Solidcore Resources plc: Q3 2024 production results and management changes

Solidcore Resources plc (“Solidcore” or the “Company”) reports production results for the third quarter ended September 30, 2024 and changes in its management team.

“In Q3, we have remained on track with our production guidance, maintaining strong operational performance and progressing Ertis POX and Kyzyl underground investment projects”, said Vitaly Nesis, Group CEO of Solidcore Resources plc.

HIGHLIGHTS

• No fatal accidents occurred and no lost time injuries were recorded among the Company’s employees and contractors during the first nine months of 2024.
• Gold equivalent (“GE”) production fell by 7% year-on-year (y-o-y) to 119 Koz in Q3 2024 on the back of a decrease in payable Gold shipments at Kyzyl. GE production for the first nine months of 2024 was 371 Koz, a 9% increase y-o-y and in line with the full-year production guidance.
• GE sales in the Q3 increased by 10% y-o-y to 122 Koz, although the Company recorded lower sales volume versus high base the previous quarter, when a significant part of inventories was released.
• Revenue for the reporting quarter and nine-month period increased by 45% and 67% y-o-y to US$ 302 and US$ 1,006 million respectively driven by higher gold prices and sales.
• Solidcore is on track to meet its full-year production guidance of 475 Koz of GE. TCC and AISC guidance of US$ 900-1,000/GE oz and US$ 1,250-1,350/GE oz respectively is also maintained. The estimate remains contingent on the KZT/USD exchange rate, which has a significant effect on the Group’s local currency denominated operating costs.
• Maxim Nazimok, the Company’s CFO, will step down from his position effective November 10, 2024 to pursue career opportunities outside of Solidcore. Evgenia Onuschenko, EVP for Corporate Finance, will assume the position immediately thereafter. As part of the transition, all management and supervisory functions have been transferred to the Company’s headquarters in Astana.

“I am deeply grateful to Maxim for his invaluable contribution to our development over the past 13 years with the company, especially for his efforts during the recent challenging years. I am also pleased to welcome Evgenia Onuschenko as our new CFO. Evgenia brings extensive and outstanding experience in leading our corporate finance function, thus I am confident she will successfully navigate the challenges ahead as the Company works towards its ambitious strategic goals”, said Omar Bahram, Chair of the Company’s Board of Directors.

PRODUCTION RESULTS

Enquiries

FORWARD-LOOKING STATEMENTS

This release may include statements that are, or may be deemed to be, “forward-looking statements”. These forward-looking statements speak only as at the date of this release. These forward-looking statements can be identified by the use of forward-looking terminology, including the words “targets”, “believes”, “expects”, “aims”, “intends”, “will”, “may”, “anticipates”, “would”, “could” or “should” or similar expressions or, in each case their negative or other variations or by discussion of strategies, plans, objectives, goals, future events or intentions. These forward-looking statements all include matters that are not historical facts. By their nature, such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the company’s control that could cause the actual results, performance or achievements of the company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the company’s present and future business strategies and the environment in which the company will operate in the future. Forward-looking statements are not guarantees of future performance. There are many factors that could cause the company’s actual results, performance or achievements to differ materially from those expressed in such forward-looking statements. The company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in the company’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based.

KYZYL

At Kyzyl, gold production in the first nine months of 2024 increased on the back of higher Q2 concentrate shipment volumes to China. Quarterly gold production fell by 9% y-o-y to 77 Koz due to shipments reduction, driven by a shortage of railcars and congestion on the eastbound railroads in Kazakhstan.

Waste and ore mining volumes reductions during the reported quarter are attributable to the scheduled decommissioning of the mine fleet. Full-year ore mining volumes will reach the planned 2.4 Mtpa.

The Company is starting basic engineering and procurement of long-lead equipment for the Kyzyl underground mine project.

VARVARA

Gold production at Varvara declined marginally to 42 Koz in Q3 and to 125 Koz in the first nine months of 2024. Negative dynamics is driven by a planned decrease in Komar ore grade at the leaching circuit, which was partially compensated by higher volumes of third-party material with better recovery rates introduced at the flotation circuit.

ERTIS POX

The autoclave has been successfully delivered to the transshipment port for winter storage. Preparatory earthworks have commenced to ensure the autoclave installation in 2025. Engineering activities are progressing according to schedule, with Hatch basic engineering 50% complete, paving the way for the start of detailed engineering. Procurement for key processing equipment and long-lead items has also begun, with the first contracts to be awarded before the end of the year.

PERSONNEL

Evgenia Onuschenko to be appointed as the Group Chief Financial Officer, effective on 11 November 2024. Evgenia graduated from Saint Petersburg State University of Economics and Finance in 2006 with a degree in Innovation and Investment Management and holds a BSc in economics and management from Grenoble University Pierre-Mendes, France. She joined Solidcore in 2008 as Head of the Bank Financing department and later served as the Head of Corporate Finance and Investor Relations with EVP for Corporate Finance as her most recent role. Prior to joining the Company, she held several roles at Ernst & Young in transaction advisory services.