Red 5 has delivered record gold production of 165,544 ounces for the 2023 financial year (FY23), which contributed to the company’s gross sales revenue of $422.7 million, a 156 per cent increase from the previous year.
The gold miner recorded underlying EBITDA of $96.1 million and a net loss after income tax of $8.7 million, which was said to have reflected the ramp-up of the mining done at the King of the Hill (KOTH) mine, as well as processing activities during the first half of the financial year.
Red 5’s operations have been cash-flow positive since March 2023, which the company said will position itself to continue to de-leverage and strengthen its balance sheet for the future. Its net debt position has also improved by $56.6 million during the second half of the year, now standing at $81.9 million.
“This is a solid financial result for Red 5 reflecting both the operational ramp-up at our newly commissioned KOTH mining and processing hub during the first half of the financial year and the strong performance we have been able to deliver in the second half since commercial production was declared in December 2022,” Red 5 managing director Mark Williams said.
“We have also seen a greatly improved safety performance in line with our primary objective to deliver safe, efficient and profitable ounces. Our three mining operations continue to perform in line with the mine plan, and the processing plant is performing well above nameplate capacity, putting Red 5 on track to achieve our stated production and cost guidance for FY2024.
“We continue to deliver positive cash flow from our operations and we are targeting to accelerate our debt repayments in the year ahead. This will provide the company with a robust balance sheet for future growth as we continue to unlock the potential of our long-life KOTH mining operation.”