Seligdar Announces IFRS Financial Results for 6M 2024
PJSC Seligdar, a Russian gold and tin producer, has published interim consolidated IFRS financial statements for the six months ended June 30, 2024.
The consolidated revenue of PJSC Seligdar for 6M 2024 amounted to RUB 21.0 billion, remaining at the same level as last year. Excluding one-off transactions in 2023 for the sale of third-party gold in the amount of RUB 6.2 billion, consolidated revenue increased by 41%.
The sale of “own” gold, reflected in revenue, in the reporting period amounted to 2,654 kg compared to 2,284 kg a year earlier.
The banking EBITDA indicator for the first half of 2024 is RUB 8.2 billion, an increase of 19% compared to last year. The EBITDA margin for the bank was 39%.
The net debt/EBITDA ratio as of June 30, 2024 was 2.37x.
“Based on the results of work for 6 months of 2024, Seligdar updated the record for revenue from the sale of produced gold and increased revenue from the sale of produced tin, copper and tungsten concentrates by a quarter. We are satisfied with the results obtained, which, if we maintain the current pace and quality of our work, can form the basis for even more confident indicators for the current year,” said Alexander Khrushch, President of Seligdar Holding.
Revenue and prices
The consolidated revenue of PJSC Seligdar for the first half of 2024 amounted to RUB 20,852 million, compared to RUB 20,990 million received in January-June 2023. The 1% decrease in revenue in 2024 is due to additional revenue received in 2023 from the sale of gold purchased from third parties in the amount of RUB 6,201 million; these sales were not made in the reporting half-year. Excluding these one-off transactions in 2023, consolidated revenue increased by 41%.
Revenue from the sale of gold produced by the Holding’s companies amounted to RUB 16,818 million (excluding gold sales by Lunnoye JSC, which are not included in the consolidated financial statements), exceeding the same period of the previous year by 49%. The growth was driven by a 16% year-on-year increase in gold sales volume, to 2,654 kg, and a 28% increase in the average selling price of gold, to RUB 6,337 per gram.
Revenue from sales of tin, copper and tungsten concentrates for the first 6 months of 2024 amounted to RUB 3,471 million, an increase of 34% year-on-year.
Revenue from sales of own-produced concentrates for the first half of the year reached RUB 3,253 million, compared to RUB 2,588 million received a year earlier. The growth was due to an increase in the volume of concentrate sales in physical terms by 43%, with a decrease in the average selling price by 12%.
In the first half of 2024, Seligdar also sold concentrate purchased from third parties, the sales volume in physical terms amounted to 194 tons, revenue RUB 218 million.
Revenue from other sales, which mainly represents ore mining services and other services rendered by JSC Lunnoye and silver sales, amounted to RUB 562 million in the reporting period, compared to RUB 924 million a year earlier.
Profitability of operations and profit
Gross profitability for the first 6 months of 2024 amounted to 26%, increasing by 3 p.p. year-on-year. Banking EBITDA margin amounted to 39%, compared to 33% a year earlier. Banking EBITDA margin of the gold mining segment amounted to 44%, last year the figure was at the level of 35%. Banking EBITDA margin of the tin mining segment decreased from 16% to 13%.
The banking EBITDA indicator, calculated before the deduction of mineral extraction tax and non-cash reserve for the decline in the value of inventories, increased by 19% for the first 6 months of 2024 and amounted to RUB 8,164 million compared to RUB 6,851 million a year earlier, excluding profit from one-time transactions for the sale of third-party gold in 2023, the growth of the indicator amounted to 31% or RUB 1,927 million.
The loss incurred for the reporting period decreased by 28% compared to the previous year and amounted to RUB 5,235 million. The loss was primarily due to non-cash transactions for the revaluation of liabilities denominated in gold, as a result of the increase in the market price of gold in dollars and the devaluation of the ruble.
Debt burden
The financial debt of PJSC Seligdar (the sum of loans and borrowings and financial lease obligations) as of 30.06.2024 amounted to 74,662 million rubles, net debt (taking into account the value of refined gold unrealized as of 30.06.2024) is equal to 53,376 million rubles. The net debt/EBITDA banking ratio at the end of the period decreased and amounted to 2.37x.