West Perth-based miner Metals X has reported a 332 per cent full-year profit increase to $37.4 million, alongside a 247 per cent surge in revenue to $238.6 million.
However, despite a large increase in profit and zero net debt, the company said it would not pay dividends to its shareholders.
“Whilst in a position to commence returning funds to shareholders, the board considers that given the large number of development projects the company has and the value accretive acquisition opportunities that are currently being assessed, the company’s cash may be better served in generating growth and returns,” the company said in a statement.
Metals X’s profit was boosted an increase in revenue from gold sales of $161 million, which was mined from the Higginsville and South Kalgoorlie operations that it acquired from Alacer Gold Corp in October last year.
It also reported an increase in tin sales revenue of $75.2 million from its Renison project.
The company reported a $64.4 million increase in cash outflow, which was attributed to the purchase of, alongside Higginsville and South Kalgoorlie, the Meekatharra Gold Operation from Reed Resources in June.
“The company’s results are even more significant when you consider that these financial results only reflects eight months of ownership of the new gold production assets,” Metals X chief executive officer Peter Cook said.
“We are in a great position with strong and commodity diverse cash flows, a fat bank balance, no debt and an exciting portfolio of growth assets.”
Metals X had 254 employees at the end of the last financial year, more than double the number it had in the last corresponding period.
Metals X shares last traded at 23 cents per share at 2:20pm.
