Polyus Gold Intl Ltd Debt jumped on 128% in 2016 and EBITDA surged on 18.9%
21 Feb 2017 • About Polyus Gold Intl Ltd (
$PGIL) • By InTwits
Polyus Gold Intl Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 61.4% in FY2016 vs. 58.0% in FY2015 vs. 51.1% in FY2012
- EBITDA Margin is quite volatile: 61.4% in FY2016, 58.0% in FY2015, 45.9% in FY2014, 18.7% in FY2013, 51.1% in FY2012
- Polyus Gold Intl Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 28.3%. At the same time it's a lot of higher than industry average of 19.7%.
- CAPEX is quite volatile: 405 in FY2016, 327 in FY2015, 570 in FY2014, 1,347 in FY2013, 713 in FY2012
- The company has highly profitable business model: ROIC is at 30.9%
- It operates with medium-size leverage: Net Debt/EBITDA is 2.1x while industry average is 2.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Polyus Gold Intl Ltd ($PGIL) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 2,680 | 2,329 | 2,239 | 2,189 | 2,458 | 12.3% |
| Gross Profit | 1,371 | 935 | 1,032 | 1,287 | 1,539 | 19.6% |
| SG&A | 252 | 221 | 179 | 163 | 146 | -10.4% |
| EBITDA | 1,370 | 436 | 1,028 | 1,269 | 1,509 | 18.9% |
| Net Income | 930 | 140 | -164 | 1,033 | 1,420 | 37.5% |
Balance Sheet
|
|---|
| Cash | 1,028 | 856 | 1,486 | 2,039 | 1,740 | -14.7% |
| Short Term Debt | 188 | 269 | 90 | 38 | 283 | 644.7% |
| Long Term Debt | 161 | 937 | 1,723 | 2,147 | 4,698 | 118.8% |
Cash flow
|
|---|
| Capex | 713 | 1,347 | 570 | 327 | 405 | 23.9% |
Ratios
|
|---|
| Revenue growth | 11.5% | -13.1% | -3.9% | -2.2% | 12.3% | |
| EBITDA growth | 30.8% | -68.2% | 135.9% | 23.4% | 18.9% | |
| Gross Margin | 51.1% | 40.2% | 46.1% | 58.8% | 62.6% | 3.8% |
| EBITDA Margin | 51.1% | 18.7% | 45.9% | 58.0% | 61.4% | 3.4% |
| Net Income Margin | 34.7% | 6.0% | -7.3% | 47.2% | 57.8% | 10.6% |
| SG&A, % of revenue | 9.4% | 9.5% | 8.0% | 7.4% | 5.9% | -1.5% |
| CAPEX, % of revenue | 26.6% | 57.8% | 25.5% | 14.9% | 16.5% | 1.5% |
| ROIC | 27.0% | 4.3% | 19.2% | 29.7% | 30.9% | 1.2% |
| ROE | 27.4% | 3.6% | -6.4% | 64.8% | | -64.8% |
| Net Debt/EBITDA | -0.5x | 0.8x | 0.3x | 0.1x | 2.1x | 2.0x |
Revenue and profitability
Polyus Gold Intl Ltd's Revenue jumped on 12.3% in FY2016. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.1 pp from 4.1% to 7.2% in 2016.
Gross Margin increased on 3.8 pp from 58.8% to 62.6% in FY2016. SG&A as a % of Revenue decreased slightly on 1.5 pp from 7.4% to 5.9% in FY2016.
Net Income marign jumped on 10.6 pp from 47.2% to 57.8% in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 16.5% in FY2016. CAPEX/Revenue dropped on 41.4 pp from 57.8% in FY2013 to 16.5% in FY2016. Average CAPEX/Revenue for the last three years was 19.0%.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.1x and Debt / EBITDA is 3.3x. Net Debt / EBITDA surged on 2.0x from 0.1x to 2.1x in FY2016. Debt jumped on 128% in FY2016 while cash dropped on 14.7% in FY2016.
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 | 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 ($KGI) | 54.7% | -5.1% | 14.2% | 26.9% | |
| |
|---|
| Median (30 companies) | -2.8% | -2.6% | -5.0% | -7.7% | 4.3% |
|---|
| Polyus Gold Intl Ltd ($PGIL) | | -13.1% | -3.9% | -2.2% | 12.3% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 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% | |
| Trans-Siberian Gold ($TSG) | 17.2% | -4.8% | 22.6% | 33.0% | |
| |
|---|
| Median (29 companies) | 38.5% | 18.6% | 22.6% | 18.1% | 27.7% |
|---|
| Polyus Gold Intl Ltd ($PGIL) | 51.1% | 40.2% | 46.1% | 58.8% | 62.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Coalfield Resources ($CRES) | 1,693,625.0% | 28.4% | 0.1% | 259.6% | |
| Anglo Pacific Group ($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% | |
| Randgold Resources ($RRS) | 52.7% | 42.7% | 39.4% | 33.8% | 46.8% |
| |
|---|
| Median (31 companies) | 25.0% | 16.8% | 17.3% | 18.3% | 22.7% |
|---|
| Polyus Gold Intl Ltd ($PGIL) | 51.1% | 18.7% | 45.9% | 58.0% | 61.4% |
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 ($CMCL) | 10.5% | 18.0% | 11.5% | 33.8% | |
| |
|---|
| Median (30 companies) | 19.8% | 17.2% | 10.2% | 14.0% | 15.1% |
|---|
| Polyus Gold Intl Ltd ($PGIL) | 26.6% | 57.8% | 25.5% | 14.9% | 16.5% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 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% | |
| Caledonia Mining Corp ($CMCL) | 37.6% | 34.9% | 18.1% | 8.4% | |
| |
|---|
| Median (31 companies) | 4.4% | 2.0% | 1.2% | 1.2% | 2.0% |
|---|
| Polyus Gold Intl Ltd ($PGIL) | 27.0% | 4.3% | 19.2% | 29.7% | 30.9% |
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 ($BISI) | 0.9x | 1.7x | 1.3x | 4.0x | |
| |
|---|
| Median (22 companies) | 0.8x | 1.7x | 0.7x | 1.1x | -0.5x |
|---|
| Polyus Gold Intl Ltd ($PGIL) | -0.5x | 0.8x | 0.3x | 0.1x | 2.1x |
