The operating environment remained challenging, with the Group experiencing unprecedented cost pressures as operating costs maintained an upward trend in US$ terms. Regardless, Dallaglio remained one of the top three gold producers in the country. Gold sales for the period stood at 2,120kg versus 1,961kg recorded in FY22. The 8% volume growth was driven by increased plant throughput at Eureka Mine, complemented by the increased production at Pickstone Peerless following the commissioning of Pickstone Underground Mine in September 2023. The business also benefitted from a 9% uptick in the average gold spot price for the year to US$1,945/oz from US$1,790/oz in 2022. Meanwhile, the Nile crocodile operations recorded a 49% increase in skin harvest volumes to 50,675 from 43,117 in the prior year, with a significant improvement in the quality of skins. Skin sales for the year at 76,108 were 129% above the 33,189 skins sold for the comparable period, owing to the sale of premium skins whose harvest was deferred from 2022, and previously reported stock skins from prior years. The Group recorded revenue of US$155.58mn for the year, a 22% increase over the US$127.89mn recorded in the prior year. The Dallaglio business unit contributed 81% to total revenue compared to 82% registered in the previous comparable period, while the Nile Crocodile business unit contributed 19% against 18% recorded in the prior year. The revenue performance for the Group was on the back of improved production volumes and average selling prices realised by both operating units. EBITDA for the Group however reduced from US$32.28mn in FY22 to US$26.69mn in FY23 weighed down by the mandatory surrender requirements, increased operating costs and old skins sold at a discount. In addition, the Group saw delayed sales occurring post-year end, but the costs associated with these sales were incurred in FY23, further depressing margins. Resultantly, EBITDA margin eased from 25.24% in FY22 to 17.16% in FY23. A reduction of 15% was recognized on the net interest expense for the Group at US$8.44mn as efforts were focused on managing debt levels throughout the year. PBT for the Group came in at US$14.28mn for the year compared to US$13.89mn recorded in FY22. The Group closed the period under review with a PAT of US$8.17mn. Cash generated from operating activities amounted to US$40.67mn compared to US$24.60mn recorded in the prior year. The Board declared a final dividend of USc0.26 per share, in addition to the interim dividend of USc0.19 declared for 1H23.
