New World Resources reports 42.5% CAPEX decline and 6.9% Revenue decline
24 Feb 2016 • About New World Resources (
$NWR) • By InTwits
New World Resources reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- New World Resources is a company in decline: 2015 revenue growth was -6.9%, 5 years revenue CAGR was -16.9%
- The company operates at negative EBITDA Margin: -32.2%
- New World Resources motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 was 0.0%. On average EBITDA Margin was -10.4% for the sames years0
- New World Resources has high CAPEX intensity: 5 year average CAPEX/Revenue was 11.7%. At the same time it's a lot of higher than industry average of 3.2%.
- CAPEX is quite volatile: 34.3 in 2015, 59.6 in 2014, 109 in 2013, 231 in 2012, 194 in 2011
- The company has unprofitable business model: ROIC is at -198.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
New World Resources ($NWR) key annual financial indicators
| mln. € | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,632 | 1,179 | 850 | 676 | 630 | -6.9% |
| Gross Profit | 1,257 | 266 | 7 | 60 | 71 | 18.4% |
| SG&A | | 222 | 165 | 135 | 119 | -11.5% |
| EBITDA | 452 | 224 | -821 | -172 | -202 | 17.6% |
| Net Income | 129 | -1 | -970 | -21 | -223 | 958.5% |
Balance Sheet
|
|---|
| Cash | 537 | 267 | 184 | 128 | 86 | -32.9% |
| Short Term Debt | 114 | 14 | 14 | 0 | 40 | |
| Long Term Debt | 815 | 804 | 795 | 409 | 344 | -16.1% |
Cash flow
|
|---|
| Capex | 194 | 231 | 109 | 60 | 34 | -42.5% |
Ratios
|
|---|
| Revenue growth | 2.7% | -27.8% | -27.8% | -20.5% | -6.9% | |
| EBITDA growth | -2.7% | -50.4% | -465.8% | -79.0% | 17.6% | |
| Gross Margin | 77.0% | 22.6% | 0.8% | 8.9% | 11.3% | 2.4% |
| EBITDA Margin | 27.7% | 19.0% | -96.5% | -25.5% | -32.2% | -6.7% |
| Net Income Margin | 7.9% | -0.1% | -114.1% | -3.1% | -35.4% | -32.3% |
| SG&A, % of revenue | | 18.9% | 19.4% | 19.9% | 18.9% | -1.0% |
| CAPEX, % of revenue | 11.9% | 19.6% | 12.8% | 8.8% | 5.4% | -3.4% |
| ROIC | 15.5% | 2.9% | -90.0% | -70.0% | -198.7% | -128.7% |
| ROE | 16.5% | -0.2% | | | | 0.0% |
| Net Debt/EBITDA | 0.9x | 2.5x | | | | 0.0x |
Revenue and profitability
The company's Revenue decreased on 6.9% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.1 pp from 16.8% to 17.9% in FY2015.
Gross Margin increased on 2.4 pp from 8.9% to 11.3% in 2015. SG&A as a % of Revenue decreased slightly on 0.98 pp from 19.9% to 18.9% in 2015.
Net Income marign dropped on 32.3 pp from -3.1% to -35.4% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 5.4%. The company's CAPEX/Revenue dropped on 14.2 pp from 19.6% in 2012 to 5.4% in 2015. It's average level of CAPEX/Revenue for the last three years was 9.0%.
Leverage (Debt)
Debt level is -0.2x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in 2015. Debt decreased on 6.3% in 2015 while cash dropped on 32.9% in 2015.
Appendix 1: Peers in Mining
Below we provide New World Resources 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 ($RMM) | | -65.4% | 2,744.1% | 79.2% | -34.2% |
| Shanta Gold ($SHG) | | | | 74.1% | |
| Mwana Africa ($MWA) | | 86.0% | 34.2% | 30.5% | 6.9% |
| |
|---|
| Median (28 companies) | 28.7% | 8.3% | -2.6% | -4.7% | -8.7% |
|---|
| New World Resources ($NWR) | | -27.8% | -27.8% | -20.5% | -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% | 30.6% |
| 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 ($PGIL) | 50.5% | 51.1% | 40.2% | 46.1% | |
| |
|---|
| Median (27 companies) | 37.5% | 39.1% | 19.8% | 22.7% | 22.8% |
|---|
| New World Resources ($NWR) | 77.0% | 22.6% | 0.8% | 8.9% | 11.3% |
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 ($RMM) | -26.1% | -194.4% | 29.6% | 45.1% | 20.5% |
| Antofagasta ($ANTO) | | 50.0% | 45.0% | 42.6% | 25.9% |
| Nord Gold Nv ($NORD) | 47.9% | 33.0% | 0.8% | 40.2% | |
| |
|---|
| Median (30 companies) | 29.0% | 27.2% | 18.0% | 18.9% | 20.5% |
|---|
| New World Resources ($NWR) | 27.7% | 19.0% | -96.5% | -25.5% | -32.2% |
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 ($SRB) | 3,151.4% | | | 44.5% | |
| |
|---|
| Median (30 companies) | 16.9% | 21.5% | 17.8% | 11.0% | 19.7% |
|---|
| New World Resources ($NWR) | 11.9% | 19.6% | 12.8% | 8.8% | 5.4% |
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% | 0.5% |
| Shanta Gold ($SHG) | -39.2% | -14.0% | -2.4% | 15.8% | |
| |
|---|
| Median (31 companies) | 7.2% | 4.6% | 2.8% | 2.3% | 2.6% |
|---|
| New World Resources ($NWR) | 15.5% | 2.9% | -90.0% | -70.0% | -198.7% |
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 (24 companies) | -0.0x | 0.4x | 1.6x | 0.6x | 0.5x |
|---|
