Nativo Resources (NTVO) H2 2023 earnings summary

Executive summary

• Divested majority of Argentina SCS operations, retaining a 5% interest and exposure to contingent payments, addressing near-term funding and reducing in-country liabilities.

• Restructured Euro bond and Spartan loan, entered a convertible loan, and implemented cost-cutting and organizational restructuring to stabilize finances.

• Leadership changes in November 2023, with new Chair and CEO focused on transaction-led growth and shareholder value.

Financial highlights

• Group loss from continuing operations was $2.8M (2022: $4.4M); total Group profit including discontinued operations was $6.2M (2022: loss $9.6M).

• Group revenue (including discontinued operations) was $3.6M (2022: $14.1M).

• Operational costs (including discontinued operations) were $7.9M (2022: $18.3M); admin expenses $2.0M (2022: $3.0M).

• Finance costs were $0.9M (2022: $3.0M).

• Cash at year-end was $0.08M (2022: $1.1M).

Outlook and guidance

• Focus shifted to acquiring new natural resource projects that are affordable, manageable, and provide early cash flow and reserve growth.

• 2024 KPIs prioritize business development, flexible balance sheet management, maximizing value from legacy Argentine assets, and cost control.