Red Hill Minerals (RHI) H2 2024 earnings summary

Executive summary

• FY 2024 delivered strong operational and financial performance, with enhanced margins, profitability, and a 92% share price increase year-over-year.

• Federation project development advanced, targeting first stope ore in Q1 FY25 and commercial production from July 2025.

• Exploration success and mineral inventory growth support long-term opportunities, with a 26Mt Mineral Resource and 4.7Mt Ore Reserve as of June 2024.

• Ended the year with a robust balance sheet, no debt, and high liquidity, positioning for future growth.

Financial highlights

• Underlying EBITDA rose 45% to AUD 81 million, with statutory EBITDA up 29% to $72.1M.

• Operating cash flow improved by 190% to over AUD 100 million, and group cash flow was $77.2M.

• Returned to a positive underlying net profit after tax of AUD 0.6 million, reversing a $(37.7)M loss in FY23.

• Ended FY 2024 with AUD 116.5 million in cash and over AUD 150 million in liquidity, with no drawn debt.

• AISC margin increased 198% to $1,136/oz, with realized gold price up 18%, silver and copper up 12%, and zinc price down 11%.

Outlook and guidance

• FY 2025 production guidance: 40,000–50,000 oz gold, 2,500–3,500 tons copper, 14,000–20,000 tons zinc, 13,000–19,000 tons lead.

• Group operating costs expected at $185–220M, with sustaining capital of $25–35M and Federation growth capital of $70–80M.

• Exploration spend planned at $10–15M, focusing on Federation, Nymagee, and Peak extensions.

• Federation project to deliver first stope ore in Q1 FY25 and ramp up to commercial production by July 2025.

• Dargues mine transitioned to care and maintenance, with final gold production expected by September 2024.