Red 5 H1FY24 Report

Red 5 Limited reported a strong financial performance for the half-year ending 31 December 2023, with a net profit of $29.0 million, reversing a loss of $28.5 million in the same period the previous year.
Gold production increased significantly to 108,027 ounces, up from 62,944 ounces in the first half of the previous year, with gold sales closely matching production at 107,470 ounces.
Sales revenue for the period was $283.5 million, marking a 77% increase from $159.8 million in the first half of the previous year.
The company achieved a net cash inflow before financing of $49.3 million and reported $53.3 million in cash and liquid assets at the end of the period.
Red 5 and Silver Lake Resources announced a proposed merger, aiming to create a diversified mid-tier gold company with an annual production of approximately 445,000 ounces of gold.
Operational improvements and investments in growth initiatives, including $45.0 million spent on waste stripping and underground mine development, contributed to the strong performance.
Total liabilities decreased by $28.1 million to $312.3 million, mainly due to repayment of borrowings and a reduction in lease liabilities.
The company's operational focus included systematic improvements across its operations, particularly at the King of the Hills (KOTH) and Darlot Gold Mines, supporting a throughput rate of 5.5Mtpa.
Depreciation and amortisation charges increased by 95% to $57.7 million, reflecting the increase in mining and production volumes.
Net financing outflows for the period amounted to $41.1 million, primarily related to repayments of borrowings for KOTH plant construction, interest payments, and lease liability payments.

This announcement is a summary of the company approved ASX announcement on 22/2/2024 and is based on facts.