POLY Polymetal International Plc

Solidcore Resources plc (“Solidcore” or the “Company”) reports production results for the second quarter ended June 30, 2024.

“In Q2, we demonstrated solid production results as well as managed to unwind a significant portion of our concentrate inventory, which resulted in strong cash flow generation and higher net cash position”, said Vitaly Nesis, Group CEO of Solidcore Resources plc.

HIGHLIGHTS

• No fatal accidents among the Company’s employees and contractors occurred in H1 2024 as well as no lost time injuries were recorded.
• Gold equivalent (“GE”) production grew by 37% year-on-year (y-o-y) to 135 Koz in Q2 and by 18% to 252 Koz in H1 on the back of higher concentrate shipment volumes to China and production from toll-treated concentrate at Kyzyl.
• GE sales for the quarter jumped by 118% y-o-y and 52% q-o-q to 176 Koz, thanks to the substantial progress in unwinding of Kyzyl concentrate stockpile, previously accumulated due to logistical challenges. H1 sales were up by 42% to 292 Koz supported by Q2 dynamics.
• Revenue for the reporting quarter and six months increased by 157% and 79% y-o-y to US$ 409 and US$ 704 million respectively driven by higher gold prices, healthy production results and inventory release.
• Net Cash position as of the end of Q2 stood at approximately US$ 357 million versus net cash of US$ 155 as of the end of Q1. The increase was driven by significant cash inflow from sale of inventory as well as free cash flow from ongoing operations.
• The Company reiterates its full-year guidance for production and costs: production of 475 GE Koz, TCC in the range of US$ 900-1,000/oz and AISC in the range of US$ 1,250-1,350. However, the management is observing the following detrimental factors in H2 2024: stronger than budgeted year-to-date KZT/USD rate, inflationary pressure, shortage of railcars and congestions of the eastbound railroads.
• Full-year CAPEX is expected to be approximately US$ 60 million above the original guidance of US$ 225 million due to prepayments for the green energy projects (solar power plant at Kyzyl, and solar and gas power plants at Varvara).

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

Q2 gold production at Kyzyl grew by 66% y-o-y to 93 Koz due to higher volumes of concentrate shipments to offtakers, higher grade and toll-processing volumes at third party POX. Quarterly results contributed to a 32% increase in H1 production.

The Company’s efforts to unwind the previously accumulated concentrate stockpiles resulted in a 30% (approximately 20 Koz) reduction in inventory year to date.

VARVARA

In Q2, production at Varvara was stable y-o-y at 42 Koz, A marginal y-o-y decline in H1 was driven by a planned moderate decrease in Komar ore grade at the leaching circuit.

ERTIS POX

The autoclave construction at COEK production site in Belgium was completed. Delivery preparation is in process. At the future construction site engineering survey is in progress to develop documentation for technological and infrastructure facilities. Draft and working design projects for temporary on-site buildings have been developed. The formal Board decision on the project and feasibility study results announcement are expected in December 2024.