AUMAS RESOURCES BERHAD Q2 2025 Latest Quarterly Report Analysis

Hello, fellow investors and market enthusiasts! Today, we’re diving deep into the latest financial performance of AUMAS Resources Berhad, formerly known as Bahvest Resources Berhad. This Malaysian-incorporated gold and silver mining company has just released its unaudited interim financial statements for the Second Quarter ended 31 March 2025 (2Q FY2025), and there’s plenty to unpack.

Despite navigating some short-term operational headwinds, AuMAS has demonstrated impressive year-on-year growth in revenue and profitability, reinforcing its position in the precious metals sector. What’s more, the company continues to reward shareholders with a healthy dividend payout. Let’s dig into the details and see what this report tells us about AuMAS’s trajectory.

Unpacking the Numbers: A Deep Dive into Financial Performance

AuMAS Resources Berhad’s 2Q FY2025 performance paints a mixed but largely positive picture, showcasing robust year-on-year growth despite facing some quarter-on-quarter operational challenges.

Year-on-Year Performance (2Q FY2025 vs. 2Q FY2024)

The Group’s performance against the same period last year highlights a strong upward trend, primarily driven by favourable gold prices and sustained production.

As you can see, revenue soared by an impressive 27.56%, while Profit Before Tax (PBT) increased by 31.69%, and Profit After Tax (PAT) jumped by a remarkable 45.32%. This significant growth was largely attributed to a 25.15% increase in the average gold price per kilogram (approximately RM413,000/kg in 2Q FY2025 vs. RM330,000/kg in 2Q FY2024) and a marginal 2.99% increase in gold sales volume (138 kgs vs. 134 kgs).

However, you might notice that Basic Earnings Per Share (EPS) saw a decrease from 0.89 sen to 0.76 sen, despite the higher PAT. This is an important point for investors. The decline in EPS is due to the increase in the weighted average number of ordinary shares in issue. The company’s share base expanded significantly, from 1,239,780,000 shares in 2Q FY2024 to 1,821,497,000 shares in 2Q FY2025, primarily from the exercise of warrants. While the total profit for shareholders grew, it was distributed among a larger pool of shares, leading to a lower per-share earning.

Quarter-on-Quarter Performance (2Q FY2025 vs. 1Q FY2025)

On a sequential basis, AuMAS faced some operational challenges that led to a moderate decline in performance.

Revenue decreased by 9.63%, primarily due to a 17.1% reduction in gold sales volume (from 166 kgs to 138 kgs) and a substantial 47.25% drop in silver sales (from 250 kgs to 132 kgs). The report attributes these lower production volumes to challenging weather conditions, operational overhauls, and variations in ore quality during the quarter. However, a higher average gold price (approximately RM413,000/kg in 2Q FY2025 vs. RM377,000/kg in 1Q FY2025, a 9.59% increase) helped to cushion the impact of reduced output, making the revenue decline less pronounced than the drop in sales volume.

Year-to-Date Performance (9 Months FY2025 vs. 9 Months FY2024)

For the cumulative nine-month period, AuMAS’s growth trajectory remains robust. Revenue for the period surged by 86.26% to RM120.522 million, while Profit After Tax (PAT) increased by 37.56% to RM28.278 million. Earnings Per Share (EPS) for the cumulative period also showed strong growth, rising by 74.16% to 1.55 sen, reflecting the overall positive momentum from the previous quarters.

Financial Health and Liquidity

AuMAS’s balance sheet as at 31 March 2025 shows a healthy financial position. Total assets stood at RM429.449 million, with total equity at RM407.087 million. The net asset per share attributable to ordinary equity holders was 22.35 sen, a slight increase from 22.30 sen as at 30 September 2024.

From a cash flow perspective, the Group generated a strong RM11.643 million from operating activities for the nine months ended 31 March 2025, a significant improvement from RM6.561 million in the same period last year. The company’s cash and cash equivalents at the end of the quarter stood at a robust RM279.061 million, including fixed deposits with licensed banks. This strong liquidity provides AuMAS with substantial financial flexibility for future growth and strategic initiatives.

Outlook and Strategic Initiatives

AuMAS Resources Berhad is strategically positioned for sustained growth, focusing on operational excellence and consistent gold and silver production. The Group aims to leverage favourable market conditions and drive long-term value for its stakeholders.

Financial Outlook

Building on its strong performance, AuMAS anticipates further revenue growth driven by:

• Optimised Production: Continued high production levels with an emphasis on enhancing gold recovery and sulphide gold concentrate output.
• Favourable Gold Prices: Benefiting from the sustained upward trend in gold prices, fueled by global economic conditions and supply constraints.
• Strong Cash Flow: A robust operating cash flow and a significant cash and cash equivalent balance provide ample financial flexibility for strategic expansion and new investment opportunities.

Operational Strategy & Growth Initiatives

To maintain its competitive edge, AuMAS is focused on:

• Capacity Expansion: Increasing capacity at its Bukit Mantri, Balung, Tawau facility.
• New Exploration: Advancing exploration efforts near existing mining operations in Sabah to expand resource reserves.
• Plant Enhancements: Further improvements to its new 2,000 tons per day (tpd) processing plant for enhanced efficiency and cost reductions.
• Advanced Technologies: Leveraging innovation to improve recovery rates and reduce production costs.

Sustainability and ESG Commitments

AuMAS is also committed to sustainable practices, evaluating renewable energy solutions like a solar/battery microgrid system, strengthening Corporate Social Responsibility (CSR) programs, and enhancing health and safety standards.

Risks and Challenges

While the outlook is positive, it’s