AltynGold PLC released its 1H 2025 results, continuing to demonstrate growth across all key financial indicators, supported by higher production volumes and stronger gold prices. Revenue, net income, and free cash flow all reached all-time highs, while profitability continued to improve. We have updated gold price assumptions, WACC, net debt, and ore production forecasts in our valuation model. As a result, the target price for AltynGold PLC’s shares stands at £12.3, implying an upside potential of 30%. Our recommendation remains “Buy.”
(+) Record revenue and production levels. Revenue for 1H 2025 reached $70 million, up 77% YoY, driven mainly by a 35% YoY increase in the average realized gold price. In addition, the company mined 35% more ore and produced 44% more gold compared to 1H 2024. The acceleration was largely due to a 62% YoY increase in ore processing volumes, even as the average gold grade declined from 2.3 g/t to 2.04 g/t. The second quarter alone marked a record for underground operations, with ore output reaching 242 thousand tonnes and gold production nearly 17 thousand ounces (+68% YoY and +51% QoQ).
(+) Profitability continues to improve. Gross margin expanded from 45% to 57%, while EBITDA margin increased from 50% to 63%. Cost of sales rose only 36% YoY, and combined with higher gold prices, this resulted in a sharp rise in gross profit. Despite a 35% YoY increase in administrative expenses, EBITDA surged 124% YoY. Net income reached $27 million, or $0.98 per share (+133% YoY). Total cash cost per ounce decreased slightly from $1,154 to $1,152. The company delivered the strongest free cash flow in its history—rising from –$0.7 million to $17.9 million, more than 2.4x the full-year 2024 figure.
Our opinion and valuation model changes. AltynGold PLC delivered a strong set of 1H results, setting new records amid rising gold prices. We expect further improvements driven by sustained production growth and continued upside in gold prices. In our updated valuation model, we raised the long-term gold price assumption, slightly lowered WACC and net debt, and increasedforecasted mining and production volumes. As a result, our updated valuation implies a target price of £12.3 per share, representing a 30% upside from the current market level. Recommendation — “Buy.”