Tribeca Global Natural Resources (TGF) H2 2024 earnings summary

Executive summary

• Reported a net loss after tax of $9.59 million for FY2024, reversing a $7.63 million profit in FY2023, mainly due to underperformance in Carbon Credits, Battery Metals, and Soft Commodities, despite strong results from Uranium, Precious Metals, and Bulk Commodities.

• Net tangible assets (NTA) per share (post-tax) decreased to $2.08 from $2.26, a 6% decline after accounting for dividends.

• Paid a fully franked dividend of 5 cents per share in September 2023; no final dividend declared for FY2024.

• Board initiated a review of the company's LIC structure due to persistent trading at a discount to NTA.

Financial highlights

• Revenue from ordinary activities was a loss of $2.4 million, down from a $24.3 million gain in FY2023.

• Operating loss before tax was $14.4 million, compared to a $12.1 million profit in the prior year.

• Basic and diluted loss per share was $0.12, compared to earnings per share of $0.12 last year.

• Net assets at 30 June 2024 were $164.2 million, down from $177.4 million a year earlier.

• Cash at bank increased to $23.0 million from $1.6 million, reflecting improved liquidity.

Outlook and guidance

• Management expects sector headwinds to shift to tailwinds, with easing inflation, potential rate cuts, and a possible recovery in China supporting commodities demand.

• M&A activity and capital raising in the sector are increasing, indicating growing institutional appetite.

• The company remains optimistic about the long-term outlook for natural resources and expects fundamentals to support a closing of the NTA discount.