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.
At Kyzyl, gold production for the quarter was down by 59% y-o-y to 31 Koz due to disruptions of low-carbon concentrate shipments to Amursk POX, resulting from operational challenges related to the impact of international sanctions against Russia. These delays have led to accumulation of concentrate stockpiles and deferral of associated sales. The Company is considering alternative processing solutions for Kyzyl high-carbon concentrate and expects to release the respective inventories in the following quarters.
Ore processing volumes decreased marginally on the back planned plant maintenance. The gold grade remained robust at 5.8 g/t. The Company anticipates a planned decrease in grade starting from H2 2025 with recovery in 2027.
Stripping volumes decrease was attributable to the gradual and systematic reduction of open-pit mining operations. The Company is planning to start underground ore mining in 2030.
In Q1, Varvara recorded an expected 10% y-o-y decline in production, driven by a planned decrease in Komar ore grade at the leaching circuit, as well as lower output at the flotation circuit due to reduced grade and volume of the third-party feed.
Stripping and mining volumes increased due to development of the perspective areas at the Komar and southern part of the Varvara open-pit.
ERTIS POX
Progress continued with the Ertis POX project during Q1 2025, with several key milestones achieved:
- Engineering surveys for the main facilities successfully completed, with reports accepted for design documentation development;
- Main design solutions for all Ertis POX site facilities finalised as part of the design and environmental documentation development;
- Statement of intended activity submitted to the Ministry of Ecology and Natural Resources of the Republic of Kazakhstan;
- Installation of piles for the autoclave foundation successfully completed;
- Driven pile tests for workshop and production warehouse facilities finalised.
