Omai Gold Mines (TSXV:OMG) ROC % : -59.17% (As of Dec. 2023)

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What is Omai Gold Mines 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 %. Omai Gold Mines's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was -59.17%.

As of today (2024-05-23), Omai Gold Mines's WACC % is 20.80%. Omai Gold Mines's ROC % is -99.99% (calculated using TTM income statement data). Omai Gold Mines earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Omai Gold Mines ROC % Historical Data

The historical data trend for Omai Gold Mines'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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Omai Gold Mines ROC % Chart

Omai Gold Mines Annual Data

Trend

Sep19

Sep20

Dec21

Dec22

Dec23

ROC %

-43.78

-42.31

-271.35

-113.75

-100.79

Omai Gold Mines Quarterly Data
	Sep19	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROC %	Get a 7-Day Free Trial										-67.36	-126.92	-110.24	-102.13	-59.17

Omai Gold Mines ROC % Calculation

Omai Gold Mines's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	-4.61 * ( 1 - 0% )	/	( (4.52	+	4.628)	/ 2 )
=	-4.61	/	4.574
=	-100.79 %

where

	Invested Capital		(A: Dec. 2022 )
=	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	))
=	9.114	-	1.072	-	( 4.054	-	max(0, 1.072	-	4.594	+	4.054	))
=	4.52

	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	))
=	5.738	-	1.186	-	( 0.639	-	max(0, 1.186	-	1.11	+	0.639	))
=	4.628

Omai Gold Mines's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	-2.748 * ( 1 - 0% )	/	( (4.661	+	4.628)	/ 2 )
=	-2.748	/	4.6445
=	-59.17 %

where

	Invested Capital		(Q: Sep. 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	))
=	6.599	-	1.437	-	( 1.54	-	max(0, 1.437	-	1.938	+	1.54	))
=	4.661

	Invested Capital		(Q: 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	))
=	5.738	-	1.186	-	( 0.639	-	max(0, 1.186	-	1.11	+	0.639	))
=	4.628

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

Omai Gold Mines (TSXV:OMG) 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, Omai Gold Mines's WACC % is 20.80%. Omai Gold Mines's ROC % is -99.99% (calculated using TTM income statement data). Omai Gold Mines earns returns that do not match up to its cost of capital. It will destroy value as it grows.

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.

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Omai Gold Mines (TSXV:OMG) Business Description

Industry

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Traded in Other Exchanges

OMGGF:USA 0N2:Germany

Address

130 King Street West, Suite 3680, Toronto, ON, CAN, M5X 1B1

Website

https://www.omaigoldmines.com

Omai Gold Mines Corp is a mineral exploration company. Its Omai gold mine is located in Guyana, on the North coast of South America. The mine has two open pits: the Fennell pit and the Wenot pit. Its other project is Grenfell Property.

Executives

Derek Macpherson

Director