Randgold Resources reports 66.0% EBITDA growth and 13.0 pp EBITDA Margin growth from 33.8% to 46.8%
06 Feb 2017 • About Randgold Resources (
$RRS) • By InTwits
Randgold Resources reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Randgold Resources has high CAPEX intensity: 5 year average CAPEX/Revenue was 20.4%. At the same time it's in pair with industry average of 19.6%.
- CAPEX is quite volatile: 104 in FY2016, 92.7 in FY2015, 62.9 in FY2014, 44.5 in FY2013, 50.4 in FY2012
- The company has business model with average profitability: ROIC is at 10.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Randgold Resources ($RRS) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,183 | 1,138 | 1,087 | 1,001 | 1,201 | 19.9% |
| Gross Profit | 595 | 457 | 374 | 275 | 491 | 78.6% |
| EBITDA | 624 | 485 | 428 | 339 | 562 | 66.0% |
| Net Income | 432 | 278 | 235 | 189 | 247 | 31.2% |
Balance Sheet
|
|---|
| Cash | 374 | 38 | 83 | 213 | 516 | 142.0% |
| Short Term Debt | 0 | 0 | 0 | 0 | 0 | |
| Long Term Debt | 3 | 3 | 3 | 3 | 3 | 0.0% |
Cash flow
|
|---|
| Capex | 272 | 303 | 179 | 216 | 171 | -20.9% |
Ratios
|
|---|
| Revenue growth | 5.0% | -3.8% | -4.5% | -7.9% | 19.9% | |
| EBITDA growth | 7.2% | -22.2% | -11.8% | -20.9% | 66.0% | |
| Gross Margin | 50.3% | 40.1% | 34.4% | 27.4% | 40.9% | 13.4% |
| EBITDA Margin | 52.7% | 42.7% | 39.4% | 33.8% | 46.8% | 13.0% |
| Net Income Margin | 36.5% | 24.5% | 21.6% | 18.8% | 20.6% | 1.8% |
| CAPEX, % of revenue | 23.0% | 26.6% | 16.5% | 21.6% | 14.2% | -7.4% |
| ROIC | 19.7% | 12.0% | 8.8% | 5.5% | 10.6% | 5.1% |
| ROE | 18.0% | 10.1% | 7.9% | 5.9% | 7.3% | 1.4% |
| Net Debt/EBITDA | -0.6x | -0.1x | -0.2x | -0.6x | -0.9x | -0.3x |
Revenue and profitability
The company's Revenue jumped on 19.9% in FY2016. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.8 pp from 10.5% to 13.3% in 2016.
Gross Margin surged on 13.4 pp from 27.4% to 40.9% in FY2016.
Net Income marign increased slightly on 1.8 pp from 18.8% to 20.6% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 14.2%. CAPEX/Revenue dropped on 12.4 pp from 26.6% in FY2013 to 14.2% in FY2016. It's average CAPEX/Revenue for the last three years was 17.4%.
Return on investment
The company operates at low ROIC (10.56%) and ROE (7.31%). ROIC increased on 5.1 pp from 5.5% to 10.6% in FY2016. ROE increased slightly on 1.4 pp from 5.9% to 7.3% in FY2016.
Leverage (Debt)
Debt level is -0.9x Net Debt / EBITDA and 0.0x Debt / EBITDA. Net Debt / EBITDA dropped on 0.3x from -0.6x to -0.9x in FY2016. Debt didn't change in FY2016 while cash surged on 142% in FY2016.
Appendix 1: Peers in Mining
Below you can find Randgold Resources 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 ($KGI) | 54.7% | -5.1% | 14.2% | 26.9% | |
| |
|---|
| Median (30 companies) | -0.7% | -2.6% | -5.0% | -7.4% | 1.8% |
|---|
| Randgold Resources ($RRS) | | -3.8% | -4.5% | -7.9% | 19.9% |
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 ($ZCC) | 51.8% | 71.4% | 85.6% | 45.9% | 26.8% |
| Mwana Africa ($MWA) | 42.9% | 45.9% | 46.6% | 38.6% | 29.1% |
| Kaz Minerals ($KAZ) | 39.7% | 41.1% | 46.1% | 35.5% | |
| |
|---|
| Median (29 companies) | 38.5% | 18.6% | 22.6% | 18.1% | 26.8% |
|---|
| Randgold Resources ($RRS) | 50.3% | 40.1% | 34.4% | 27.4% | 40.9% |
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 ($TSG) | 24.7% | 8.0% | 32.7% | 38.1% | |
| |
|---|
| Median (31 companies) | 25.0% | 16.8% | 17.3% | 18.3% | 16.0% |
|---|
| Randgold Resources ($RRS) | 52.7% | 42.7% | 39.4% | 33.8% | 46.8% |
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 ($CMCL) | 10.5% | 18.0% | 11.5% | 33.8% | |
| |
|---|
| Median (30 companies) | 19.8% | 17.2% | 10.2% | 14.0% | 15.3% |
|---|
| Randgold Resources ($RRS) | 23.0% | 26.6% | 16.5% | 21.6% | 14.2% |
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 ($TSG) | -1.1% | -6.8% | 5.0% | 9.2% | |
| |
|---|
| Median (31 companies) | 4.4% | 2.0% | 1.2% | 1.2% | 1.5% |
|---|
| Randgold Resources ($RRS) | 19.7% | 12.0% | 8.8% | 5.5% | 10.6% |
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 ($BISI) | 0.9x | 1.7x | 1.3x | 4.0x | |
| |
|---|
| Median (22 companies) | 0.8x | 1.7x | 0.7x | 1.1x | 1.2x |
|---|
| Randgold Resources ($RRS) | -0.6x | -0.1x | -0.2x | -0.6x | -0.9x |
