 2 | | -10.9% | 9.9% | 254.9% | -9.6% |
| Net Income | 0 | -1 | 2 | -1 | | -80.4% | -329.4% | - | - |
Balance Sheet
|
|---|
| Cash | 7 | 5 | 10 | 10 | | -45.6% | -60.6% | -10.7% | 8.4% |
| Short Term Debt | 0 | 0 | 0 | 0 | | - | - | - | - |
| Long Term Debt | 0 | 0 | 0 | 0 | | - | - | - | - |
Ratios
|
|---|
| Gross Margin | 41.7% | 38.8% | 43.7% | 49.1% | | -7.5% | -5.5% | 4.8% | 6.8% |
| EBITDA Margin | 30.7% | 32.5% | 38.1% | 28.5% | | -8.8% | -2.0% | 10.9% | -4.2% |
| Net Income Margin | 3.3% | -16.3% | 16.1% | -23.6% | | -15.9% | -24.6% | 36.0% | -2.1% |
Peers in Basic Materials
Below we provide Monument Mining Ltd 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 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Archon Minerals Ltd ($ACS) | - | - | - | -13.3% | 127.6% |
| B2Gold Corp ($BTO) | - | -6.5% | 64.6% | 9.9% | 54.8% |
| Rochester Resources Ltd ($RCT) | - | 0.0% | 16.7% | -19.2% | 13.2% |
| Graphene 3D Lab Inc ($GGG) | - | 43.6% | -21.2% | 8.3% | -1.3% |
| Orbit Garant Drilling Inc ($OGD) | - | 16.4% | 38.3% | -11.7% | -9.8% |
| |
|---|
| Median (6 companies) | 5.7% | 0.0% | 16.7% | -11.7% | 6.0% |
|---|
| Monument Mining Ltd ($MMY) | - | -33.4% | 22.5% | 9.1% | 42.8% |
Top companies by Gross margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Monarques Gold Corp ($MQR) | - | - | 4.8% | 13.7% | 61.8% |
| B2Gold Corp ($BTO) | 30.7% | 23.5% | 36.2% | 39.0% | 53.6% |
| Graphene 3D Lab Inc ($GGG) | 23.4% | 43.5% | 67.9% | 62.6% | 21.9% |
| Orbit Garant Drilling Inc ($OGD) | 9.5% | 6.4% | 12.4% | 10.7% | 9.4% |
| Rochester Resources Ltd ($RCT) | -43.8% | 2.3% | 15.9% | -18.2% | 1.4% |
| |
|---|
| Median (5 companies) | 23.4% | 15.0% | 15.9% | 13.7% | 21.9% |
|---|
| Monument Mining Ltd ($MMY) | 23.4% | 23.7% | 42.3% | 43.9% | 43.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| B2Gold Corp ($BTO) | 43.7% | 38.9% | 50.4% | 65.6% | 76.6% |
| Archon Minerals Ltd ($ACS) | - | - | -28.3% | -12.1% | 63.2% |
| Orbit Garant Drilling Inc ($OGD) | 10.3% | 2.2% | 8.5% | 5.9% | 6.4% |
| Rochester Resources Ltd ($RCT) | -148.8% | -13.5% | -32.9% | -31.9% | -10.3% |
| Monarques Gold Corp ($MQR) | - | - | - | -3.3% | -49.0% |
| |
|---|
| Median (6 companies) | 22.2% | -13.5% | -30.6% | -12.1% | -2.0% |
|---|
| Monument Mining Ltd ($MMY) | 26.6% | -10.7% | 17.9% | 33.8% | 33.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Monarques Gold Corp ($MQR) | - | - | 20.8% | 29.9% | 43.9% |
| B2Gold Corp ($BTO) | 57.7% | 55.5% | 21.1% | 22.6% | 19.7% |
| Orbit Garant Drilling Inc ($OGD) | 6.1% | 6.2% | 5.0% | 5.4% | 7.6% |
| Rochester Resources Ltd ($RCT) | 5.0% | 4.3% | 2.8% | 3.8% | 2.9% |
| Archon Minerals Ltd ($ACS) | - | - | 0.0% | 0.0% | 0.0% |
| |
|---|
| Median (6 companies) | 17.4% | 6.2% | 7.8% | 5.4% | 5.2% |
|---|
| Monument Mining Ltd ($MMY) | 43.3% | 46.0% | 35.1% | 37.2% | 18.3% |
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| B2Gold Corp ($BTO) | - | 4.0% | 12.3% | 21.3% | 37.6% |
| Archon Minerals Ltd ($ACS) | -111.6% | -20.4% | -3.5% | -1.2% | 13.7% |
| Orbit Garant Drilling Inc ($OGD) | 0.3% | -7.8% | 6.4% | -1.0% | -2.4% |
| Teras Resources Inc ($TRA) | -2.9% | -3.4% | -3.3% | -3.9% | -3.1% |
| Cadillac Ventures Inc ($CDC) | -2.9% | -3.6% | -2.5% | -2.5% | -3.6% |
| |
|---|
| Median (35 companies) | 1.0% | -27.8% | -43.3% | -39.1% | -21.4% |
|---|
| Monument Mining Ltd ($MMY) | 1.0% | -2.6% | -0.4% | 1.2% | 2.0% |
Top companies by Net Debt / EBITDA
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Archon Minerals Ltd ($ACS) | - | - | - | - | 7.6x |
| Orbit Garant Drilling Inc ($OGD) | 0.6x | 5.7x | 1.0x | 3.0x | 4.1x |
| B2Gold Corp ($BTO) | 1.1x | 2.2x | 0.7x | 0.2x | -0.2x |
| |
|---|
| Median (3 companies) | 0.7x | 4.0x | 0.9x | 1.6x | 4.1x |
|---|
| Monument Mining Ltd ($MMY) | -3.3x | - | -4.4x | -1.3x | -1.0x |
