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Moscow – April 28, 2023 - Seligdar PJSC (MOEX: SELG, hereafter Seligdar or Holding), a Russian gold and tin producer, published consolidated financial statements prepared in accordance with the International Financial Reporting Standards for the twelve months ended December 31, 2022.

• Consolidated revenue of Seligdar PJSC comprised 34.7 billion Russian roubles for 12M2022.
• Doré gold produced by the companies of the IFRS group increased by 9% year-on-year and amounted to 7,208 kg for 2022.
• Gold sales recognised in the revenue comprised 7,239 kg compared to 6,520 kg year earlier.
• The 2022 EBITDA amounted to 11.8 billion Russian roubles; bank adjusted EBITDA* was 13.5 billion Russian roubles. EBITDA margin was 34%.

* the ‘bank adjusted EBITDA’ indicator was calculated in accordance with the loan agreements of the Holding

• Profit totalled 4.1 billion Russian roubles for 2022. Total comprehensive income inclusive of revaluation of assets and liabilities and hedging income was 11.8 billion Russian roubles.
• Net debt**/ bank adjusted EBITDA ratio stood at 2.9x as of December 31, 2022.

** hereafter the ‘net debt’ indicator comprises value of unrealised refined gold calculated at the reference price set by the Bank of Russia: 541 million Russian roubles as of December 31, 2022 (788 million Russian roubles as of December 31, 2021).

Revenue and prices

Consolidated revenue of Seligdar PJSC comprised 34,722 million Russian roubles for 12M2022 against с 35,616 million Russian roubles for January-December 2021.

Revenue from gold sales reduced by 3% year-on-year to 26,687 million Russian roubles (excluding gold sales of Lunnoe JSC not recorded in the consolidated statements) due to decrease in average realised gold price by 13% associated with market gold price fluctuations and Russian rouble appreciation. Volume of gold sales (excluding sales of Lunnoe JSC) increased by 11% in 2022 and totalled 7,239 kg compared to 6,520 kg in 2021.

Revenue from tin, tungsten and copper concentrates sales totalled 5,997 million Russian roubles for 12M2022; a 1% growth compared to the last-year sales. The increase in revenue was driven by growth of volume of concentrates sales amid decline in prices for tin and copper concentrates and unfavourable market situation.

Revenue from other sales, which was primarily received from ore mining and other services for Lunnoe JSC and from silver sales, comprised 2,037 million Russian roubles for 2022 compared to 2,064 million Russian roubles for 2021.

Gain from revaluation of fair value of commodity forwards entered into in order to reduce gold price volatility comprised 1,301 million Russian roubles in 2022. Total financial result of these transactions amounted to 1,725 million Russian roubles for 2020 – 2022; it is recognised in finance income and does not influence operating profit and EBITDA. Proceeds are recognised on cash flow statement.

Profit and profit margins

Gross margin for 2022 stood at 32%; EBITDA margin was 34%. EBITDA margin of gold division for January-December 2022 was 36%, that of tin division, 23%.

The decrease in profitability margin is due to decline in average realised gold price in 2022 amid world gold price fluctuations and Russian rouble appreciation.

EBITDA amounted to 11,831 million Russian roubles for 12M2022. The year-end bank adjusted EBITDA calculated inclusive of mineral extraction tax and non-cash allowance for inventory provision comprised 13,521 million Russian roubles.

The 2022 profit totalled 4,143 million Russian roubles. Total comprehensive income inclusive of revaluations of assets and liabilities, and hedging income amounted to 11,760 million Russian roubles.

Debt

Financial debt of Seligdar PJSC (loans and borrowings) comprised 58,468 million Russian roubles as of December 31, 2022. Net debt (including value of unrealised refined gold as of December 31, 2022) amounted to 39,180 million Russian roubles compared to 37,663 million Russian roubles year earlier. The year-end net debt/ bank adjusted EBITDA ratio stood at 2.9x.

Konstantin Beirit, President of the Seligdar Holding

‘In 2022, the Holding delivered on its operating plan for metal production and adjusted its sales strategy. A helpful solution to the metal price situation was borrowing in gold and hedging contracts for almost a tonne of produced gold for the price beyond 5,000 Russian roubles per gramme. A lot of work has been done to solve arisen logistical issues’.

Key financials, million Russian roubles