Solidcore Resources plc (“Solidcore” or the “Company”) announces strong preliminary financial results for the year ended 31 December 2024.
“In 2024, our stable operational performance and favourable gold prices drove robust financial results. We met our production and cost guidance as well as launched our ambitious long-term investment program. 2025 should see continued ramp-up in our investments, particularly with the start of the active construction of Ertis POX and Green Power Project at Varvara”, said Vitaly Nesis, CEO of Solidcore Resources plc, commenting on the results.
FINANCIAL HIGHLIGHTS
The discussion below covers the results of continuing operations, excluding those from the discontinued Russian segment of our business, which was sold in March 2024 and is categorised as a discontinued operation in the accompanying financial statements. The comparatives are restated in the same way. As required by IFRS 5, cash flows include amounts of discontinued operations unless otherwise stated.
In 2024, revenue increased by 49% to US$ 1,328 million. Average realised gold price surged by 23% against the backdrop of the corresponding market dynamics. Gold equivalent (GE) production was largely stable year-on-year (y-o-y) at 490 Koz, while GE sales increased by 22% y-o-y to 566 Koz as in H1 the Company managed to unwind significant volumes of Kyzyl concentrate stockpiles.The Company’s Total Cash Costs (TCC)[1] were US$ 971/GE oz within US$ 900-1,000/GE oz guidance, up 8% y-o-y. The increase was driven by domestic inflation and price-driven higher mining tax, partly offset by the KZT (Kazakhstani tenge) devaluation and inventory sales.
All-in Sustaining Cash Costs (AISC)1 amounted to US$ 1,298/GE oz, within the US$ 1,250-1,350/GE oz guidance. A 3% y-o-y increase was driven by the same factors as TCC, though the Company recorded a decrease in sustaining CAPEX per ounce.
Adjusted EBITDA1 increased by 62% to US$ 712 million, driven by revenue growth that more than offset a rise in costs. The adjusted EBITDA margin rose to 54% (2023: 49%).
Underlying net earnings1 grew to US$ 499 million (2023: US$ 151 million), while net earnings[2] were US$ 533 million (2023: US$ 272 million including US$ 170 million forex gains).
Net operating cash inflow from continuing operations increased fivefold to US$ 650 million (2023: US$ 126 million).Capital expenditure (CAPEX) from continuing operations was up 44% to US$ 208 million[3], 8% below the original guidance of US$ 225 million, mostly due to delayed purchases at Ertis POX.
The Company generated positive free cash flow1 from continuing operations of US$ 435 million, a significant improvement from negative US$ 3 million in 2023. Of this, US$ 178 million was strategically allocated to M&A and growth investments in H2, namely the acquisition of Syrymbet and an investment loan to Bai Tau Minerals.
In March 2024, the Company completed the sale of its Russian business by way of disposal of 100% of the JSC Polymetal share capital to JSC Mangazeya Plus. As a result, the Company deconsolidated US$ 2.20 billion of external net debt, settled US$ 1.04 billion of its intragroup liabilities net of tax and received after-tax cash proceeds of US$ 300 million, comprising cash consideration of US$ 50 million and intercompany dividends retained by the Company amounting to US$ 250 million.
DEBT AND DIVIDEND
No dividend will be proposed for the full year 2024. In 2024, the Board of Directors suspended dividend payments until the Company achieves its medium-term growth targets and launches Ertis POX. This decision reflects the Company’s commitment to prioritising long-term value creation through reinvestment in key strategic initiatives. Future dividend distributions will be considered in alignment with the Company’s financial performance, liquidity position, and growth trajectory.
The Company’s net cash[4] position was US$ 374 million as of year-end versus US$ 174 million net debt on continuing operations at previous year-end, or US$ 2,383 million net debt including discontinued operations.
Gross debt was US$ 322 million as of year-end, of which US$ 179 million is scheduled to mature in 2025. The Company remains focused on proactive debt management and is considering various refinancing opportunities. In February 2025, the Company secured a US$ 60 million 7-year loan from Bank CenterCredit to finance the construction of renewable energy projects and signed a new US$ 100 million revolving credit facility with the Eurasian Development Bank.2025 OUTLOOK
In FY 2025, the Company expects to deliver 470 Koz of GE output. The expected y-o-y decrease is driven by the planned grade and recovery declines at both Kyzyl and Varvara operations.
At Kyzyl, concentrate delivery delays to the Amursk POX, resulting from operational challenges linked to the impact of international sanctions against Russia, are expected to negatively impact revenue in Q1. These delays have led to the accumulation of concentrate stockpiles in January-February in the amount of 57 Koz of metal contained and the deferral of associated sales.
Costs are estimated to be in the ranges of US$ 1,000-1,100/GE oz for TCC and US$ 1,350-1,450/GE oz for AISC[5]. A y-o-y increase is expected mostly due to the grade and recovery decrease, and persisting domestic inflation, which will offset expected positive effects from the KZT devaluation. The estimate remains contingent on the KZT/US$ exchange rate, which has a significant effect on the Company’s local currency denominated operating costs.Capital expenditures are expected to reach US$ 300 million. The y-o-y increase will be driven by construction of the Ertis POX (US$ 160 million in 2025) and solar and gas power stations at Varvara. Sustaining CAPEX will be represented by further expansion of a tailings storage facility (TSF) at Kyzyl, fleet replacement at Komar, exploration at the Elevator deposit (Varvara hub), and construction of a fire-assay laboratory in Karaganda, Kazakhstan.
With the start of the full-scale construction of Ertis POX, the Company is entering an intensive investment phase, committing over US$ 1 billion in development CAPEX over the next five years. The funding will represent a mix of the Company’s cash flow and new financing.
The Company is also progressing the Syrymbet tin project, with initial investments scheduled to begin in 2026. The current mid-term capital expenditure forecast does not yet reflect the next phase of CAPEX for Syrymbet, which remains subject to Board review.
OPERATING HIGHLIGHTS
For the third consecutive year, there were no lost time injuries recorded among the Company’s employees and contractors within continuing operations. Accordingly, days lost due to work-related injuries (DIS) remained at zero.
Gold equivalent output at continuing operations was largely stable y-o-y at 490 Koz and 3% above the original production guidance of 475 Koz. In 2023, the Company produced 1.7 Moz of GE, including 1.2 Moz from Russian assets sold in March 2024.
In 2024, the construction of Ertis POX was formally approved by the Board and the Company achieved significant milestones in advancing the project. It remains on track with the delivery of the autoclave and the commencement of full-scale construction proceeding as planned.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (“ESG”) HIGHLIGHTS
Solidcore remains committed to sustainable development. In 2024, we refined our sustainability strategy to align with recent structural changes, updating our medium- and long-term environmental and climate targets to reflect our evolving asset portfolio and new development goals. The Company is now targeting a 45% reduction in Scope 1 and 2 emissions by 2030 and carbon neutrality by 2050. As part of this strategy, Solidcore will be focusing on developing its own energy sources to ensure the energy independence of our assets from external power grids.In 2024, our GHG emissions (Scope 1 and Scope 2) increased by 6%, primarily due to our changing mining conditions, longer transportation routes and limitations on direct procurement of clean electricity from grid suppliers.
We are advancing our voluntary afforestation project, aiming to expand it to 1,500 hectares by 2030. In 2024, we successfully afforested a 28-hectare pilot plot near the Varvara site in the Kostanay region and secured official registration in the National Register of Carbon Projects of Kazakhstan.
In 2024, we reduced fresh water intensity for ore processing by 72%, lowering usage to 50 m3/1,000t, compared to 178 m3/1,000t in 2023 thanks to favourable weather and our closed-loop water recycling systems. Currently, 96% of the water used at our sites is recirculated, minimising our reliance on freshwater resources.
Solidcore increased its social investments in 2024 to US$ 9.8 million, up 34% from US$ 7.3 million in 2023. These funds were directed toward education, local infrastructure, sports and cultural initiatives, reinforcing our commitment to the well-being and sustainable development of the communities where we operate.
Conference call and webcast
The Company will hold a webcast on Tuesday, 1 April 2025, at 14:00 Astana time (10:00 London time).
To participate in the webcast, please register using the following link:
https://edge.media-server.com/mmc/p/agiu6x54
Webcast details will be sent to you via email after registration.
About Solidcore
Solidcore Resources is a leading gold producer registered in AIFC, Kazakhstan, and listed on Astana International Exchange. Solidcore operates two producing gold mines and a major growth project (Ertis POX) in Kazakhstan.
Enquiries
Investor Relations
MediaKirill Kuznetsov
Alina Assanova
+7 7172 47 66 55 (Kazakhstan)
ir@solidcore-resources.com
Yerkin Uderbay
+7 7172 47 66 55 (Kazakhstan)
media@solidcore-resources.kz
“In 2024, our stable operational performance and favourable gold prices drove robust financial results. We met our production and cost guidance as well as launched our ambitious long-term investment program. 2025 should see continued ramp-up in our investments, particularly with the start of the active construction of Ertis POX and Green Power Project at Varvara”, said Vitaly Nesis, CEO of Solidcore Resources plc, commenting on the results.
FINANCIAL HIGHLIGHTS
The discussion below covers the results of continuing operations, excluding those from the discontinued Russian segment of our business, which was sold in March 2024 and is categorised as a discontinued operation in the accompanying financial statements. The comparatives are restated in the same way. As required by IFRS 5, cash flows include amounts of discontinued operations unless otherwise stated.
In 2024, revenue increased by 49% to US$ 1,328 million. Average realised gold price surged by 23% against the backdrop of the corresponding market dynamics. Gold equivalent (GE) production was largely stable year-on-year (y-o-y) at 490 Koz, while GE sales increased by 22% y-o-y to 566 Koz as in H1 the Company managed to unwind significant volumes of Kyzyl concentrate stockpiles.The Company’s Total Cash Costs (TCC)[1] were US$ 971/GE oz within US$ 900-1,000/GE oz guidance, up 8% y-o-y. The increase was driven by domestic inflation and price-driven higher mining tax, partly offset by the KZT (Kazakhstani tenge) devaluation and inventory sales.
All-in Sustaining Cash Costs (AISC)1 amounted to US$ 1,298/GE oz, within the US$ 1,250-1,350/GE oz guidance. A 3% y-o-y increase was driven by the same factors as TCC, though the Company recorded a decrease in sustaining CAPEX per ounce.
Adjusted EBITDA1 increased by 62% to US$ 712 million, driven by revenue growth that more than offset a rise in costs. The adjusted EBITDA margin rose to 54% (2023: 49%).
Underlying net earnings1 grew to US$ 499 million (2023: US$ 151 million), while net earnings[2] were US$ 533 million (2023: US$ 272 million including US$ 170 million forex gains).
Net operating cash inflow from continuing operations increased fivefold to US$ 650 million (2023: US$ 126 million).Capital expenditure (CAPEX) from continuing operations was up 44% to US$ 208 million[3], 8% below the original guidance of US$ 225 million, mostly due to delayed purchases at Ertis POX.
The Company generated positive free cash flow1 from continuing operations of US$ 435 million, a significant improvement from negative US$ 3 million in 2023. Of this, US$ 178 million was strategically allocated to M&A and growth investments in H2, namely the acquisition of Syrymbet and an investment loan to Bai Tau Minerals.
In March 2024, the Company completed the sale of its Russian business by way of disposal of 100% of the JSC Polymetal share capital to JSC Mangazeya Plus. As a result, the Company deconsolidated US$ 2.20 billion of external net debt, settled US$ 1.04 billion of its intragroup liabilities net of tax and received after-tax cash proceeds of US$ 300 million, comprising cash consideration of US$ 50 million and intercompany dividends retained by the Company amounting to US$ 250 million.
DEBT AND DIVIDEND
No dividend will be proposed for the full year 2024. In 2024, the Board of Directors suspended dividend payments until the Company achieves its medium-term growth targets and launches Ertis POX. This decision reflects the Company’s commitment to prioritising long-term value creation through reinvestment in key strategic initiatives. Future dividend distributions will be considered in alignment with the Company’s financial performance, liquidity position, and growth trajectory.
The Company’s net cash[4] position was US$ 374 million as of year-end versus US$ 174 million net debt on continuing operations at previous year-end, or US$ 2,383 million net debt including discontinued operations.
Gross debt was US$ 322 million as of year-end, of which US$ 179 million is scheduled to mature in 2025. The Company remains focused on proactive debt management and is considering various refinancing opportunities. In February 2025, the Company secured a US$ 60 million 7-year loan from Bank CenterCredit to finance the construction of renewable energy projects and signed a new US$ 100 million revolving credit facility with the Eurasian Development Bank.2025 OUTLOOK
In FY 2025, the Company expects to deliver 470 Koz of GE output. The expected y-o-y decrease is driven by the planned grade and recovery declines at both Kyzyl and Varvara operations.
At Kyzyl, concentrate delivery delays to the Amursk POX, resulting from operational challenges linked to the impact of international sanctions against Russia, are expected to negatively impact revenue in Q1. These delays have led to the accumulation of concentrate stockpiles in January-February in the amount of 57 Koz of metal contained and the deferral of associated sales.
Costs are estimated to be in the ranges of US$ 1,000-1,100/GE oz for TCC and US$ 1,350-1,450/GE oz for AISC[5]. A y-o-y increase is expected mostly due to the grade and recovery decrease, and persisting domestic inflation, which will offset expected positive effects from the KZT devaluation. The estimate remains contingent on the KZT/US$ exchange rate, which has a significant effect on the Company’s local currency denominated operating costs.Capital expenditures are expected to reach US$ 300 million. The y-o-y increase will be driven by construction of the Ertis POX (US$ 160 million in 2025) and solar and gas power stations at Varvara. Sustaining CAPEX will be represented by further expansion of a tailings storage facility (TSF) at Kyzyl, fleet replacement at Komar, exploration at the Elevator deposit (Varvara hub), and construction of a fire-assay laboratory in Karaganda, Kazakhstan.
With the start of the full-scale construction of Ertis POX, the Company is entering an intensive investment phase, committing over US$ 1 billion in development CAPEX over the next five years. The funding will represent a mix of the Company’s cash flow and new financing.
The Company is also progressing the Syrymbet tin project, with initial investments scheduled to begin in 2026. The current mid-term capital expenditure forecast does not yet reflect the next phase of CAPEX for Syrymbet, which remains subject to Board review.
OPERATING HIGHLIGHTS
For the third consecutive year, there were no lost time injuries recorded among the Company’s employees and contractors within continuing operations. Accordingly, days lost due to work-related injuries (DIS) remained at zero.
Gold equivalent output at continuing operations was largely stable y-o-y at 490 Koz and 3% above the original production guidance of 475 Koz. In 2023, the Company produced 1.7 Moz of GE, including 1.2 Moz from Russian assets sold in March 2024.
In 2024, the construction of Ertis POX was formally approved by the Board and the Company achieved significant milestones in advancing the project. It remains on track with the delivery of the autoclave and the commencement of full-scale construction proceeding as planned.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (“ESG”) HIGHLIGHTS
Solidcore remains committed to sustainable development. In 2024, we refined our sustainability strategy to align with recent structural changes, updating our medium- and long-term environmental and climate targets to reflect our evolving asset portfolio and new development goals. The Company is now targeting a 45% reduction in Scope 1 and 2 emissions by 2030 and carbon neutrality by 2050. As part of this strategy, Solidcore will be focusing on developing its own energy sources to ensure the energy independence of our assets from external power grids.In 2024, our GHG emissions (Scope 1 and Scope 2) increased by 6%, primarily due to our changing mining conditions, longer transportation routes and limitations on direct procurement of clean electricity from grid suppliers.
We are advancing our voluntary afforestation project, aiming to expand it to 1,500 hectares by 2030. In 2024, we successfully afforested a 28-hectare pilot plot near the Varvara site in the Kostanay region and secured official registration in the National Register of Carbon Projects of Kazakhstan.
In 2024, we reduced fresh water intensity for ore processing by 72%, lowering usage to 50 m3/1,000t, compared to 178 m3/1,000t in 2023 thanks to favourable weather and our closed-loop water recycling systems. Currently, 96% of the water used at our sites is recirculated, minimising our reliance on freshwater resources.
Solidcore increased its social investments in 2024 to US$ 9.8 million, up 34% from US$ 7.3 million in 2023. These funds were directed toward education, local infrastructure, sports and cultural initiatives, reinforcing our commitment to the well-being and sustainable development of the communities where we operate.
Conference call and webcast
The Company will hold a webcast on Tuesday, 1 April 2025, at 14:00 Astana time (10:00 London time).
To participate in the webcast, please register using the following link:
https://edge.media-server.com/mmc/p/agiu6x54
Webcast details will be sent to you via email after registration.
About Solidcore
Solidcore Resources is a leading gold producer registered in AIFC, Kazakhstan, and listed on Astana International Exchange. Solidcore operates two producing gold mines and a major growth project (Ertis POX) in Kazakhstan.
Enquiries
Investor Relations
MediaKirill Kuznetsov
Alina Assanova
+7 7172 47 66 55 (Kazakhstan)
ir@solidcore-resources.com
Yerkin Uderbay
+7 7172 47 66 55 (Kazakhstan)
media@solidcore-resources.kz
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