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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 six months ended June 30, 2022.

• Consolidated revenue of Seligdar PJSC comprised 11.6 billion Russian roubles for 6M2022, 2% up y-o-y.
• Gross margin reached 47%, a 5 p.p. increase compared to 1H2021.
• EBITDA decreased by 9% to 5.7 billion Russian roubles. EBITDA margin stood at 49%.
• Profit rose to 10.7 billion Russian roubles for 6M2022 compared to 3.8 billion Russian roubles for the same period of the previous year.
• Net debt/EBITDA ratio stood at 2.4x as of June 30, 2022.
• Seligdar paid dividends for 2021 in the amount of 4.5 billion Russian roubles in 1H2022.

Revenue

Consolidated revenue of Seligdar PJSC for 6M2021 increased by 2% y-o-y and comprised 11,581 million Russian roubles.

Revenue from gold sales amounted to 6,802 million Russian roubles having reduced by 13% compared to 1H2021. The decrease was driven by lower sales volume due to the change in the Holding’s sales policy and prices in the gold market. Average realised gold price increased by 3% y-o-y and reached 4,427 Russian roubles per gram. Unrealised gold in bank metal accounts comprised 749 kg as of June 30, 2022.

Revenue from tin, tungsten and copper concentrates sales in January-June 2022 was 47% higher than in the same period of the previous year and totalled 3,848 million Russian roubles. The revenue was positively influenced by market prices: the average realised price of tin and tungsten concentrates in 1H2022 increased by 59% and 29% y-o-y, respectively.

Revenue from other sales, which was mostly received from ore mining services provided to Lunnoe JSC and from silver sales, comprised 932 million Russian roubles having increased by 1% y-o-y.

Profit and margins

Gross margin increased by 5 p.p. y-o-y in 1H2022 and comprised 47% compared to 42% in the same period of the previous year. EBITDA amounted to 5,695 million Russian roubles in 1H2022 having decreased by 9% y-o-y. The decrease of EBITDA and EBITDA margin from 55% to 49% against the growth of gross margin was due to increased value of unrealised gold in metal accounts recognised at production cost as of the reporting date compared to the year earlier figure.

Profit increased by 185% y-o-y in 1H2022 and comprised 10,709 million Russian roubles due to the growth of operating profit, foreign exchange gain and that of finance income.

Debt

As of June 30, 2022, financial debt of Seligdar PJSC (loans and borrowings and finance lease) totalled 48.5 billion Russian roubles; net debt was 44.7 billion Russian roubles. Net debt/EBITDA ratio was at the same level as year earlier and stood at 2.4x.

Key financials, million Russian roubles