Red 5 and Silver Lake Resources announced a proposed merger, subsequent to end of the reporting period, which would create a ~445kozpa diversified, leading mid-tier gold company with a strong balance sheet to underpin growth.
Red 5 Limited report its financial results for the half-year ended 31 December 2023, underpinned by a strong operational performance at its King of the Hills (KOTH) and Darlot Gold Mines in Western Australia. The reporting period saw the Company continue to make systematic improvements across its operations, with key process plant initiatives focused on improving the longer-term crushing reliability to support a 5.5Mtpa throughput rate. Ore feed was sourced from the KOTH open pit mine, the KOTH underground mine and the Darlot underground mine.
A total of 108,027 ounces of gold were recovered for the six months to 31 December 2023, from 2.47 million tonnes of ore processed at an average head grade of 1.47g/t Au. Gold sales of 107,470 ounces for the half-year underpinned a 77% increase in sales revenue to $283.5 million. As a result of this improved operational performance, the Company posted a net profit after income tax of $29.0 million. No tax expense was required to be recognised for the period due to the availability of un-recognised carry forward tax losses.
Key takeaways are,
1: Gold production of 108,027oz and gold sales of 107,470oz for six months to 31 December 2023 (1HFY23: 62,944oz and 63,105oz).
2: Sales revenue of $283.5 million, up 77% from $159.8 million in 1HFY23.
3: Net profit after income tax of $29.0 million (1HFY23: loss of $28.5 million).
Commenting on the December 2023 half-year results, Red 5’s Managing Director, Mark Williams, said, “The first half of FY2024 saw a solid operational performance which resulted in a strong financial performance. The increased gold production and sales flowed through to a 77% increase in sales revenue, strong cash in-flows and a bottom-line net profit that represents an almost $50 million increase on the previous corresponding half.”
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