Solidcore Resources (POYYF) H2 2024 earnings summary

Executive summary

• 2024 saw a 1% increase in gold equivalent production to 490 Koz, a 62% rise in adjusted EBITDA to $712m, and underlying net earnings up 230% to $499m, with EPS more than doubling year-over-year.

• Revenue rose 49% to $1,328m, driven by higher gold prices and sales volumes.

• Safety performance was strong, with no fatal or lost-time injuries for the seventh consecutive year at Kazakhstan sites.

• The year marked a medium-term production peak, with a planned decline in grades at the key Kyzyl operation ahead.

Financial highlights

• Adjusted EBITDA rose 62% to $712m, with a 54% margin; underlying net earnings surged 230% to $499m and EPS reached $1.05.

• Revenue increased 49% to $1,328m, with Kyzyl contributing significant growth.

• Capital expenditures increased 44% to $208m as long-term investment programs ramped up.

• Free cash flow was $435m, aided by the disposal of the Russian business and high gold prices.

• Ended the year with a net cash position of $374m, reversing from $174m net debt in 2023.

Outlook and guidance

• 2025 gold production is expected to decline by about 5% to 470 Koz GE due to lower grades.

• Total cash costs are forecast to rise by around 10% to $1,000–1,100/GE oz, with AISC at $1,350–1,450/GE oz and CapEx set to increase to $300m.

• Management is conservative on gold price sustainability, expecting a potential decline.

• Dividends are not proposed for 2024 and will only be considered after major capital projects are completed.

• Q1 2025 revenue at Kyzyl may be negatively impacted by concentrate delivery delays due to sanctions.