Real Gold Mining Ltd reports 108% Net Income growth and 106% Revenue growth
31/03/2016 • About Real Gold Mining Ltd (
$246) • By InTwits
Real Gold Mining Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Real Gold Mining Ltd doesn't have a profitable business model yet: 2015 ROIC is -3.3%
- The company operates at negative EBITDA Margin: -9.9%
- Real Gold Mining Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 was 0.0%. On average EBITDA Margin was -99.4% for the sames years0
- The company has unprofitable business model: ROIC is at -3.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Real Gold Mining Ltd ($246) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,413 | 790 | 253 | 187 | 385 | 106.2% |
| Gross Profit | 1,072 | 352 | -250 | -265 | -11 | -95.7% |
| SG&A | 106 | 90 | 75 | 47 | 53 | 12.1% |
| EBITDA | -384 | -27 | -1,937 | -623 | -38 | -93.9% |
| Net Income | -758 | -67 | -1,867 | -602 | 48 | -108.1% |
Balance Sheet
|
|---|
| Cash | 2,805 | 2,766 | 1,329 | 794 | 819 | 3.1% |
| Short Term Debt | 0 | 0 | 0 | 0 | 0 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | | | 1,671 | 415 | 100 | -75.9% |
Ratios
|
|---|
| Revenue growth | 3.3% | -44.0% | -68.0% | -26.2% | 106.2% | |
| EBITDA growth | -132.4% | -92.9% | 6,983.2% | -67.8% | -93.9% | |
| Gross Margin | 75.9% | 44.6% | -98.9% | -142.2% | -2.9% | 139.2% |
| EBITDA Margin | -27.2% | -3.5% | -766.1% | -334.2% | -9.9% | 324.3% |
| Net Income Margin | -53.7% | -8.5% | -738.3% | -322.7% | 12.6% | 335.3% |
| SG&A, % of revenue | 7.5% | 11.4% | 29.5% | 25.2% | 13.7% | -11.5% |
| CAPEX, % of revenue | | | 660.8% | 222.5% | 26.0% | -196.5% |
| ROIC | -9.7% | -0.7% | -68.0% | -39.3% | -3.3% | 36.0% |
| ROE | -18.1% | -1.8% | -65.5% | -37.2% | 3.6% | 40.9% |
Revenue and profitability
Real Gold Mining Ltd's Revenue jumped on 106% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 8.0 pp from 15.6% to 7.6% in 2015.
Gross Margin surged on 139 pp from -142% to -2.9% in 2015. SG&A as a % of Revenue dropped on 11.5 pp from 25.2% to 13.7% in 2015.
Net Income marign jumped on 335 pp from -323% to 12.6% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Real Gold Mining Ltd had CAPEX/Revenue of 26.0%. CAPEX/Revenue jumped26.0 pp from in 2012 to 26.0% in 2015. It's average CAPEX/Revenue for the last three years was 303%.
Return on investment
The company operates at negative ROIC (-3.33%) and low but positive ROE (3.63%). ROIC surged on 36.0 pp from -39.3% to -3.3% in 2015. ROE surged on 40.9 pp from -37.2% to 3.6% in 2015.
Leverage (Debt)
The company has no debt. Cash increased on 3.1% in 2015.
Management team
Real Gold Mining Ltd's CEO is Ma Wenxue. Ma Wenxue has 7 years tenure at the company.
Appendix 1: Peers in Mining
Below you can find Real Gold Mining Ltd benchmarking vs. other companies in Mining 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Mongolia Energy Corp Ltd ($276) | | | 89.7% | -95.8% | 2,361.6% |
| REX Global Entertainment Holdings Ltd ($164) | | -12.3% | 81.6% | -15.5% | 96.4% |
| Hengxing Gold Holding Co Ltd ($2303) | | | | 3,467.3% | 78.0% |
| Zijin Mining Group Co Ltd ($2899) | | 21.6% | 2.5% | 18.1% | 26.9% |
| China Gold International Resources Corp Ltd ($2099) | | | -9.0% | -8.2% | 22.4% |
| |
|---|
| Median (48 companies) | 54.5% | 5.4% | 2.4% | -5.1% | -13.6% |
|---|
| Real Gold Mining Ltd ($246) | | -44.0% | -68.0% | -26.2% | 106.2% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sino Prosper Group Holdings Ltd ($766) | -6.5% | 2.5% | 5.1% | 39.6% | 93.0% |
| REX Global Entertainment Holdings Ltd ($164) | 15.4% | -15.8% | -7.8% | -0.8% | 88.6% |
| China Billion Resources Ltd ($274) | 20.3% | 71.4% | 47.2% | 73.4% | 79.7% |
| Sun International Resources Ltd ($8029) | 77.6% | 83.2% | 73.1% | 64.8% | 69.4% |
| Timeless Software Ltd ($8028) | 19.2% | 17.7% | 48.5% | 29.4% | 42.1% |
| |
|---|
| Median (49 companies) | 19.1% | 13.4% | 13.8% | 15.4% | 14.3% |
|---|
| Real Gold Mining Ltd ($246) | 75.9% | 44.6% | -98.9% | -142.2% | -2.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| G-Resources Group Ltd ($1051) | | | 54.5% | 53.4% | 58.3% |
| China Precious Metal Resources Holdings Co Ltd ($1194) | 73.1% | 70.0% | 64.6% | 59.6% | 51.3% |
| Timeless Software Ltd ($8028) | -70.8% | -113.1% | 24.7% | -13.7% | 46.1% |
| Hengxing Gold Holding Co Ltd ($2303) | | | -766.2% | 24.5% | 43.9% |
| Sino Prosper Group Holdings Ltd ($766) | -127.2% | -138.6% | -138.2% | -378.4% | 42.9% |
| |
|---|
| Median (49 companies) | 6.3% | 4.9% | 7.9% | 5.2% | 5.1% |
|---|
| Real Gold Mining Ltd ($246) | -27.2% | -3.5% | -766.1% | -334.2% | -9.9% |
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% | 1,973.0% |
| Kaz Minerals ($847) | 19.8% | 36.6% | 136.5% | 168.8% | 168.7% |
| Chinalco Mining Corp International ($3668) | | | | | 115.6% |
| China Dynamics Holdings Ltd ($476) | 1.6% | 1.8% | 0.0% | 1.0% | 113.8% |
| MMG Ltd ($1208) | 17.1% | 25.7% | 22.6% | 41.9% | 100.4% |
| |
|---|
| Median (49 companies) | 14.3% | 17.0% | 15.7% | 13.4% | 11.0% |
|---|
| Real Gold Mining Ltd ($246) | | | 660.8% | 222.5% | 26.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| CGN Mining Co Ltd ($1164) | -6.4% | 2.6% | 3.3% | 7.9% | 16.7% |
| United Co RUSAL PLC ($486) | 7.5% | 0.3% | -9.0% | 6.3% | 12.3% |
| Xingfa Aluminium Holdings Ltd ($98) | 3.8% | 7.6% | 8.8% | 11.7% | 11.8% |
| Timeless Software Ltd ($8028) | -18.0% | -29.1% | 7.3% | -4.6% | 11.6% |
| China Hongqiao Group Ltd ($1378) | 44.6% | 24.8% | 17.0% | 14.1% | 10.6% |
| |
|---|
| Median (50 companies) | 3.3% | 1.9% | 3.0% | 1.5% | -0.6% |
|---|
| Real Gold Mining Ltd ($246) | -9.7% | -0.7% | -68.0% | -39.3% | -3.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Daye Non-Ferrous Metals Mining Ltd ($661) | 5.8x | 9.2x | 9.7x | 9.2x | 31.5x |
| Chinalco Mining Corp International ($3668) | | | | | 25.0x |
| MMG Ltd ($1208) | -0.0x | 2.1x | 2.0x | 10.2x | 20.2x |
| Kaz Minerals ($847) | 0.6x | 2.4x | 2.9x | 5.5x | 18.7x |
| Aluminum Corp of China Ltd ($2600) | 7.7x | 139.2x | 8.5x | | 18.0x |
| |
|---|
| Median (31 companies) | 1.4x | 2.0x | 1.9x | 4.4x | 3.4x |
|---|
