Mwana Africa Net Income dropped on 90.3% in 2015 and EBITDA Margin decreased on 6.6 pp from 19.3% to 12.7%
29 Jul 2015 • About Mwana Africa (
$MWA) • By InTwits
Mwana Africa reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Mwana Africa has high CAPEX intensity: 5 year average CAPEX/Revenue was 13.0%. At the same time it's a lot of higher than industry average of 2.2%.
- CAPEX is quite volatile: 21.5 in FY2015, 12.8 in FY2014, 18.4 in FY2013, 8.6 in FY2012, 6.4 in FY2011
- The company has business model with low profitability: ROIC is at 7.5%
- It operates with high leverage: Net Debt/EBITDA is 0.5x while industry average is -60.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Mwana Africa ($MWA) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 43.7 | 81.3 | 109.2 | 142.5 | 152.3 | 6.9% |
| Gross Profit | 14.1 | 34.9 | 50.1 | 66.3 | 58.8 | -11.3% |
| SG&A | | | | 21.1 | 23.7 | 12.4% |
| EBITDA | -32.7 | 3.9 | 17.2 | 27.6 | 19.4 | -29.7% |
| Net Income | -3.4 | -0.7 | -28.6 | 36.6 | 3.6 | -90.3% |
Balance Sheet
|
|---|
| Cash | 7.4 | 6.7 | 15.2 | 9.1 | 14.0 | 54.3% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 1.8 | 4.8 | 166.0% |
| Long Term Debt | 3.1 | 5.9 | 4.3 | 2.4 | 18.3 | 648.6% |
Cash flow
|
|---|
| Capex | 6.4 | 8.6 | 18.4 | 12.8 | 21.5 | 68.7% |
Ratios
|
|---|
| Revenue growth | 45.8% | 86.0% | 34.2% | 30.5% | 6.9% | |
| EBITDA growth | 19.3% | -112.0% | 338.9% | 60.0% | -29.7% | |
| Gross Margin | 32.4% | 42.9% | 45.9% | 46.6% | 38.6% | -7.9% |
| EBITDA Margin | -74.9% | 4.8% | 15.8% | 19.3% | 12.7% | -6.6% |
| Net Income Margin | -7.9% | -0.9% | -26.2% | 25.7% | 2.3% | -23.4% |
| SG&A, % of revenue | | | | 14.8% | 15.6% | 0.8% |
| CAPEX, % of revenue | 14.7% | 10.5% | 16.8% | 9.0% | 14.1% | 5.2% |
| ROIC | -39.7% | 0.1% | 12.6% | 18.3% | 7.5% | -10.7% |
| ROE | -5.2% | -0.9% | -34.9% | 36.1% | 2.9% | -33.1% |
| Net Debt/EBITDA | | -0.2x | -0.6x | -0.2x | 0.5x | 0.6x |
Revenue and profitability
Mwana Africa's Revenue increased on 6.9% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 2.1 pp from -1.7% to 0.39% in FY2015.
Gross Margin decreased on 7.9 pp from 46.6% to 38.6% in FY2015. SG&A as a % of Revenue increased slightly on 0.76 pp from 14.8% to 15.6% in FY2015.
Net Income marign dropped on 23.4 pp from 25.7% to 2.3% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Mwana Africa's CAPEX/Revenue was 14.1% in FY2015. CAPEX/Revenue increased on 3.6 pp from 10.5% in FY2012 to 14.1% in FY2015. Average CAPEX/Revenue for the last three years was 13.3%.The company investments to CAPEX were large: 111% of EBITDA.
Return on investment
The company operates at low ROIC (7.54%) and ROE (2.91%). ROIC dropped on 10.7 pp from 18.3% to 7.5% in FY2015. ROE dropped on 33.1 pp from 36.1% to 2.9% in FY2015.
Leverage (Debt)
Debt level is 0.5x Net Debt / EBITDA and 1.2x Debt / EBITDA. Net Debt / EBITDA jumped on 0.6x from -0.2x to 0.5x in FY2015. Debt jumped on 442% in FY2015 while cash jumped on 54.3% in FY2015.
Appendix 1: Peers in Mining
Below you can find Mwana Africa 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 |
|---|
| Patagonia Gold ($PGD) | | | | 234.6% | |
| Zccm Investments Hldgs ($ZCC) | | -30.1% | 102.1% | 92.4% | |
| Rambler Metals & Mining ($RMM) | | -65.4% | 2,744.1% | 79.2% | |
| Shanta Gold ($SHG) | | | | 74.1% | |
| Kenmare Resources ($KMR) | 82.9% | 40.1% | -41.2% | 26.4% | |
| |
|---|
| Median (28 companies) | 32.1% | 3.2% | -3.2% | -5.0% | -3.6% |
|---|
| Mwana Africa ($MWA) | | 86.0% | 34.2% | 30.5% | 6.9% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Zccm Investments Hldgs ($ZCC) | 68.4% | 51.8% | 71.4% | 85.6% | |
| Rambler Metals & Mining ($RMM) | 50.2% | 44.7% | 39.6% | 52.2% | |
| Kaz Minerals ($KAZ) | 54.6% | 39.7% | 41.1% | 46.1% | |
| Polyus Gold Intl Ltd ($PGIL) | 50.5% | 51.1% | 40.2% | 46.1% | |
| Griffin Mining ($GFM) | 59.6% | 54.7% | 43.6% | 44.4% | |
| |
|---|
| Median (27 companies) | 41.5% | 38.5% | 18.6% | 22.6% | 24.9% |
|---|
| Mwana Africa ($MWA) | 32.4% | 42.9% | 45.9% | 46.6% | 38.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Zccm Investments Hldgs ($ZCC) | 138.5% | 146.8% | 75.2% | 88.7% | |
| Polyus Gold Intl Ltd ($PGIL) | 43.6% | 51.1% | 18.7% | 45.9% | |
| Rambler Metals & Mining ($RMM) | -26.1% | -194.4% | 29.6% | 45.1% | |
| Antofagasta ($ANTO) | | 50.0% | 45.0% | 42.6% | 25.9% |
| Nord Gold Nv ($NORD) | 47.9% | 33.0% | 0.8% | 40.2% | |
| |
|---|
| Median (30 companies) | 29.0% | 27.2% | 18.0% | 17.3% | 29.2% |
|---|
| Mwana Africa ($MWA) | -74.9% | 4.8% | 15.8% | 19.3% | 12.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kaz Minerals ($KAZ) | 19.8% | 36.6% | 136.5% | 168.8% | |
| Goldbridges Global Resources ($GBGR) | 40.3% | 26.9% | 17.6% | 73.9% | |
| Griffin Mining ($GFM) | 12.2% | 10.8% | 10.4% | 51.2% | |
| Kirkland Lake Gold Inc ($KGI) | 54.9% | 44.6% | 72.9% | 47.7% | 21.6% |
| Serabi Gold ($SRB) | 3,151.4% | | | 44.5% | |
| |
|---|
| Median (30 companies) | 16.9% | 21.5% | 17.8% | 11.0% | 26.2% |
|---|
| Mwana Africa ($MWA) | 14.7% | 10.5% | 16.8% | 9.0% | 14.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Polyus Gold Intl Ltd ($PGIL) | 23.0% | 27.0% | 4.3% | 19.2% | |
| Caledonia Mining Corp ($CMCL) | 61.7% | 37.6% | 34.9% | 18.1% | |
| Rambler Metals & Mining ($RMM) | -1.5% | -2.6% | 3.3% | 16.7% | |
| Shanta Gold ($SHG) | -39.2% | -14.0% | -2.4% | 15.8% | |
| Antofagasta ($ANTO) | | 26.2% | 19.4% | 14.3% | 2.6% |
| |
|---|
| Median (31 companies) | 8.9% | 4.6% | 2.0% | 1.2% | 5.9% |
|---|
| Mwana Africa ($MWA) | -39.7% | 0.1% | 12.6% | 18.3% | 7.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Minera Irl Ltd ($MIRL) | -0.0x | 1.0x | 4.2x | 10.0x | |
| Kaz Minerals ($KAZ) | 0.6x | 2.4x | 2.9x | 5.5x | |
| Anglo Asian Mining ($AAZ) | 0.1x | 0.7x | 2.6x | 5.2x | |
| Glencore ($GLEN) | 6.0x | 7.3x | 6.2x | 4.6x | |
| Kirkland Lake Gold Inc ($KGI) | -1.0x | -0.3x | 3.2x | 4.1x | 0.6x |
| |
|---|
| Median (23 companies) | 0.0x | 0.8x | 1.7x | 0.7x | 1.4x |
|---|
| Mwana Africa ($MWA) | | -0.2x | -0.6x | -0.2x | 0.5x |
