Orosur Mining Inc CAPEX dropped on 49.9% in 2016 and Revenue dropped on 34.9%
16 Aug 2016 • About Orosur Mining Inc (
$OMI) • By InTwits
Orosur Mining Inc reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Orosur Mining Inc is a company in decline: FY2016 revenue growth was -34.9%, 5 years revenue CAGR was -11.4%
- The company operates at negative EBITDA Margin: -3.9%
- EBITDA Margin is quite volatile: -3.9% in FY2016, -49.7% in FY2015, 27.9% in FY2014, 17.3% in FY2013, 14.8% in FY2012
- Orosur Mining Inc has high CAPEX intensity: 5 year average CAPEX/Revenue was 26.4%. At the same time it's in pair with industry average of 24.7%.
- CAPEX is quite volatile: 6.5 in FY2016, 13.0 in FY2015, 11.3 in FY2014, 31.3 in FY2013, 50.4 in FY2012
- The company has unprofitable business model: ROIC is at -23.6%
- It operates with high leverage: Net Debt/EBITDA is 4.5x while industry average is 1.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Orosur Mining Inc ($OMI) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 93.7 | 105.9 | 80.4 | 65.9 | 42.9 | -34.9% |
| Gross Profit | 20.4 | 8.2 | 7.5 | -3.8 | 0.8 | -120.6% |
| SG&A | | | | 2.9 | 2.1 | -25.9% |
| EBITDA | 13.9 | 18.4 | 22.5 | -32.8 | -1.7 | -94.9% |
| Net Income | 1.2 | -14.8 | 5.1 | -54.4 | -1.2 | -97.8% |
Balance Sheet
|
|---|
| Cash | 11.5 | 5.6 | 10.8 | 4.8 | 4.3 | -9.8% |
| Short Term Debt | 3.4 | 4.2 | 4.0 | 1.1 | 0.3 | -77.6% |
| Long Term Debt | 2.8 | 4.8 | 1.0 | 0.4 | 0.1 | -71.9% |
Cash flow
|
|---|
| Capex | 50.4 | 31.3 | 11.3 | 13.0 | 6.5 | -49.9% |
Ratios
|
|---|
| Revenue growth | 19.0% | 13.0% | -24.1% | -18.0% | -34.9% | |
| EBITDA growth | -39.3% | 32.2% | 22.4% | -245.9% | -94.9% | |
| Gross Margin | 21.8% | 7.8% | 9.3% | -5.8% | 1.8% | 7.7% |
| EBITDA Margin | 14.8% | 17.3% | 27.9% | -49.7% | -3.9% | 45.8% |
| Net Income Margin | 1.3% | -14.0% | 6.4% | -82.6% | -2.8% | 79.7% |
| SG&A, % of revenue | | | | 4.4% | 5.0% | 0.6% |
| CAPEX, % of revenue | 53.8% | 29.6% | 14.1% | 19.7% | 15.1% | -4.5% |
| ROIC | 3.8% | -1.5% | 4.5% | -84.1% | -23.6% | 60.6% |
| ROE | 1.4% | -17.4% | 6.4% | -93.1% | -3.7% | 89.4% |
| Net Debt/EBITDA | -0.4x | 0.2x | -0.3x | | | 0.0x |
Revenue and profitability
The company's Revenue dropped on 34.9% in FY2016. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 45.8 pp from -49.7% to -3.9% in FY2016.
Gross Margin increased on 7.7 pp from -5.8% to 1.8% in FY2016. SG&A as a % of Revenue increased slightly on 0.61 pp from 4.4% to 5.0% in FY2016.
Net Income marign surged on 79.7 pp from -82.6% to -2.8% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Orosur Mining Inc's CAPEX/Revenue was 15.1% in FY2016. Orosur Mining Inc showed big decline in CAPEX/Revenue of 14.4 pp from 29.6% in FY2013 to 15.1% in FY2016. It's average CAPEX/Revenue for the last three years was 16.3%.
Return on investment
The company operates at negative ROIC (-23.59%) and ROE (-3.66%). ROIC surged on 60.6 pp from -84.1% to -23.6% in FY2016. ROE jumped on 89.4 pp from -93.1% to -3.7% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 4.5x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2016. Debt dropped on 76.2% in FY2016 while cash decreased on 9.8% in FY2016.
Appendix 1: Peers in Mining
Below we provide Orosur Mining Inc 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Coalfield Resources ($CRES) | | 19,087.5% | -5.0% | 803.4% | |
| Serabi Gold ($SRB) | | | | 177.8% | |
| Anglo Pacific Group ($APF) | -56.3% | -2.8% | -76.4% | 149.4% | |
| Griffin Mining ($GFM) | -2.8% | -7.5% | -35.9% | 31.2% | |
| Kirkland Lake Gold Inc ($KGI) | 54.7% | -5.1% | 14.2% | 26.9% | |
| |
|---|
| Median (30 companies) | 1.3% | -3.2% | -4.7% | -7.4% | -6.8% |
|---|
| Orosur Mining Inc ($OMI) | | 13.0% | -24.1% | -18.0% | -34.9% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Polyus Gold Intl Ltd ($PGIL) | 51.1% | 40.2% | 46.1% | 58.8% | |
| Coalfield Resources ($CRES) | | | | 54.4% | |
| Zccm Investments Hldgs ($ZCC) | 51.8% | 71.4% | 85.6% | 45.9% | |
| Mwana Africa ($MWA) | 42.9% | 45.9% | 46.6% | 38.6% | 29.1% |
| Kaz Minerals ($KAZ) | 39.7% | 41.1% | 46.1% | 35.5% | |
| |
|---|
| Median (29 companies) | 39.1% | 19.8% | 22.7% | 22.8% | 35.8% |
|---|
| Orosur Mining Inc ($OMI) | 21.8% | 7.8% | 9.3% | -5.8% | 1.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Coalfield Resources ($CRES) | 1,693,625.0% | 28.4% | 0.1% | 259.6% | |
| Polyus Gold Intl Ltd ($PGIL) | 51.1% | 18.7% | 45.9% | 58.0% | |
| Anglo Pacific Group ($APF) | 76.2% | 77.9% | -58.0% | 53.7% | |
| Nord Gold Nv ($NORD) | 33.0% | 0.8% | 40.2% | 44.9% | |
| Trans-Siberian Gold ($TSG) | 24.7% | 8.0% | 32.7% | 38.1% | |
| |
|---|
| Median (31 companies) | 27.2% | 17.5% | 17.3% | 18.6% | 14.7% |
|---|
| Orosur Mining Inc ($OMI) | 14.8% | 17.3% | 27.9% | -49.7% | -3.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kaz Minerals ($KAZ) | 36.6% | 136.5% | 168.8% | 168.7% | |
| Weatherly International ($WTI) | 8.6% | | | 161.8% | |
| Hwange Colliery Co ($HWA) | 3.5% | | 0.5% | 45.6% | |
| Goldbridges Global Resources ($GBGR) | 26.9% | 17.6% | 73.9% | 40.1% | |
| Caledonia Mining Corp ($CMCL) | 10.5% | 18.0% | 11.5% | 33.8% | |
| |
|---|
| Median (30 companies) | 19.8% | 17.2% | 10.2% | 14.0% | 21.3% |
|---|
| Orosur Mining Inc ($OMI) | 53.8% | 29.6% | 14.1% | 19.7% | 15.1% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Polyus Gold Intl Ltd ($PGIL) | 27.0% | 4.3% | 19.2% | 29.7% | |
| Nord Gold Nv ($NORD) | 6.6% | -9.0% | 13.8% | 16.1% | |
| Coalfield Resources ($CRES) | 0.1% | 0.8% | 0.0% | 15.8% | |
| Kirkland Lake Gold Inc ($KGI) | 19.7% | 1.5% | -0.7% | 9.2% | |
| Trans-Siberian Gold ($TSG) | -1.1% | -6.8% | 5.0% | 9.2% | |
| |
|---|
| Median (31 companies) | 4.6% | 2.8% | 1.2% | 1.4% | 1.4% |
|---|
| Orosur Mining Inc ($OMI) | 3.8% | -1.5% | 4.5% | -84.1% | -23.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kaz Minerals ($KAZ) | 2.4x | 2.9x | 5.5x | 18.7x | |
| Goldbridges Global Resources ($GBGR) | 2.2x | | 1.3x | 10.9x | |
| Glencore ($GLEN) | 7.3x | 6.2x | 4.6x | 5.5x | |
| Griffin Mining ($GFM) | 0.8x | 1.4x | 4.0x | 4.4x | |
| Bisichi Mining ($BISI) | 0.9x | 1.7x | 1.3x | 4.0x | |
| |
|---|
| Median (23 companies) | 0.8x | 1.7x | 0.7x | 1.1x | 3.3x |
|---|
