Persistence Resources Group (2489) H2 2024 earnings summary

Executive summary

• FY2024 revenue rose 30.3% to RMB499.505m and net profit increased 54.4% to RMB146.608m, supported by higher gold prices, sales volume and interest income.

• Gold output after smelting reached 904.3 kg, up 2.5% YoY; production benefited from no repeat of the 2023 temporary mining pause.

Financial highlights

• Revenue was RMB499.505m, up 30.3% YoY; average selling price rose 24.4% and sales volume increased 4.7%.

• Gross profit increased 38.5% to RMB253.759m; cost of sales rose 22.7% to RMB245.746m.

• Net profit was RMB146.608m, up 54.4% YoY; profit attributable to owners rose 61.1% to RMB104.760m.

• Basic and diluted EPS increased 21.8% to RMB5.24 cents; total comprehensive income was RMB151.346m versus RMB94.425m.

• Administrative expenses rose 28.3% to RMB55.497m, reflecting listing, R&D, acquisition-related professional fees and exploration costs.

Outlook and guidance

• 2025 gold investment may be supported by rate cuts, geopolitical tensions and elevated US debt; price gains may be more modest amid softer Chinese demand and other uncertainties.

• Mujin’s DGZ Mine had probable reserves of 4,940 kg at 31 Dec 2024; its plant is expected to be upgraded to 900 tonnes/day, ~15% of current processing capacity.

• Phase 2 of the seventh bench is scheduled for completion in June 2025; SRK is expected to recommend an optimized production utilization plan by end-2025.