Interim Financial Analysis of Wilton Resources Corporation Limited – 1H FY2024

Key Financial Facts:

1. Revenue and Profitability:

   • Revenue: The Group recorded a revenue of Rp 136 million in HY2024, a significant decrease of 93% from Rp 1,941 million in HY2023. The drop was mainly due to a decrease in gold production, selling only 0.1 kilograms of gold compared to 2.1 kilograms in HY2023.
   • Gross Profit: Gross profit fell drastically to Rp 3 million from Rp 266 million in HY2023, indicating a decline in production efficiency.
   • Net Loss: The Group reported a net loss of Rp 75,708 million, down from Rp 87,369 million in HY2023. This marks a 13.3% reduction in the overall loss.

2. Expenses and Costs:

   • Other Income: Decreased significantly by 75% to Rp 4,226 million, primarily due to a decrease in unrealized foreign exchange gains.
   • Operating Expenses: Increased to Rp 11,290 million, reflecting higher site-related costs, professional fees, and heavy equipment rentals.
   • Finance Costs: Reduced by 78.6% to Rp 16,593 million, primarily due to a decrease in the accretion of interest expenses related to the project financing liability.

3. Financial Position:

   • Total Assets: Increased to Rp 699,567 million as of 30 June 2024.
   • Net Current Liabilities: Rp 157,302 million as of 30 June 2024, indicating a liquidity challenge.
   • Total Liabilities: Increased to Rp 567,026 million, suggesting a higher leverage.

4. Dividends: No dividend was declared for the period, as the Group remains loss-making.

Special Actions for Profitability:

• The company has resumed mining and production activities as cyanide pricing and supply issues have started to normalize since August 2024.
• The Group entered two sale and repurchase agreements in June 2024, selling shares in its Indonesian subsidiary PT Wilton Makmur Indonesia Tbk to generate cash flow.
• The Group secured a working capital loan of IDR 36 billion with a 24-month term.
• The Group entered an offtake agreement to receive prepayments of US$30 million, which can be drawn within one year.

Investor Recommendations:

1. For Existing Shareholders:
   • Recommendation: Hold
   • Reason: Despite the current losses, the company is taking steps to address its liquidity issues by resuming production activities, securing loans, and entering into agreements to ensure cash flow. The revival in mining operations and the strategic use of capital could improve the company’s profitability in the upcoming quarters.
2. For Potential Investors:
   • Recommendation: Caution
   • Reason: The company currently faces financial challenges, including liquidity issues and ongoing losses. Investors should closely monitor the success of the company’s operational strategies and financial management before making any investment decisions.

Special Note for Investors:

• Cyanide Supply: The unavailability of cyanide earlier this year significantly impacted operations. The company has only recently resumed mining activities, making future production levels a critical factor to watch.
• Loan Repayment: The company has loans maturing in 2025, including project financing liability. Investors should be aware of the company’s ability to manage these debts amid the current financial situation.

Disclaimer:

This summary is based solely on the information provided in the report. It does not constitute investment advice. Investors are advised to conduct their own research or consult a financial advisor before making investment decisions.