Nord Gold Nv reports 97.2% CAPEX growth while 7.1% Revenue decline
25 Feb 2016 • About Nord Gold Nv (
$NORD) • By InTwits
Nord Gold Nv reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 44.9% in 2015, 40.2% in 2014, 0.8% in 2013, 33.0% in 2012, 47.9% in 2011
- Nord Gold Nv has high CAPEX intensity: 5 year average CAPEX/Revenue was 17.3%. At the same time it's a lot of higher than industry average of 1.5%.
- CAPEX is quite volatile: 227 in 2015, 115 in 2014, 162 in 2013, 325 in 2012, 200 in 2011
- The company has highly profitable business model: ROIC is at 16.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Nord Gold Nv ($NORD) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,182 | 1,198 | 1,271 | 1,216 | 1,129 | -7.1% |
| Gross Profit | 509 | 348 | 219 | 370 | 351 | -5.1% |
| SG&A | 37 | 67 | 66 | 56 | 48 | -14.1% |
| EBITDA | 567 | 395 | 10 | 489 | 507 | 3.7% |
| Net Income | 169 | 19 | -218 | 98 | 176 | 78.6% |
Balance Sheet
|
|---|
| Cash | 217 | 45 | 244 | 318 | 364 | 14.4% |
| Short Term Debt | 292 | 261 | 300 | 0 | 125 | |
| Long Term Debt | 74 | 465 | 627 | 940 | 815 | -13.2% |
Cash flow
|
|---|
| Capex | 200 | 325 | 162 | 115 | 227 | 97.2% |
Ratios
|
|---|
| Revenue growth | 56.7% | 1.3% | 6.1% | -4.3% | -7.1% | |
| EBITDA growth | 48.2% | -30.3% | -97.5% | 4,876.9% | 3.7% | |
| Gross Margin | 43.1% | 29.1% | 17.2% | 30.5% | 31.1% | 0.7% |
| EBITDA Margin | 47.9% | 33.0% | 0.8% | 40.2% | 44.9% | 4.7% |
| Net Income Margin | 14.3% | 1.6% | -17.2% | 8.1% | 15.5% | 7.5% |
| SG&A, % of revenue | 3.1% | 5.6% | 5.2% | 4.6% | 4.3% | -0.3% |
| CAPEX, % of revenue | 16.9% | 27.2% | 12.8% | 9.5% | 20.1% | 10.6% |
| ROIC | 16.9% | 6.6% | -9.0% | 13.8% | 16.1% | 2.4% |
| ROE | 11.6% | 1.2% | -15.7% | 9.3% | 19.8% | 10.5% |
| Net Debt/EBITDA | 0.3x | 1.7x | 69.6x | 1.3x | 1.1x | -0.1x |
Revenue and profitability
The company's Revenue decreased on 7.1% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 4.7 pp from 40.2% to 44.9% in 2015.
Gross Margin increased slightly on 0.67 pp from 30.5% to 31.1% in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign increased on 7.5 pp from 8.1% to 15.5% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Nord Gold Nv had CAPEX/Revenue of 20.1%. Nord Gold Nv showed decline in CAPEX/Revenue of 7.1 pp from 27.2% in 2012 to 20.1% in 2015. Average CAPEX/Revenue for the last three years was 14.1%.
Return on investment
The company operates at good ROIC (16.11%) and ROE (19.85%). ROIC increased on 2.4 pp from 13.8% to 16.1% in 2015. ROE jumped on 10.5 pp from 9.3% to 19.8% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.1x and Debt / EBITDA is 1.9x. Net Debt / EBITDA dropped on 0.1x from 1.3x to 1.1x in 2015. Debt showed almost no change in 2015 while cash surged on 14.4% in 2015.
Appendix 1: Peers in Mining
Below we provide Nord Gold Nv 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 ($MWA) | | 86.0% | 34.2% | 30.5% | 6.9% |
| |
|---|
| Median (28 companies) | 28.7% | 8.3% | -3.2% | -5.0% | -8.7% |
|---|
| Nord Gold Nv ($NORD) | | 1.3% | 6.1% | -4.3% | -7.1% |
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% | 35.5% |
| Polyus Gold Intl Ltd ($PGIL) | 50.5% | 51.1% | 40.2% | 46.1% | |
| |
|---|
| Median (27 companies) | 37.5% | 39.1% | 19.8% | 22.6% | 22.8% |
|---|
| Nord Gold Nv ($NORD) | 43.1% | 29.1% | 17.2% | 30.5% | 31.1% |
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% |
| Randgold Resources ($RRS) | 51.6% | 52.7% | 42.7% | 39.4% | 33.8% |
| |
|---|
| Median (30 companies) | 27.7% | 25.0% | 18.0% | 17.3% | 20.5% |
|---|
| Nord Gold Nv ($NORD) | 47.9% | 33.0% | 0.8% | 40.2% | 44.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kaz Minerals ($KAZ) | 19.8% | 36.6% | 136.5% | 168.8% | 168.7% |
| Goldbridges Global Resources ($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 ($SRB) | 3,151.4% | | | 44.5% | |
| |
|---|
| Median (30 companies) | 16.3% | 19.8% | 17.8% | 11.0% | 19.7% |
|---|
| Nord Gold Nv ($NORD) | 16.9% | 27.2% | 12.8% | 9.5% | 20.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Polyus Gold Intl Ltd ($PGIL) | 23.0% | 27.0% | 4.3% | 19.2% | |
| Mwana Africa ($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 ($SHG) | -39.2% | -14.0% | -2.4% | 15.8% | |
| |
|---|
| Median (31 companies) | 7.2% | 4.4% | 2.8% | 1.2% | 2.0% |
|---|
| Nord Gold Nv ($NORD) | 16.9% | 6.6% | -9.0% | 13.8% | 16.1% |
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 | 18.7x |
| 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 ($KGI) | -1.0x | -0.3x | 3.2x | 4.1x | 0.6x |
| |
|---|
| Median (23 companies) | -0.0x | 0.4x | 1.4x | 0.6x | 0.5x |
|---|
| Nord Gold Nv ($NORD) | 0.3x | 1.7x | 69.6x | 1.3x | 1.1x |
