MINEX Forum

Tag: Navoi Gold

  • Navoi Gold Receives International Credit Rating from S&P Global Ratings

    Navoi Gold Receives International Credit Rating from S&P Global Ratings

    NMMC (JSC Navoi Mining and Metallurgical Company) has received its first credit rating from S&P Global Ratings. The Company was assigned a long-term credit rating of ‘BB-’ with an outlook of ‘Stable’, which aligns with Uzbekistan’s sovereign credit rating.

    As part of the rating process, S&P Global Ratings simultaneously assessed the Company’s stand-alone credit profile (SACP) at ‘bb+’, the highest grade ever assigned to a company from Uzbekistan.

    According to a release by S&P Global Ratings, “Uzbekistan-based Navoi Mining and Metallurgical Co. (NMMC) is the world’s fourth-largest gold producer with 2.9 million ounces (moz) of output in 2023, benefiting from the low cost of production and vast reserves, as well as conservative leverage metrics with funds from operations (FFO) to debt consistently above 60%”.

    At the end of 2023, the total cash cost (TCC) of NMMC amounted to $745 per ounce of gold, one of the lowest among companies S&P Global Ratings has evaluated. S&P Global Ratings expects that with favourable gold prices, NMMC will demonstrate high operational and financial performance in the years to come.

    Commenting on the S&P Global Ratings release, Evgeny Antonov, First Deputy CEO for Transformation, said:

    “Securing the Company’s first international credit rating marks an important milestone in the development of one of the largest enterprises in Uzbekistan. It broadens access to international capital markets, enhances the company’s global reputation, and validates the successful implementation of reforms and the ongoing transformation within our country and the Company itself.  The assignment of an S&P Global Ratings stand-alone credit profile (SACP) assessment at the level of ‘bb+’ is a historic event for enterprises in the Republic of Uzbekistan. It confirms the Company’s stable financial strategy and the high level of confidence that international financial market participants have in the Company’s plans for future development.”

    J.T. Khasanov, Deputy CEO for Economics and Finance of NMMC, emphasized:

    “Receiving the rating confirms the Company’s commitment to the principles of financial stability, independence, and transparency. Citi acted as an exclusive adviser to NMMC in connection with obtaining its credit rating. This achievement opens new horizons for us, facilitating NMMC’s entry into international capital markets and attracting investments on favourable terms to ensure further sustainable growth and enhance the company’s investment appeal.”

    Additional information about the Company is available on the website: https://www.ngmk.uz/en

    S&P Global Ratings release is available on the link.

    PRESS RELEASE

  • Navoi Gold: The Unsung Giant in the World of Gold Mining

    Navoi Gold: The Unsung Giant in the World of Gold Mining

    Toronto, 4 March 2024 — In an exclusive interview at the Prospectors & Developers Association of Canada (PDAC), MINEX Forum sat down with Evgeny Antonov, Chief Transformation Officer of Navoi Gold (Navoi Mining and Metallurgical Company) to learn about the company’s remarkable journey and its pivotal role in shaping Uzbekistan’s economy.

    Toronto, Canada – Navoi Gold, one of the largest gold producers globally, was showcasing its growth potential at the Prospectors & Developers Association of Canada (PDAC) convention in Canada on 3-6 March 2024. In an interview, the company’s Chief Transformation Officer shared insights into their plans for expansion and how they are working towards becoming a more attractive and understandable company for international investors.

    With an annual production of almost 3 million ounces of gold and a low cost per ounce, Navoi Gold is already a significant player in the gold mining industry. However, the company has no plans to slow down and is aiming to increase its production and resource base further. The company has a robust exploration program in place, with a budget of over $100 million for the year, to identify new targets and deepen their understanding of its flagship mine.

    The company is also committed to ESG principles and is taking steps to reduce its water consumption by 20% by 2030. Additionally, Navoi Gold is transitioning to renewable energy sources and plans to introduce over 500 megawatts of solar power by 2030.

    In terms of growth potential, Navoi Gold is looking to expand its production and resource base both organically and through partnerships with other companies. The company is considering teaming up with other companies and exploring new resources outside of their current area of operation, to become a truly international company.

    When asked about the company’s plans for listing on a stock exchange, Antonov explained that it is up to the company’s shareholder, which is currently 100% owned by the state, to decide if and when Navoi Gold will become a listed company. However, the company is taking steps to make sure they are fully ready for such a decision, including implementing IFRS reporting standards and recalculating its resource base according to international standards.

    Navoi Gold’s growth plans are aligned with the state’s plans to grow the economy by 2030, and the company feels a strong sense of responsibility to contribute to the growth of Uzbekistan’s economy. As the largest taxpayer and employer in the country, the company is committed to continuing to play a significant role in the economy and contributing to its growth.

    Overall, Navoi Gold is a company with a strong track record, ambitious growth plans, and a commitment to ESG principles. With their focus on innovation, technology, and partnerships, they are well-positioned to achieve their goals and become a leading player in the international gold mining industry.

    Watch the interview on the MINEX Forum YouTube Channel

  • Navoi Gold Attracts Global Investors, Showcasing Uzbekistan’s Mining Potential Main Body:

    Navoi Gold Attracts Global Investors, Showcasing Uzbekistan’s Mining Potential Main Body:

    Uzbekistan’s mining sector took center stage as Navoi Gold orchestrated a compelling international investor meeting at its Tashkent offices, drawing significant attention from prominent global investment firms. With JP Morgan Chase Bank in Uzbekistan lending support, the event saw participation from key entities such as Eaton Vance, Colchester Global, BlueCrest Capital, Pictet, and Actia.

    Emphasizing Navoi Gold’s commitment to excellence and innovation, Chief Transformation Officer E. Antonov and Chief Financial Officer J. Khasanov provided a deep dive into the company’s resilient performance, strategic transformation initiatives, and the integration of global best practices in its operations.

    Antonov stated, “Our vision aligns with global standards, aiming not only to enhance our operational efficiency but also to contribute significantly to Uzbekistan’s economy.”

    The discourse covered crucial topics, including technological advancements in mining, sustainability initiatives, and Navoi Gold’s strategic expansion plans. Investors expressed optimism about Uzbekistan’s mining sector and the broader economic landscape, acknowledging the positive dynamics and growth potential within the country.

    Navoi Gold actively seeks global partnerships, solidifying its position as a pivotal contributor to the economic development of the region.

  • Presentation on the launch of the Budgeting system on the 1C: ERP platform

    Presentation on the launch of the Budgeting system on the 1C: ERP platform

    As part of the Digital Transformation Program being implemented at Navoi Gold, a presentation on the launch of the budgeting functional system on the 1C: ERP platform was made.

    With the launch of the new system it is planned to perform the budgeting process more efficiently – from budgeting to its execution and evaluation. The system provides many advantages in comparison with the process of using Excel tables. Currently, 13 units of the company are already connected to the system and more than 150 budget forms and reports have been automated.

    Steps for further development of the budgeting system are planned for the period 2024-2025. These include integration with existing 1C accounting systems, cost limitation, and development of management reporting.