Persistence Resources Group (2489) Q3 2024 earnings summary

Executive summary

• 9M 2024 unaudited results: revenue rose 28.6% YoY to RMB364.9m and net profit increased 58.0% to RMB118.0m, supported by higher gold prices and sales volume.

• Gold production increased 2.4% YoY to 682.3 kg; production benefited from the absence of the May-to-mid-July 2023 mining pause for safety inspections.

Financial highlights

• Revenue was RMB364.905m vs RMB283.667m, up 28.6% YoY; average selling price rose 22.5% and sales volume increased 5%.

• Gross profit rose 45.2% to RMB191.610m; cost of sales increased 14.3% to RMB173.295m.

• Net profit was RMB117.995m vs RMB74.685m; profit attributable to parent owners increased 61.1% to RMB85.572m.

• Other income and gains rose 105.3% to RMB15.275m, mainly from interest income; administrative expenses increased 20.6% to RMB30.744m.

• Other expenses were RMB1.740m, mainly due to higher foreign exchange losses; finance costs fell 17.1% to RMB2.020m.

Outlook and guidance

• Drilling to upgrade gold reserves and extend mine life is underway under a 27-hole contract; 10 holes were completed by 30 September 2024.

• The 10-hole first phase cost approximately RMB1.038m, recorded as exploration expenditure in administrative expenses.