Sun International Resources Ltd CAPEX dropped on 51.7% in 2015 and Revenue decreased on 7.5%
22/06/2015 • About Sun International Resources Ltd (
$8029) • By InTwits
Sun International Resources Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Sun International Resources Ltd is a company in decline: FY2015 revenue growth was -7.5%, 5 years revenue CAGR was -4.1%
- The company operates at negative EBITDA Margin: -52.6%
- Sun International Resources Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2011-FY2015 was 0.0%. On average EBITDA Margin was -2.1% for the sames years0
- Sun International Resources Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 18.6%. At the same time it's a lot of higher than industry average of 5.9%.
- CAPEX is quite volatile: 34.3 in FY2015, 71.0 in FY2014, 31.3 in FY2013, 11.1 in FY2012, 14.8 in FY2011
- The company has unprofitable business model: ROIC is at -13.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Sun International Resources Ltd ($8029) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 201.3 | 234.1 | 239.7 | 159.1 | 147.1 | -7.5% |
| Gross Profit | 156.2 | 194.7 | 175.3 | 103.1 | 102.2 | -0.9% |
| SG&A | | | | 142.6 | 188.6 | 32.3% |
| EBITDA | -3.4 | 55.2 | 27.4 | -22.4 | -77.4 | 245.7% |
| Net Income | 68.7 | 87.6 | -327.5 | -338.9 | -427.9 | 26.3% |
Balance Sheet
|
|---|
| Cash | 147.1 | 57.5 | 172.9 | 65.1 | 50.4 | -22.5% |
| Short Term Debt | 0.1 | 140.0 | 45.1 | 140.0 | 140.0 | 0.0% |
| Long Term Debt | 158.9 | 81.3 | 0.0 | 101.2 | 221.0 | 118.3% |
Cash flow
|
|---|
| Capex | 14.8 | 11.1 | 31.3 | 71.0 | 34.3 | -51.7% |
Ratios
|
|---|
| Revenue growth | 11.0% | 16.3% | 2.4% | -33.6% | -7.5% | |
| EBITDA growth | -55.1% | -1,710.8% | -50.3% | -181.6% | 245.7% | |
| Gross Margin | 77.6% | 83.2% | 73.1% | 64.8% | 69.4% | 4.6% |
| EBITDA Margin | -1.7% | 23.6% | 11.4% | -14.1% | -52.6% | -38.5% |
| Net Income Margin | 34.2% | 37.4% | -136.6% | -213.0% | -290.8% | -77.8% |
| SG&A, % of revenue | | | | 89.6% | 128.2% | 38.5% |
| CAPEX, % of revenue | 7.4% | 4.8% | 13.0% | 44.7% | 23.3% | -21.4% |
| ROIC | -0.8% | 1.5% | 0.9% | -3.7% | -13.2% | -9.5% |
| ROE | 6.2% | 7.3% | -30.9% | -45.5% | -112.5% | -67.0% |
| Net Debt/EBITDA | | 3.0x | -4.7x | | | 0.0x |
Revenue and profitability
The company's Revenue decreased on 7.5% in FY2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 38.5 pp from -14.1% to -52.6% in FY2015.
Gross Margin increased on 4.6 pp from 64.8% to 69.4% in FY2015. SG&A as a % of Revenue jumped on 38.5 pp from 89.6% to 128% in FY2015.
Net Income marign dropped on 77.8 pp from -213% to -291% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Sun International Resources Ltd had CAPEX/Revenue of 23.3%. CAPEX/Revenue jumped on 18.5 pp from 4.8% in FY2012 to 23.3% in FY2015. It's average level of CAPEX/Revenue for the last three years was 27.0%.
Return on investment
The company operates at negative ROIC (-13.20%) and ROE (-112.48%). ROIC decreased on 9.5 pp from -3.7% to -13.2% in FY2015. ROE dropped on 67.0 pp from -45.5% to -112% in FY2015.
Leverage (Debt)
Debt level is -3.9x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in FY2015. Debt surged on 49.7% in FY2015 while cash dropped on 22.5% in FY2015.
Appendix 1: Peers in Mining
Below we provide Sun International Resources Ltd benchmarking against other companies in Mining 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Xinjiang Xinxin Mining Industry Co Ltd ($3833) | 24.0% | 4.8% | -44.7% | 303.0% | |
| Huili Resources Group Ltd ($1303) | -47.8% | -33.6% | -91.6% | 219.4% | |
| North Mining Shares Co Ltd ($433) | 1.7% | -5.5% | -57.1% | 187.0% | |
| China Kingstone Mining Holdings Ltd ($1380) | 4,275.3% | -94.5% | -55.6% | 155.2% | |
| Ding He Mining Holdings Ltd ($705) | 31.6% | 29.9% | 43.8% | 89.8% | |
| |
|---|
| Median (45 companies) | 31.3% | 5.4% | 2.6% | -5.3% | 59.4% |
|---|
| Sun International Resources Ltd ($8029) | | 16.3% | 2.4% | -33.6% | -7.5% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Polymetallic Mining Ltd ($2133) | 76.9% | 81.8% | 74.2% | 51.8% | |
| China Precious Metal Resources Holdings Co Ltd ($1194) | 64.7% | 63.9% | 54.9% | 51.2% | |
| Hengshi Mining Investments Ltd ($1370) | 54.6% | 32.4% | 55.3% | 50.1% | |
| China Kingstone Mining Holdings Ltd ($1380) | 60.1% | 67.1% | 50.7% | 49.8% | |
| Kaz Minerals ($847) | 54.6% | 39.7% | 41.1% | 46.1% | |
| |
|---|
| Median (45 companies) | 19.1% | 13.4% | 14.0% | 15.3% | 53.5% |
|---|
| Sun International Resources Ltd ($8029) | 77.6% | 83.2% | 73.1% | 64.8% | 69.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Precious Metal Resources Holdings Co Ltd ($1194) | 73.1% | 70.0% | 64.6% | 59.6% | |
| China Polymetallic Mining Ltd ($2133) | -322.0% | 62.8% | 58.5% | 54.1% | |
| G-Resources Group Ltd ($1051) | | | 54.5% | 53.4% | |
| China Gold International Resources Corp Ltd ($2099) | | 41.7% | 38.3% | 47.3% | 33.7% |
| Hengshi Mining Investments Ltd ($1370) | 45.7% | 22.8% | 52.0% | 45.4% | |
| |
|---|
| Median (45 companies) | 6.4% | 4.7% | 8.3% | 5.5% | -4.7% |
|---|
| Sun International Resources Ltd ($8029) | -1.7% | 23.6% | 11.4% | -14.1% | -52.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Mongolia Energy Corp Ltd ($276) | | 8,006.5% | 1,061.7% | 30,555.4% | |
| Huili Resources Group Ltd ($1303) | 3.9% | 181.0% | 1,508.6% | 279.5% | |
| Kaz Minerals ($847) | 19.8% | 36.6% | 136.5% | 168.8% | |
| China Gold International Resources Corp Ltd ($2099) | | 64.7% | 156.1% | 95.6% | 81.4% |
| IRC Ltd ($1029) | 129.7% | 102.1% | 70.6% | 82.5% | |
| |
|---|
| Median (45 companies) | 17.1% | 17.4% | 16.0% | 11.1% | 41.6% |
|---|
| Sun International Resources Ltd ($8029) | 7.4% | 4.8% | 13.0% | 44.7% | 23.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Silver Group Ltd ($815) | 48.0% | 57.6% | 31.6% | 35.8% | |
| Hengshi Mining Investments Ltd ($1370) | 153.0% | 50.1% | 60.1% | 20.7% | |
| China Hongqiao Group Ltd ($1378) | 44.6% | 24.8% | 17.0% | 14.1% | |
| China Nonferrous Mining Corp Ltd ($1258) | 10.9% | 14.7% | 10.8% | 11.8% | |
| Xingfa Aluminium Holdings Ltd ($98) | 3.8% | 7.6% | 8.8% | 11.7% | |
| |
|---|
| Median (46 companies) | 3.8% | 2.5% | 3.3% | 2.1% | -5.1% |
|---|
| Sun International Resources Ltd ($8029) | -0.8% | 1.5% | 0.9% | -3.7% | -13.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Xinjiang Xinxin Mining Industry Co Ltd ($3833) | 0.9x | 8.4x | 39.4x | 10.3x | |
| MMG Ltd ($1208) | -0.0x | 2.1x | 2.0x | 10.2x | |
| China Daye Non-Ferrous Metals Mining Ltd ($661) | 5.8x | 9.2x | 9.7x | 9.2x | |
| Midas Holdings Ltd ($1021) | 1.4x | 4.3x | 6.5x | 8.7x | |
| Lingbao Gold Co Ltd ($3330) | 3.5x | 5.3x | | 8.3x | |
| |
|---|
| Median (27 companies) | 0.9x | 1.5x | 2.0x | 4.4x | 7.3x |
|---|
