Solidcore Resources plc has reported its financial results for the first half of 2025, citing a significant decrease in revenue and production due to temporary delays in third-party processing of Kyzyl concentrate. The company stated that these issues have now been largely resolved, and it expects improved profitability and cash flows in the second half of the year.
“H1 2025 results reflected weaker sales due to the temporary delays in third-party processing of Kyzyl concentrate. With this issue now largely addressed, we anticipate a recovery in profitability and cash flows in H2 2025. As previously disclosed, this year’s production will still be partially constrained by accumulated concentrate inventories and is expected to come below the initial guidance, with a corresponding negative impact on costs. We remain focused on meeting our revised targets and executing our strategic priorities, including the start of the full-scale construction of the Ertis POX and progressing the Syrymbet project”, said Vitaly Nesis, CEO of Solidcore Resources plc.
The company’s revenue for H1 2025 was US$325 million, down 54% from US$704 million in H1 2024. This decline was attributed mainly to deferred Kyzyl concentrate sales, which offset gains from higher gold prices during the period. Production guidance for the full year has been reduced from 470 Koz to 420 Koz as some accumulated stockpiles are expected to be carried into next year.
Solidcore Resources’ total cash costs rose by 52% year-on-year to US$1,458 per gold equivalent ounce (GE oz), reflecting both fewer ounces sold and inflationary pressures within Kazakhstan. All-in sustaining cash costs increased by 72% to US$2,201/GE oz due to similar factors as well as increased capital expenditures at Komar related to mining fleet renewal and higher stripping volumes.
Adjusted EBITDA dropped by 56% compared with last year’s first half, reaching US$152 million. Net earnings were reported at US$85 million versus US$238 million a year earlier. Capital expenditure grew by 19% to US$128 million due mainly to work commencing on the Ertis POX project; full-year CAPEX is expected at around US$300 million.
Operating cash flow turned negative at minus US$86 million compared with an inflow of US$344 million in H1 2024. Free cash flow also shifted from positive territory last year (US$240 million) to negative (minus US$220 million) this period but is projected to recover strongly later this year as working capital is released through inventory reduction.
Despite these declines, Solidcore Resources maintains a strong liquidity position with $351 million in cash on hand as of June 30th and $139 million available through undrawn credit lines. In July, it secured a new credit facility agreement with ING for up to $100 million intended partly as replacement for maturing debt facilities.
Operationally, no fatal accidents or lost time injuries were recorded among employees or contractors during H1 2025—a continuation of last year’s safety record. Gold equivalent output fell by over half (51%) compared with H1 2024 because of processing delays at Amursk POX; operations there resumed late in Q2 with additional shipments sent both domestically within Kazakhstan and abroad.
Progress continues on key projects such as Ertis POX—aimed at reducing dependence on third parties—with site works advancing according to plan including foundation completion for autoclave storage infrastructure.
A webcast discussing these results will be held on September 15th at https://edge.media-server.com/mmc/p/esnhqofi.
