MINEX Forum

Tag: Gold Production

  • Almalyk Mining and Metallurgical Complex Begins Granulated Production of Gold, Silver, and Copper

    Almalyk Mining and Metallurgical Complex Begins Granulated Production of Gold, Silver, and Copper

    The Almalyk Mining and Metallurgical Complex (AGMK) has recently commenced the production of gold, silver, and copper in granulated form. According to company information, granulated gold is extensively used in the jewelryindustry, medicine, radioelectronics, microelectronics, the chemical industry, and the manufacturing of measuring instruments.

    In the jewelry industry, losses increase during the melting of bars and other mechanical processes, leading to financial losses for jewelers. The use of gold and silver granules helps reduce the cost of jewelry items and improve their quality. Moreover, raw materials in granulated form are a key requirement of leading manufacturers in the modern jewelry industry.

    In addition, AGMK specialists have also established the production of granulated copper. After analyzing the market, the company plans to start producing granules from other non-ferrous metals.

  • S&P Global Assigns First Credit Rating to Navoiy Mining and Metallurgy Combinat

    S&P Global Assigns First Credit Rating to Navoiy Mining and Metallurgy Combinat

    In a historic move, S&P Global Ratings has assigned its first-ever credit rating to the Navoiy Mining and Metallurgy Combinat (NMMC). The company received a long-term credit rating of “BB-“ with a stable outlook, matching Uzbekistan’s sovereign credit rating. Additionally, NMMC’s standalone credit profile is rated “BB+”, the highest rating ever awarded to a company in the country.

    According to the press release, NMMC produced 2.9 million troy ounces (90.2 tons) of gold in 2023, ranking it fourth globally. The company aims to increase production to 3.1 million troy ounces (96.4 tons) this year and reach up to 3.5 million troy ounces (108.8 tons) by 2030.

    The production cost of NMMC’s gold is currently $745 per troy ounce, one of the lowest among gold miners. This efficiency is attributed to cheap labor, high-quality ore, a well-developed production base and service infrastructure, and predominantly open-pit mining methods.

    S&P assessed NMMC’s financial condition as generally stable. The company’s credit load remains low, with an operating income to debt ratio of 60%. In 2023, NMMC’s EBITDA was $3.3 billion, and it is expected to increase to $4 billion in 2024 due to high global gold prices.

    NMMC hailed the credit rating as a “historic event”. Yevgeny Antonov, First Deputy General Director for Transformation, highlighted that S&P’s release is a significant milestone for the republic’s largest enterprise, enhancing its access to international capital markets and increasing its global recognition, indicating successful reforms and transformations within the country and the company.

    Despite this, S&P warns that NMMC, as the largest taxpayer in Uzbekistan (contributing 16.7% of the state budget), is in a potentially vulnerable position. NMMC is not insulated from negative government interference, as the state owns 100% of the company’s shares. Currently, the company’s mineral resources are estimated at 148 million ounces (4600 tons), with 60% of production coming from the largest deposit, Muruntau-Myutenbai. Any significant accident there could substantially impact production and revenue.

    Another major risk factor is the environment. Dwindling water resources could become a “particularly sensitive issue” for NMMC, given its operations in the Kyzylkum desert. Most of Uzbekistan relies on water from just two rivers, the Amu Darya and the Syr Darya, along with their tributaries. Rapid population growth, intensive agricultural and industrial water usage, significant water losses, and glacial melt could make water one of Uzbekistan’s scarcest resources in the short term, S&P noted.

  • Steppe Gold Shareholders Approve Boroo Gold Acquisition and Tres Cruces Project Sale

    Steppe Gold Shareholders Approve Boroo Gold Acquisition and Tres Cruces Project Sale

    Steppe Gold Ltd shareholders have overwhelmingly approved the acquisition of Boroo Gold and the sale of the Tres Cruces Oxide Project to Boroo Singapore for C$12 million. The approval, with 99% support, was secured at the annual meeting. Following this transaction, Steppe Gold will become the largest primary gold producer in Mongolia.

    The deal integrates Steppe’s ATO Gold Mine with Boroo Gold, aiming for an annual production of over 150,000 ounces of gold by 2026. Boroo Gold’s reported revenue of US$132 million in 2023 from 67,315 ounces of gold will provide immediate cash flows for the combined entity. The enlarged company expects to achieve cost savings through bulk purchasing and reduced administrative expenses.

    Additionally, this acquisition expands Steppe’s exploration opportunities near its existing mines, allowing the company to focus more closely on its Mongolian assets by divesting the Tres Cruces Project. The transaction, expected to close around July 16, is subject to regulatory approvals from the Toronto Stock Exchange and Mongolian authorities.

  • Kazakhstan Sees Significant Increase in Non-Ferrous Metal Production in April 2024

    Kazakhstan Sees Significant Increase in Non-Ferrous Metal Production in April 2024

    In April 2024, Kazakhstan significantly boosted the production of various non-ferrous metals. The country extracted 13.84 million tons of copper ore and 57,000 tons of copper-zinc ore during the month. These figures represent an increase of nearly 7% and 3% respectively compared to the previous year.

    Between January and April, miners extracted 52.16 million tons of copper ore, an 8.2% rise from 2023 levels, according to data released by the National Bureau of Statistics. In April alone, Kazakh companies produced 39,520 tons of unprocessed copper, up 8.4% year-on-year. Overall, nearly 160,000 tons of this metal were produced in the first four months of 2024, marking a 13.2% increase.

    The extraction of gold-bearing ores also showed positive growth in April. A total of 2.93 million tons were extracted, a slight increase of 1.3% from the previous year. The production of gold-bearing concentrates surged by 53.2% year-on-year, reaching approximately 34,000 tons. Additionally, the production of refined gold increased by 1.3 tons in April, nearly hitting the 6.5-ton mark, which is a 25.8% rise.

  • Dundee Precious Metals Reports Strong Gold Production at Bulgarian Mines

    Dundee Precious Metals Reports Strong Gold Production at Bulgarian Mines

    Dundee Precious Metals (DPM), a Canada-based company, announced that its Bulgarian mine, Chelopech, maintained its robust performance by delivering 37,500 ounces of gold in the first quarter of 2024. Despite slightly lower copper production of 6.7 million pounds due to decreased copper grades, as outlined in a recent press release, Chelopech continues to demonstrate resilience. Additionally, DPM’s Ada Tepe mine in Bulgaria yielded 25,200 ounces of gold in the same period, aligning with expectations. Looking ahead, DPM anticipates total gold production ranging between 245,000 and 285,000 ounces for the year across both mines, with copper production estimated to fall between 29 and 34 million pounds. Both Chelopech and Ada Tepe remain on course to meet their production targets for the year, according to DPM’s projections. Notably, DPM extended the operational lifespan of its Chelopech mine until 2032 following revised mineral reserve assessments in November.

  • Polymetal Completes Sale of Russian Assets, Focuses on Kazakhstan Operations

    Polymetal Completes Sale of Russian Assets, Focuses on Kazakhstan Operations

    Polymetal (Polymetal International plc) announced on March 11 the completion of the sale of its Russian assets. Polymetal, the second-largest gold producer in Kazakhstan, disclosed this information, as reported by Orda.kz.

    According to the company’s press service, Polymetal finalized the sale of 100% of the shares of JSC “Polymetal” (the holding company of the group’s Russian assets) to AO “Mangazeya Plus.” This move was aimed at mitigating risks. Vitaly Nesis, CEO of Polymetal, stated that the company intends to present a new strategy and capital allocation policy in May.

    “After the completion of the deal, the group’s net cash position is approximately $130 million,” the Polymetal press release stated.

    Polymetal Group is the second-largest gold producer in Kazakhstan, with two production assets in the country: Kyzyl (Bakyrchik deposit, Abai region) and Varvarinsky Hub (Varvarinsky and Komarovsky deposits, Kostanay region). The company also controls Irtysh GMK. Polymetal is registered with the MFCA with its head office in Astana, and its largest shareholder (23.9% stake) is Maaden International Investment from Oman.

    The company’s shareholders approved the sale of Russian assets at a meeting on March 7. The deal aims to restore the shareholder value of the Polymetal group by reducing risks. Selling the Russian business will enable the company to focus on the development and exploration of Kazakh deposits.

    Polymetal International plc was one of the companies that relocated to Kazakhstan from Russia. It was reported in May 2023 that the group was shifting its focus to the development of its Kazakh business and would be registered with the MFCA.

  • Centerra Gold Confirms Kumtor Gold Mine Ball Mill Repair Completion by Mid-April

    Centerra Gold Confirms Kumtor Gold Mine Ball Mill Repair Completion by Mid-April

    Centerra Gold Inc affirmed on Monday that the ball mill at its Kumtor gold mine in Kyrgyzstan will recommence operations by mid-April after undergoing repairs to its ring gear. Despite the shell replacement of the ball mill, Centerra assured that gold production and cash costs would remain unaffected by the maintenance activity. Owned 53 percent by uranium producer Cameco Corp, Centerra addressed concerns over delays stemming from the Kyrgyz government’s pending decision on ratifying the mine. Last month, both Canadian firms indicated that the Kyrgyz government required until April 30 to finalize its decision, a factor that has weighed on Centerra’s stock performance. Shares of Centerra experienced a dip to a three-month low on Monday morning, declining by 51 Canadian cents or 4.1 percent, trading at C$11.83 on the Toronto Stock Exchange.

  • Kumtor Gold Company Exceeds Gold Production Targets in 2023, Boosting Revenue and Profit

    Kumtor Gold Company Exceeds Gold Production Targets in 2023, Boosting Revenue and Profit

    Kumtor Gold Company, based in Kyrgyzstan, achieved remarkable milestones in 2023, surpassing its gold production targets and recording significant revenue and profit growth. The company’s production output totaled 15.567 tons of gold, slightly higher than the amount sold, which stood at 15.577 tons, reflecting robust operational efficiency and market demand. With revenue from production activities soaring to $849 million, Kumtor Gold exceeded its planned revenue of $734.2 million, driving a net profit of $302.4 million, well beyond the projected $194 million. Tax contributions to the republican budget further underscored the company’s substantial economic impact, amounting to 17.241 billion soms ($192.787 million).

    In a strategic move to optimize workflow and modernize equipment, Kumtor Gold implemented measures resulting in savings exceeding $30 million, demonstrating its commitment to operational excellence. Despite a reduction in capital investment volume to $111.5 million compared to the previous year, the company’s focus on efficiency enhancements yielded impressive financial outcomes.

    Moreover, Kumtor Gold reaffirmed its commitment to regional development by allocating significant funds to various initiatives. Notably, $8.389 million was directed towards the development of the Issyk-Kul region, while $5.033 million was allocated to the Naryn region development fund. Additionally, contributions to the Regional Development Partnership Fund and the Nature Development Fund further underscored the company’s dedication to environmental sustainability and community welfare.

    Kumtor Gold Company remains a cornerstone of the mining industry in Kyrgyzstan, spearheading the operation of the Kumtor project, the country’s largest gold mining enterprise. With a commitment to excellence, responsible production practices, and community engagement, Kumtor Gold continues to drive economic growth and social development in the region.

  • In the nine months of 2023, revenues from Kumtor amounted to nearly 20.5 billion soms

    In the nine months of 2023, revenues from Kumtor amounted to nearly 20.5 billion soms

    In the first nine months of 2023, Kyrgyzstan received 20 billion 489 million soms from the development of the Kumtor gold deposit, according to the Minister of Finance Almaz Baketaev.

    Of this, 7 billion 317 million soms contributed to GDP. A further 132 million soms were allocated for modernisation at the Kumtor Gold Company, 537 million soms went to the Issyk-Kul regional development fund and 322 million to the Naryn fund.

    In 2022, revenue from Kumtor totalled 34 billion 751 million soms. This incorporated 16 billion 849 million soms in outstanding payments covering several years, equivalent to 4% of GDP.

    President Sadyr Japarov stated 17.3 tons of gold were extracted at Kumtor in 2022. Taxes and mandatory payments totalled 32.2 billion soms with net profit of 371 million dollars.

    Thus far in 2023, 14 tons of gold have been extracted according to Kumtor Gold Company President Almaz Baryktabasov. In 2022, 140 million dollars in dividends were paid to the state budget representing approximately 25% of profits.

    The Kumtor Gold Company develops the Kumtor deposit in Issyk-Kul region. Kyrgyzstan gained full ownership after reaching consensus with Centerra Gold in April 2022 regarding outstanding environmental and economic claims.

  • Anglo Asian Mining plc reduced its gold production in Azerbaijan by 41% from January to September

    Anglo Asian Mining plc reduced its gold production in Azerbaijan by 41% from January to September

    Anglo Asian Mining, a British company operating gold deposits in Azerbaijan, has reported a decrease in gold production for the period of January-September 2023 compared to the same period last year. The company produced 28,686 thousand ounces of gold equivalent (GEO), a decrease of 33.4%. This includes 18,771 thousand ounces of gold (a 41.3% decrease), 2,111 thousand tons of copper (an 11.6% increase), and 50,272 thousand ounces of silver (a 65.2% decrease).

    The Gedabek deposit contributed 17,348 thousand ounces of gold (a 41.3% decrease) and 7,924 thousand ounces of silver (a 64.2% decrease) to the company’s production.

    On the global market, Anglo Asian Mining sold 13,406 thousand ounces of gold bars (a 37% decrease) at an average price of $1,949 per ounce during the January-September 2023 period. This is compared to an average price of $1,727 per ounce in the same period in 2022.

    During the first nine months of this year, the company produced 12,194 thousand tons of copper concentrate, marking a 19.4% increase. Of this, 9,006 thousand tons were sold for $13,487 million, a 14.9% increase, according to Interfax.

    Anglo Asian’s President and CEO, Reza Veziri, acknowledged the impact of an environmental inspection conducted by Micon at the Gedabek mine on the company’s performance. The inspection led to a two-month halt of the flotation and agitated leach plant, as well as the cessation of production at the Gedabek contract area in August. Veziri stated that the company is working with the government to address the identified areas for improvement and emphasized that the allegations of environmental pollution were found to be unfounded.

    As of September 30, 2023, Anglo Asian Mining had $1.6 million in cash, compared to $9.6 million on June 30. Additionally, the company paid $4.6 million in final dividends for 2022 in the third quarter.

    Anglo Asian Mining implemented a hedging program, selling 1,000 ounces of gold bars for $1,959 per ounce, resulting in additional revenue of $27,075 per ounce. In total, the company sold 2,900 ounces of gold bars in the third quarter. The company currently holds unsold stocks of precious metals worth $7 million, including gold and silver bars valued at $5.9 million, and copper concentrate worth $1.1 million.

    Anglo Asian Mining conducts its precious metal production from the Gedabek and Gosha contract areas. The company plans to commence production from the Vejnali and Gilar deposits this year. Under the production-sharing agreement signed in 1997, Anglo Asian Mining holds the rights to develop eight contract areas in Azerbaijan, with the country’s share in the contract standing at 51%.

    For 2023, the company forecasts a production range of 30,000 to 34,000 ounces in gold equivalent. Specifically, Anglo Asian Mining expects to produce 22,000 to 23,000 ounces of gold and 2,100 to 2,200 tons of copper.

    According to the strategic growth plan for 2023-2028, the company aims to increase its production of precious metals in Azerbaijan. By 2028, the production is projected to reach 175,000 ounces GEO, marking a 3.2-3.5 times increase from 2023.