Mongolian Mining Corp revenue surged on 20.6% and EBITDA Margin surged on 70.7 pp from -66.7% to 4.1%
22/03/2017 • About Mongolian Mining Corp (
$975) • By InTwits
Mongolian Mining Corp reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Mongolian Mining Corp doesn't have a profitable business model yet: FY2016 ROIC is -2.5%
- The company has unprofitable business model: ROIC is at -2.5%
- It operates with high leverage: Net Debt/EBITDA is 154.4x while industry average is 27.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Mongolian Mining Corp ($975) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 474.5 | 437.3 | 328.3 | 99.5 | 120.0 | 20.6% |
| Gross Profit | 54.1 | 75.9 | -7.2 | -66.1 | -0.3 | |
| SG&A | | | 87.4 | 39.1 | 30.8 | -21.3% |
| EBITDA | 61.0 | 89.0 | -47.8 | -66.3 | 4.9 | |
| Net Income | -2.5 | -58.1 | -282.8 | -187.8 | -154.2 | |
Balance Sheet
|
|---|
| Cash | 44.3 | 26.5 | 202.9 | 50.7 | 12.3 | -75.8% |
| Short Term Debt | 272.0 | 246.9 | 114.8 | 197.6 | 764.9 | 287.0% |
| Long Term Debt | 842.1 | 744.4 | 757.9 | 597.6 | 0.0 | -100.0% |
Cash flow
|
|---|
| Capex | 284.4 | 183.5 | 67.5 | 42.5 | | -100.0% |
Ratios
|
|---|
| Revenue growth | -12.5% | -7.8% | -24.9% | -69.7% | 20.6% | |
| EBITDA growth | -63.3% | 46.0% | -153.7% | 38.8% | -107.3% | |
| Gross Margin | 11.4% | 17.3% | -2.2% | -66.5% | -0.3% | 66.2% |
| EBITDA Margin | 12.8% | 20.3% | -14.6% | -66.7% | 4.1% | 70.7% |
| Net Income Margin | -0.5% | -13.3% | -86.2% | -188.7% | -128.5% | 60.2% |
| SG&A, % of revenue | | | 26.6% | 39.3% | 25.6% | -13.7% |
| CAPEX, % of revenue | 59.9% | 42.0% | 20.5% | 42.7% | | -42.7% |
| ROIC | 0.8% | 1.3% | -6.2% | -8.8% | -2.5% | 6.4% |
| ROE | -0.3% | -8.8% | -59.1% | -64.1% | -59.3% | 4.8% |
| Net Debt/EBITDA | 17.6x | 10.8x | | | 154.4x | 154.4x |
Revenue and profitability
The company's Revenue jumped on 20.6%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 7.4 pp from -22.6% to -15.2% in FY2016.
Gross Margin surged on 66.2 pp from -66.5% to -0.26% in FY2016. SG&A as a % of Revenue dropped on 13.7 pp from 39.3% to 25.6% in FY2016.
Net Income marign jumped on 60.2 pp from -189% to -129% in FY2016.
Return on investment
The company operates at negative ROIC (-2.47%) and ROE (-59.31%). ROIC increased on 6.4 pp from -8.8% to -2.5% in FY2016. ROE increased on 4.8 pp from -64.1% to -59.3% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 154.4x and Debt / EBITDA is 156.9x. Net Debt / EBITDA surged154.4x from to 154.4x in FY2016. Debt decreased on 3.8% while cash dropped on 75.8%.
Management team
The company's CEO Battsengel Gotov has spent 10 years at the company. The company's CFO Ulemj Baskhuu has spent 5 years at the company.
Appendix 1: Peers in Coal
Below you can find Mongolian Mining Corp benchmarking vs. other companies in Coal 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Sino Resources Group Ltd ($223) | | -44.8% | 14.7% | 354.5% | 0.4% |
| Asia Coal Ltd ($835) | | -15.3% | 43.2% | 133.6% | -60.1% |
| Dowell Property Holdings Ltd ($668) | -19.2% | -55.7% | -35.8% | 83.2% | |
| Capital Finance Holdings Ltd ($8239) | | -5.2% | -5.5% | 70.6% | -27.2% |
| Up Energy Development Group Ltd ($307) | | | | 60.5% | |
| |
|---|
| Median (22 companies) | -16.0% | -9.4% | -5.5% | -19.5% | -18.1% |
|---|
| Mongolian Mining Corp ($975) | | -7.8% | -24.9% | -69.7% | 20.6% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Capital Finance Holdings Ltd ($8239) | 6.4% | 7.2% | 8.7% | 98.2% | |
| Nan Nan Resources Enterprise Ltd ($1229) | 23.9% | 17.6% | 18.1% | 44.3% | 41.0% |
| Agritrade Resources Ltd ($1131) | 22.9% | 29.4% | 31.8% | 30.0% | 30.9% |
| Shougang Fushan Resources Group Ltd ($639) | 63.5% | 50.9% | 40.1% | 24.5% | |
| Inner Mongolia Yitai Coal Co Ltd ($3948) | 35.2% | 33.7% | 27.4% | 19.2% | |
| |
|---|
| Median (21 companies) | 20.0% | 15.7% | 10.2% | 3.0% | 19.0% |
|---|
| Mongolian Mining Corp ($975) | 11.4% | 17.3% | -2.2% | -66.5% | -0.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Capital Finance Holdings Ltd ($8239) | -27.2% | -23.7% | -56.2% | 71.5% | |
| Nan Nan Resources Enterprise Ltd ($1229) | 19.1% | 14.1% | -0.2% | 40.5% | 24.1% |
| Agritrade Resources Ltd ($1131) | 41.6% | 37.3% | 33.4% | 31.1% | 56.3% |
| Feishang Anthracite Resources Ltd ($1738) | -13.1% | -32.9% | 19.0% | 15.9% | |
| Kinetic Mines and Energy Ltd ($1277) | -277.0% | -51.9% | 29.3% | 15.8% | |
| |
|---|
| Median (22 companies) | -3.8% | -7.8% | -7.5% | -16.2% | -0.4% |
|---|
| Mongolian Mining Corp ($975) | 12.8% | 20.3% | -14.6% | -66.7% | 4.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Siberian Mining Group Co Ltd ($1142) | 4.6% | 78.8% | 217.3% | 279.7% | 23.0% |
| Feishang Anthracite Resources Ltd ($1738) | 244.9% | 159.7% | 80.9% | 90.2% | |
| Up Energy Development Group Ltd ($307) | | | 279.5% | 75.2% | |
| King Stone Energy Group Ltd ($663) | 58.5% | 135.3% | 205.7% | 69.3% | |
| SouthGobi Resources Ltd ($1878) | 124.8% | 20.2% | 11.5% | 52.6% | |
| |
|---|
| Median (20 companies) | 12.5% | 25.8% | 18.3% | 15.8% | 11.2% |
|---|
| Mongolian Mining Corp ($975) | 59.9% | 42.0% | 20.5% | 42.7% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Capital Finance Holdings Ltd ($8239) | -25.1% | -14.9% | -26.9% | 21.0% | |
| Nan Nan Resources Enterprise Ltd ($1229) | 6.4% | 1.6% | -1.2% | 10.0% | 1.5% |
| Agritrade Resources Ltd ($1131) | 2.7% | 5.8% | 6.4% | 6.9% | 9.4% |
| Kinetic Mines and Energy Ltd ($1277) | -6.6% | -5.7% | 8.5% | 3.2% | |
| Inner Mongolia Yitai Coal Co Ltd ($3948) | 28.5% | 15.2% | 8.5% | 2.0% | |
| |
|---|
| Median (22 companies) | -3.2% | -3.8% | -3.5% | -4.8% | -3.1% |
|---|
| Mongolian Mining Corp ($975) | 0.8% | 1.3% | -6.2% | -8.8% | -2.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Feishang Anthracite Resources Ltd ($1738) | | | 24.3x | 32.6x | |
| China Coal Energy Co Ltd ($1898) | 1.9x | 4.9x | 9.7x | 14.4x | 7.2x |
| Inner Mongolia Yitai Coal Co Ltd ($3948) | 0.4x | 1.7x | 3.5x | 9.8x | |
| Yanzhou Coal Mining Co Ltd ($1171) | 2.9x | 6.2x | 4.9x | 9.0x | |
| Kinetic Mines and Energy Ltd ($1277) | | | 4.5x | 5.9x | |
| |
|---|
| Median (8 companies) | 2.4x | 4.4x | 4.7x | 7.5x | 0.8x |
|---|
