Q1, JANUARY –
- Revenue TUSD 17,223 (26,107)
- EBITDA TUSD 1,567 (1,163)
- Loss for the period TUSD -4,212 (-3,130)
- Loss per share before dilution
USD -0.0047 (-0.0035)
Significant events after the reporting period
- The Group signed an addendum to a credit facility for the change of covenants level which should result in reclassification of short-term borrowings into long-term.
- The Board of directors has proposed a voluntary redemption of up to approximately 17% of the
Kopy Goldfields outstanding shares, in an offer that will entitle all minority shareholders to request redemption of all their shares in the Company.
SUMMARY OF FINANCIAL INFORMATION
Q1 2024 | Q1 2023 | Δ % | Full year 2023 | |
Gold production (gold equivalent), koz | 9.16 | 8.24 | 11% | 39.47 |
Gold sales (gold equivalent), koz | 8.20 | 13.87 | -41% | 44.86 |
Average realized gold price, USD/oz | 2,038 | 1,856 | 10% | 1,901 |
Revenue, TUSD | 17,223 | 26,107 | -34% | 86,485 |
Gross profit, TUSD | 2,772 | 4,650 | -40% | 27,604 |
EBITDA, TUSD | 1,567 | 1,163 | 35% | 18,259 |
EBITDA margin, % | 9% | 4% | - | 21% |
Loss for the period, TUSD | -4,212 | -3,130 | -35% | -1,334 |
Loss per share before dilution, USD | -0.0047 | -0.0035 | -35% | -0.0015 |
Cash & cash equivalents at the end of the period, TUSD | 702 | 851 | -18% | 1,949 |
Net debt, TUSD | 159,494 | 123,035 | 30% | 144,814 |
Equity per share, USD | 0.0738 | 0.0842 | -12% | 0.079 |
Production growth supported by high gold prices
In Q1 2024
Production
The total consolidated production in Q1 2024 increased by 11% compared to Q1 2023 which was driven by the Yubileyniy CIP plant results and the Malyutka project launch in 2023. The total unconsolidated production from the Zolotaya Zvezda Mayskiy project amounted to 2.36 koz in the reporting period compared to 0.53 koz in Q1 2023.
Financial performance
The Company’s EBITDA improved in the reporting period compared to Q1 2023 and the EBITDA margin increased from 4% to 9%. The average realized gold price reached
Total Cash Costs (TCC) and All-in Sustaining costs (AISC) per oz produced slightly decreased in Q1 2024 compared to Q1 2023 by 2% and 5% respectively, reflecting improved efficiency.
However, financial costs increased due to further increases in Net debt, following capital investments in our key production assets, and higher interest rates, resulting in a higher net loss than in Q1 2023.
Investments
The Malyutka project is currently in the commissioning phase and the full capacity is expected to be reached later in the year. We look forward to increasing HL production from the site but the commissioning phase can last longer than we initially anticipated.
Investments into the Yubileyniy plant upgrade are on track. We plan to commence the updated mill and shift to the new processing chart by the end of 2025. That would allow us to increase the capacity of the plant and improve the recovery rate.
The new mill at the Zolotaya Zvezda’s Mayskiy processing plant has been tested now. We aim to commission it later in 2024. Production at Chazy Gol is expected to start in this quarter.
ESG
During the first quarter of 2024, we continued progressing in our ESG strategy across all Russian subsidiaries. The objective for 2024 is to stabilize the Lost Time Injury Frequency Rate (LTIFR) at the 2023 level.
In Q1 2024
Also, we explored further the financing options to support environmentally friendly projects. The Company plans to construct solar power stations at the Yubileyniy site in the Khabarovsk region.
In the reporting period, the Company started the tendering process for the preparation and approval process of Complex Environmental Permits (CEP) which must be obtained until the end of 2024 for all production sites.
Macro environment
Despite favorable international gold prices, the overall situation remains challenging. The Key rate of the
Outlook
We are close to the end of the CAPEX intense business cycle as we about to fully commission the Malyutka project and complete the upgrade of the Yubileyniy plant. We target to increase the gold production as planned and also to improve the technological efficiency at the production sites. There are clear development prospects in the Khakasia region and we plan to pursue geological and production opportunities there together with our partner. This should provide for improved profitability and debt reductions going forward.
The Company and its operations are increasingly exposed to sanctions and other restrictions in both
Therefore, the Board of directors is proposing today a voluntary redemption of up to approximately 17 percent of the outstanding shares, in an offer that will entitle all minority shareholders to request redemption of all their shares in the Company.
Mikhail Damrin
CEO
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