29 January 2025
Solidcore Resources plc (“Solidcore” or the “Company”) announces fourth-quarter 2024 production results, successfully exceeding full-year production guidance by 3% and delivering US$ 1.3 billion in revenue.
"In 2024, the Company delivered stable year-on-year results and beat its production guidance, while maintaining exceptional safety performance. The Board’s approval of the Ertis POX and green energy projects construction, as well as acquisition of the Syrymbet tin deposit, were important milestones in our long-term growth strategy in Kazakhstan achieved last year. As we look ahead to 2025, we anticipate strong production and continued progress on our development projects, said Vitaly Nesis, CEO of Solidcore Resources plc.
HIGHLIGHTS
- For the third consecutive year, there were no lost time injuries recorded among the Company’s employees and contractors. Accordingly, days lost due to work-related injuries (DIS) remained at zero.
- Gold equivalent (“GE”) output for the full year was largely stable year-on-year (y-o-y) at 490 Koz and 3% above the original production guidance of 475 Koz. Quarterly production was down by 18% y-o-y to 119 Koz due to a planned decline in gold grade attributable to processing of the more complex refractory ore at Kyzyl.
- GE sales in 2024 increased by 17% y-o-y to 536 Koz and outpaced the production level because in H1 the Company managed to unwind significant volumes of Kyzyl concentrate stockpiles that accumulated in 2023 on the back of logistical challenges. GE sales in Q4 amounted to 122 Koz with a 14% y-o-y decline attributable to a lag between concentrate shipment to refinery and Dore production at Varvara as well as persistent issues with railcar shortages on the eastbound railroads affecting Kyzyl sales.
- Revenue from ongoing operations for FY 2024 increased by 49% to US$ 1.3 billion, which was attributable to higher gold prices and sales. Q4 revenue was up by 10% y-o-y to US$ 322 million driven by the sustained favourable prices despite weaker quarterly sales.
- The Company expects full-year Total Cash Costs (“TCC”) and All-in Sustaining Cash Costs (“AISC”) to be within the announced guidance range of US$ 900-1,000/GE oz and US$ 1,250-1,350/GE oz, respectively. CAPEX is expected to be largely in line with the original guidance of US$ 225 million.
- Net Cash position as of the end of 2024 stood at US$ 374 million versus net cash of US$ 357 million as of the end of H1 2024. The balance reflects positive free cash flow from operations offset by the outflow related to the Company’s announced M&A transactions.
- In 2024, the Company achieved significant milestones in advancing the Ertis Hydrometallurgical Plant (Ertis POX project), in line with its long-term strategic plan for the Company. These included the formal project approval by the Board of Directors, assembly and delivery of the autoclave to the transhipment port for winter storage, commencement of procurement activities for processing equipment and long-lead items, and obtaining positive expert reviews on the detailed design for the construction of temporary buildings and structures. The project remains on track with the delivery of the autoclave and the commencement of full-scale construction proceeding as planned.
- The Company will present its strategy implementation progress and full-year financial results over a webcast at the end of March 2025. Participation details will be announced closer to the event date.
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 the Kyzyl and Varvara operations. The Company will start redirecting Kyzyl high-carbon concentrate to a third-party POX.
- 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[1]. 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 Kazakh tenge (“KZT”) devaluation. The estimate remains contingent on the KZT/USD exchange rate, which has a significant effect on the Company’s local currency denominated operating costs.
- Capital expenditures are expected to be approximately US$ 300 million. The y-o-y increase will be driven by the planned investment in Ertis POX construction (which is expected to account for US$ 160 million of capital expenditure in 2025) and construction of solar and gas power stations at Varvara. Sustaining CAPEX will be represented by further expansion of a tailings storage facility at Kyzyl, fleet replacement at Komar, exploration at the Elevator deposit (Varvara hub) and construction of a fire-assay laboratory in Karaganda, Kazakhstan.
PRODUCTION RESULTS
|
3 months ended Dec 31, |
% change1 |
12 months ended Dec 31, |
% change1 |
||
2024 |
2023 |
2024 |
2023 |
|||
Waste mined2, Mt |
33.6 |
29.8 |
+13% |
129.0 |
122 |
+6% |
Ore mined (open pit), Kt |
1,512 |
1,252 |
+21% |
5,201 |
5,260 |
-1% |
Ore processed, Kt |
1,618 |
1,607 |
+1% |
6,372 |
6,341 |
+0% |
Average GE grade processed, g/t |
2.5 |
2.9 |
-13% |
2.8 |
2.9 |
-4% |
Production, GE Koz3 |
119 |
145 |
-18% |
490 |
486 |
+1% |
Kyzyl |
74 |
104 |
-29% |
320 |
316 |
+1% |
Varvara |
45 |
41 |
+10% |
170 |
169 |
+0% |
Sales, GE Koz |
122 |
142 |
-14% |
536 |
458 |
+17% |
Kyzyl |
80 |
85 |
-6% |
365 |
271 |
+35% |
Varvara |
42 |
56 |
-25% |
172 |
188 |
-9% |
Revenue, US$m4, 5 |
322 |
291 |
+10% |
1,327 |
893 |
+49% |
Net cash/(debt), US$m6 |
374 |
(171) |
NM |
|||
LTIFR (Employees)7 |
0 |
0 |
NA |
0 |
0 |
NA |
DIS (Employees)8 |
0 |
0 |
NA |
|||
Fatalities |
||||||
Employees |
0 |
0 |
NA |
0 |
0 |
NA |
Contractors |
0 |
0 |
NA |
0 |
0 |
NA |
Average headcount |
3,577 |
3,202 |
+12% |
|||
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 December 2024.
(7) LTIFR = lost time injury frequency rate per 200,000 hours worked. Company employees only are taken into account.
(8) DIS — days lost due to work-related injuries.
Tel. +7.7172.476.655
Kirill Kuznetsovir@solidcore-resources.com