- Kingsrose Mining (KRM) has more than doubled its revenue in its latest full year financial results
- Jumping from $32 million in 2019 to $70.7 million this year, the company attributed its strong performance to solid production at its Way Linggo precious metals project in Indonesia
- The project produced 25,508 ounces of gold during the year, the second highest in its operating history and a considerable improvement on around 18,800 ounces in 2019
- The strong sales led the company to a profit of $19.4 million, a marked turnaround compared to a net loss $14 million in the year prior
- With cash reserves up, Kingsrose plans to leverage its strong financial potion to grow, and the company is now considering acquisitions, mergers and other transactions to bolster shareholder value
- Kingsrose Mining closed in the grey for 3.6 cents per share
Kingsrose Mining (KRM) has more than doubled its revenue in its latest full year financial results.
Jumping from $32 million in 2019 to $70.7 million this year, the company attributed its strong performance to solid production at its Way Linggo precious metals project in Indonesia.
The project produced 25,508 ounces of gold during the year, the second highest in its operating history and a marked improvement on 18,800 ounces in 2019.
The strong production was further bolstered by the strong rise in gold and silver prices at the onset of COVID-19, earlier this year.
The improved revenue led the company to a full year net profit of $19.4 million, a considerable turnaround compared to a net loss $14 million in the year prior.
The increase in profits is even more impressive considering the $8.2 million in impairments and write-downs this year, alongside a $4 million-dollar investment in drilling a resource extension.
The investment appears to have paid off, however, with recent drilling work expanding the company’s Talang Santo resource estimate to 140,000 ounces of gold and 352,000 ounces of silver.
With cash reserves up, Kingsrose plans to leverage its strong financial position to grow, and it is now considering acquisitions, mergers and other transactions in an effort to bolster its value.
Karen O’Neill, Managing Director of Kingsrose Mining said the company has established a strong balance sheet and was now able to capitalise on its growth opportunities.
“The board is committed to pursuing a two-pronged expansion strategy which involves unlocking further value at the Way Linggo Project while assessing opportunities elsewhere. At all times, this strategy will be driven by the need to generate strong financial returns,” she added.
Kingsrose Mining closed in the grey for 3.6 cents per share.