Half-year report for the six months ended 30 June 2025
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EQS via SeaPRwire.com / 11/09/2025 / 09:05 MSK “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, commenting on the results. FINANCIAL HIGHLIGHTS The results for H1 2024 exclude those from the discontinued Russian segment of our business, which was divested in March 2024 and is categorised as a discontinued operation in the accompanying prior year financial statements.
OPERATING HIGHLIGHTS
Conference call and webcast The Company will hold a webcast on Monday, 15 September 2025, at 14:00 Astana time (10:00 London time). To participate in the webcast, please register using the following link: https://edge.media-server.com/mmc/p/esnhqofi Webcast details will be sent to you via email after registration. About Solidcore Solidcore Resources is a leading gold producer registered in AIFC, Kazakhstan, and listed on Astana International Exchange. Solidcore operates two producing gold mines and a major growth project (Ertis POX) in Kazakhstan. 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.
TABLE OF CONTENTS Principal risks and uncertainties Directors’ responsibility statement Report on Review of Interim Condensed Consolidated Financial Statements Notes to the Interim Condensed Consolidated Financial Statements Alternative Performance Measures
FINANCIAL REVIEWmarket summary Gold price and demand momentum In H1 2025, the gold price continued its strong performance, climbing over 30% since the beginning of the year, and 41% y-o-y to US$ 3,284/oz as of 30 June 2025, reflecting markets’ unease over geopolitical tensions, medium-term recession risk and uncertain global trade policy. The all-time high during H1 2025 of US$ 3,426/oz was reached in April 2025. The average LBMA gold price for H1 2025 was US$ 3,067/oz – an increase of 39% y-o-y. Demand for gold (excluding OTC) for H1 2025 increased by 13% y-o-y to 2,385 tonnes. So far, in 2025, the key pillars of strong demand were elevated investment, particularly in ETFs, due to gold’s safe-haven attributes. Global trade policy uncertainty and continuous global geopolitical tensions created strong inflow momentum into gold-backed ETFs, driving holdings in H1 to 397 tonnes – the strongest half-year performance since 2020. Global jewellery consumption in H1 fell by 18% y-o-y to 724 tonnes on the back of persistent weakness from the biggest markets – China and India. Sharp increase in local gold prices negatively impacted consumer confidence and affordability driving demand close to the lows seen at the time of the COVID outbreak in 2020. Central banks, which usually accumulate gold for strategic purposes, demonstrated their sensitivity to the elevated price level. Although the overall demand remained healthy, gold accumulation slowed by 21% y-o-y to 415 tonnes. The National Bank of Kazakhstan reported a 21 tonnes increase in gold reserves, holding a total of 306 tonnes. Gold demand in the technology sector remained strong at 159 tonnes with a slight drop of 1% y-o-y mainly due to uncertainty over US tariffs. Total H1 2025 gold supply remained largely stable at 2,423 tonnes, compared to 2,397 tonnes in H1 2024. Foreign exchange The Company’s revenues are denominated in the US dollars, while the majority of the Company’s operating costs are denominated in the local currency, the Kazakhstani tenge (KZT). As a result, changes in exchange rates have an impact on the Company’s financial results and performance. In H1 2025, the Kazakhstani tenge exchange rate performed stronger than the Company’s budget level and averaged 512 KZT/US$, down 14% y-o-y (H1 2024: 449 KZT/US$). Weak performance was mainly due to the elevated domestic inflation of 11.8% and lower oil prices stemming from global trade uncertainty and oversupply.
Revenue
In H1 2025, revenue dropped by 54% y-o-y as a result of temporary delays in Kyzyl concentrate toll-processing at the Amursk POX and related deferral of sales. The Company’s average realised price for gold was US$ 3,161/oz in H1 2025, up 39% from US$ 2,267/oz in H1 2024, and 3% above the average market price of US$ 3,067/oz.
Sales decreased by 68% y-o-y due to the temporary sales lag at Kyzyl (see above). Sales at Varvara declined marginally on the back of the planned decrease in Komar and third-party ore grades, with the revenue recording a 33% y-o-y increase to US$ 251 million, driven by higher gold prices during the period. Cost of sales
The total cost of sales in H1 2025 decreased by 57% to US$ 155 million, reflecting a volume-based decrease in sales (-68% in gold equivalent terms) and related change in metal inventories of US$ 149 million. At the same time, cost of production was up by 5% to US$ 304 million, driven by local inflation and price-driven increase in mining tax. The cost of services and cost of consumables and spare parts were up 3% and 8% y-o-y respectively mostly due to the local inflation which was partially offset by the Kazakhstani tenge exchange rate depreciation. The cost of labour within cash operating costs was on par with H1 2024, as the inflation-linked increase in tenge denominated salaries was balanced by the KZT depreciation. The 19% y-o-y decrease in purchases of third-party ore was driven by the third-party ore grade reduction at the Varvara flotation circuit. Mining tax increased by 49% y-o-y, driven by the significant increase in average realised prices. Depreciation and depletion were largely stable at US$ 48 million. General, administrative and selling expenses
General, administrative and selling expenses decreased marginally y-o-y to US$ 34 million as the effect from the tenge depreciation and suspension of the share-based compensation plan compensated for an increase in services expenses. Other operating expenses
Other operating expenses decreased to US$ 9 million due to a combination of reasons, including lower social payments under annual memorandums with regional administrations and lower exploration expenses. TOTAL Cash costs[14] In H1 2025, total cash costs per GE ounce sold (TCC) were US$ 1,458/GE oz, up 52% y-o-y. Deferral of the Kyzyl sales, resulting in the spread of costs over a smaller number of ounces sold, combined with domestic inflation had an overall negative impact on the unit cost levels. For the full year, TCC are expected to decline to the upper edge of the US$ 1,000-1,100/GE oz guidance range as the sales will ramp-up in H2 2025. The table below summarises major factors that have affected the Company’s TCC and AISC y-o-y dynamics:
Total cash cost by segment/operation
ALL-IN SUSTAINING AND all-in cash costs[15] All-in sustaining cash costs (AISС) increased by 72% y-o-y to US$ 2,201/GE oz driven by the same factors which impacted TCC dynamics as well as an increase in sustaining CAPEX attributable to renewal of the mining fleet and higher capitalised stripping at Komar. All-in sustaining cash costs by segment/operation (US$/GE oz)
Adjusted EBITDA[17] and EBITDA margin
Adjusted EBITDA by segment/operation (US$m)
In H1 2025, Adjusted EBITDA was US$ 152 million, down 56% y-o-y, with an Adjusted EBITDA margin of 47%, mostly reflecting the decrease in gold equivalent sold stemming from the temporary sales lag at Kyzyl. At Varvara, Adjusted EBITDA increased by 77% to US$ 125 million driven by higher gold prices. Other income statement items In H1 2025, Solidcore recorded a net foreign exchange loss of US$ 8 million (H1 2024: US$ 6 million). The Company does not use any hedging instruments for managing foreign exchange risk, other than a natural hedge arising from the fact that the majority of the Company’s revenue is denominated or calculated in US dollars. Income tax expense for H1 2025 was US$ 33 million (H1 2024: US$ 49 million). The decrease was mainly attributable to a decline in operating profit as described above.
Net earnings, earnings per share and dividends The Company recorded net profit of US$ 85 million in H1 2025 versus US$ 238 million in H1 2024. The underlying net earnings attributable to the shareholders of the parent were US$ 101 million, compared to US$ 243 million in H1 2024. Reconciliation of underlying net earnings[18]
Basic earnings per share (EPS) was US$ 0.18 (H1 2024: US$ 0.50), underlying basic EPS[19] was US$ 0.21 (H1 2024: US$ 0.51). Capital expenditurE[20]
Total capital expenditure increased by 19% y-o-y to US$ 128[21] million in H1 2025. The increase is mainly related to the development of the Ertis POX project. Capital expenditure excluding capitalised stripping costs, was US$ 112 million in H1 2025 (H1 2024: US$ 82 million). The major capital expenditure items in H1 2025 were as follows: Development projects
Stay-in-business sustaining CAPEX at operating assets
Capital stripping was down to US$ 16 million (H1 2024: US$ 25 million) mainly due to the planned depletion of the Kyzyl open pit. Cash flows Cash flows include amounts of discontinued operations in H1 2024 as required by IFRS 5, unless otherwise stated.
Total cash and cash equivalents contracted compared to H1 2024 and comprised US$ 351 million, affected by the following items:
Besshoky copper-porphyry deposit in Karaganda region is the flagship asset in the Bai Tau Minerals’ (BTM) exploration portfolio. The project is currently progressing with an active drilling campaign and ongoing geological and technological studies. A mineral resource estimate is anticipated in the first half of 2026, with Solidcore expected to make a final investment decision in the second half of 2026. Earlier in 2024, Solidcore established a strategic partnership with BTM, providing a US$96 million loan facility to accelerate exploration and development of copper and gold projects across Kazakhstan. The loan is secured by a pledge of interest in BTM’s assets and includes rights that allow Solidcore preferential access to future ownership opportunities within BTM’s portfolio. balance sheet, Liquidity and funding
The Company’s Net cash position declined by 62% to US$ 143 million as of 30 June 2025, representing a Net cash/Adjusted EBITDA (over the last 12 months) ratio of negative 0.28x. As at 30 June 2025, the proportion of long-term borrowings to total borrowings was 50% (31 December 2023: 44%). The Company had US$ 139 million (31 December 2024: US$ 100 million) of available undrawn facilities. The weighted-average effective cost of debt in H1 2025 increased to 5.3% (H1 2024: 4.5%) due to repayment of historical debt facilities which were secured at more favourable rates. 99% of available cash balance of US$ 351 million is denominated in hard currency. The Company is confident in its ability to repay its existing borrowings as they fall due. INVENTORY Inventory levels increased by US$ 150 million to US$ 369 million at the end of H1 2025.
Payable metals in inventory accumulated at 30 June 2025 were as follows:
Metal in circuit level increased by 173 Koz to 258 Koz for the H1 2025, mostly comprising of Kyzyl concentrate and work-in-progress material accumulated due to processing delays at the Amursk POX. 2025 YEAR-END outlook With a portion of the concentrate inventory processing expected to be carried forward to 2026, full-year 2025 GE production is now forecast at 420 Koz, down from the original 470 Koz by 11%. TCC is expected to be at the upper end of the previously announced guidance range of US$ 1,000-1,100/GE oz. AISC guidance has been revised to US$ 1,450-1,550/GE oz, up from the original US$ 1,350-1,450/GE oz, primarily due to a stronger-than-budgeted tenge exchange rate in H1 2025 and lower projected production output at Kyzyl. PRINCIPAL RISKS AND UNCERTAINTIESThere are several potential risks and uncertainties which could have a material impact on the Company’s performance and could cause actual results to differ materially from expected and historical results. The principal risks and uncertainties facing the Company are categorised as follows:
A detailed explanation of these risks and uncertainties can be found on pages 94 to 101 of the 2024 annual report which is available at https://www.solidcore-resources.com/en/. The Board has acknowledged the concentrate sales deferral at Kyzyl and evaluated its impact on the revised production guidance and the Group’s financial and liquidity position. It was further noted that the Group assumes it has successfully adapted its sales routes, ensuring that net cash flows generated remain accessible within the Group; however, there can be no assurance that similar disruptions will not occur in the future. The Board also noted that the Group remains focused on advancing the full-scale construction of the Ertis POX, which is expected to reduce reliance on third-party concentrate offtake over the medium term. The directors note that, aside from this matter, the principal risks and uncertainties are largely unchanged from those set out in the annual report for the year ended 31 December 2024 and continue to apply to the Company for the remaining six months of the 2025 financial year. Further updates will be presented in the full annual financial report for 2025. GOING CONCERNIn assessing its going concern status, the Company has taken account of its financial position, anticipated future trading performance, its borrowings and other available credit facilities, its forecast compliance with covenants on those borrowings and capital expenditure commitments and plans. As part of the going concern assessment, the Group evaluated the impact of the revised production guidance, which has been reduced by 11% from 470 Koz to 420 Koz due to accumulated concentrate stockpiles at Kyzyl expected to be carried into 2026. The Group concluded that this adjustment will not have a material impact on its liquidity position or its ability to meet financial obligations. The Group is projected to maintain a substantial cash balance at year-end. Furthermore, the Group assumes that it has successfully adapted its sales routes and supply chain, ensuring that net cash flows generated will remain accessible within the Group. With the planned release of inventories and a projected increase in sales during the second half of the year, the Group anticipates generating significant positive free cash flow and maintaining a net cash position for the full year. In a stress scenario – incorporating simultaneous declines in gold and silver prices, a strengthening of the Kazakhstani tenge, and sales delays related to the deferral of Kyzyl sales – the Group’s income and profits would be adversely affected. As such, this does not represent the Group’s ‘best estimate’ forecast, but was considered in the Group’s assessment of going concern. However, as of the reporting date, the Group holds US$ 351 million in cash and US$ 139 million in undrawn credit facilities. When combined with forecasted net cash flows under this stress scenario, these resources are deemed sufficient to meet the Group’s financial obligations as they fall due over the next 12 months. No breaches of borrowing covenant requirements are expected under these conditions. The Group remains confident in its ability to settle obligations on time and has contingency plans in place, including potential reductions in production volumes and variable mining costs, as well as scaling back or deferring non-essential and non-committed capital expenditures where necessary. The Board is satisfied that the Company’s forecasts and projections, having taken account of reasonably possible changes in trading performance, show that the Company has adequate resources to continue in operational existence for at least the next 12 months from the date of this report and that it is appropriate to adopt the going concern basis in preparing these interim condensed consolidated financial statements. DIRECTORS’ RESPONSIBILITY STATEMENT Directors are responsible for the preparation of the interim condensed consolidated financial statements of Solidcore Resources plc (the “Company”) and its subsidiaries (the “Group”), which comprise the condensed consolidated statement of financial position as at 30 June 2025, and the condensed consolidated statement of profit or loss and other comprehensive income, condensed consolidated statement of changes in equity and condensed consolidated statement of cash flows for the six months ended 30 June 2025, in accordance with International Accounting Standard (IAS) 34, Interim Financial Reporting. In preparing the interim condensed consolidated financial statements, directors are responsible for:
Directors also are responsible for:
These interim condensed consolidated financial statements were approved and authorised for issue by the Board of Directors on 10 September 2025 and signed on its behalf by
REPORT ON REVIEW OF INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS To: Shareholders and Board of directors of Solidcore Resources plc IntroductionWe have reviewed the accompanying interim condensed consolidated financial statements of Solidcore Resources plc and its subsidiaries, which comprise the interim condensed consolidated statement of financial position as at 30 June 2025 and the related interim condensed consolidated statements of comprehensive income, changes in equity and cash flows for the six-month period then ended, and selected explanatory notes (interim financial information). Management is responsible for the preparation and presentation of this interim financial information in accordance with IAS 34, Interim Financial Reporting. Our responsibility is to express a conclusion on this interim financial information based on our review. Scope of reviewWe conducted our review in accordance with International Standard on Review Engagements 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. ConclusionBased on our review, nothing has come to our attention that causes us to believe that the accompanying interim financial information of Solidcore Resources plc and its subsidiaries is not prepared, in all material respects, in accordance with IAS 34, Interim Financial Reporting.
050660, Republic of Kazakhstan, Almaty Al-Farabi ave., 77/7, Esentai Tower 10 September 2025 CONDENSED CONSOLIDATED INCOME STATEMENT
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Solidcore Resources (the Group) is a leading gold producer based in Kazakhstan and listed on Astana International Exchange (AIX). Solidcore Resources plc (the “Company”) is the ultimate parent entity of Solidcore Resources and is incorporated in Astana International Financial Centre (AIFC) in Kazakhstan. Significant subsidiaries As of 30 June 2025 the Company held the following significant mining and production subsidiaries:
The Company also holds a 55% interest in the joint venture Tin One (“Syrymbet”). Basis of presentation The unaudited interim condensed consolidated financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting issued by the International Accounting Standards Board. They should be read in conjunction with the audited consolidated financial statements and the notes thereto included in the 2024 Annual Report of Solidcore Resources plc and its subsidiaries (“2024 Annual Report”) available at https://www.solidcore-resources.com. Accounting policies These interim condensed consolidated financial statements have been prepared under the historical cost convention as modified by the revaluation of certain financial instruments measured at fair value. The accounting policies and methods of computation applied are consistent with those adopted and disclosed in the Group’s consolidated financial statements for the year ended 31 December 2024, with the exception of new accounting pronouncements, which became effective on 1 January 2025 and have been adopted by the Group. The adoption of these new accounting pronouncements has not had a significant impact on the accounting policies, methods of computation or presentation applied by the Group. New accounting standards and amendments Certain new accounting standards and interpretations have been published that are either applicable in the current year or not mandatory for the current period. One amendment applies for the first time in 2025, but does not have an impact on the interim condensed consolidated financial statements of the Group. Lack of exchangeability – Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates specifies how an entity should assess whether a currency is exchangeable and how it should determine a spot exchange rate when exchangeability is lacking. The amendments also require disclosure of information that enables users of its financial statements to understand how the currency not being exchangeable into the other currency affects, or is expected to affect, the entity’s financial performance, financial position and cash flows. The amendments are effective for annual reporting periods beginning on or after 1 January 2025. When applying the amendments, an entity cannot restate comparative information. The amendments did not have a material impact on the Group’s financial statements. In addition, the following standards have been issued by the IASB and the Group is currently assessing their impact on its consolidated financial statements.
No standards have been early adopted in the current period. Going concern In assessing its going concern status, the Group has taken account of its financial position, anticipated future trading performance, its borrowings and other available credit facilities, its forecast compliance with covenants on those borrowings and capital expenditure commitments and plans. The Board is satisfied that the Group’s forecasts and projections, having taken account of reasonably possible changes in trading performance, show that the Group has adequate resources to continue in operational existence for at least the next 12 months from the date of this report and that it is appropriate to adopt the going concern basis in preparing these interim condensed consolidated financial statements. Functional and presentation currency The functional currency for each entity in the Group is determined as the currency of the primary economic environment in which it operates. The functional currency of the Group’s entities located and operating in Kazakhstan is the Kazakhstani tenge (KZT). The Group has chosen to present its consolidated financial statements in the US dollars (US$), as management believes it is the most useful presentation currency for international users of the consolidated financial statements of the Group as being common presentation currency in the mining industry. Exchange rates Exchange rates used in the preparation of the interim condensed consolidated financial statements were as follows:
The Group’s operating segments are aligned to those production hubs that are evaluated regularly by the chief operating decision maker (the CODM) in deciding how to allocate resources and in assessing performance. Therefore the Group has identified two reportable segments:
Ertis POX, as well as minor companies and activities (management, exploration and other companies) which do not meet the reportable segment criteria are disclosed within the corporate and other segment. During period ended 30 June 2025 the Group reclassified Baksy development project (Note 13) from «Corporate and other» to «Varvara» segment as this presentation is more meaningful from a management perspective. The comparative information was restated accordingly. The measure which management and the CODM use to evaluate the performance of the Group is a segment Adjusted EBITDA, which is an Alternative Performance Measure (APM). For more information on the APMs used by the Group, including definitions, please refer to page 36. The accounting policies of the reportable segments are consistent with those of the Group’s accounting policies under IFRS. Revenue and cost of sales of the production entities are reported net of any intersegmental revenue and cost of sales, related to the intercompany sales of ore and concentrates. Business segment current assets and liabilities, other than current inventory, are not reviewed by the CODM and therefore are not disclosed in these interim condensed consolidated financial statements. Additionally, net debt is included in performance measures, reviewed by CODM. The segment adjusted EBITDA reconciles to the profit before income tax from continuing operations as follows:
Revenue analysed by geographical regions of customers is presented below:
Included in revenues for the six months ended 30 June 2025 is revenue from customers with a share of total revenue greater than 10%. These were US$ 193 million, US$ 65 million and US$ 40 million, respectively (period ended 30 June 2024: US$ 381 million and US$ 92 million, respectively). Presented below is an analysis by revenue streams:
Depletion and depreciation of operating assets excludes depreciation relating to non-operating assets (included in general, administrative and selling expenses) and depreciation related to assets employed in development projects where the charge is capitalised. Depreciation expense, which is excluded in the Group’s calculation of Adjusted EBITDA (see Note 2), also excludes amounts absorbed into unsold metal inventory balances.
Interest expense on borrowings excludes borrowing costs capitalised in the cost of qualifying assets of US$ 1 million during the six months ended 30 June 2025 (30 June 2024: US$ 1 million). These amounts were calculated based on the Group’s general borrowing pool and by applying an effective annualised interest rates of 6.01% and 3.83%, respectively, to cumulative expenditure on such assets. Income tax for the six months ended 30 June 2025 is charged at 28%, representing the best estimate of the average annual effective tax rate expected for the full year, applied to the pre-tax income of the six month period.
No deferred tax liabilities for taxes that would be payable on the unremitted earnings of the Group subsidiaries was recognised as of 30 June 2025 as the Group determined that the undistributed profit of its subsidiaries would not be distributed in the foreseeable future (judged to be one year). The Group has applied the exception available under the amendments to IAS 12 published by the IASB in May 2023 and do not recognise or disclose information about deferred tax assets and liabilities related to Pillar Two income taxes. Based on the review of Pillar Two impact for the current year, no material amounts were identified to be accrued for the period ended 30 June 2025. The Group continues to monitor the impact of this legislation. There were no movement in the Company’s share capital and share premium during period ended 30 June 2025. As of 30 June 2025 the total number of voting rights in the Company amounted to 473,690,320 ordinary shares of nominal value US$ 0.03 each (31 December 2024: to 473,690,320 ordinary shares with no par value), each carrying one vote, and additionally the Company held 87,054,919 shares in treasury and such shares did not enjoy any voting or economic rights (31 December 2024: 87,054,919 shares).
The ordinary shares reflect 100% of the total issued share capital of the Company.
The calculation of the basic and diluted earnings per share is based on the following data: Weighted average number of shares: Diluted earnings per share Both basic and diluted earnings per share were calculated by dividing profit for the period attributable to equity holders of the parent by the weighted average number of outstanding common shares before/after dilution respectively. The calculation of the weighted average number of outstanding common shares after dilution is as follows:
There were no adjustments required to earnings for the purposes of calculating the diluted earnings per share in the current period (period ended 30 June 2024: nil). There were no adjustments to the weighted average number of shares for the purposes of calculating the diluted earnings per share in the current period (period ended 30 June 2024: none), as there are no outstanding Long-Term Incentive Plan (LTIP) awards as of the reporting date (30 June 2024: no dilutive potential ordinary shares). The remaining LTIP tranche, granted in 2021 lapsed during first half 2025 and, accordingly, the related balance of US$ 4 million in the share-based payment reserve was transferred into retained earnings (2024: US$ 31 million was transferred into retained earnings).
During period ended 30 June 2025 the Group transferred mineral rights of US$ 16 million related to Baksy project from exploration to development assets, and it has now been included in the Varvara segment mining plan.
Significant increase in metal inventories is related to Kyzyl concentrate.
Receivables from provisional copper, gold and silver concentrate sales increased to US$45 million as of 30 June 2025 (31 December 2024: US$ 19 million), primarily due to higher concentrate sales during the second quarter of 2025, for which revenue is expected to be received in the third quarter 2025.
Movements in borrowings are presented in Note 20 below.
The table below summarises maturities of borrowings:
Long-term borrowings, as detailed above, are governed by various financial and procedural covenants, in line with the standard terms of such agreements. If these covenants are not met, this may result in the borrowings becoming repayable on demand. For all outstanding loan balances, the Group has complied with all covenants that were required to be met on, or before 30 June 2025, and has the right to defer settlement for the non-current loans for a period of at least twelve months. The likelihood of the breach of existing covenants in future periods is remote.
The Group’s budgeted capital expenditure commitments as at 30 June 2025 amounted to US$ 140 million net of VAT (31 December 2024: US$ 11 million). Social commitmentsIn accordance with a various memoranda with regional Akimats (local Kazakhstan government bodies), the Group participates in financing of certain social and infrastructure development projects in the region. The total social expense commitment as at 30 June 2025 amounts to US$ 8 million, payable in the future periods. Kazakh tax, currency and customs legislation is subject to varying interpretations, and changes, which can occur frequently. Management’s interpretation of such legislation as applied to the transactions and activities of the companies of the Group may be challenged by the relevant regional and federal authorities and as a result, significant additional taxes, penalties and interest may be assessed. Fiscal periods remain open to review by the authorities in respect of taxes for five calendar years preceding the year of review. Under certain circumstances reviews may cover longer periods. Management has not identified any tax exposures in respect of contingent liabilities as of 30 June 2025 and 31 December 2024.
The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into Levels 1 to 3 based on the degree to which the fair value is observable as follows: Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 fair value measurements are those derived from inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly; and Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs). At 30 June 2025 and 31 December 2024, the Group held the following financial instruments at fair value. During both reporting periods presented, there were no transfers between levels of fair value hierarchy.
In June 2025 the Group completed the acquisition of 10.68% interest in JSC “Ulmus Besshoky” (Besshoky) for a total consideration of US$ 15 million. The acquisition was made through several consecutive deals with third parties. Besshoky is an exploration company, holding the Besshoky project in the Karaganda region, consisting of main exploration contracts and several exploration licenses for the adjacent areas. This investment in equity instruments is not held for trading. Instead, it was acquired for medium to long-term strategic purposes. Accordingly, the Group has elected to designate these investments in equity instruments as at FVTOCI as recognising short-term movements in the investment’s fair value in profit or loss would not be consistent with the group’s strategy of holding it for long-term purposes. Additionally, as of 30 June 2025 the Group held an interest rate swap contract, recognised within non-current accounts receivables and other financial instruments in the amount of US$ 3 million (31 December 2024: US$ 5 million). An interest rate swap contract exchanging floating rate interest amounts for fixed rate interest amounts is designated as cash flow hedges to reduce the Group’s cash flow exposure resulting from variable interest rates on borrowings. As the critical terms of the interest rate swap contracts and their corresponding hedged items are the same, the Group performs a qualitative assessment of effectiveness and it is expected that the value of the interest rate swap contracts and the value of the corresponding hedged items will systematically change in the opposite direction in response to movements in the underlying interest rates. As of 30 June 2025 and 30 June 2024 it was determined that there is no hedge ineffectiveness identified and therefore change of fair value was recognised within other comprehensive income. The carrying values of cash and cash equivalents, trade and other receivables, non-current loans and receivables, deposits related to mining contracts and licenses, trade and other payables at amortised cost approximate to their fair values. The estimated fair value of the Group’s debt, calculated using the market interest rate available to the Group as at 30 June 2025, is US$ 206 million (31 December 2024: US$ 308 million), and the carrying value as at 30 June 2024 is US$ 208 million (31 December 2023: US$ 322 million). The fair value of receivables arising from copper, gold and silver concentrate sales contracts that contain provisional pricing mechanisms is determined using the appropriate quoted forward price from the exchange that is the principal active market for the particular metal. As such, these receivables are classified within Level 2 of the fair value hierarchy. The Group’s valuation techniques used in the measurement of fair value for Level 3 financial liabilities were presented in Note 25 of the 2024 Annual Financial Statements and have been consistently applied in these interim condensed consolidated financial statements. The main level 3 inputs used by the Group are evaluated as follows:
During six months ended 30 June 2025 the Group recognised the loss from revaluation of its Level 3 financial instruments at FVTPL of US$ 11 million (30 June 2024: nil), representing loss on deferred consideration payable revaluation. The Directors consider that a reasonably possible change in a valuation assumption would not have a material impact on the interim condensed consolidated financial statements for deferred consideration payable. Related parties are considered to include shareholders, associates, joint ventures and entities under common ownership and control with the Group and members of key management personnel. During the period ended 30 June 2025 there were no significant transactions with the related parties (30 June 2024: no transactions with the related parties). Outstanding balances as of 30 June 2025 were represented by long-term loans advanced to the equity method investments amounting to US$ 4 million (31 December 2024: US$ 2 million).
During the period ended 30 June 2025, the capital expenditure related to the new projects, increasing the operating capacity amounts to US$ 70 million (period ended 30 June 2024: US$ 46 million). Cash and cash equivalents
During the year period ended 30 June 2025 finance income was US$ 18 million (2024: US$ 10 million) mainly related to the interest income from cash and cash equivalents. Changes in liabilities arising from financing activitiesThe table below details changes in the Group’s liabilities arising from financing activities, including both cash and non-cash changes. Liabilities from financing activities are those for which cash flows were, or future cash flows will be, classified in the Group’s condensed consolidated cash flow statements as cash flows from financing activities.
On July 18, 2025, the President of Kazakhstan signed a new Tax Code, which will come into effect on 1 January 2026. The new Tax Code introduces changes of tax administration and affects core areas, including corporate income taxes and mining tax. The Group is currently assessing the impact of changes on its consolidated financial statements. In July 2025 the Group entered into a credit facility agreement with Dutch bank ING for up to US$ 100 million, which is expected to be used the funds for general corporate purposes, including the refinancing of loans maturing this year. In July 2025, the Group announced its intention to conduct a final exchange offer followed by the mandatory buyback of the remaining blocked shares. The exchange offer invites shareholders whose rights have been affected by the sanctions imposed on NSD, subject to fulfilling eligibility criteria, to tender such shares for exchange in consideration for the AIX-issued shares, on a one-for-one basis. With respect to those shares which are not successfully tendered into the final exchange offer, and which continue to be held through Euroclear, the Company shall be empowered to mandatorily buyback such shares at US$ 2.57 per share. These corporate actions were approved by the General Meeting held on 29 July 2025. The announcement does not give rise to any obligations as of 30 June 2025 as date of this report.
ALTERNATIVE PERFORMANCE MEASURESIntroduction The financial performance reported by the Company contains certain Alternative Performance Measures (APMs), disclosed to complement measures that are defined or specified under International Financial Reporting Standards (IFRS). APMs should be considered in addition to, and not as a substitute for, measures of financial performance, financial position or cash flows reported in accordance with IFRS. The Company believes that these measures, together with measures determined in accordance with IFRS, provide the readers with valuable information and an improved understanding of the underlying performance of the business. APMs are not uniformly defined by all companies, including those within the Group’s industry. Therefore, the APMs used by the Company may not be comparable to similar measures and disclosures made by other companies. Purpose APMs used by the Company represent financial KPIs for clarifying the financial performance of the Company and measuring it against strategic objectives, given the following background:
APMs and justification for their use
[1] The financial performance reported by the Company contains certain Alternative Performance Measures (APMs) disclosed to complement measures that are defined or specified under International Financial Reporting Standards (IFRS). For more information on the APMs used by the Company, including justification for their use, please refer to the “Alternative performance measures” section below. [2] Profit for the year. [3] On a cash basis, representing cash outflow on purchases of property, plant and equipment in the consolidated statement of cash flows. [4] Totals may not correspond to the sum of the separate figures due to rounding. % changes can be different from zero even when absolute amounts are unchanged because of rounding. Likewise, % changes can be equal to zero when absolute amounts differ due to the same reason. This note applies to all tables in this release. [5] The amounts were restated to reflect adjustments made in connection with the presentation of discontinued operations. [6] Defined in the “Alternative performance measures” section below. [7] In accordance with IFRS, revenue is presented net of treatment charges which are subtracted in calculating the amount to be invoiced. Average realised prices are calculated as revenue divided by gold and silver volumes sold, without effect of treatment charges deductions from revenue. [8] Refers to non-meaningful dynamics hereinafter being either too small or too big difference, or when a number changes from negative to positive value. [9] Based on 80:1 Au/Ag conversion ratio and excluding base metals. Discrepancies in calculations are due to rounding. [10] LTIFR = lost time injury frequency rate per 200,000 hours worked. Company employees only are taken into account. [11] Based on actual realised prices. [12] Without effect of treatment charges deductions from revenue. [13] Commission sales of third-party materials. [14] Defined in the “Alternative performance measures” section below. [15] All-in sustaining cash costs comprise total cash costs, all selling, general and administrative expenses for operating mines and head office not included in TCC (mainly represented by head office SGA), other expenses (excluding write-offs and non-cash items, in line with the methodology used for calculation of Adjusted EBITDA), and current period capex for operating mines (i.e. excluding new project capital expenditure (development capital), but including all exploration expenditure (both expensed and capitalised in the period) and minor brownfield expansions). For more information refer to the “Alternative performance measures” section below. [16] Discrepancies are due to rounding. [17] Defined in the “Alternative performance measures” section below. [18] Defined in the “Alternative performance measures” section below. [19] Underlying basic EPS are calculated based on underlying net earnings. [20] On a cash basis. [21] On accrual basis, capital expenditure was US$ 132 million in H1 2025 (H1 2024: US$ 115 million). [22] H1 2025 – on a last twelve months basis. [23] Discontinued operations relate to the divestment of the Group’s Russian business, which was completed on 7 March 2024. The Group’s condensed consolidated income statement for the period ended 30 June 2024 was prepared in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations in order that the results of discontinued operations would be excluded from the continuing operations and presented as a single amount.
[24] The divestment of the Group’s Russian business was completed on 7 March 2024. On disposal the cumulative amount of the exchange differences related to the discontinued operations was recycled to Group’s income statement.
[25] Consolidated cash flows for the period ended 30 June 2024 include amounts of discontinued operations, related to the Russian business disposed of in 2024. Net cash used in investing activities during period ended 30 June 2024 was represented to reclassify net cash outflow on disposal of subsidiary of $US 215 million as a part of discontinued operations. [26] Consolidated cash flows for the period ended 30 June 2024 include amounts of discontinued operations, related to the Russian business disposed of in 2024. [27] Annualised basis for half-year results. [28] Excluding lease liabilities and royalty payments.
11/09/2025 Dissemination of a Financial Press Release, transmitted by EQS News. Media archive at www.todayir.com |
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