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Seligdar PJSC (MOEX: SELG, hereafter Seligdar or Holding), a Russian gold and tin producer, published the interim condensed consolidated financial statements prepared in accordance with the International Financial Reporting Standards for the nine months ended September 30, 2022.

• Gold produced by the companies of IFRS group increased by 8% y-o-y and amounted to 5,447 kg in January-September 2022. Gold sales declined by 11%; volume of gold in bank metal accounts and at refineries reached 1,421 kg as of September 30, 2022.
• Consolidated revenue of Seligdar PJSC comprised 20.7 billion Russian roubles for 9M2022 against 24.1 billion Russian roubles year earlier.
• EBITDA amounted to 7.6 billion Russian roubles. EBITDA margin was 37% for 9M2022.
• Profit before tax grew by 10% to 11.3 billion Russian roubles; profit for the period reached 9.1 billion Russian roubles against 9.3 year earlier. Earnings per share amounted to 9.51 Russian roubles.
• In the 3^rd quarter, Seligdar PJSC placed 37,645,270 shares of additional issue. Proceeds from the share issue amounted to 1.9 billion Russian roubles.

Revenue

Consolidated revenue of Seligdar PJSC declined by 14% for 9M2022 and comprised 20,694 million Russian roubles against с 24,174 million Russian roubles received year earlier.

Revenue from gold sales reduced by 22% y-o-y to 14,705 million Russian roubles (excluding gold sales of Lunnoe JSC not recorded in the consolidated statements) due to decrease in sales volume associated with the Holding’s current sales policy and gold market prices. Average realised gold price comprised 3,695 Russian roubles per gramme for January-September 2022 against 4,251 Russian roubles per gramme for the same period of the previous year. Volume of ‘ready-for-sale’ gold in bank metal accounts and at refineries amounted to 1,421 kg as of September 30, 2022; its market price at the reporting date was 4,334 million Russian roubles; the latter outweighs the amount of y-o-y decline in revenue from gold sales. 

Revenue from tin, tungsten and copper concentrates sales reached 4,597 million Russian roubles for 9M2022, a 22% increase y-o-y. The increase was driven by growth of sales volume by 6% and that of average realised prices of tin and tungsten concentrates by 14% and 8%, respectively.

Revenue from other sales, which was primarily received from ore mining for Lunnoe JSC and from silver sales comprised 1,392 million Russian roubles, a 3% decrease.

Profit and margins

Gross margin declined by 15 p.p. y-o-y to 32% for 9M2022; EBITDA margin decreased from 58% to 37%. EBITDA margin declined in the both divisions and comprised 39% in the gold division and 28% in the tin division in January-September 2022.

EBITDA amounted to 7,554 million Russian roubles for 9M2022. The main change drivers were decrease in gold sales due to unsold finished products available for sale in the future periods and decline of average gold realised prices, increased costs of materials and spare parts as well as higher labour expenses associated with the scaling-up of operations.

Debt

Financial debt of Seligdar PJSC (loans and borrowings and finance lease) comprised 50.5 billion Russian roubles as of September 30, 2022; net debt, 46.4 billion Russian roubles. In November, Seligdar placed a bond issue that allowed repaying its short-term debt raised under revolving credit lines, funds of which were used, in particular, to purchase at lower prices and to create a stock of materials necessary for operations that would have a positive influence on financial performance in the future.