Austral Gold (AGD) H1 2024 earnings summary

Executive summary

• Revenue for HY24 fell 33% year-over-year to US$19.1 million, with a net loss after tax of US$18.0 million, up 619% from HY23, driven by lower production and significant non-cash impairments.

• Gold equivalent production at Guanaco/Amancaya was 8,521 ounces, down from 14,346 ounces in HY23, due to delays in critical equipment repairs and transition to heap leaching.

• No interim dividend was declared for HY24.

Financial highlights

• Gross profit margin dropped to 6.1% (HY23: 12.4%), with adjusted gross profit margin at 15.9% (HY23: 23.8%).

• Loss before tax was US$20.9 million (HY23: US$2.9 million), with adjusted earnings of US$2.7 million (HY23: US$4.4 million).

• Cash and cash equivalents at 30 June 2024 were US$1.2 million, with net current liabilities of US$23.0 million.

• Combined net financial debt increased to US$18.8 million (31 Dec 2023: US$17.4 million).

Outlook and guidance

• Production guidance for 2024 is 17,000–18,000 gold equivalent ounces, with 8,500–10,000 GEOs expected in H2 2024.

• 2025 production is forecast at 24,098 GEOs, with cost reductions anticipated as heap leaching is fully integrated.

• C1 cash costs for H2 2024 are projected at US$1,712–US$1,990 per GEO, with AISC at US$1,782–US$2,388.