DRA Global (DRA) H2 2024 earnings summary

Executive summary

• Achieved record underlying EBIT of $78.4M, up 53% year-over-year, and underlying NPAT of $47.9M, with revenue stable at $903M, a 2% increase from FY23.

• Settled a significant legacy legal dispute, resulting in a $55.9M pre-tax impact, reducing statutory NPAT to a loss of $22.7M, but removing a major contingent liability.

• Declared a 33c per share dividend for FY24, supported by a strong balance sheet with $114.4M net cash and no external bank debt.

• Completed a share buyback and delisted from ASX and JSE in early 2025.

• EMEA and Minopex exceeded budget expectations; AMER showed growth momentum; APAC remained stable.

Financial highlights

• Revenue: $902.9M (up 2% year-over-year); Underlying EBIT: $78.4M (up 53%); Underlying NPAT: $47.9M.

• Statutory EBIT: $21.7M (down from $47.9M); Statutory NPAT: loss of $22.7M (vs. $19.7M profit in FY23), due to litigation settlement and deferred tax asset derecognition.

• Net cash: $114.4M (down 10% from $127.7M); all debt repaid, net gearing reduced to 0%.

• Net asset value per share: $5.09 (up 5% from $4.85).

• Dividend: 33c per share declared for FY24; $6.2M returned to shareholders.

Outlook and guidance

• Revenue outlook softened towards year-end due to project completions; Minopex's 2025 revenue to be impacted by contract conclusion.

• EMEA expected to maintain robust performance in 2025, though medium-term pipeline uncertain due to commodity price cycles.

• AMER and APAC maintain stable growth; strong pipeline in North America for critical minerals.

• Global mining sector outlook remains volatile, influenced by geopolitical, economic, and commodity demand factors.