PJSC Seligdar (MOEX: SELG) (hereinafter the "Holding", "Seligdar"), a Russian gold and tin producer, published its interim consolidated financial statements under IFRS for the six months ended June 30, 2024.
• The consolidated revenue of PJSC Seligdar for 6 months of 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 was 8.2 billion rubles, an increase of 19% compared to last year. The banking EBITDA margin reached 39%.
• The net debt/EBITDA ratio as of June 30, 2024 was 2.37x.
"In the first 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 better 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 was due to the receipt in 2023 of additional revenue 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 JSC “Lunnoye”, which are not included in the consolidated financial statements), exceeding the figure for the same period of the previous year by 49%. The growth was driven by a 16% year-on-year increase in gold sales to 2,654 kg and a 28% increase in the average selling price of gold to 6,337 rubles per gram.
Revenue from the sale of tin, copper and tungsten concentrates for the first 6 months of 2024 amounted to 3,471 million rubles, an increase of 34% year-on-year.
Revenue from the sale of own-produced concentrates for the first half of the year reached 3,253 million rubles, compared to 2,588 million rubles received a year earlier. The growth was driven by a 43% increase in the volume of concentrate sales in physical terms, with a 12% decrease in the average selling price.
In the first half of 2024, Seligdar also sold concentrate purchased from third parties, the sales volume in physical terms amounted to 194 tons, with 218 million rubles in revenue.
Revenue from other sales, which primarily represents ore mining services and other services rendered by JSC “Lunnoye” and the sale of silver, amounted to 562 million rubles in the reporting period, compared to 924 million rubles a year earlier.
Profitability
Gross profit margin for the first six months of 2024 was 26%, up 3 p.p. year-on-year. Banking EBITDA margin was 39%, compared to 33% a year earlier. Banking EBITDA margin for the gold mining segment was 44%, compared to 35% last year. Banking EBITDA margin for the tin mining segment decreased from 16% to 13%.
The banking EBITDA indicator, derived from EBITDA by adding back mineral extraction tax and non-cash reserve for inventory decline, 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 indicator increased by 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
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 unsold as of 30.06.2024) is equal to 53,376 million rubles. The net debt/banking EBITDA ratio at the end of the period decreased and amounted to 2.37x.
Key financial indicators, million rubles
|
|
6M2024
|
6M2023
|
Change
|
|
Revenue
|
20 852
|
20 990
|
-1%
|
|
Gross profit
|
5 375
|
4 806
|
12%
|
|
Gross margin
|
26%
|
23%
|
+3 p.p.
|
|
Banking EBITDA
|
8 164
|
6 851 (6 237*)
|
19 (31*)%
|
|
Banking EBITDA margin
|
39%
|
33%
|
+6 p.p.
|
|
Profit/(Loss)
|
(5 235)
|
(7 262)
|
-
|
|
Profit/(Loss) net of foreign exchange loss
|
(1 725)
|
681
|
-
|
|
* excluding one-time transactions
|
|
|
30.06.2024
|
30.06.2023
|
|
|
Net debt / Banking EBITDA
|
2,37x
|
2,89x
|
-
|
