Release Date: August 25, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Record gold production of 293,000 ounces, a 22% increase from the previous year.
- Top line revenue increased by 40% to AUD882.6 million.
- EBITDA rose by 67% to AUD462.2 million, with a margin of 52%.
- Net profit after tax surged by 166% to AUD200.3 million.
- Declared a fully franked dividend of AUD0.05 per share, a 150% increase from the prior year.
Negative Points
- Mining activities at the Edna May hub, including Tampia, were completed, leading to lower ore tons mined.
- Interruptions to the CV01 conveyor repairs at Mt Magnet affected operations.
- Higher all-in sustaining costs at Edna May due to noncash drawdowns of existing stockpiles.
- Significant capital expenditure on plant equipment, mine development, and exploration totaling AUD123.1 million.
- Guidance for FY25 indicates comparable gold production to FY24, with no significant increase expected.
Q & A Highlights
Q: Thanks for giving that income tax guidance for FY25. But how should we think about cash tax paid for FY24?
A: Yes. Thanks, Paul. As I noted in the numbers there, we had that advantage in 2024, in 2025 -- or 2025 and beyond, we served approximately $25 million available. In 2025, we're probably expecting around $15 million to have similar tax cash benefit is our expectations for 2025. (Darren Millman, CFO)
Q: Just on capital returns. I think your payout was about 27% of free cash flow and your policy allows for up to 30%. I guess, any thoughts on changing this policy? Or are you sort of happy capping at 30% and then, I guess, using the remainder of the free cash flow on sort of organic and inorganic opportunities?
A: Yes. We obviously had a lengthy discussion at Board level. To summarize, we're happy with our policy. We didn't quite go all the way to 30%. But we have got a number of internal projects coming up. And we felt that we struck a balance between returns to shareholders and providing cash for those projects. (Mark Zeptner, CEO)
Q: Can you provide more details on the expected production and cost guidance for FY25?
A: On gold production, we expect a higher margin at the Mt Magnet operation to make up a higher proportion of gold production with Edna May to be placed in care and maintenance once the existing stockpiles across that hub are processed. Overall, gold production for FY25 is expected to be comparable to FY24. Our all-in sustaining cost is also expected to be largely in line with FY24, but with a higher gold price, which we have assumed at AUD3,500 per ounce. (Mark Zeptner, CEO)
Q: What are the key financial highlights for FY24?
A: We achieved a top line revenue of AUD882.6 million, which was 40% up from the prior year with gold sales of 293,966 ounces at a realized price of AUD2,995 per ounce. EBITDA of AUD462.2 million was up 67% on the prior year, and net profit after tax of AUD200.3 million was up 166% on prior year. Statutory earnings per share of AUD19.5 were up 181% on the prior year. (Darren Millman, CFO)
Q: Can you elaborate on the dividend policy and the recent dividend announcement?
A: We are declaring our sixth consecutive dividend, a 150% increase in the prior year to AUD0.05 per share fully franked. This represents a payout ratio of 27% of free cash flow. The dividend represents a yield of 2.6% based on June 30 share price and a total shareholder return over the last five years of 21% per annum. (Mark Zeptner, CEO)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
