Sylvania Platinum Ltd reports 88.4% CAPEX growth in 2018 and 24.3% Revenue growth
28 Aug 2018 • About Sylvania Platinum Ltd (
$SLP) • By InTwits
Sylvania Platinum Ltd reported FY2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 35.4% in FY2018, 36.3% in FY2017, 27.3% in FY2016, 20.8% in FY2015, 10.0% in FY2014
- Sylvania Platinum Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 8.3%. At the same time it's in pair with industry average of 2.3%
- CAPEX is quite volatile: $8m in FY2018, $4m in FY2017, $1m in FY2016, $3m in FY2015, $5m in FY2014
- The company has highly profitable business model: ROIC is 12.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue surged on 24.3%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 2.4 pp from 6.5% to 8.9% in FY2018. EBITDA Margin stuck to a growing trend at 6.6 pp per annum in FY2014-FY2018.
Gross Margin showed almost no change in FY2018. Gross Margin grew at 5.2 pp per annum in the last 5 years. SG&A as a % of Revenue decreased slightly on 0.62 pp from 3.8% to 3.2% in FY2018. SG&A as a % of Revenue declined at -1.3 pp per annum in the last 5 years.
Net Income margin showed almost no change in FY2018. Net Income margin stuck to a growing trend at 7.1 pp per annum in the last 5 years.
Investments (CAPEX, working capital and M&A)
In FY2018 the company had CAPEX/Revenue of 12.6%. The company's CAPEX/Revenue increased on 5.7 pp from 6.9% in FY2015 to 12.6% in FY2018. It's average CAPEX/Revenue for the last three years was 8.2%. During FY2014-FY2018 CAPEX as a % of Revenue bottomed in FY2016 at 3.7% and was growing since that time.
Return on investment
The company operates at good ROIC (12.5%) while ROE is low (10.1%). ROIC increased slightly on 1.3 pp from 11.2% to 12.5% in FY2018. ROE increased slightly on 1.1 pp from 9.0% to 10.1% in FY2018. ROIC followed a growing trend at 3.7 pp per annum in the last 5 years. ROE followed a growing trend at 3.6 pp per annum in the last 5 years.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.6x and Debt / EBITDA is 0.0x. Debt dropped on 34.8% while cash decreased on 9.2%.
Sylvania Platinum Ltd has no short term refinancing risk: cash is higher than short term debt (9,840.6%).
Financial and operational results
FY ended 30 Jun 2018
Sylvania Platinum Ltd ($SLP) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 47.221 | 47.791 | 39.511 | 50.497 | 62.769 | 24.3% |
| Gross Profit | 4.326 | 6.510 | 7.730 | 14.256 | 17.512 | 22.8% |
| SG&A | 3.936 | 3.205 | 2.205 | 1.926 | 2.003 | 4.0% |
| EBITDA | 4.745 | 9.931 | 10.803 | 18.350 | 22.206 | 21.0% |
| Net Income | -5.114 | 1.697 | 3.734 | 8.873 | 10.989 | 23.9% |
Balance Sheet
|
|---|
| Cash | 5.320 | 7.344 | 5.877 | 14.380 | 13.058 | -9.2% |
| Short Term Debt | 0.159 | 0.265 | 0.212 | 0.147 | 0.133 | -9.6% |
| Long Term Debt | 0.206 | 0.217 | 0.171 | 0.323 | 0.174 | -46.2% |
Cash flow
|
|---|
| Capex | 4.702 | 3.283 | 1.464 | 4.201 | 7.914 | 88.4% |
Ratios
|
|---|
| Revenue growth | 18.1% | 1.2% | -17.3% | 27.8% | 24.3% | |
| EBITDA growth | -64.0% | 109.3% | 8.8% | 69.9% | 21.0% | |
|
|---|
| Gross Margin | 9.2% | 13.6% | 19.6% | 28.2% | 27.9% | -0.3% |
| EBITDA Margin | 10.0% | 20.8% | 27.3% | 36.3% | 35.4% | -1.0% |
| SG&A, % of revenue | 8.3% | 6.7% | 5.6% | 3.8% | 3.2% | -0.6% |
| Net Income Margin | -10.8% | 3.6% | 9.4% | 17.6% | 17.5% | -0.1% |
| CAPEX, % of revenue | 10.0% | 6.9% | 3.7% | 8.3% | 12.6% | 4.3% |
|
|---|
| ROIC | -1.8% | 2.6% | 5.0% | 11.2% | 12.5% | 1.3% |
| ROE | -4.3% | 1.6% | 3.9% | 9.0% | 10.1% | 1.1% |
| Net Debt/EBITDA | -1.0x | -0.7x | -0.5x | -0.8x | -0.6x | 0.2x |
Peers in Mining
Below we provide Sylvania Platinum 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 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Regency Mines ($RGM) | 985.7% | -97.6% | -16.0% | 355.0% | |
| Wolf Minerals Ltd ($WLFE) | | | | 188.2% | |
| Griffin Mining ($GFM) | -35.9% | 31.2% | 10.9% | 91.1% | |
| Bisichi Mining ($BISI) | -24.5% | -3.2% | -11.1% | 64.2% | |
| Coalfield Resources ($CRES) | -5.0% | 803.4% | 155.8% | 59.3% | |
| |
|---|
| Median (23 companies) | -5.0% | -9.6% | 5.5% | 18.0% | |
|---|
| Sylvania Platinum Ltd ($SLP) | | 1.2% | -17.3% | 27.8% | 24.3% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Griffin Mining ($GFM) | 44.4% | 28.2% | 42.9% | 65.0% | |
| Antofagasta ($ANTO) | 44.2% | 27.0% | 42.4% | 50.4% | |
| Patagonia Gold ($PGD) | 27.2% | -13.8% | 50.5% | 47.6% | |
| Randgold Resources ($RRS) | 34.4% | 27.4% | 40.9% | 44.7% | |
| Caledonia Mining Corp ($CMCL) | 34.7% | 26.9% | 37.9% | 37.7% | |
| |
|---|
| Median (21 companies) | 22.7% | 20.9% | 28.6% | 20.9% | |
|---|
| Sylvania Platinum Ltd ($SLP) | 9.2% | 13.6% | 19.6% | 28.2% | 27.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Zccm Investments Hldgs ($ZCC) | 88.7% | -891.4% | -417.8% | 944.0% | |
| Coalfield Resources ($CRES) | 0.1% | 259.6% | 134.0% | 74.7% | |
| Griffin Mining ($GFM) | 28.4% | 18.6% | 35.8% | 58.1% | |
| Antofagasta ($ANTO) | 42.6% | 25.9% | 28.9% | 51.0% | |
| Randgold Resources ($RRS) | 39.4% | 33.8% | 46.8% | 50.7% | |
| |
|---|
| Median (23 companies) | 18.9% | 12.7% | 22.2% | 27.2% | |
|---|
| Sylvania Platinum Ltd ($SLP) | 10.0% | 20.8% | 27.3% | 36.3% | 35.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Wolf Minerals Ltd ($WLFE) | | | 356.9% | 72.6% | |
| Rambler Metals & Mining ($RMM) | 13.9% | 20.7% | 22.9% | 36.7% | |
| Trans-Siberian Gold ($TSG) | 7.7% | 9.0% | 20.8% | 32.7% | |
| Caledonia Mining Corp ($CMCL) | 11.5% | 33.8% | 32.1% | 31.0% | |
| Orosur Mining Inc ($OMI) | 14.1% | 19.7% | 15.1% | 29.9% | |
| |
|---|
| Median (23 companies) | 11.0% | 14.5% | 16.0% | 13.1% | |
|---|
| Sylvania Platinum Ltd ($SLP) | 10.0% | 6.9% | 3.7% | 8.3% | 12.6% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Griffin Mining ($GFM) | 3.1% | 2.0% | 7.4% | 32.2% | |
| Caledonia Mining Corp ($CMCL) | 18.1% | 8.4% | 32.0% | 24.7% | |
| Antofagasta ($ANTO) | 14.3% | 2.6% | 3.8% | 14.6% | |
| Bisichi Mining ($BISI) | 5.7% | 1.6% | 0.7% | 14.3% | |
| Nord Gold Nv ($NORD) | 13.8% | 16.1% | 12.1% | 13.4% | |
| |
|---|
| Median (28 companies) | 1.6% | -2.0% | 3.8% | 7.0% | |
|---|
| Sylvania Platinum Ltd ($SLP) | -1.8% | 2.6% | 5.0% | 11.2% | 12.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Goldbridges Global Resources ($GBGR) | 1.3x | 10.9x | | 3.3x | |
| Patagonia Gold ($PGD) | | | 4.2x | 2.7x | |
| Glencore ($GLEN) | 4.6x | 5.5x | 4.0x | 2.7x | |
| Shanta Gold ($SHG) | 1.1x | 1.2x | 1.0x | 1.6x | |
| Nord Gold Nv ($NORD) | 1.3x | 1.1x | 1.3x | 1.3x | |
| |
|---|
| Median (18 companies) | 0.7x | 1.2x | 1.6x | 0.6x | |
|---|
| Sylvania Platinum Ltd ($SLP) | -1.0x | -0.7x | -0.5x | -0.8x | -0.6x |
