Q2 2024 production results

Solidcore Resources plc (“Solidcore” or the “Company”) reports production results for the second quarter ended June 30, 2024.

“In Q2, we demonstrated solid production results as well as managed to unwind a significant portion of our concentrate inventory, which resulted in strong cash flow generation and higher net cash position”, said Vitaly Nesis, Group CEO of Solidcore Resources plc.

HIGHLIGHTS

• No fatal accidents among the Company’s employees and contractors occurred in H1 2024 as well as no lost time injuries were recorded.

• Gold equivalent (“GE”) production grew by 37% year-on-year (y-o-y) to 135 Koz in Q2 and by 18% to 252 Koz in H1 on the back of higher concentrate shipment volumes to China and production from toll-treated concentrate at Kyzyl.

• GE sales for the quarter jumped by 118% y-o-y and 52% q-o-q to 176 Koz, thanks to the substantial progress in unwinding of Kyzyl concentrate stockpile, previously accumulated due to logistical challenges. H1 sales were up by 42% to 292 Koz supported by Q2 dynamics.

• Revenue for the reporting quarter and six months increased by 157% and 79% y-o-y to US$ 409 and US$ 704 million respectively driven by higher gold prices, healthy production results and inventory release.

• Net Cash position as of the end of Q2 stood at approximately US$ 357 million versus net cash of US$ 155 as of the end of Q1. The increase was driven by significant cash inflow from sale of inventory as well as free cash flow from ongoing operations.

• The Company reiterates its full-year guidance for production and costs: production of 475 GE Koz, TCC in the range of US$ 900-1,000/oz and AISC in the range of US$ 1,250-1,350. However, the management is observing the following detrimental factors in H2 2024: stronger than budgeted year-to-date KZT/USD rate, inflationary pressure, shortage of railcars and congestions of the eastbound railroads.

• Full-year CAPEX is expected to be approximately US$ 60 million above the original guidance of US$ 225 million due to prepayments for the green energy projects (solar power plant at Kyzyl, and solar and gas power plants at Varvara).

PRODUCTION RESULTS

Notes:
(1) % changes can be different from zero even when absolute numbers are unchanged because of rounding. Likewise, % changes can be equal to zero when absolute numbers differ due to the same reason. This note applies to all tables in this release.
(2) Kyzyl waste mined reporting approach has been amended starting from Q2 2024 to include specification of volume weight coefficients used to convert cubes into tons by mines and periods.
(3) Based on 80:1 Au/Ag conversion ratio and excluding base metals. Discrepancies in calculations are due to rounding.
(4) Calculated based on the unaudited consolidated management accounts.
(5) Revenue includes re-sale of third party metal. Sales are shown net of re-sale of third party metal.
(6) Non-IFRS measure based on unaudited consolidated management accounts. Comparative information is presented for 31 March 2024 (for the three months period) and 31 December 2023 (for the six months period) for Kazakhstan operations only.
(7) LTIFR = lost time injury frequency rate per 200,000 hours worked. Company employees only are taken into account.