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Seligdar PJSC (MOEX: SELG, hereafter Seligdar or Company), a Russian gold and tin producer, published the consolidated financial statements prepared in accordance with the International Financial Reporting Standards for the twelve months ended December 31, 2023.

·         Consolidated revenue of Seligdar PJSC increased by 61% year-on-year and comprised 56.0 billion Russian roubles.

·         Gold sales for the twelve months amounted to 8 881 kg, 23% growth compared to the previous year.

·         Bank adjusted EBITDA for 12M2023 improved by 57% year-on-year and reached 21.2 billion Russian roubles.  

·         Net debt/ bank adjusted EBITDA ratio was 2.18x as of December 31, 2023.

Revenue and prices

Consolidated revenue of Seligdar PJSC comprised 55,974 million Russian roubles for 12M2023 compared to 34,722 million Russian roubles year earlier.

Revenue from sales of gold produced by the Holding companies amounted to 41,676 million Russian roubles (excluding gold sales of Lunnoe JSC not recorded in the consolidated financial statements) having increased by 56% year-on-year. The growth was attributable to the increase in sales volume by 4% to 7,559 kg and rise in average realised gold price by 50% to 5,514 Russian roubles per gramme.

In 1H2023, Seligdar also sold gold purchased from third parties. 1,322 kg of gold was purchased and sold in January-June 2023, gross profit from the transactions amounted to 614 million Russian roubles with a 10% margin. These were one-off transactions; no further transactions were executed.

Revenue from tin, tungsten and copper concentrates sales was 6,276 million Russian roubles; it is a 5% increase against the result of the same period of the previous year. The decline in the average concentrates’ prices by 13% amidst global tin market prices decline affected the revenue but growth in sales volume by 20% offset the negative impact of the market environment.

Revenue from other sales, which was primarily received from ore mining and other services provided to Lunnoe JSC and from silver sales, increased by 11% and comprised 1,821 million Russian roubles in the reporting period.

Profit and margins

Gross margin was 25% in January-December 2023 and bank adjusted EBITDA margin was 38%, having decreased due to the third-party gold sales transactions, which provided additional growth in revenue and EBITDA but had lower margin. Excluding these one-off transactions effect, gross margin stood at 32%; and bank adjusted EBITDA rose to 41% compared to 39% year earlier. The bank adjusted EBITDA margin of the gold division (excluding the effect of one-off third-party gold sales transactions) was 44% for 12M2023 compared to 42% year earlier. The bank adjusted EBITDA of the tin division declined from 24% to 22% amid lower tin market prices.

Bank adjusted EBITDA calculated before mineral extraction tax and non-cash change in inventory provision comprised 21,230 million Russian roubles in January-December 2023 having increased by 57% compared to the same period of the previous year.

Loss of 11,515 million Russian roubles was reported for 12M2023; it was mostly attributable to revaluation of loans and borrowings denominated in gold and US dollars amid the rise in the gold market price and Russian rouble depreciation. Profit net of foreign exchange loss amounted to 2,841 million Russian roubles in January-December 2023 compared to 1,297 million Russian roubles year earlier.

Debt

Financial debt of Seligdar PJSC (loans and borrowings and financial lease) comprised 59,056 million Russian roubles as of December 31, 2023. Net debt (excluding cash and market value of unrealised refined gold as of December 31, 2023) totalled 46,387 million Russian roubles. Net debt/ bank adjusted EBITDA ratio was 2.18x at the end of the reporting period.

Key financials, million Russian roubles