Polyus Gold Intl Ltd Net Income surged on 730% in 2015 while Revenue decreased on 2.2%
10 Mar 2016 • About Polyus Gold Intl Ltd (
$PGIL) • By InTwits
Polyus Gold Intl Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 58.0% in 2015, 45.9% in 2014, 18.7% in 2013, 51.1% in 2012, 43.6% in 2011
- Polyus Gold Intl Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 27.8%. At the same time it's in pair with industry average of 25.6%.
- CAPEX is quite volatile: 327 in 2015, 570 in 2014, 1,347 in 2013, 713 in 2012, 343 in 2011
- The company has highly profitable business model: ROIC is at 29.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Polyus Gold Intl Ltd ($PGIL) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,403 | 2,680 | 2,329 | 2,239 | 2,189 | -2.2% |
| Gross Profit | 1,213 | 1,371 | 935 | 1,032 | 1,287 | 24.7% |
| SG&A | 221 | 252 | 221 | 179 | 163 | -8.9% |
| EBITDA | 1,048 | 1,370 | 436 | 1,028 | 1,269 | 23.4% |
| Net Income | 483 | 930 | 140 | -164 | 1,033 | -729.9% |
Balance Sheet
|
|---|
| Cash | 670 | 1,028 | 856 | 1,486 | 2,039 | 37.2% |
| Short Term Debt | 676 | 188 | 269 | 90 | 38 | -57.8% |
| Long Term Debt | 123 | 161 | 937 | 1,723 | 2,147 | 24.6% |
Cash flow
|
|---|
| Capex | 343 | 713 | 1,347 | 570 | 327 | -42.6% |
Ratios
|
|---|
| Revenue growth | 37.4% | 11.5% | -13.1% | -3.9% | -2.2% | |
| EBITDA growth | 55.5% | 30.8% | -68.2% | 135.9% | 23.4% | |
| Gross Margin | 50.5% | 51.1% | 40.2% | 46.1% | 58.8% | 12.7% |
| EBITDA Margin | 43.6% | 51.1% | 18.7% | 45.9% | 58.0% | 12.1% |
| Net Income Margin | 20.1% | 34.7% | 6.0% | -7.3% | 47.2% | 54.5% |
| SG&A, % of revenue | 9.2% | 9.4% | 9.5% | 8.0% | 7.4% | -0.5% |
| CAPEX, % of revenue | 14.3% | 26.6% | 57.8% | 25.5% | 14.9% | -10.5% |
| ROIC | 23.0% | 27.0% | 4.3% | 19.2% | 29.7% | 10.5% |
| ROE | 16.7% | 27.4% | 3.6% | -6.4% | 64.8% | 71.2% |
| Net Debt/EBITDA | 0.1x | -0.5x | 0.8x | 0.3x | 0.1x | -0.2x |
Revenue and profitability
Polyus Gold Intl Ltd's Revenue decreased on 2.2% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin surged on 12.1 pp from 45.9% to 58.0% in 2015.
Gross Margin jumped on 12.7 pp from 46.1% to 58.8% in 2015. SG&A as a % of Revenue decreased slightly on 0.55 pp from 8.0% to 7.4% in 2015.
Net Income marign jumped on 54.5 pp from -7.3% to 47.2% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Polyus Gold Intl Ltd had CAPEX/Revenue of 14.9%. CAPEX/Revenue dropped on 11.7 pp from 26.6% in 2012 to 14.9% in 2015. Average CAPEX/Revenue for the last three years was 32.7%.
Return on investment
The company operates at high and attractive ROIC (29.69%) and ROE (64.81%). ROIC surged on 10.5 pp from 19.2% to 29.7% in 2015. ROE jumped on 71.2 pp from -6.4% to 64.8% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.1x and Debt / EBITDA is 1.7x. Net Debt / EBITDA dropped on 0.2x from 0.3x to 0.1x in 2015. Debt jumped on 20.5% in 2015 while cash surged on 37.2% in 2015.
Appendix 1: Peers in Mining
Below we provide Polyus Gold Intl Ltd 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 ($MWA) | | 86.0% | 34.2% | 30.5% | 6.9% |
| |
|---|
| Median (28 companies) | 22.7% | 3.2% | -2.6% | -5.0% | -8.7% |
|---|
| Polyus Gold Intl Ltd ($PGIL) | | 11.5% | -13.1% | -3.9% | -2.2% |
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% |
| Griffin Mining ($GFM) | 59.6% | 54.7% | 43.6% | 44.4% | |
| |
|---|
| Median (27 companies) | 37.5% | 38.5% | 18.6% | 22.6% | 22.8% |
|---|
| Polyus Gold Intl Ltd ($PGIL) | 50.5% | 51.1% | 40.2% | 46.1% | 58.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Zccm Investments Hldgs ($ZCC) | 138.5% | 146.8% | 75.2% | 88.7% | |
| Rambler Metals & Mining ($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% | 44.9% |
| Randgold Resources ($RRS) | 51.6% | 52.7% | 42.7% | 39.4% | 33.8% |
| |
|---|
| Median (30 companies) | 27.7% | 25.0% | 16.8% | 17.3% | 20.5% |
|---|
| Polyus Gold Intl Ltd ($PGIL) | 43.6% | 51.1% | 18.7% | 45.9% | 58.0% |
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 ($SRB) | 3,151.4% | | | 44.5% | |
| |
|---|
| Median (30 companies) | 16.9% | 19.8% | 17.2% | 10.2% | 19.7% |
|---|
| Polyus Gold Intl Ltd ($PGIL) | 14.3% | 26.6% | 57.8% | 25.5% | 14.9% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| 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% | |
| Antofagasta ($ANTO) | | 26.2% | 19.4% | 14.3% | 2.6% |
| |
|---|
| Median (31 companies) | 7.2% | 4.4% | 2.0% | 1.2% | 2.0% |
|---|
| Polyus Gold Intl Ltd ($PGIL) | 23.0% | 27.0% | 4.3% | 19.2% | 29.7% |
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 | 18.7x |
| Anglo Asian Mining ($AAZ) | 0.1x | 0.7x | 2.6x | 5.2x | |
| Glencore ($GLEN) | 6.0x | 7.3x | 6.2x | 4.6x | 5.5x |
| Kirkland Lake Gold Inc ($KGI) | -1.0x | -0.3x | 3.2x | 4.1x | 0.6x |
| |
|---|
| Median (23 companies) | -0.0x | 0.8x | 1.7x | 0.7x | 0.8x |
|---|
| Polyus Gold Intl Ltd ($PGIL) | 0.1x | -0.5x | 0.8x | 0.3x | 0.1x |
