Orosur Mining Inc reports 1,526% Net Income decline in 2018 and 16.1% Revenue decline
29 Aug 2018 • About Orosur Mining Inc (
$OMI) • By InTwits
Orosur Mining Inc reported FY2018 financial results today. Here are the key drivers of the company's long term financial model:
- Orosur Mining Inc is a company in decline: FY2018 revenue growth was -16.1%, 5 years revenue CAGR was -18.9%
- The company operates at negative EBITDA Margin: -42.3%
- Orosur Mining Inc motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2014-FY2018 was 0.0% while average EBITDA Margin was -6.9% for the sames years
- Orosur Mining Inc has high CAPEX intensity: 5 year average CAPEX/Revenue was 23.8%. At the same time it's a lot of higher than industry average of 17.7%.
- CAPEX is quite volatile: £2m in FY2018, £4m in FY2017, £2m in FY2016, £2m in FY2015, £2m in FY2014
- The company has unprofitable business model: ROIC is -140.9%
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 dropped on 16.1%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 27.3 pp from -24.3% to 3.0% in FY2018.
Gross Margin dropped on 11.8 pp from 8.9% to -2.9% in FY2018. SG&A as a % of Revenue increased slightly on 1.4 pp from 4.6% to 6.0% in FY2018.
Net Income margin dropped on 105 pp from 5.8% to -99.3% in FY2018.
Investments (CAPEX, working capital and M&A)
Orosur Mining Inc's CAPEX/Revenue was 40.1% in FY2018. Orosur Mining Inc's CAPEX/Revenue jumped on 20.5 pp from 19.7% in FY2015 to 40.1% in FY2018. Average CAPEX/Revenue for the last three years was 28.4%. CAPEX as a % of Revenue grew at 6.2 pp per annum in the last 5 years.
Return on investment
The company operates at negative ROIC (-140.9%) and ROE (-206.5%). ROIC dropped on 147 pp from 6.2% to -141% in FY2018. ROE dropped on 214 pp from 7.7% to -206% in FY2018.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.2x and Debt / EBITDA is . Net Debt / EBITDA jumped on 0.3x from -0.3x to in FY2018. Debt surged on 382% while cash dropped on 58.6%.
Orosur Mining Inc has short term refinancing risk: cash is only 80.3% of short term debt.
Financial and operational results
FY ended 31 May 2018
Orosur Mining Inc ($OMI) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 80.370 | 65.868 | 42.866 | 44.226 | 37.100 | -16.1% |
| Gross Profit | 7.465 | -3.847 | 0.793 | 3.955 | -1.070 | -127.1% |
| SG&A | | 2.900 | 2.150 | 2.037 | 2.231 | 9.5% |
| EBITDA | 22.460 | -32.768 | -1.671 | 9.073 | -15.690 | -272.9% |
| Net Income | 5.123 | -54.376 | -1.210 | 2.584 | -36.845 | -1,525.9% |
Balance Sheet
|
|---|
| Cash | 10.818 | 4.787 | 4.320 | 3.357 | 1.390 | -58.6% |
| Short Term Debt | 3.978 | 1.129 | 0.253 | 0.202 | 1.730 | 756.4% |
| Long Term Debt | 0.961 | 0.352 | 0.099 | 0.201 | 0.211 | 5.0% |
Cash flow
|
|---|
| Capex | 11.337 | 12.952 | 6.494 | 13.225 | 14.895 | 12.6% |
Ratios
|
|---|
| Revenue growth | -24.1% | -18.0% | -34.9% | 3.2% | -16.1% | |
| EBITDA growth | 22.4% | -245.9% | -94.9% | -643.0% | -272.9% | |
|
|---|
| Gross Margin | 9.3% | -5.8% | 1.8% | 8.9% | -2.9% | -11.8% |
| EBITDA Margin | 27.9% | -49.7% | -3.9% | 20.5% | -42.3% | -62.8% |
| SG&A, % of revenue | | 4.4% | 5.0% | 4.6% | 6.0% | 1.4% |
| Net Income Margin | 6.4% | -82.6% | -2.8% | 5.8% | -99.3% | -105.2% |
| CAPEX, % of revenue | 14.1% | 19.7% | 15.1% | 29.9% | 40.1% | 10.2% |
|
|---|
| ROIC | 4.5% | -84.1% | -23.6% | 6.2% | -140.9% | -147.0% |
| ROE | 6.4% | -93.1% | -3.7% | 7.7% | -206.5% | -214.2% |
| Net Debt/EBITDA | -0.3x | | | -0.3x | |
Peers in Mining
Below you can find Orosur Mining Inc 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 | 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 ($CRES) | -5.0% | 803.4% | 155.8% | 59.3% | |
| |
|---|
| Median (23 companies) | -4.5% | -7.9% | 5.5% | 27.8% | 24.3% |
|---|
| Orosur Mining Inc ($OMI) | | -18.0% | -34.9% | 3.2% | -16.1% |
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 ($CMCL) | 34.7% | 26.9% | 37.9% | 37.7% | |
| |
|---|
| Median (21 companies) | 22.7% | 20.9% | 28.6% | 24.8% | 27.9% |
|---|
| Orosur Mining Inc ($OMI) | 9.3% | -5.8% | 1.8% | 8.9% | -2.9% |
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 ($RRS) | 39.4% | 33.8% | 46.8% | 50.7% | |
| |
|---|
| Median (23 companies) | 17.3% | 18.3% | 24.6% | 28.5% | 35.4% |
|---|
| Orosur Mining Inc ($OMI) | 27.9% | -49.7% | -3.9% | 20.5% | -42.3% |
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% | |
| Nord Gold Nv ($NORD) | 9.5% | 20.1% | 31.7% | 28.9% | |
| |
|---|
| Median (23 companies) | 10.2% | 14.0% | 16.0% | 12.4% | 12.6% |
|---|
| Orosur Mining Inc ($OMI) | 14.1% | 19.7% | 15.1% | 29.9% | 40.1% |
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 ($NORD) | 13.8% | 16.1% | 12.1% | 13.4% | |
| |
|---|
| Median (28 companies) | 1.2% | 0.5% | 5.0% | 7.3% | 12.5% |
|---|
| Orosur Mining Inc ($OMI) | 4.5% | -84.1% | -23.6% | 6.2% | -140.9% |
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 ($NORD) | 1.3x | 1.1x | 1.3x | 1.3x | |
| |
|---|
| Median (18 companies) | 0.7x | 1.1x | 1.4x | 0.6x | -0.6x |
|---|
| Orosur Mining Inc ($OMI) | -0.3x | | | -0.3x | |
