FY17 – A Transformative Year
Undiluted Earnings Per Share of 5.5c
Net Assets Increased by 62% to $15.1m
Cash on balance date of >$5.3 million and debt reduced to zero
Ground breaking 3c per share unfranked Special Dividend paid post FY
A ‘Blue Chip’ Explorer
The Board of Directors of junior Australian gold miner, Southern Gold Ltd (‘Southern Gold’), is very pleased to announce the results for the Financial Year ended 30 June 2017, released to the ASX today.
This has been a transformative year for the Company with a substantial cash injection, a significant gold acquisition in South Korea, a subsequent value-add deal with LSE listed Bluebird Merchant Ventures Ltd, and the repayment of all outstanding debt.
Some of the highlights from the financial results announced today include:
> An undiluted Earnings Per Share (EPS) of 5.5c and fully diluted EPS of 5.2c reflecting Southern Gold’s underlying profit position;
> Current assets, including cash, gold inventory and other receivables increased significantly to $6.2 million;
> Net assets increased by $5.8 million, a 62% increase on FY16 level, to a total of $15.1 million; and
> Repayment of all outstanding debt resulting in a net cash balance on 30 June 2017 in excess of $5.3 million.
Ultimately these excellent financial results and the healthy cash balance led to the announcement recently of a 3c per share unfranked dividend (or equivalent in Southern Gold shares priced at 25c per share under the Dividend Reinvestment Plan) that was paid post financial year end.
Managing Director, Mr Simon Mitchell: “I think Southern Gold can be rightfully proud of what it has achieved in the past financial year. How many junior gold explorers out there return a positive EPS, expand their net assets by more than 60% and bolster their balance sheet while keeping the share count as tight as drum?
“The Board of Southern Gold is committed to the model of monetising assets, using the cash to build the exploration asset base while avoiding dilutive equity raisings wherever possible and keeping an eye on our Total Shareholder Return.
“We seek to develop a gold company with a difference. I am hoping, in time, the market will recognise and use the term “blue-chip explorer” for companies such as Southern Gold, companies that look to advance exploration activity, manage the balance sheet like a normal profit-making business while continuing to focus on looking for that elusive ‘world class’ gold deposit.”
To read the full announcement please down load the pdf below: