28 April 2025
Solidcore Resources plc (“Solidcore” or the “Company”) reports production results for the first quarter ended March 31, 2025.
“While sales have been deferred to the second half of the year due to temporary shipment delays, we remain confident in our ability to meet our full-year production guidance. The fundamentals of our business remain strong, and we expect a meaningful recovery in the coming quarters with concentrate stockpiles set to start unwinding in May”, said Vitaly Nesis, CEO of Solidcore Resources plc.
HIGHLIGHTS
- No fatal accidents among the Company’s employees and contractors occurred in Q1 2025. No lost time injuries were recorded.
- Gold equivalent (“GE”) production for Q1 2025 totalled 68 Koz, representing a 42% decline year-on-year (y-o-y). This decrease was primarily due to delays in Kyzyl concentrate shipments to Amursk POX, caused by operational challenges at the latter connected to the impact of international sanctions against Russia. As a result, Kyzyl has accumulated 41 Koz of payable metal in concentrate during Q1, which is expected to begin releasing in May and be largely processed by year-end.
- At Kyzyl, gold produced in concentrate increased by 6% to 97 Koz driven by better head grade, while Varvara recorded an expected 10% y-o-y decline in quarterly production as per the planned grade decrease and lower third-party processing volumes.
- Lower Q1 2025 sales (38 GE Koz) and revenue (US$ 109 million) reflected the temporary shipment delays with a strong recovery expected in H2 2025 as toll-processing returns to normal conditions. Meanwhile, gold prices continue to outperform last historic levels.
- In Q1 2025, we announced the acquisition of the Tokhtar gold property, located near Varvara hub, strategically adding 1.1 Moz of JORC-compliant Mineral Resources at an average head grade of 2.4 g/t with strong exploration potential to support our long-term growth pipeline. The Company is on track to obtain the required regulatory approvals and complete the acquisition of the initial 51% interest in Q3 2025.
- The Company reiterates its full-year guidance: production of 470 GE Koz, TCC and AISC within the ranges of US$ 1,000-1,100/oz and US$ 1,350-1,450/oz, respectively.
PRODUCTION RESULTS
|
|
3 months ended Mar 31, |
% change1 |
|
|
|
2025 |
2024 |
|
|
|
|
|
|
|
Waste mined, Mt |
30.6 |
33.1 |
-7% |
|
Ore mined (open pit), Kt |
1,319 |
1,172 |
+13% |
|
Ore processed, Kt |
1,573 |
1,568 |
+0% |
|
Average GE grade processed, g/t |
3.0 |
3.0 |
-1% |
|
Production, GE Koz2 |
68 |
117 |
-42% |
|
Kyzyl |
31 |
76 |
-59% |
|
Varvara |
37 |
41 |
-11% |
|
Sales, GE Koz |
38 |
116 |
-67% |
|
Kyzyl |
8 |
75 |
-90% |
|
Varvara |
30 |
41 |
-26% |
|
Revenue, US$m3, 4 |
109 |
294 |
-63% |
|
LTIFR (Employees)5 |
0 |
0 |
|
|
Fatalities |
0 |
0 |
|
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) Based on 80:1 Au/Ag conversion ratio and excluding base metals. Discrepancies in calculations are due to rounding.
(3) Calculated based on the unaudited consolidated management accounts.
(4) Revenue includes re-sale of third-party metal. Sales are shown net of re-sale of third party metal.
(5) LTIFR = lost time injury frequency rate per 200,000 hours worked. Company employees only are taken into account.
Tel. +7.7172.476.655
Kirill Kuznetsovir@solidcore-resources.com