Dragon Mining (HKSE:01712) ROC % : 25.88% (As of Dec. 2024)

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What is Dragon Mining ROC %?

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Dragon Mining's annualized return on capital (ROC %) for the quarter that ended in Dec. 2024 was 25.88%.

As of today (2025-03-27), Dragon Mining's WACC % is 7.83%. Dragon Mining's ROC % is 12.48% (calculated using TTM income statement data). Dragon Mining generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.

Dragon Mining ROC % Historical Data

The historical data trend for Dragon Mining's ROC % 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.

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Dragon Mining ROC % Chart

Dragon Mining Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

ROC %

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19.87

0.32

2.00

0.26

12.35

Dragon Mining Semi-Annual Data
	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24	Dec24
ROC %	Get a 7-Day Free Trial															0.38	0.14	-2.21	-	25.88

Dragon Mining ROC % Calculation

Dragon Mining's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2024 is calculated as:

	ROC % (A: Dec. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2023 )	+	Invested Capital (A: Dec. 2024 ))	/ count )
=	67.164 * ( 1 - 24.45% )	/	( (415.363	+	406.492)	/ 2 )
=	50.742402	/	410.9275
=	12.35 %

where

	Invested Capital		(A: Dec. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	566.211	-	41.647	-	( 109.201	-	max(0, 63.848	-	249.307	+	109.201	))
=	415.363

	Invested Capital		(A: Dec. 2024 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	652.651	-	40.949	-	( 205.21	-	max(0, 75.44	-	319.167	+	205.21	))
=	406.492

Dragon Mining's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2024 is calculated as:

	ROC % (Q: Dec. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2024 )	+	Invested Capital (Q: Dec. 2024 ))	/ count )
=	134.338 * ( 1 - 22.63% )	/	( (396.786	+	406.492)	/ 2 )
=	103.9373106	/	401.639
=	25.88 %

where

	Invested Capital		(Q: Jun. 2024 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	542.287	-	23.461	-	( 122.04	-	max(0, 47.083	-	245.569	+	122.04	))
=	396.786

	Invested Capital		(Q: Dec. 2024 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	652.651	-	40.949	-	( 205.21	-	max(0, 75.44	-	319.167	+	205.21	))
=	406.492

Note: The Operating Income data used here is two times the semi-annual (Dec. 2024) data.

Dragon Mining (HKSE:01712) ROC % Explanation

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.

There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.

Why is ROC % important?

Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.

As of today, Dragon Mining's WACC % is 7.83%. Dragon Mining's ROC % is 12.48% (calculated using TTM income statement data). Dragon Mining generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.

Be Aware

Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Dragon Mining ROC % Related Terms

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Dragon Mining Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Dragon Mining Ltd (HKSE:01712) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

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Address

39 Mends Street, Unit 202, Level 2, South Perth, Perth, WA, AUS, 6151

Website

https://www.dragonmining.com

Dragon Mining Ltd is principally engaged in gold exploration, mining, and processing in the Nordic region. The company's operating segments are Sweden and Finland. Dragon Mining (Sweden) AB produces gold bullion from the Svartliden Production Centre and processed ore from test-mining activities at the Faboliden Gold Mine. Dragon Mining Oy in Finland produces gold concentrate from the Vammala Production Centre and processed ore from the Jokisivu, Kaapelinkulma, and Orivesi Gold Mines. It operates in Sweden and England, out of which it derives maximum revenue from Sweden.

Executives

Allied Group Limited
Apac Resources Limited
Lee Seng Hui
Lee Seng Huang
Lee Su Hwei
Sincere View International Limited	2101 Beneficial owner
Hon Kwok Lung	2201 Interest of corporation controlled by you
Lam Suk Ying	2202 Interest of your spouse
Allied Properties (h.k.) Limited	2201 Interest of corporation controlled by you
Sincere View International Ltd.	2101 Beneficial owner
Allied Properties Overseas Limited
Allied Properties Resources Limited
Minty Hongkong Limited

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