Besra Gold Inc. Announces Market Update: A Mixed Bag of Results and Future Prospects

Besra Gold Inc. (ASX: BEZ), a gold mining company focused on the exploration and development of the Bau Goldfield in East Malaysia, recently announced its market update for the three months ended September 30, 2024. The update provides a mixed bag of results, with some positive developments and areas of concern that investors should be aware of.

Revenue Surge and Increased Losses

The company reported a significant increase in revenue, reaching US$33,339 for the three months ended September 30, 2024, compared to US$1,918 in the same period last year. This substantial growth in revenue is a positive sign for the company's financial performance. However, the company also reported a comprehensive loss of US$2,758,838 for the same period, compared to a loss of US$930,554 for the same period in 2023. This increase in loss is primarily due to increased finance costs and corporate transaction costs.

Finance Costs and Corporate Transaction Costs

Finance costs increased significantly to US$1,876,547 in the three months ended September 30, 2024, compared to US$91,728 in the same period last year. This increase may be due to higher borrowing costs or increased debt levels. Additionally, the company incurred corporate transaction costs of US$300,000 during the three months ended September 30, 2024. These costs may be related to acquisitions, divestments, or other strategic initiatives.

Cash and Contract Liabilities

Cash and cash equivalents decreased to US$16,519,742 at the end of September 2024 from US$18,170,800 at the end of June 2024. This decrease may be due to increased spending on operations, capital expenditures, or other cash outflows. As of September 30, 2024, Besra Gold Inc. had a contract liability of US$32,144,017, resulting from a gold purchase agreement. This liability may impact the company's financial position and cash flow.

Exploration and Evaluation Costs

The company spent US$665,895 on exploration and evaluation costs during the three months ended September 30, 2024. These costs are necessary for the company's exploration and development activities. Additionally, Besra Gold Inc. received deposits totaling US$25,646,326 under the Gold Purchase Agreement.

Future Outlook

Upon renewal of the company's mining licenses, Besra plans to undertake a feasibility study on the Jugan Project and commence construction of the Jugan Pilot Plant. On the exploration front, it will focus on upgrading the quality of the JORC Resource inventory.

Investment Implications

While the company's revenue growth is encouraging, the significant increase in losses and finance costs, as well as the decrease in cash and cash equivalents, raise concerns about the company's financial health and sustainability. Investors should closely monitor the company's future financial performance and developments to make informed investment decisions.



In conclusion, Besra Gold Inc.'s recent market update presents a mixed bag of results, with positive developments such as revenue growth and future prospects, as well as areas of concern such as increased losses and finance costs. Investors should carefully consider these factors when evaluating the company's investment potential and keep a close eye on the company's future performance.