Africa Resources (AFRI) Q2 2024 earnings summary

Executive summary

• Revenue for Q2 2024 was 880 TSEK, with a net loss after tax of -236 TSEK, reflecting continued volatility in diamond extraction operations in southern DRC.

• 685 carats were extracted during the quarter, below the target of 1,000 carats/month, impacting profitability.

• Operations faced delays due to frequent relocations, negotiations with landowners, and logistical challenges.

Financial highlights

• Q2 2024 revenue: 880 TSEK (Q2 2023: 8 TSEK); net loss after tax: -236 TSEK (Q2 2023: -359 TSEK).

• Earnings per share for Q2 2024: -0.02 SEK (Q2 2023: -0.03 SEK).

• Cash and cash equivalents at June 30, 2024: 120 TSEK (June 30, 2023: 560 TSEK).

• Total assets at June 30, 2024: 12,113 TSEK (June 30, 2023: 12,816 TSEK).

• Equity at June 30, 2024: 6,362 TSEK (June 30, 2023: 7,312 TSEK).

Outlook and guidance

• Production goal remains at 1,000 carats/month, but achieving this has taken longer than forecasted.

• Management views the target as realistic but acknowledges ongoing operational delays.