Frontier Mining (LSE:FML) Debt-to-EBITDA : 14.70 (As of Sep. 2014)

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What is Frontier Mining Debt-to-EBITDA?

Frontier Mining LSE:FML -16.67% Debt-to-EBITDA is 14.70 as of Sep. 2014. The stock has 3 warning signs investors should review.

Debt-to-EBITDA measures a company's ability to pay off its debt.

Frontier Mining's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2014 was £25.62 Mil. Frontier Mining's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2014 was £30.99 Mil. Frontier Mining's annualized EBITDA for the quarter that ended in Sep. 2014 was £3.85 Mil. Frontier Mining's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2014 was 14.70.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for Frontier Mining's Debt-to-EBITDA or its related term are showing as below:

LSE:FML's Debt-to-EBITDA is not ranked *
in the Metals & Mining industry.
Industry Median: 1.21
* Ranked among companies with meaningful Debt-to-EBITDA only.

Frontier Mining  (LSE:FML) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.


Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.


Frontier Mining Debt-to-EBITDA Related Terms


Frontier Mining Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for Frontier Mining's Debt-to-EBITDA can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frontier Mining Debt-to-EBITDA Chart

Frontier Mining Annual Data
Trend Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only -0.50 -0.76 0.81 1,905.16 -197.07

Frontier Mining Quarterly Data
Dec09 Jun10 Dec10 Jun11 Dec11 Dec12 Jun13 Sep13 Dec13 Jun14 Sep14
Debt-to-EBITDA Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only N/A 0.00 -21.86 -1.32 14.70

Frontier Mining Debt-to-EBITDA Competitor Comparison

For the Other Industrial Metals & Mining subindustry, Frontier Mining's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Frontier Mining Debt-to-EBITDA vs Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Frontier Mining's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Frontier Mining's Debt-to-EBITDA falls into.



Frontier Mining Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

Frontier Mining's Debt-to-EBITDA for the fiscal year that ended in Dec. 2013 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(25.968 + 30.789) / -0.288
=-197.07

Frontier Mining's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2014 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(25.622 + 30.991) / 3.852
=14.70

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is four times the quarterly (Sep. 2014) EBITDA data.

Frequently Asked Questions Learn more about Debt-to-EBITDA →
What does a Debt-to-EBITDA of 14.70 mean?
Frontier Mining (LSE:FML) has a Debt-to-EBITDA of 14.70 as of Sep. 2014. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Frontier Mining.
Is Frontier Mining's Debt-to-EBITDA too high?
Frontier Mining's current Debt-to-EBITDA is 14.70. The Metals & Mining industry median Debt-to-EBITDA is 1.21. Frontier Mining's value of 14.70 is 1114.9% above this industry median.
How does Frontier Mining's Debt-to-EBITDA compare to competitors?
Frontier Mining's Debt-to-EBITDA of 14.70 can be compared against companies in the Metals & Mining industry. The industry median Debt-to-EBITDA is 1.21. Frontier Mining's value of 14.70 is 1114.9% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Metals & Mining company?
The median Debt-to-EBITDA among Metals & Mining companies is 1.21, based on 594 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Frontier Mining's current Debt-to-EBITDA of 14.70 is 1114.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Frontier Mining. For the Metals & Mining industry, the median Debt-to-EBITDA is 1.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Frontier Mining's current Debt-to-EBITDA is 14.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Frontier Mining stock overvalued right now?
Frontier Mining (LSE:FML) has a current Debt-to-EBITDA of 14.70. The current Debt-to-EBITDA is 14.70 and 1114.9% above the Metals & Mining industry median of 1.21. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Frontier Mining (LSE:FML), the current Debt-to-EBITDA is 14.70 as of Sep. 2014. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Frontier Mining Business Description

Frontier Mining Ltd was incorporated under the law of the state of Delaware on 5 August 1998. It is engaged in mineral exploration and development. It explores and develops gold and copper deposits in the Republic of Kazakhstan. Its activities currently relate to two licenses: the wholly owned Naimanjal contract license area and the 50% owned Benkala joint venture license.