Seligdar Sees 3% Revenue Increase in H1 2024 Amid Strong Gold Sales

Russian mining company Seligdar reported a 3% increase in revenue from metal sales, reaching 20.8 billion rubles ($229 million) in the first half of 2024 compared to the same period last year. The company attributed this growth to a significant rise in gold sales.

Revenue from gold sales surged by 51% to 17.3 billion rubles ($190 million), up from 11.5 billion rubles ($126 million) the previous year. The sale of tin, tungsten, and copper concentrates also saw a notable increase, totaling 3.5 billion rubles ($39 million), up 38% from 2.5 billion rubles ($28 million) a year earlier. Overall, total revenue from gold and metal concentrate sales increased by 47% to 20.6 billion rubles ($227 million).

Gold production by Seligdar’s holding companies rose by 7% to 2,894 kg. However, tin production in concentrate fell by 14% to 1,223 tons, while copper production in concentrate climbed by 67% to 949 tons.

In the gold mining division, the volume of rock mass moved increased by 3% to 11.8 million cubic meters. Ore production was 4.6 million tons, down from 5.7 million tons in the previous year. Sand production dropped by 24% to 362,000 cubic meters. The production of ligature gold rose by 7% to 2,894 kg, and sales of produced gold increased by 18% to 2,738 kg.

In the tin mining division, ore production grew by 9% to 491,000 tons, although ore processing decreased by 2% to 423,000 tons. Tin production in concentrate was 1,223 tons, marking a 14% decrease. Tungsten production fell to 26 tons from 57 tons a year earlier. However, the production of associated silver in copper concentrates increased by 46%, reaching 618 kg.

Seligdar, a significant player in Russia’s gold and tin markets, is 50.62% owned by Maximus LLC. The main beneficiaries of the company are Konstantin Beyrit and Sergey Tatarinov.

Despite a consolidated loss of 11.5 billion rubles ($126 million) under IFRS for 2023, against a profit of 4.14 billion rubles ($46 million) the previous year, revenue increased by 61% to 55.97 billion rubles ($616 million). The parent company of Seligdar recorded a net profit of 14 billion rubles ($154 million). The company's Board of Directors recommended a dividend payment of 2 billion rubles ($22 million) at the shareholders' meeting held on June 4, 2024.