Aquarius Platinum Limited reports 57.4% EBITDA decline and 9.6% Revenue decline
12 Aug 2015 • About Aquarius Platinum Limited (
$AQP) • By InTwits
Aquarius Platinum Limited reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Aquarius Platinum Limited is a company in decline: FY2015 revenue growth was -9.6%, 5 years revenue CAGR was -14.8%
- Aquarius Platinum Limited has high CAPEX intensity: 5 year average CAPEX/Revenue was 16.1%. At the same time it's in pair with industry average of 20.7%.
- CAPEX is quite volatile: 23.1 in FY2015, 28.1 in FY2014, 36.3 in FY2013, 95.5 in FY2012, 140 in FY2011
- The company has unprofitable business model: ROIC is at -4.1%
- It operates with high leverage: Net Debt/EBITDA is -3.2x while industry average is -60.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Aquarius Platinum Limited ($AQP) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 667.6 | 476.6 | 231.0 | 227.4 | 205.5 | -9.6% |
| Gross Profit | 159.8 | -54.6 | -17.7 | -3.8 | -5.3 | 40.3% |
| SG&A | 13.4 | 12.3 | 12.5 | 7.5 | 6.3 | -15.5% |
| EBITDA | 104.1 | 63.1 | -220.1 | 50.0 | 21.3 | -57.4% |
| Net Income | -10.4 | -158.2 | -287.2 | -13.0 | -96.3 | 638.1% |
Balance Sheet
|
|---|
| Cash | 328.1 | 180.1 | 77.8 | 136.8 | 195.8 | 43.1% |
| Short Term Debt | 34.5 | 38.2 | 4.1 | 1.4 | 124.9 | 9,068.9% |
| Long Term Debt | 257.6 | 265.5 | 269.0 | 118.9 | 2.0 | -98.3% |
Cash flow
|
|---|
| Capex | 140.3 | 95.5 | 36.3 | 28.1 | 23.1 | -17.6% |
Ratios
|
|---|
| Revenue growth | 45.8% | -28.6% | -51.5% | -1.6% | -9.6% | |
| EBITDA growth | -34.4% | -39.4% | -449.1% | -122.7% | -57.4% | |
| Gross Margin | 23.9% | -11.4% | -7.7% | -1.7% | -2.6% | -0.9% |
| EBITDA Margin | 15.6% | 13.2% | -95.3% | 22.0% | 10.4% | -11.6% |
| Net Income Margin | -1.6% | -33.2% | -124.3% | -5.7% | -46.9% | -41.1% |
| SG&A, % of revenue | 2.0% | 2.6% | 5.4% | 3.3% | 3.1% | -0.2% |
| CAPEX, % of revenue | 21.0% | 20.0% | 15.7% | 12.3% | 11.3% | -1.1% |
| ROIC | -1.5% | -5.8% | -36.1% | -1.4% | -4.1% | -2.7% |
| ROE | -1.2% | -20.8% | -59.8% | -3.4% | -23.4% | -20.0% |
| Net Debt/EBITDA | -0.3x | 2.0x | | -0.3x | -3.2x | -2.9x |
Revenue and profitability
The company's Revenue decreased on 9.6% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 11.6 pp from 22.0% to 10.4% in FY2015.
Gross Margin decreased slightly on 0.92 pp from -1.7% to -2.6% in FY2015. SG&A as a % of Revenue showed almost no change in FY2015.
Net Income marign dropped on 41.1 pp from -5.7% to -46.9% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Aquarius Platinum Limited's CAPEX/Revenue was 11.3% in FY2015. Aquarius Platinum Limited's CAPEX/Revenue decreased on 8.8 pp from 20.0% in FY2012 to 11.3% in FY2015. It's average level of CAPEX/Revenue for the last three years was 13.1%.Aquarius Platinum Limited has spent a lot to CAPEX (109% of EBITDA) which didn't stop revenue from falling.
Return on investment
The company operates at negative ROIC (-4.11%) and ROE (-23.44%). ROIC decreased on 2.7 pp from -1.4% to -4.1% in FY2015. ROE dropped on 20.0 pp from -3.4% to -23.4% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -3.2x and Debt / EBITDA is 6.0x. Net Debt / EBITDA dropped on 2.9x from -0.3x to -3.2x in FY2015. Debt increased on 5.5% in FY2015 while cash surged on 43.1% in FY2015.
Appendix 1: Peers in Mining
Below we provide Aquarius Platinum Limited 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 |
|---|
| 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% | |
| Mwana Africa ($MWA) | | 86.0% | 34.2% | 30.5% | 6.9% |
| |
|---|
| Median (28 companies) | 30.5% | 8.3% | -2.6% | -5.0% | 6.9% |
|---|
| Aquarius Platinum Limited ($AQP) | | -28.6% | -51.5% | -1.6% | -9.6% |
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% | |
| Mwana Africa ($MWA) | 32.4% | 42.9% | 45.9% | 46.6% | 38.6% |
| Kaz Minerals ($KAZ) | 54.6% | 39.7% | 41.1% | 46.1% | |
| Polyus Gold Intl Ltd ($PGIL) | 50.5% | 51.1% | 40.2% | 46.1% | |
| |
|---|
| Median (27 companies) | 41.5% | 39.1% | 19.8% | 22.7% | 27.0% |
|---|
| Aquarius Platinum Limited ($AQP) | 23.9% | -11.4% | -7.7% | -1.7% | -2.6% |
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 ($NORD) | 47.9% | 33.0% | 0.8% | 40.2% | |
| |
|---|
| Median (30 companies) | 29.0% | 27.2% | 18.0% | 17.3% | 25.9% |
|---|
| Aquarius Platinum Limited ($AQP) | 15.6% | 13.2% | -95.3% | 22.0% | 10.4% |
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 ($SRB) | 3,151.4% | | | 44.5% | |
| |
|---|
| Median (30 companies) | 16.3% | 21.3% | 17.8% | 10.2% | 21.6% |
|---|
| Aquarius Platinum Limited ($AQP) | 21.0% | 20.0% | 15.7% | 12.3% | 11.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Polyus Gold Intl Ltd ($PGIL) | 23.0% | 27.0% | 4.3% | 19.2% | |
| Mwana Africa ($MWA) | -39.7% | 0.1% | 12.6% | 18.3% | 7.5% |
| 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 ($SHG) | -39.2% | -14.0% | -2.4% | 15.8% | |
| |
|---|
| Median (31 companies) | 8.9% | 4.6% | 2.8% | 2.3% | 7.5% |
|---|
| Aquarius Platinum Limited ($AQP) | -1.5% | -5.8% | -36.1% | -1.4% | -4.1% |
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 ($KGI) | -1.0x | -0.3x | 3.2x | 4.1x | 0.6x |
| |
|---|
| Median (23 companies) | 0.1x | 0.4x | 1.6x | 0.7x | 0.6x |
|---|
| Aquarius Platinum Limited ($AQP) | -0.3x | 2.0x | | -0.3x | -3.2x |
