Rambler Metals & Mining reports 185% EBITDA decline and 1.3% Revenue decline
24 Oct 2016 • About Rambler Metals & Mining (
$RMM) • By InTwits
Rambler Metals & Mining reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Rambler Metals & Mining doesn't have a profitable business model yet: FY2016 ROIC is -17.1%
- The company operates at negative EBITDA Margin: -17.6%
- Rambler Metals & Mining has high CAPEX intensity: 5 year average CAPEX/Revenue was 180.5%. At the same time it's a lot of higher than industry average of 19.8%.
- CAPEX is quite volatile: 6.5 in FY2016, 13.0 in FY2015, 11.3 in FY2014, 31.3 in FY2013, 50.4 in FY2012
- The company has unprofitable business model: ROIC is at -17.1%
- It operates with high leverage: Net Debt/EBITDA is 4.5x while industry average is 2.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Rambler Metals & Mining ($RMM) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1.219 | 34.669 | 62.110 | 40.886 | 40.351 | -1.3% |
| Gross Profit | 0.545 | 13.733 | 32.426 | 12.492 | 11.526 | -7.7% |
| SG&A | | | | 4.157 | 3.851 | -7.4% |
| EBITDA | -2.370 | 10.255 | 27.996 | 8.389 | -7.108 | -184.7% |
| Net Income | -3.367 | 9.053 | 9.015 | -10.153 | -17.010 | 67.5% |
Balance Sheet
|
|---|
| Cash | 7.826 | 5.566 | 9.535 | 4.422 | 11.670 | 163.9% |
| Short Term Debt | 14.827 | 10.898 | 5.300 | 7.911 | 6.830 | -13.7% |
| Long Term Debt | 20.691 | 20.576 | 20.242 | 16.612 | 17.841 | 7.4% |
Cash flow
|
|---|
| Capex | 10.006 | 8.373 | 8.655 | 8.464 | 9.258 | 9.4% |
Ratios
|
|---|
| Revenue growth | -65.4% | 2,744.1% | 79.2% | -34.2% | -1.3% | |
| EBITDA growth | 157.9% | -532.7% | 173.0% | -70.0% | -184.7% | |
| Gross Margin | 44.7% | 39.6% | 52.2% | 30.6% | 28.6% | -2.0% |
| EBITDA Margin | -194.4% | 29.6% | 45.1% | 20.5% | -17.6% | -38.1% |
| Net Income Margin | -276.2% | 26.1% | 14.5% | -24.8% | -42.2% | -17.3% |
| SG&A, % of revenue | | | | 10.2% | 9.5% | -0.6% |
| CAPEX, % of revenue | 820.8% | 24.2% | 13.9% | 20.7% | 22.9% | 2.2% |
| ROIC | -2.6% | 3.3% | 16.7% | 0.5% | -17.1% | -17.6% |
| ROE | -5.2% | 12.5% | 10.9% | -12.3% | -21.2% | -8.8% |
| Net Debt/EBITDA | | 2.5x | 0.6x | 2.4x | | -2.4x |
Revenue and profitability
The company's Revenue decreased slightly on 1.3% in FY2016. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 38.1 pp from 20.5% to -17.6% in FY2016.
Gross Margin decreased slightly on 2.0 pp from 30.6% to 28.6% in FY2016. SG&A as a % of Revenue decreased slightly on 0.62 pp from 10.2% to 9.5% in FY2016.
Net Income marign dropped on 17.3 pp from -24.8% to -42.2% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Rambler Metals & Mining had CAPEX/Revenue of 22.9%. The company showed small CAPEX/Revenue decline of 1.2 pp from 24.2% in FY2013 to 22.9% in FY2016. For the last three years the average CAPEX/Revenue was 19.2%.
Return on investment
The company operates at negative ROIC (-17.15%) and ROE (-21.18%). ROIC dropped on 17.6 pp from 0.46% to -17.1% in FY2016. ROE decreased on 8.8 pp from -12.3% to -21.2% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 4.5x and Debt / EBITDA is . Net Debt / EBITDA dropped on 2.4x from 2.4x to in FY2016. Debt increased slightly on 0.60% in FY2016 while cash surged on 164% in FY2016.
Appendix 1: Peers in Mining
Below you can find Rambler Metals & Mining 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 ($KGI) | 54.7% | -5.1% | 14.2% | 26.9% | |
| |
|---|
| Median (30 companies) | 1.3% | -3.2% | -5.0% | -7.4% | -5.3% |
|---|
| Rambler Metals & Mining ($RMM) | | 2,744.1% | 79.2% | -34.2% | -1.3% |
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 ($KAZ) | 39.7% | 41.1% | 46.1% | 35.5% | |
| |
|---|
| Median (29 companies) | 38.5% | 18.6% | 22.6% | 18.1% | 17.2% |
|---|
| Rambler Metals & Mining ($RMM) | 44.7% | 39.6% | 52.2% | 30.6% | 28.6% |
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 ($TSG) | 24.7% | 8.0% | 32.7% | 38.1% | |
| |
|---|
| Median (31 companies) | 27.2% | 16.8% | 17.3% | 18.3% | 16.0% |
|---|
| Rambler Metals & Mining ($RMM) | -194.4% | 29.6% | 45.1% | 20.5% | -17.6% |
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% | 10.2% |
| 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 ($CMCL) | 10.5% | 18.0% | 11.5% | 33.8% | |
| |
|---|
| Median (30 companies) | 19.8% | 17.2% | 10.2% | 14.0% | 12.7% |
|---|
| Rambler Metals & Mining ($RMM) | 820.8% | 24.2% | 13.9% | 20.7% | 22.9% |
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 ($TSG) | -1.1% | -6.8% | 5.0% | 9.2% | |
| |
|---|
| Median (31 companies) | 4.6% | 2.0% | 1.2% | 1.4% | 1.5% |
|---|
| Rambler Metals & Mining ($RMM) | -2.6% | 3.3% | 16.7% | 0.5% | -17.1% |
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 ($BISI) | 0.9x | 1.7x | 1.3x | 4.0x | |
| |
|---|
| Median (22 companies) | 0.7x | 1.4x | 0.7x | 0.8x | 2.9x |
|---|
| Rambler Metals & Mining ($RMM) | | 2.5x | 0.6x | 2.4x | |
