Sylvania Platinum Ltd reports 120% Net Income growth and 6.6 pp EBITDA Margin growth from 20.8% to 27.3%
30 Aug 2016 • About Sylvania Platinum Ltd (
$SLP) • By InTwits
Sylvania Platinum Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Sylvania Platinum Ltd is a company in decline: FY2016 revenue growth was -17.3%, 5 years revenue CAGR was -3.4%
- EBITDA Margin is quite volatile: 27.3% in FY2016, 20.8% in FY2015, 10.0% in FY2014, 33.0% in FY2013, 10.5% in FY2012
- Sylvania Platinum Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 19.5%. At the same time it's in pair with industry average of 24.6%.
- CAPEX is quite volatile: 1.5 in FY2016, 3.3 in FY2015, 4.7 in FY2014, 10.9 in FY2013, 20.0 in FY2012
- The company has potentially unprofitable business model: ROIC is at 5.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Sylvania Platinum Ltd ($SLP) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 40.078 | 39.982 | 47.221 | 47.791 | 39.511 | -17.3% |
| Gross Profit | 6.426 | 0.844 | 4.326 | 6.510 | 7.730 | 18.7% |
| SG&A | 1.871 | 5.411 | 3.936 | 3.205 | 2.205 | -31.2% |
| EBITDA | 4.225 | 13.185 | 4.745 | 9.931 | 10.803 | 8.8% |
| Net Income | -3.972 | 4.369 | -5.114 | 1.697 | 3.734 | 120.0% |
Balance Sheet
|
|---|
| Cash | 15.697 | 6.565 | 5.320 | 7.344 | 5.877 | -20.0% |
| Short Term Debt | 0.175 | 0.169 | 0.159 | 0.265 | 0.212 | -20.2% |
| Long Term Debt | 0.256 | 0.170 | 0.206 | 0.217 | 0.171 | -20.9% |
Cash flow
|
|---|
| Capex | 19.973 | 10.860 | 4.702 | 3.283 | 1.464 | -55.4% |
Ratios
|
|---|
| Revenue growth | -14.5% | -0.2% | 18.1% | 1.2% | -17.3% | |
| EBITDA growth | -66.0% | 212.1% | -64.0% | 109.3% | 8.8% | |
| Gross Margin | 16.0% | 2.1% | 9.2% | 13.6% | 19.6% | 5.9% |
| EBITDA Margin | 10.5% | 33.0% | 10.0% | 20.8% | 27.3% | 6.6% |
| Net Income Margin | -9.9% | 10.9% | -10.8% | 3.6% | 9.4% | 5.9% |
| SG&A, % of revenue | 4.7% | 13.5% | 8.3% | 6.7% | 5.6% | -1.1% |
| CAPEX, % of revenue | 49.8% | 27.2% | 10.0% | 6.9% | 3.7% | -3.2% |
| ROIC | -1.7% | 3.5% | -1.8% | 2.6% | 5.0% | 2.4% |
| ROE | -2.6% | 3.3% | -4.3% | 1.6% | 3.9% | 2.4% |
| Net Debt/EBITDA | -3.6x | -0.5x | -1.0x | -0.7x | -0.5x | 0.2x |
Revenue and profitability
Sylvania Platinum Ltd's Revenue dropped on 17.3% in FY2016. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 6.6 pp from 20.8% to 27.3% in FY2016.
Gross Margin increased on 5.9 pp from 13.6% to 19.6% in FY2016. SG&A as a % of Revenue decreased slightly on 1.1 pp from 6.7% to 5.6% in FY2016.
Net Income marign increased on 5.9 pp from 3.6% to 9.4% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Sylvania Platinum Ltd had CAPEX/Revenue of 3.7%. Sylvania Platinum Ltd's CAPEX/Revenue dropped on 23.5 pp from 27.2% in FY2013 to 3.7% in FY2016. Average CAPEX/Revenue for the last three years was 6.8%.
Return on investment
The company operates at low ROIC (5.05%) and ROE (3.95%). ROIC increased on 2.4 pp from 2.6% to 5.0% in FY2016. ROE increased on 2.4 pp from 1.6% to 3.9% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.5x and Debt / EBITDA is 0.0x. Net Debt / EBITDA surged on 0.2x from -0.7x to -0.5x in FY2016. Debt dropped on 20.5% in FY2016 while cash dropped on 20.0% in FY2016.
Appendix 1: Peers in Mining
Below you can find Sylvania Platinum Ltd benchmarking vs. other companies in Mining industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
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 ($KGI) | 54.7% | -5.1% | 14.2% | 26.9% | |
| |
|---|
| Median (30 companies) | 3.2% | -3.2% | -5.0% | -7.7% | -20.4% |
|---|
| Sylvania Platinum Ltd ($SLP) | | -0.2% | 18.1% | 1.2% | -17.3% |
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 ($KAZ) | 39.7% | 41.1% | 46.1% | 35.5% | |
| |
|---|
| Median (29 companies) | 39.1% | 19.8% | 22.7% | 22.8% | 29.1% |
|---|
| Sylvania Platinum Ltd ($SLP) | 16.0% | 2.1% | 9.2% | 13.6% | 19.6% |
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 ($TSG) | 24.7% | 8.0% | 32.7% | 38.1% | |
| |
|---|
| Median (31 companies) | 27.2% | 16.8% | 18.9% | 18.3% | 6.7% |
|---|
| Sylvania Platinum Ltd ($SLP) | 10.5% | 33.0% | 10.0% | 20.8% | 27.3% |
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 ($CMCL) | 10.5% | 18.0% | 11.5% | 33.8% | |
| |
|---|
| Median (30 companies) | 19.8% | 17.2% | 11.0% | 14.5% | 20.6% |
|---|
| Sylvania Platinum Ltd ($SLP) | 49.8% | 27.2% | 10.0% | 6.9% | 3.7% |
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 ($TSG) | -1.1% | -6.8% | 5.0% | 9.2% | |
| |
|---|
| Median (31 companies) | 4.6% | 2.0% | 2.3% | 1.2% | 0.8% |
|---|
| Sylvania Platinum Ltd ($SLP) | -1.7% | 3.5% | -1.8% | 2.6% | 5.0% |
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 ($BISI) | 0.9x | 1.7x | 1.3x | 4.0x | |
| |
|---|
| Median (22 companies) | 0.8x | 1.7x | 0.7x | 1.1x | 3.3x |
|---|
| Sylvania Platinum Ltd ($SLP) | -3.6x | -0.5x | -1.0x | -0.7x | -0.5x |
