Shares of “Yuzhuralzoloto” experienced a nearly 4% surge after the financial reports were released, signaling positive news for investors. The company witnessed a remarkable 19% increase in revenue over the last year, reaching ₽67.8 billion.
This upward trend is primarily credited to the previous year’s rise in gold prices, significantly boosting the company’s financial performance. Analysts point out that if “Yuzhuralzoloto” commits to distributing 50% of its net profit as dividends, shareholders could see a yield of 0.2% per share. This prospect could be an additional allure for investors contemplating this company as a potential investment avenue.
Important Information
“Yuzhuralzoloto” stands tall as one of Russia’s most expansive and rapidly evolving gold mining enterprises, securing the fourth position in gold production volume and the second in resource base size across the country. Our investment appeal is deeply rooted in our organic growth strategy. We have successfully surpassed our peak of capital expenditures and activated our primary production facilities within new projects.
With capital investments reduced by over 70% from 2022 to 2026, “Yuzhuralzoloto ” is well-positioned to boost its gold production by 66%. We anticipate generating an EBITDA margin between 45–60% in the forecast period. We stand on par with the most efficient domestic and international competitors regarding profitability, painting a promising picture for our future.
Strong Dividend Commitment
“Yuzhuralzoloto,” a prominent player in the mining sector, has reaffirmed its commitment to its shareholders by promising to distribute dividends amounting to at least 50% of its adjusted net profit. This strategic financial policy is a testament to our dedication to maintaining a balanced and sustainable net debt to EBITDA ratio, which will not exceed 3.0.
Economic analysts are optimistic about the potential returns for investors, predicting that the average dividend yield could significantly increase to 6–9% by 2026. This forecast is based on the company’s robust financial health and strategic growth and expansion plans.
Since our successful Initial Public Offering (IPO) in November 2023, “Yuzhuralzoloto” ‘s shares have experienced a remarkable surge, appreciating by approximately 90%. This extraordinary performance underscores the market’s confidence in our management team, operational efficiency, and the long-term growth prospects of “Yuzhuralzoloto.”
Key Projects
President of Yuzhuralzoloto Konstantin Strukov noted the significant impact of the Kurasan project in the Chelyabinsk region and the Kommunar project in Khakassia on our production performance. He further announced that in the second quarter of 2024, we are set to commence gold mining operations at the “Vysokoye” mining and processing plant in the Krasnoyarsk territory.
In a recent press release, the company’s board of directors announced a comprehensive review of dividend payments in May of this year.
Following meticulous discussion and proposal analysis, this review will culminate in a final decision during the annual public meeting of shareholders, scheduled to occur before the end of June. This meeting represents a pivotal opportunity for shareholders to engage in critical decision-making processes that will shape our company’s future trajectory.
Conclusion
Analysts have noted the company’s exceptional performance in our most recent financial report. Not only did our revenue meet the high projections set by industry specialists, a significant achievement in today’s competitive market, but our EBITDA (Earnings Before Interest, Taxes, Devaluation, and Amortization) surpassed the anticipated figures.
This outstanding result underscores our operational efficiency and the effectiveness of our strategic financial planning. The ability to exceed EBITDA expectations demonstrates our firm grasp of cost management and operational leverage, reflecting positively on our overall economic health and potential for future growth.
