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Highlights
- In FY23, ALTN’s revenue stood at USD 64 million, marking a growth of 3.2% compared to FY22
- ALTN had a higher net margin of 22.7% and a higher fixed asset turnover ratio of 0.61x in H2FY23 compared to the industry median of 1% and 0.51x, respectively
- ALTN plans to increase ore extraction to 800,000 tonnes in FY24 by focusing on specific ore bodies
AltynGold PLC (LSE: ALTN), based in the United Kingdom, is an exploration and development company. The FTSE-listed company is involved in the production of gold and other precious metals from its mine sites in Kazakhstan. It has a market cap of GBP 30.02mn.
In FY23, ALTN’s revenue stood at USD 64 million, marking a growth of 3.2% compared to FY22. The surge in revenue was driven by increased average realized sales price in FY23 which partially offset the lower quantity of gold sold. Likewise, the company’s EBITDA rose marginally by 1.8% in FY23 as the higher revenue was offset by increased expenses.
Additionally, the company had a higher net margin of 22.7% and a higher fixed asset turnover ratio of 0.61x in H2FY23 compared to the industry median of 1% and 0.51x, respectively.
Recent business update
In the first quarter of FY24 (Q1FY24), ALTN’s mined ore increased by 11% YoY to 154.8 thousand tonnes (kt), while milled ore also saw an 11% YoY rise to 129.7kt. The gold grade rose to 2.17 grams per tonne (g/t), attributed to favorable mix effects and improved grade recovery. As a result, gold poured expanded by 25% YoY to 7,370 ounces in the quarter.
Revenue in Q1FY24 experienced a substantial surge, rising by 41% to USD 15.7 million. This increase was driven by a 28% growth in sales to 7,546 ounces and a 10% rise in the average selling price to USD 2,083 per ounce.
Outlook
In FY24, the company plans to increase ore extraction to 800,000 tonnes by focusing on specific ore bodies. The initiative includes the construction of two transport slopes and the deployment of three drilling rigs for exploration purposes. Budget approval has been secured to increase ore mining capacity, with implementation slated for the second half of FY24.
Top 10 Shareholders
The top 10 shareholders of ALTN together account for approximately 72.10% of the total shareholdings in the company. African Resources, Ltd. holds the maximum number of shares with around 65.56% shareholding. It is followed by Freedom Finance JSC with around 5.82% stake as illustrated in the chart below:
Stock performance
ALTN's stock price has surged approximately 30.65% in the past three months and has shown a 5.06% increase over the last six months. With a 52-week low of GBX 78.10 and a high of GBX 135.00, the stock is currently trading above the midpoint of this range.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 14 June 2024. The reference data in this report has been partly sourced from EODHD/Others.
