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Moscow – August 29, 2023 - Seligdar PJSC (MOEX: SELG, hereafter Seligdar or Company), a Russian gold and tin producer, published the interim consolidated financial statements prepared in accordance with the International Financial Reporting Standards for the six months ended June 30, 2023.

• Consolidated revenue of Seligdar PJSC comprised 21 billion Russian roubles for 6M2023 having increased 1.8-fold year-on-year.
• Gold sales recognised in the revenue comprised 3,606 kg in the reporting period compared to 1,537 kg year earlier.
• Bank adjusted EBITDA for 1H2023 amounted to 6.9 billion Russian roubles.
• Net debt/bank adjusted EBITDA ratio stood at 2.89x as of June 30, 2023.

Revenue and prices

Consolidated revenue of Seligdar PJSC comprised 20,990 million Russian roubles for 1H2023 against 11,581 million Russian roubles for January-June 2022.

Revenue from sale of gold produced by Seligdar Holding companies amounted to 11,277 million Russian roubles having increased by 66% compared to the same period of the previous year (excluding gold sales of Lunnoe JSC not recorded in the consolidated statements). The growth was attributable to the increase in sales volume by 49% year-on-year to 2,284 kg and rise in average realised gold price by 12% to 4,938 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 transactions amounted to 614 million Russian roubles, profit margin, 10%. These were one-time operations.

Revenue from tin, tungsten and copper concentrates sales totalled 2,588 million Russian roubles for 6M2023, a 33% down year-on-year, that was mainly due to the decrease in the average realised tin concentrate price by 42% amid the decline in the tin market prices. Tin concentrate sales volume increased by 2%, copper concentrate sales - increased 2.9-fold and tungsten concentrate sales - increased 2.1-fold.

Revenue from other sales, which was primarily received from ore mining and other services provided to Lunnoe JSC and from silver sales, comprised 924 million Russian roubles in the reporting period compared to 932 million Russian roubles year earlier.

Profit and profit margins

Bank adjusted EBITDA margin of the gold division stood at 48% compared to 59% year earlier excluding nonrecurring items associated with third-party gold sales transactions that provided addition growth in revenue and EBITDA but had lower margin. Bank adjusted EBITDA margin of the tin division fell from 48% to 16% due to significant decline in the tin market prices. Consolidated margin figure excluding nonrecurring items was 42% for the reporting period.

Bank adjusted EBITDA calculated before mineral extraction tax and non-cash change in inventory provision increased by 7% year-on-year to 6,851 million Russian roubles for 6M2023.

The reporting period loss was 7,262 million Russian roubles compared to the profit of 10,709 million Russian roubles in 1H2022. The loss was mainly due to the non-cash unrealised loss from revaluation of gold-nominated loans because of the rise in the gold price in US dollars and Russian rouble depreciation. Profit net of foreign exchange gain/loss comprised 681 million Russian roubles in January-June 2023 against 333 million Russian roubles year earlier.

Debt

Financial debt of Seligdar PJSC (loans and borrowings) amounted to 61,208 million Russian roubles as of June 30, 2023. Net debt (excluding cash and market value of unrealised refined gold as of June 30, 2023) decreased to 40,326 million Russian roubles compared to 42,493 million Russian roubles year earlier. The net debt/bank adjusted EBITDA ratio stood at 2.89x at the end of the reporting period.

Key financials, million Russian roubles

*excluding one-off operations