XRF have announced the half yearly results as follows:

XRF announces record half‐year result

XRF Scientific Ltd (“XRF” or “The Company”) today announced its results for the December 2023 half‐year:

Key Highlights

 Sales Revenue up 6% to $28.6m from $27.1m

 Net Profit After Tax up 20% to $4.5m from $3.7m

 Record quarterly Profit Before Tax of $3.4m in December Q2

 The business sales revenue and NPAT are growing quite well in Australia with the European division struggling somewhat.

The Consumables division had a strong half, generating a profit before tax of $2.9m from revenue of $9.6m. The mining sector remained the key driver of activity, in which our products are consumed for sample testing processes across production and exploration.

The Precious Metals division delivered revenue of $10.4m and a profit before tax of $1.8m. We experienced high levels of reoccurring orders from mining customers, as increased sample testing requires regular recycling of spent platinum labware products. Economic conditions were challenging for our Germany office, however their results are expected to improve in the second half.

The Capital Equipment division delivered a profit before tax of $1.7m from revenue of $9.7m. $1.1m of Orbis Mining revenue was delayed into the second half, which is expected to be a strong period for the division. Included in the result, Orbis Mining generated revenue of $1.8m (1H23: $3.3m) and total profit before tax of $0.4m (1H23: $0.7m) (50% of PBT allocated to non‐controlling interest). International sales are gaining momentum, particularly in the Americas where significant sales have been achieved.

So in regards to a valuation,

Assuming a NPAT of $9.90 Million in 24/25 ($4.5m + $4.5m x 20%)

So $9.90 Million / 138 Million shares = $0.07174CPS earnings

Valuation = $0.07174 x 15PE = $1.08 per share as a good growth stock

Or as an exceptional growth stock which I believe it is $0.07174 x 18PE = $1.29 per share

All up another very good result

XRF Scientific Ltd (“XRF” or “The Company”) today announced its results for the June 2023 full-year: 

Key Highlights

• Sales Revenue up 38% to $55.2m from $40.0m

• Profit Before Tax up 36% to $11.1m from $8.2m

• Net Profit After Tax* up 26% to $7.7m from $6.1m

• Operating Cash Flow up 167% to $8.4m from $3.2m

• Profit Before Tax of $2.9m and Sales Revenue of $14.7m in June Q4

• Final fully franked dividend of 3.3 cents per share

The business sales revenue and NPAT are growing quite well in all divisions as sales are up 38%

My previous assumption for NPAT was $8.69 Million with the

actual being $7.7 Million,

Perhaps I was being a bit optimistic considering NPAT was up 26% from the previous year,

But XRF have also moved into the 30% tax bracket as they were only paying 25% previously,

So this affected the NPAT also by $555,000,

So in regards to a valuation,

Assuming a NPAT of $9.63 Million in 23/24 ($7.7m x 25%)

So $9.63 Million / 136 Million shares = $0.0708CPS earnings

Valuation = $0.0708 x 15PE = $1.06 per share as a good growth

stock

Or as an exceptional growth stock which I believe it

is $0.0644 x 18PE = $1.27 per share 

All up another excellent result

Shares in Value have just emailed their thoughts on XRF, here they are:

Our high-conviction pick for this month is XRF Scientific (ASX: XRF), a significant player in the mining industry, providing essential gas and electric fusion equipment for mineral sample preparation, a prerequisite for X-ray fluorescence analysis. This indispensable process plays a pivotal role in shaping the strategies of industry heavyweights like BHP, Glencore, Vale, South 32, and Alcoa, who depend on it for assessing the grade, reducing waste rock, and formulating drilling plans. The role of sample preparation cannot be understated—it serves as the vital initial step in deciphering a sample's chemical purity and composition. 

We recommended XRF to our members in January at $0.84, and it has grown 58% in the last 6 months to a princely $1.33 (effective 27 July 2023). 

So why do we remain so bullish on XRF? 

XRF's unique non-cyclical attribute offers uncommon stability in the volatile mining industry. Further, the company follows a Gillette-style business model, providing high-margin chemical agents essential for each sample preparation.

Over the years, the company has been undervalued as a mining services supplier rather than being recognised for its inherent value as a premium international equipment provider, a reputation reinforced by 28% and 19% revenues and profits growth in 2022. It also maintained a 60% dividend payout ratio, delivering a yield of over 3%, a beneficial attribute for those pursuing dividend returns. The company's record-breaking order book indicates there is potential for further growth.

With the increasing demand for low-emission technologies driving commodity growth, XRF, central to mining activities, stands to benefit. Looking forward, XRF's ambitious 2023 expansion plan is noteworthy. With strategies targeting geographical diversification, new product launches, and a particular emphasis on precious metals, XRF offers a blend of steady cash flows with a balance of growth and dividends.

A substantial amount of credit for XRF's success is due to the tenacious leadership of CEO Vance Stazzonelli. He embodies the ideal qualities that we at Shares in Value believe are crucial in an effective leader: honesty, accuracy, and a refreshing lack of pretentious adjustments in the financial results. His straight-shooting approach, especially in the small caps realm, sets him apart.

Under Vance's steady helm, XRF continues to deliver exceptional results. Despite the considerable recent surge in its share price, we are confident in our recommendation of XRF, believing in its long-term potential.