Solidcore Resources plc, a gold mining company, anticipates that its gold equivalent production will reach 470,000 ounces by 2025. This was stated in the company's announcement, as reported by the business information center Kapital.kz.
“The decrease compared to the previous year will be linked to the planned reduction in grades and recoveries at Kyzyl and Varvarinskoye. The company will begin sending high-carbon concentrate from Kyzyl to a third-party metallurgy plant,” the company's press release states.
Annual cash costs (TCC) and all-in sustaining costs (AISC) are estimated to be in the ranges of $1,000-$1,100 and $1,350-$1,450 per ounce of gold equivalent, respectively.
“The year-over-year increase is primarily due to the decline in grades and recoveries, as well as persistent domestic inflation, which offsets the favorable effect of the tenge devaluation. The assessment depends on the exchange rate of the tenge to the US dollar, which significantly impacts the company's operating expenses expressed in local currency,” emphasizes the producer.
The company expects its capital expenditures in 2025 to be approximately $300 million. “The increase compared to 2024 will be associated with the start of full-scale construction of the Ertis Hydrometallurgical Plant (EHMK), with expenses amounting to $160 million in 2025, as well as the construction of solar and gas engine power plants at Varvarinskoye. Costs at existing operations will include further expansion of the tailings storage facility at Kyzyl, upgrading the fleet of mining equipment at Komarovskoye, exploration at Elevatorskoye (Varvarinskoye hub), and the construction of a sample and analytical laboratory in Karaganda, Kazakhstan,” the announcement states.
In its production results for the fourth quarter of 2024, Solidcore noted that the company exceeded its production plan compared to the previous year.
“The approval by the board of directors for the construction of the Ertis hydrometallurgical plant and green projects in the energy sector, as well as the acquisition of the Sarymbet tin deposit, were key events of the past year within our long-term growth strategy in Kazakhstan. In 2025, we expect stable production indicators and further progress in our development projects,” stated Vitaly Nesis, the company's CEO.
The annual production volume remained virtually unchanged from the previous year, totaling 490,000 ounces in gold equivalent. “This is 3% above the annual production plan of 475,000 ounces. Quarterly production decreased by 18% year-over-year to 119,000 ounces due to the planned reduction in gold content associated with the processing of harder ore at Kyzyl,” the announcement states.
Sales volume in 2024 increased by 17% year-over-year to 536,000 ounces of gold equivalent, surpassing production. This is because, in the first half of the year, the company was able to sell significant stocks of Kyzyl concentrate that had accumulated in 2023 due to logistical difficulties.
“Sales in the fourth quarter amounted to 122,000 ounces of gold equivalent, which is 14% lower year-over-year due to the timing difference between shipments of Varvarinskoye concentrate for refining and the production of dore alloy, as well as issues with a shortage of railcars on eastern railway routes, which affected Kyzyl sales,” the company emphasized.
The company's revenue for 2024 grew by 49% to $1.3 billion, driven by rising gold prices and sales volumes. “Revenue in the fourth quarter increased by 10% year-over-year to $322 million against a backdrop of favorable prices, despite a decline in quarterly sales,” the announcement notes.
Solidcore expects that annual cash costs (TCC) and all-in sustaining costs (AISC) for 2024 will “be within the announced forecast range of $900-$1,000 and $1,250-$1,350 per ounce of gold equivalent, respectively.” Capital expenditures are expected to align with the initial forecast of $225 million.
“The net cash position at the end of 2024 stood at $374 million, which is higher than the corresponding figure at the end of the first half of the year of $357 million. This trend reflects positive cash flow from operating activities and outflows related to merger and acquisition transactions,” the announcement states.
The information highlights that in 2024, the company made “significant progress” in the implementation of the Ertis Hydrometallurgical Plant (EHMK) project. “Specifically, it received construction approval from the board of directors, completed the assembly and delivery of the autoclave to the transshipment port for winter storage, began procurement of technological equipment and equipment with long lead times, and received positive expert opinions on the working project for the construction of temporary buildings and structures. The project is progressing according to the established plan,” the company summarized.