Despite the setback, the group’s revenue, however, increases by 35% for 1Q23 driven by the sales of gold and silver
by SHAFIQQUL ALIFF / pic BLOOMBERG
BAHVEST Resources Bhd’s net profit decreased by 6% for the first quarter ended June 30, 2022 (1Q23) to RM3.01 million from RM3.2 million in 1Q22.
In a filing to Bursa Malaysia, the group said its revenue, however, jump by 35% to RM42.8 million in 1Q23 compared to RM31.8 million in 1Q22, mainly driven by the sales of approximately 163.61 kgs of gold and 6.14 kgs of silver during the quarter.
The gross profit margin for the gold mining operations for 1Q23 stood at 17.22% compared to the gross profit margin of 20.87% achieved for the financial year ended March 31, 2022 (FY22).
“Comparing 1Q23 to the FY22, the average gold selling price increased by 6.01% while average production costs rose by 10.87%.
“The escalating production costs have caused the reduction of our gross profit margin, in particular the major cost components such as repair and maintenance as well as fuel costs, per kg production costs increased by 70.28% and 30.87%, respectively,” the group said in its filing to the local bourse last Friday.
The group focuses on its gold production from the epithermal veins beginning to bear fruits and see improving contributions from the mining operations.
The group added that the continuously expanding and improved mining production facilities and processes also contribute positively to improving gold production as well as striving to continuously enhance its mining facilities, hence, increasing its production capacities.
Barring any unforeseen circumstances, its directors anticipate the group to be able to build on the current momentum and strengthen its position as a major gold miner in Malaysia, with the improving financial performances from the group’s mining operations.