(Boursier.com) — Auplata Mining Group – AMG publishes its 2022 annual accounts, approved by the Board of Directors at its meeting on December 4, 2023. The 2022 annual production shows an increase in the volume of ore processed by 14.2% at group level, thanks to good performance of Morocco and Peru and despite the poor performance of Guyana due to the closure of the Dieu Merci plant for most of the year 2022. Note in particular the growth in production of copper concentrate (+111 .8%) and those sustained by lead concentrate (+19.1%).
The financial results before unusual items show a positive net result of 3,543 ME in 2022, compared to a loss of 7,100 ME in 2021, an increase of (+10,643 ME) mainly due to an increase in turnover while all of the costs and charges have only increased slightly.
The 2022 accounts were subject to various unusual items, these are mainly composed of:
-The depreciation of an amount of -6.6 ME on the “Yaou” mining title located in French Guiana,
-The depreciation recorded for -5.4 ME on the “Bon Espoir” mining title also located in French Guiana,
-Exceptional allocations in the context of breach of contract and social disputes for -0.7 ME
-A provision for litigation was recorded as part of the control carried out by the Foreign Exchange Office on the company CMT relating to investment operations during the financial years 2012 to 2022. Based on the most recent estimates, the Group to provision in its accounts an amount of 4.3 ME.
The Group recorded in the 2022 accounts, 24 ME of impacts linked to the fair value of financial exchanges linked to the issues of convertible loans for 22.4 ME, and 1.6 ME of adjustment to the fair value of embedded derivative instruments to financial debts.
The Group recorded in the 2022 accounts, 26.5 ME of tax impacts linked to the change in the tax rate in Morocco going from 20% in 2022 to 35% in 2026. The impact corresponds to the adaptation of the tax rate applied to the fair value of mining assets determined in 2021 during the acquisition price allocation exercise.
Current operating profit amounts to 11.4 ME vs. 11.2 ME in 2021, this stagnation is explained by a temporary stoppage of production in 2022 of the Dieu Merci unit, which despite this took the decision to maintain employment and other maintenance necessary for the restart of its activity in 2023 .
Depreciation charges amount to 16.4 ME vs. 14 ME in 2021, this increase is in line with the investments made in previous years.
The R-EBITDA generated by the Group amounts to 27.8 ME vs. 25.2 ME in 2021.
The net result shows a loss of 65.2 ME coming mainly from unusual items, excluding unusual items the net result amounts to +3.5 ME.
Equity capital decreased by 46.1 ME following the affected losses of the 2022 financial year for -65.2 ME, the dividend paid by CMT returning to third party interests for -8.8 ME, and variation in the revaluation differences of currencies for -8.8 ME, partially offset by capital increases and premiums for 13.7 ME, of 23.7 ME variation in fair value linked to the issuance of bond loans.
“Non-current liabilities” mainly consist of provisions for (16.3 ME), financial debt over one year for 68.8 ME vs. 42.3 ME, this increase in the non-current financial debt portion is explained by the Group’s desire to reorganize its debt and improve structural financing by promoting better balance sheet balance.
Non-current liabilities also include deferred tax liabilities which have increased significantly this year following the adaptation of the tax rate in Morocco from 20% in 2022 to 35% in 2026.
Outlook 2023
AMG (Guyana): The technical improvements made over several months were carried out during the second half of 2022, these efforts were rewarded, the “Dieu Merci” factory has significantly improved its production in 2023 and plans to reach 400 kg (+253% vs. 2022).
AMG Peru: Peru has been facing structural and cyclical challenges since 2023. On the one hand, the country was paralyzed by general strikes during the first quarter of the year. And on the other hand a complete change of the Managerial team was carried out during the 2nd half of the year.
The Group provides the necessary support for AMG Peru to return to expected performance and profitable growth. The year 2023 will be a year of renewal in dynamic and collaborative management between all departments locally but also at Group level.
CMT: The ambitions of the CMT company have been reviewed and the Group expects one of the best years ever in terms of production and operating profit. However, the expected net result will be impacted by a provision for litigation. Indeed, the company was audited by the Foreign Exchange Office for the financial years 2012 to 2022, infractions were classified by the Foreign Exchange Office, despite the convincing supporting documents provided by the company. CMT remains confident of a positive resolution of this dispute given the evidentiary justifications provided during the inspection.
The Group is continuing its development strategy by participating as a future shareholder in mining properties in Africa (Democratic Republic of Congo) with leading gold deposits.
During the first quarter of 2024, the AMG Group will become a shareholder of the company Stratégos Mining and Exploration, a company active in the management of operational assets Namoya Mining SAU, Kamituga Mining SAU, Lugushwa Mining SAU and Banro Congo Mining SAU.