Persistence Resources Group (2489) H1 2024 earnings summary

Executive summary

• H1 revenue rose 20.1% YoY to RMB236.2m and net profit increased 49.5% to RMB78.9m, driven mainly by higher gold selling prices.

• Gold output declined 4.0% YoY to 453.7kg after a temporary February underground-mine pause; interim dividend declared at HK$0.0295 per share.

Financial highlights

• Revenue RMB236.2m, up 20.1% YoY; average selling price rose 21.1%, partly offset by a 0.8% decline in sales volume.

• Gross profit increased 35.8% to RMB125.5m; gross margin was 53.1% vs. 47.0% in H1 2023.

• Net profit rose 49.5% to RMB78.9m; profit attributable to parent owners advanced 53.7% to RMB57.3m.

• Basic and diluted EPS was RMB0.03 vs. restated RMB0.02; total comprehensive income reached RMB80.6m vs. RMB54.0m.

Outlook and guidance

• Gold spot prices were expected to continue rising, supported by geopolitical uncertainty, central-bank buying and China’s gold demand; no quantified earnings guidance was stated.

• Songjiahou mine bench construction at +81m ASL was complete; +69m work was nearing completion, with remaining slope support due by end-September 2024; +57m work targeted for year-end.

• Exploration drilling plans comprise 10 holes targeted for completion by 30 September and a further 17 holes by year-end 2024.