Polymetal International plc Half-year report for the six months ended 30 June 2026
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Solidcore Resources plc (“Solidcore” or the “Company”) announces financial results for the six months ended 31 June 2026. “In H1, sales were held back due to temporary metal shipment delays from Amursk POX on the back of new custom regulations. However, we achieved good results thanks to higher gold prices and third-party processing recovery which helped offset cost pressure from the higher mineral extraction tax, domestic inflation and a stronger tenge. Our current financial position underpinned the board’s decision on capital return to shareholders inthe form of a one-off on-market tender offer which represents an efficient and equitable method to return capital to our shareholders”,said Vitaly Nesis, CEO of Solidcore Resources plc, commenting on the results. FINANCIAL HIGHLIGHTS
OPERATING HIGHLIGHTS
Conference call and webcast The Company will hold a webcast on Wednesday, 9 September 2026, at 17:00 Astana time (13:00 London time). To participate in the webcast, please register using the following link: https://edge.media-server.com/mmc/p/5dkfte3b 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 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 2026, the gold price reached new records before entering a correction phase: sustained investment momentum and heightened geopolitical tensions drove the price to an all-time high of US$ 5,405/oz in late January 2026, after which softer Western investor flows and profit-taking brought the price down to US$ 4,026/oz as of 30 June 2026 – a 7% decline since the beginning of the year, but still 22% higher y-o-y. The average LBMA gold price for H1 2026 was US$ 4,693/oz – an increase of 53% y-o-y. Demand for gold (excluding OTC) for H1 2026 decreased by 19% y-o-y to 1,951 tonnes, though total demand including OTC edged up 2% to 2,522 tonnes, worth a record US$ 380 billion. The decline largely reflects the normalisation of ETF flows. Net inflows into gold-backed ETFs amounted to 18 tonnes (H1 2025: 402 tonnes), with Q2 2026 seeing net outflows on the weaker gold price, revised US inflation and interest rate expectations and a stronger US dollar. In contrast, bar and coin investment rose by 21% y-o-y to 784 tonnes as retail investors bought into the correction. Global jewellery consumption in H1 fell by 21% y-o-y to 572 tonnes, falling to post-pandemic lows, as record price levels continued to weigh on consumer confidence and affordability in the biggest markets such as China and India. The increase in India’s gold import duty from 6% to 15% put further pressure on local demand. Central bank purchases for H1 2026 slowed by 17% y-o-y to 345 tonnes. However, after a muted Q1, buying recovered sharply in Q2 to 289 tonnes (+62% y-o-y). The National Bank of Kazakhstan remained among the most notable buyers, adding 27 tonnes of gold in H1 2026 to reach total reserves of over 360 tonnes. Gold demand in the technology sector remained resilient at 162 tonnes, up 2% y-o-y, as AI-related demand offset weakness in consumer electronics. Total H1 2026 gold supply increased by 2% y-o-y to 2,522 tonnes, with mine production reaching a record first-half level of 1,867 tonnes. 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 2026, the Kazakhstani tenge appreciated against the US dollar, averaging 486 KZT/US$, 5% stronger y-o-y (H1 2025: 512 KZT/US$), and stood at 486 KZT/US$ at the end of the period (H1 2025: 520 KZT/US$). The tenge was supported by tight monetary policy and foreign currency sales by the National Bank and the quasi-public sector. Annualised inflation moderated to 10.3% by June 2026 (June 2025: 11.8%), allowing the National Bank to cut the base rate from 18.0% to 17.0% in June 2026. Revenue
In H1 2026, revenue tripled y-o-y as a result of the normalisation of third-party concentrate processing of Kyzyl concentrate and a respective increase in sales as well as gold price growth. The Company’s average realised price for gold was US$ 4,748/oz in H1 2026, up 50% from US$ 3,161/oz in H1 2025. Average market price stood at US$ 4,693/oz.
Sales at Kyzyl increased fivefold y-o-y as a result of concentrate toll-processing recovery (see above). Sales at Varvara increased marginally on the back of higher grades at the leaching circuit. Combined with higher gold prices for the period both operations recorded substantial revenue increases. Cost of sales
Cost of sales grew to US$ 317 million (H1 2025: US$ 155 million), largely due to:
The cost of services was up by 9% y-o-y driven by inflation and KZT appreciation negatively affecting KZT-denominated costs. Cost of consumables and spare parts was maintained relatively unchanged y-o-y. The cost of labour within cash operating costs increased by 38% y-o-y, driven by higher headcount and inflation-linked increases in tenge-denominated salaries, further amplified by the appreciation of the KZT. The 10% y-o-y increase in purchases of third-party ore was driven by higher gold prices. General, administrative and selling (SGA) expenses
General, administrative and selling expenses increased by 47% y-o-y to US$ 50 million, driven by higher labour costs resulting from inflation-linked annual wage indexation, KZT appreciation and headcount growth, as well as higher other expenses due to increased consulting and IT services costs. Other operating expenses
Other operating expenses were broadly unchanged y-o-y. TOTAL Cash costs[14] In H1 2026, total cash costs per GE ounce sold (TCC) were US$1,435/1GE oz, largely stable y-o-y and within the guidance range of US$ 1,350-1,550. Kyzyl sales recovery after disruptions in H1 2025 offset the negative effect from the MET expenses increase, a price-driven increase in the cost of purchased ore, inflation and currency appreciation. For the full year, TCC are expected to stay within the guidance range as well. 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) were down by 13% y-o-y to US$ 1,912/GE oz on the back of the same factors affecting TCC dynamics while sustaining CAPEX per oz decreased as relatively stable absolute amount was spread over a larger number of ounces. For the full year, AISC are expected to stay within the guidance range of US$ 1,850-2,050/GE oz. All-in sustaining cash costs by segment/operation (US$/GE oz)
Adjusted EBITDA[17] and EBITDA margin
Adjusted EBITDA by segment/operation (US$m)
H1 2026 adjusted EBITDA increased fourfold y-o-y to US$ 641 million with a margin of 66%, reflecting higher sales and gold prices. Corporate and other costs increased by 59% due to higher SGA and other operating expenses (see costs analysis above). Other income statement items In H1 2026, Solidcore recorded a net foreign exchange loss of US$ 15 million (H1 2025: US$ 8 million) attributable to the revaluation of non-USD denominated loans, current accounts and deposits. The Company does not use any hedging instruments for managing foreign exchange risk, other than a natural hedge arising from the fact that most of the Company’s revenue is denominated or calculated in the US dollars. Net interest income amounted to US$ 36 million (H1 2025: US$ 10 million) driven by higher cash balance and interest rate on invested cash. Income tax expense for H1 2026 grew to US$ 159 million (H1 2025: US$ 33 million) on the back of net earnings increase. Net earnings, earnings per share and dividends The Company recorded net profit of US$ 453 million in H1 2026 versus US$ 85 million in H1 2025. The underlying net earnings attributable to the shareholders of the parent were US$ 465 million, compared to US$ 101 million in H1 2025. The results were mostly driven by positive EBITDA dynamics. Reconciliation of underlying net earnings[18]
Basic earnings per share (EPS) was US$ 1.02 (H1 2025: US$ 0.18), underlying basic EPS[19] was US$ 1.05 (H1 2025: US$ 0.21). Capital expenditurE[20]
Capital expenditure increased by 51% y-o-y to US$ 193[21] million. The increase is mainly related to the development of the Ertis POX project. Capital expenditure excluding capitalised stripping costs was US$ 187 million (H1 2025: US$ 112 million). The major capital expenditure items in H1 2026 were as follows: Development projects
Stay-in-business sustaining CAPEX at operating assets
Capital stripping was down to US$ 6 million (H1 2025: US$ 16 million) mainly due to the planned depletion of the Kyzyl open pit. Cash flows
In H1 2026, the Company generated solid operating cash flow of US$ 436 million versus outflow of US$ 86 million for the same period last year on the back of stronger adjusted EBITDA and higher working capital base of H1 2025 attributable to concentrate inventories accumulation. With US$ 193 million allocated to CAPEX, free cash flow (FCF)[22] for the reporting period totalled US$ 243 million and was distributed to the following activities:
As a result, FCF post-M&A and other investment activities was US$ 173 million. balance sheet, Liquidity and funding
The Company’s cash balance grew to US$ 878 million, net cash position stood at US$ 653 million (31 December 2025: US$ 464 million; 30 March 2026: US$ 699 million). As at 30 June 2026, gross debt stood at US$ 225 million. The proportion of long-term borrowings to total borrowings was 67% (31 December 2025: 61%). The Company also had US$ 124 million of available undrawn facilities. Following the end of the reporting period, the Company also secured US$ 700 million of loans for the Ertis POX construction. The weighted-average effective cost of debt in H1 2026 increased to 5.5% (H1 2025: 5.3%). 85% of available cash balance 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$ 108 million to US$ 447 million at the end of H1 2026.
Payable metals in inventory accumulated at 30 June 2026 were as follows:
Metal in circuit level increased by 50 Koz to 207 Koz for the H1 2026, mostly comprising Kyzyl concentrate and work-in-progress material at Amursk POX accumulated due to temporary shipment delays followingchanges to the Russian gold export regulations. Shipments to Kazakhstan successfully resumed in July. 2026 YEAR-END outlook The Company reiterates its full-year guidance: production of 540 GE Koz, TCC and AISC in the ranges of US$ 1,350-1,550/GE oz and US$ 1,850-2,050/GE oz respectively, and CAPEX of US$ 510 million. The estimate remains contingent on the KZT/US$ exchange rate, which has a significant effect on the Company’s local currency denominated operating costs, and the gold price.
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Omar Bahram Vice-Chair of the Board of Directors |
Vitaly Nesis Group Chief Executive Officer |
REPORT ON REVIEW OF INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
To: The Shareholders and Board of directors of Solidcore Resources plc
Introduction
We 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 2026 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 review
We 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.
Conclusion
Based 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.
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Paul Cohn Audit Partner |
Dinara Malayeva Auditor |
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Auditor Qualification Certificate No. МФ-0000323 dated 25 February 2016 |
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Adil Syzdykov Ernst & Young LLP Branch |
Rustamzhan Sattarov General Director Ernst & Young LLP |
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License for carrying on ancillary services in accordance with the Acting Law of the Astana International Financial Center (AIFC), No. AFSA-A-LA-2020-0007 issued by AFSA on 28 February 2020. |
State Audit License for audit activities on the territory of the Republic of Kazakhstan: series МФЮ–2, №0000003, issued by the Ministry of Finance of the Republic of Kazakhstan on 15July 2005 |
Z05H9K3, Republic of Kazakhstan, Astana
Dostyk str., 16, Talan Towers building
8 September 2026
INTERIM CONDENSED CONSOLIDATED INCOME STATEMENT
|
Period ended |
Period ended |
||||
|
Note |
30 June 2026 |
30 June 2025 |
|||
|
US$m |
US$m |
||||
|
Revenue |
3 |
972 |
325 |
||
|
Cost of sales |
4 |
(317) |
(155) |
||
|
Gross profit |
655 |
170 |
|||
|
General, administrative and selling expenses |
8 |
(50) |
(34) |
||
|
Other operating expenses, net |
9 |
(9) |
(9) |
||
|
Operating profit |
596 |
127 |
|||
|
Foreign exchange loss, net |
(15) |
(8) |
|||
|
Change in fair value of financial instruments |
– |
(11) |
|||
|
Impairment losses on financial assets |
16 |
(5) |
– |
||
|
Finance costs |
10 |
(8) |
(8) |
||
|
Finance income |
11 |
44 |
18 |
||
|
Profit before income tax |
612 |
118 |
|||
|
Income tax |
12 |
(159) |
(33) |
||
|
Profit for the period |
453 |
85 |
|||
|
Profit for the period attributable to: |
|||||
|
Equity shareholders of the Parent |
453 |
85 |
|||
|
453 |
85 |
||||
|
Earnings per share (US$) |
|||||
|
Basic |
13 |
1.02 |
0.18 |
||
|
Diluted |
13 |
1.02 |
0.18 |
||
INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
|
Period ended |
Period ended |
||||
|
Note |
30 June 2026 |
30 June 2025 |
|||
|
US$m |
US$m |
||||
|
Profit for the period |
453 |
85 |
|||
|
Other comprehensive income, net of income tax |
67 |
8 |
|||
|
Items that will not be reclassified subsequently to profit or loss |
|||||
|
Fair value loss arising on equity investments designated at FVTOCI |
20 |
(7) |
– |
||
|
Effect of translation to presentation currency |
75 |
10 |
|||
|
Items that may be reclassified to profit or loss |
|||||
|
Fair value loss arising on hedging instruments during the period |
20 |
(1) |
(2) |
||
|
Total comprehensive profit for the period |
520 |
93 |
|||
|
Total comprehensive income for the period attributable to: |
520 |
93 |
|||
|
Equity shareholders of the Parent |
520 |
93 |
|||
INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
|
Note |
30 June 2026 |
31 December 2025[24] |
|||
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Assets |
US$m |
US$m |
|||
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Property, plant and equipment |
14 |
1,254 |
1,034 |
||
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Investments in associates and joint ventures |
93 |
82 |
|||
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Non-current inventories |
15 |
41 |
44 |
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Non-current accounts receivable and other financial assets |
16 |
215 |
161 |
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Non-current financial assets at fair value |
20 |
31 |
28 |
||
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Non-current VAT receivable |
14 |
14 |
|||
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Deferred tax assets |
3 |
7 |
|||
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Total non-current assets |
1,651 |
1,370 |
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Current inventories |
15 |
406 |
295 |
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Prepayments to suppliers |
48 |
48 |
|||
|
Income tax prepaid |
1 |
9 |
|||
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VAT receivable |
116 |
56 |
|||
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Accounts receivable and other financial assets |
16 |
17 |
85 |
||
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Time deposits with original maturities greater than three months |
139 |
105 |
|||
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Cash and cash equivalents |
22 |
878 |
731 |
||
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Total current assets |
1,605 |
1,329 |
|||
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Total assets |
3,256 |
2,699 |
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Liabilities and shareholders’ equity |
|||||
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Non-current borrowings |
18 |
(150) |
(162) |
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Provisions |
17 |
(56) |
(37) |
||
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Deferred tax liabilities |
(41) |
(37) |
|||
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Other non-current liabilities |
(5) |
– |
|||
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Total non-current liabilities |
(252) |
(236) |
|||
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Accounts payable and accrued liabilities |
(86) |
(66) |
|||
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Current borrowings |
18 |
18 |
(75) |
(105) |
|
|
Income tax payable |
(26) |
(30) |
|||
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Other taxes payable |
(75) |
(55) |
|||
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Current provisions |
17 |
(9) |
(5) |
||
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Total current liabilities |
(271) |
(261) |
|||
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Total liabilities |
(523) |
(497) |
|||
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NET ASSETS |
2,733 |
2,202 |
|||
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Share capital |
13 |
14 |
14 |
||
|
Share premium |
13 |
2,436 |
2,436 |
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Treasury shares |
20 |
(68) |
(79) |
||
|
Cash flow hedging reserve |
1 |
2 |
|||
|
Fair value reserve |
4 |
11 |
|||
|
Translation reserve |
(1,117) |
(1,192) |
|||
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Retained earnings |
1,463 |
1,010 |
|||
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Total equity |
2,733 |
2,202 |
|||
|
Total liabilities and shareholders’ equity |
(3,256) |
(2,699) |
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
|
Period ended |
Period ended |
||||
|
30 June 2026 |
30 June 2025 |
||||
|
Note |
US$m |
US$m |
|||
|
Net cash generated by/(used in) operating activities |
22 |
436 |
(86) |
||
|
Cash flows from investing activities |
|||||
|
Purchases of property, plant and equipment |
(193) |
(128) |
|||
|
Net cash outflow on acquisition of financial assets |
20 |
– |
(15) |
||
|
Placement in time deposits |
(34) |
– |
|||
|
Loans advanced |
(41) |
(15) |
|||
|
Repayment of loans provided |
5 |
9 |
|||
|
Net cash used in investing activities |
(263) |
(149) |
|||
|
Cash flows from financing activities |
|||||
|
Borrowings obtained |
22 |
11 |
21 |
||
|
Repayments of borrowings |
22 |
(52) |
(137) |
||
|
Net cash used in financing activities |
(41) |
(116) |
|||
|
Net increase/(decrease) in cash and cash equivalents |
132 |
(351) |
|||
|
Cash and cash equivalents at the beginning of the period |
22 |
731 |
696 |
||
|
Effect of foreign exchange rate changes on cash and cash equivalents |
15 |
6 |
|||
|
Cash and cash equivalents at the end of the financial period |
22 |
878 |
351 |
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
|
Note |
Share capital |
Share premium |
Treasury shares |
Share-based compensation reserve |
Cash flow hedging reserve |
Fair value reserve |
Translation reserve |
Retained earnings |
Total |
|
|
US$m |
US$m |
US$m |
US$m |
US$m |
US$m |
US$m |
US$m |
US$m |
||
|
Balance at 1 January 2025 (audited) |
14 |
2,436 |
– |
4 |
5 |
– |
(1,288) |
344 |
1,515 |
|
|
Profit for the financial period |
– |
– |
– |
– |
– |
– |
– |
85 |
85 |
|
|
Other comprehensive income/(loss), net of income tax |
– |
– |
– |
– |
(2) |
– |
10 |
– |
8 |
|
|
Total comprehensive (loss)/ income |
– |
– |
– |
– |
(2) |
– |
10 |
85 |
93 |
|
|
Transfer to retained earnings |
13 |
– |
– |
– |
(4) |
– |
– |
– |
4 |
– |
|
Balance at 30 June 2025 (unaudited) |
14 |
2,436 |
– |
– |
3 |
– |
(1,278) |
433 |
1,608 |
|
|
Balance at 1 January 2026 (audited) |
14 |
2,436 |
(79) |
– |
2 |
11 |
(1,192) |
1,010 |
2,202 |
|
|
Profit for the financial period |
– |
– |
– |
– |
– |
– |
– |
453 |
453 |
|
|
Other comprehensive (loss)/ income, net of income tax |
– |
– |
– |
– |
(1) |
(7) |
75 |
– |
67 |
|
|
Total comprehensive income/(loss) |
– |
– |
– |
– |
(1) |
(7) |
75 |
453 |
520 |
|
|
Conditional share exchange |
20 |
– |
– |
11 |
– |
– |
– |
– |
– |
11 |
|
Balance at 30 June 2026 (unaudited) |
14 |
2,436 |
(68) |
– |
1 |
4 |
(1,117) |
1,463 |
2,733 |
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
- GENERAL
Solidcore Resources plc (the “Company”) is a public limited company domiciled in Kazakhstan and incorporated in the Astana International Financial Centre (AIFC). The registered office is 1306 Office, 13th Floor, 10 Dinmukhamed Qonayev Street, Esil District, Astana, 010000, Kazakhstan. The consolidated financial statements comprise the Company and its subsidiaries (together, the “Group”). The Group’s principal activities are gold mining and related processing in Kazakhstan.
Solidcore Resources plc (the Company) is the ultimate parent entity of the Solidcore Resources Group.
Significant subsidiaries
As of 30 June 2026, the Company held the following significant mining and production subsidiaries:
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Effective interest held, % |
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Name of subsidiary |
Deposits and production facilities |
Segment |
Country of incorporation |
30 June |
31 December 2025 |
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Varvarinskoye LLC |
Varvara |
Varvara |
Kazakhstan |
100 |
100 |
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Bakyrchik Mining Venture LLC |
Kyzyl |
Kyzyl |
Kazakhstan |
100 |
100 |
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Komarovskoye Mining Company LLC |
Komar |
Varvara |
Kazakhstan |
100 |
100 |
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Ertis Hydrometallurgical Plant LLC |
Ertis POX |
Corporate and other |
Kazakhstan |
100 |
100 |
|
The Company also holds a 55% interest in the joint venture Tin One(“Syrymbet”). Although the Group holds a 55% ownership interest in Tin One, the relevant activities of Tin One require unanimous consent of the parties sharing control under the contractual arrangements. Accordingly, the Group has joint control over Tin One and accounts for the investment as a joint venture using the equity method.
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 2025 Annual Report of Solidcore Resources plc and its subsidiaries (“2025 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 2025, with the exception of new accounting pronouncements, which became effective on 1 January 2026 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
The following amendments became effective for annual reporting periods beginning on or after 1 January 2026 and have been adopted by the Group:
- Amendments to the Classification and Measurement of Financial Instruments (Amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures);
- Annual Improvements to IFRS Accounting Standards — Volume 11; and
- Contracts Referencing Nature-dependent Electricity (Amendments to IFRS 9 and IFRS 7).
The adoption of these amendments has not had a significant impact on the Group’s accounting policies, methods of computation or the presentation of these interim condensed consolidated financial statements.
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 principal operating subsidiaries in Kazakhstan is the Kazakhstani tenge (KZT). The functional currency of the Company is Kazakhstani tenge, determined based on the currency of the primary economic environment in which the Company operates.
The Group has chosen to present its consolidated financial statements in millions of US Dollars (US$m), 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 (based on information provided by National Bank of Kazakhstan):
|
Kazakh Tenge/US Dollar |
|
|
As at 30 June 2026 |
485.82 |
|
As at 31 December 2025 |
502.57 |
|
Average 1H 2026 |
486.34 |
|
Average 1H 2025 |
512.08 |
- SEGMENT INFORMATION
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:
- Varvara (Varvarinskoye LLC, Komarovskoye Mining Company LLC); and
- Kyzyl (Bakyrchik Mining Venture LLP).
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.
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 41.
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. The segment adjusted EBITDA reconciles to the profit before income tax from continuing operations as follows:
|
Period ended 30 June 2026 |
Period ended 30 June 2025 |
|||||||||||||||||||||
|
Varvara |
Kyzyl |
Total reportable segments |
Corporate and other |
Total |
Varvara |
Kyzyl |
Total reportable segments |
Corporate and other |
Total |
|||||||||||||
|
Revenue from external customers |
393 |
579 |
972 |
– |
972 |
251 |
74 |
325 |
– |
325 |
||||||||||||
|
Doré |
331 |
234 |
565 |
– |
565 |
186 |
7 |
193 |
– |
193 |
||||||||||||
|
Concentrate |
62 |
– |
62 |
– |
62 |
65 |
67 |
132 |
– |
132 |
||||||||||||
|
Bullions |
– |
345 |
345 |
– |
345 |
– |
– |
– |
– |
– |
||||||||||||
|
Cost of sales, excluding depreciation, depletion and write-down of inventory to net realisable value |
153 |
121 |
274 |
– |
274 |
114 |
17 |
131 |
– |
131 |
||||||||||||
|
Cost of sales |
171 |
146 |
317 |
– |
317 |
134 |
21 |
155 |
– |
155 |
||||||||||||
|
On-mine costs |
43 |
52 |
95 |
– |
95 |
31 |
59 |
90 |
– |
90 |
||||||||||||
|
Smelting costs |
28 |
35 |
63 |
– |
63 |
25 |
29 |
54 |
– |
54 |
||||||||||||
|
Purchase of ore from third parties |
53 |
– |
53 |
– |
53 |
48 |
48 |
– |
48 |
|||||||||||||
|
Mining tax |
40 |
102 |
142 |
– |
142 |
13 |
51 |
64 |
– |
64 |
||||||||||||
|
Change in metal inventories less depreciation |
(11) |
(68) |
(79) |
– |
(79) |
(3) |
(122) |
(125) |
– |
(125) |
||||||||||||
|
Depreciation included in cost of sales |
(18) |
(25) |
(43) |
– |
(43) |
(20) |
(4) |
(24) |
– |
(24) |
||||||||||||
|
General, administrative and selling expenses, excluding depreciation, amortisation and share based compensation |
10 |
7 |
17 |
31 |
48 |
8 |
9 |
17 |
16 |
33 |
||||||||||||
|
General, administrative and selling expenses |
10 |
8 |
18 |
32 |
50 |
8 |
10 |
18 |
16 |
34 |
||||||||||||
|
Depreciation included in SGA |
– |
(1) |
(1) |
(1) |
(2) |
– |
(1) |
(1) |
– |
(1) |
||||||||||||
|
Other operating expenses excluding additional tax charges |
5 |
8 |
13 |
(4) |
9 |
4 |
4 |
8 |
1 |
9 |
||||||||||||
|
Adjusted EBITDA |
225 |
443 |
668 |
(27) |
641 |
125 |
44 |
169 |
(17) |
152 |
||||||||||||
|
Depreciation expense |
18 |
26 |
44 |
1 |
45 |
20 |
5 |
25 |
– |
25 |
||||||||||||
|
Operating profit |
207 |
417 |
624 |
(28) |
596 |
105 |
39 |
144 |
(17) |
127 |
||||||||||||
|
Foreign exchange loss, net |
(15) |
(8) |
||||||||||||||||||||
|
Impairment losses on financial assets |
(5) |
– |
||||||||||||||||||||
|
Change in fair value of deferred consideration liability |
– |
(11) |
||||||||||||||||||||
|
Finance expenses |
(8) |
(8) |
||||||||||||||||||||
|
Finance income |
44 |
18 |
||||||||||||||||||||
|
Profit before tax |
612 |
118 |
||||||||||||||||||||
|
Income tax expense |
(159) |
(33) |
||||||||||||||||||||
|
Profit for the financial period |
453 |
85 |
||||||||||||||||||||
|
30 June 2026 |
31 December 2025 |
|||||||||||||||||||||
|
Current metal inventories |
54 |
300 |
354 |
– |
354 |
35 |
214 |
249 |
– |
249 |
||||||||||||
|
Current non-metal inventories |
15 |
33 |
48 |
4 |
52 |
13 |
28 |
41 |
5 |
46 |
||||||||||||
|
Non-current segment assets: |
– |
– |
||||||||||||||||||||
|
Property, plant and equipment, net |
330 |
450 |
780 |
474 |
1,254 |
292 |
438 |
730 |
304 |
1,034 |
||||||||||||
|
Non-current inventory |
34 |
7 |
41 |
– |
41 |
37 |
7 |
44 |
– |
44 |
||||||||||||
|
Investments in associates and joint ventures |
– |
– |
– |
93 |
93 |
– |
– |
– |
82 |
82 |
||||||||||||
|
Total segment assets |
433 |
790 |
1,223 |
571 |
1,794 |
377 |
687 |
1,064 |
391 |
1,455 |
||||||||||||
|
Additions to non-current assets: |
||||||||||||||||||||||
|
Property, plant and equipment |
51 |
11 |
62 |
164 |
226 |
46 |
11 |
57 |
75 |
132 |
||||||||||||
- REVENUE
|
Six months ended |
||||
|
30 June 2026 |
30 June 2025 |
|||
|
US$m |
US$m |
|||
|
Gold |
966 |
322 |
||
|
Other metals |
6 |
7 |
||
|
Revenue before treatment charges |
972 |
329 |
||
|
Less: treatment charges |
– |
(4) |
||
|
Total |
972 |
325 |
||
Revenue growth was driven by third-party concentrate processing and respective sales recovery as well as higher gold prices.
Revenue analysed by geographical regions of customers is presented below:
|
Six months ended |
||||
|
30 June 2026 |
30 June 2025 |
|||
|
US$m |
US$m |
|||
|
Sales to Kazakhstan |
972 |
269 |
||
|
Sales to Asia |
– |
56 |
||
|
Total |
972 |
325 |
||
Included in revenues for the six months ended 30 June 2026 is revenue from two customers that individually accounted for more than 10% of the Group’s total revenue. Revenue from these two largest customers comprised US$ 565 million (US$ 234 million from Kyzyl sales, US$ 331 million from Varvara sales) and US$ 345 million (relating to Kyzyl sales) respectively.
For the six months ended 30 June 2025 revenue from the three largest customers comprised US$ 193 million (US$ 187 million from Varvara sales, US$ 6 million from Varvara sales), US$ 65 million (from Varvara sales) and US$ 40 million (relating to Kyzyl sales).
Presented below is an analysis by revenue streams:
|
Six months ended |
||||
|
30 June 2026 |
30 June 2025 |
|||
|
US$m |
US$m |
|||
|
Doré |
565 |
193 |
||
|
Concentrate |
62 |
132 |
||
|
Bullions |
345 |
– |
||
|
Total |
972 |
325 |
||
- COST OF SALES
|
Six months ended |
||||
|
30 June 2026 |
30 June 2025 |
|||
|
US$m |
US$m |
|||
|
Cash operating costs |
||||
|
On-mine costs (Note 5) |
95 |
90 |
||
|
Smelting costs (Note 6) |
63 |
54 |
||
|
Purchase of metal inventories from third parties |
53 |
48 |
||
|
Mining tax |
142 |
64 |
||
|
Total cash operating costs |
353 |
256 |
||
|
Depreciation and depletion of operating assets (Note 7) |
52 |
48 |
||
|
Total costs of production |
405 |
304 |
||
|
Increase in metal inventories |
(88) |
(149) |
||
|
Total |
317 |
155 |
||
Revenue growth was driven by third-party concentrate processing and respective sales recovery as well as higher gold prices.
Revenue analysed by geographical regions of customers is presented below:
|
Six months ended |
||||
|
30 June 2026 |
30 June 2025 |
|||
|
US$m |
US$m |
|||
|
Sales to Kazakhstan |
972 |
269 |
||
|
Sales to Asia |
– |
56 |
||
|
Total |
972 |
325 |
||
Included in revenues for the six months ended 30 June 2026 is revenue from two customers that individually accounted for more than 10% of the Group’s total revenue. Revenue from these two largest customers comprised US$ 565 million (US$ 234 million from Kyzyl sales, US$ 331 million from Varvara sales) and US$ 345 million (relating to Kyzyl sales) respectively.
For the six months ended 30 June 2025 revenue from the three largest customers comprised US$ 193 million (US$ 187 million from Varvara sales, US$ 6 million from Varvara sales), US$ 65 million (from Varvara sales) and US$ 40 million (relating to Kyzyl sales).
Presented below is an analysis by revenue streams:
|
Six months ended |
||||
|
30 June 2026 |
30 June 2025 |
|||
|
US$m |
US$m |
|||
|
Doré |
565 |
193 |
||
|
Concentrate |
62 |
132 |
||
|
Bullions |
345 |
– |
||
|
Total |
972 |
325 |
||
- ON-MINE COSTS
|
Six months ended |
||||
|
30 June 2026 |
30 June 2025 |
|||
|
US$m |
US$m |
|||
|
Services |
50 |
48 |
||
|
Labour |
17 |
13 |
||
|
Consumables and spare parts |
26 |
28 |
||
|
Other expenses |
2 |
1 |
||
|
Total (Note 4) |
95 |
90 |
||
- SMELTING COSTS
|
Six months ended |
||||
|
30 June 2026 |
30 June 2025 |
|||
|
US$m |
US$m |
|||
|
Consumables and spare parts |
24 |
24 |
||
|
Services |
26 |
22 |
||
|
Labour |
12 |
8 |
||
|
Other expenses |
1 |
– |
||
|
Total (Note 4) |
63 |
54 |
||
- DEPLETION AND DEPRECIATION OF OPERATING ASSETS
|
Six months ended |
||||
|
30 June 2026 |
30 June 2025 |
|||
|
US$m |
US$m |
|||
|
On-mine |
42 |
37 |
||
|
Smelting |
10 |
11 |
||
|
Total in cost of production (Note 4) |
52 |
48 |
||
|
Less: absorbed into metal inventories |
(9) |
(24) |
||
|
Depreciation included in cost of sales |
43 |
24 |
||
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.
- GENERAL, ADMINISTRATIVE AND SELLING EXPENSES
|
Six months ended |
||||
|
30 June 2026 |
30 June 2025 |
|||
|
US$m |
US$m |
|||
|
Labour |
31 |
21 |
||
|
Services |
5 |
7 |
||
|
Depreciation |
2 |
1 |
||
|
Audit and consulting |
5 |
2 |
||
|
Other |
7 |
3 |
||
|
Total |
50 |
34 |
||
- OTHER OPERATING EXPENSES, NET
|
Six months ended |
||||
|
30 June 2026 |
30 June 2025 |
|||
|
US$m |
US$m |
|||
|
Taxes, other than income tax |
5 |
4 |
||
|
Social payments |
5 |
7 |
||
|
Exploration expenses |
1 |
– |
||
|
Other expenses/(income) |
(2) |
(2) |
||
|
Total |
9 |
9 |
||
- FINANCE COSTS
|
Six months ended |
||||
|
30 June 2026 |
30 June 2025 |
|||
|
US$m |
US$m |
|||
|
Interest expense on borrowings |
3 |
5 |
||
|
Unwinding of discount on environmental obligations and social liabilities |
5 |
3 |
||
|
Total |
8 |
8 |
||
Interest expense on borrowings excludes borrowing costs capitalised in the cost of qualifying assets of US$ 5 million during the six months ended 30 June 2026 (30 June 2025: US$ 1 million). These amounts were calculated based on the Group’s general borrowing pool and by applying an effective annualised interests rates of 5.61% and 6.01%, respectively, to cumulative expenditure on such assets.
- FINANCE INCOME
|
Six months ended |
||||
|
30 June 2026 |
30 June 2025 |
|||
|
US$m |
US$m |
|||
|
Interest income on cash and cash equivalents |
41 |
18 |
||
|
Interest income on time deposits |
3 |
– |
||
|
Total |
44 |
18 |
||
- INCOME TAX
Income tax for the six months ended 30 June 2026 is charged at 26%, 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.
|
Six months ended |
|||
|
30 June 2026 |
30 June 2025 |
||
|
US$m |
US$m |
||
|
Current income taxes |
(152) |
(32) |
|
|
Deferred income taxes |
(7) |
(1) |
|
|
Total |
(159) |
(33) |
|
No deferred tax liabilities for taxes that would be payable on the unremitted earnings of the Group subsidiaries was recognised as of 30 June 2026 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 does 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 2026. The Group continues to monitor the impact of this legislation.
- SHAREHOLDERS’ EQUITY AND EARNINGS PER SHARE
There were no movements in the Company’s share capital and share premium during period ended 30 June 2026.
As of 30 June 2026, total number of voting rights in the Company amounted to 443,146,134 ordinary shares of nominal value US$ 0.03 each (31 December 2025: 443,146,134 ordinary shares), each carrying one vote, and additionally the Company held 123,408,853 shares in treasury as indicated in AIX register and such shares did not enjoy any voting or economic rights (31 December 2025: 123,408,853 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:
|
Six months ended |
|||
|
30 June 2026 |
30 June 2025 |
||
|
Profit attributable to equity shareholders of the Parent (US$m) |
453 |
85 |
|
|
Weighted average number of outstanding common shares |
443,146,134 |
473,690,320 |
|
|
Weighted average number of outstanding common shares after dilution |
443,146,134 |
473,690,320 |
|
|
Basic earnings per share (US$) |
1.02 |
0.18 |
|
|
Diluted earnings per share (US$) |
1.02 |
0.18 |
|
There were no adjustments required to earnings for the purposes of calculating the diluted earnings per share in the current period (period ended 30 June 2025: nil).
There were no adjustments to weighted average number of shares for the purposes of calculating the diluted earnings per share in the current period (period ended 30 June 2025: none), as there are no outstanding Long-Term Incentive Plan (LTIP) awards as of the reporting date (30 June 2025: no dilutive potential ordinary shares).
The remaining LTIP tranche, granted in 2021 lapsed during first half 2025 and, accordingly, the related balance of US$ 4 million in the share-based payment reserve was transferred into retained earnings.
- PROPERTY, PLANT AND EQUIPMENT
|
Development assets |
Mining assets |
Non-mining assets |
Capital construction in-progress |
Total |
|
|
Cost |
US$m |
US$m |
US$m |
US$m |
US$m |
|
Balance at 31 December 2025 (audited) |
18 |
1,306 |
22 |
341 |
1,687 |
|
Additions |
1 |
48 |
18 |
159 |
226 |
|
Transfers |
– |
2 |
– |
(2) |
– |
|
Change in provisions |
– |
17 |
– |
– |
17 |
|
Disposals and write-offs including fully depleted mines |
– |
(12) |
– |
– |
(12) |
|
Translation to presentation currency |
2 |
47 |
1 |
7 |
57 |
|
Balance at 30 June 2026 (unaudited) |
21 |
1,408 |
41 |
505 |
1,975 |
|
Development assets |
Mining assets |
Non-mining assets |
Capital construction in-progress |
Total |
|
|
Accumulated depreciation, amortisation |
US$m |
US$m |
US$m |
US$m |
US$m |
|
Balance at 31 December 2025 (audited) |
– |
(643) |
(8) |
(2) |
(653) |
|
Charge for the period |
– |
(55) |
(2) |
– |
(57) |
|
Disposals and write-offs including fully depleted mines |
– |
12 |
– |
– |
12 |
|
Translation to presentation currency |
– |
(23) |
– |
– |
(23) |
|
Balance at 30 June 2026 (unaudited) |
– |
(709) |
(10) |
(2) |
(721) |
|
Net book value |
|||||
|
31 December 2025 |
18 |
663 |
14 |
339 |
1,034 |
|
30 June 2026 |
21 |
699 |
31 |
503 |
1,254 |
|
Development assets |
Exploration assets |
Mining assets |
Non-mining assets |
Capital construction in-progress |
Total |
|
|
Cost |
US$m |
US$m |
US$m |
US$m |
US$m |
US$m |
|
Balance at 31 December 2024 (audited) |
2 |
17 |
1,171 |
18 |
135 |
1,343 |
|
Additions |
– |
– |
45 |
2 |
85 |
132 |
|
Transfers |
16 |
(16) |
2 |
– |
(2) |
– |
|
Change in provisions |
– |
– |
(1) |
– |
– |
(1) |
|
Disposals and write-offs including fully depleted mines |
– |
– |
(1) |
– |
– |
(1) |
|
Translation to presentation currency |
– |
– |
7 |
– |
(1) |
6 |
|
Balance at 30 June 2025 (unaudited) |
18 |
1 |
1,223 |
20 |
217 |
1,479 |
|
Development assets |
Exploration assets |
Mining assets |
Non-mining assets |
Capital construction in-progress |
Total |
|
|
Accumulated depreciation, amortisation |
US$m |
US$m |
US$m |
US$m |
US$m |
US$m |
|
Balance at 31 December 2024 (audited) |
– |
– |
(517) |
(5) |
(2) |
(524) |
|
Charge for the period |
– |
– |
(52) |
(1) |
– |
(53) |
|
Disposals and write-offs including fully depleted mines |
– |
– |
1 |
– |
– |
1 |
|
Translation to presentation currency |
– |
– |
(2) |
– |
– |
(2) |
|
Balance at 30 June 2025 (unaudited) |
– |
– |
(570) |
(6) |
(2) |
(578) |
|
Net book value |
||||||
|
31 December 2024 |
2 |
17 |
654 |
13 |
133 |
819 |
|
30 June 2025 |
18 |
1 |
653 |
14 |
215 |
901 |
- INVENTORIES
|
30 June 2026 |
31 December 2025 |
|||
|
US$m |
US$m |
|||
|
Inventories expected to be recovered after twelve months |
||||
|
Ore stock piles |
26 |
31 |
||
|
Consumables and spare parts |
15 |
13 |
||
|
Total non-current inventories |
41 |
44 |
||
|
Inventories expected to be recovered in the next twelve months |
||||
|
Metal in circuit |
257 |
167 |
||
|
Ore stock piles |
69 |
70 |
||
|
Refined metals |
4 |
10 |
||
|
Doré |
24 |
2 |
||
|
Total current metal inventories |
354 |
249 |
||
|
Consumables and spare parts |
52 |
46 |
||
|
Total current inventories |
406 |
295 |
Metal in circuit increased due to temporary Kyzyl inventory accumulation in May-June 2026.
Write-downs of metal inventories to net realisable value
There were no write-downs or reversals to net realisable value of metal and other inventories during the periods ended 30 June 2026 and 2025.
No inventories held at net realisable value at 30 June 2026 and 31 December 2025.
- ACCOUNTS RECEIVABLE AND OTHER FINANCIAL ASSETS
|
30 June 2026 |
31 December 2025 |
|||
|
US$m |
US$m |
|||
|
Non-current assets at amortised costs |
||||
|
Loans provided to third parties |
186 |
136 |
||
|
Deposits related to mining contracts and licences |
18 |
17 |
||
|
Other long-term assets |
6 |
4 |
||
|
Loans provided to related parties (Note 21) |
12 |
6 |
||
|
Less allowance for expected credit losses |
(7) |
(2) |
||
|
Total non-current accounts receivable |
215 |
161 |
||
|
Trade and other receivables |
15 |
|||
|
Receivables from provisional copper, gold and silver concentrate sales at FVTPL |
11 |
61 |
||
|
Other receivables |
6 |
12 |
||
|
Short-term loans provided |
– |
12 |
||
|
Total trade and other receivables |
17 |
85 |
||
Loans provided to third parties include a US$ 162 million loan extended to Bai Tau Minerals for three years at a market rate (US$ 164 million contractual amount less a US$ 2 million expected credit loss; 31 December 2025: US$ 128 million). Bai Tau Minerals holds the investment in JSC “Ulmus Besshoky”.
Receivables from provisional copper, gold and silver concentrate sales decreased to US$11 million as of 30 June 2026 (31 December 2025: US$ 61 million), primarily due to lower concentrate sales during the second quarter of 2026, for which revenue is expected to be received in the third quarter 2026.
- PROVISIONS
|
30 June 2026 |
31 December 2025 |
|||
|
US$m |
US$m |
|||
|
Non-current |
||||
|
Environmental obligations |
17 |
16 |
||
|
Social liabilities |
39 |
21 |
||
|
56 |
37 |
|||
|
Current |
||||
|
Social liabilities |
9 |
5 |
||
|
TOTAL |
65 |
42 |
Significant change in estimate in the six months ended 30 June 2026
In June 2026, the Group signed Amendment to Subsoil Use Contract (Kyzyl). The amendment changed the calculation of the annual socio-economic contribution from a fixed amount to 1% of total annual income (subject to a minimum of USD 2 million) starting from 2028.
The related remeasurement of the provision (net of the unwinding of the discount) has been capitalised to development costs.
- BORROWINGS
The Group has a number of borrowing arrangements with various lenders. As of 30 June 2026, these borrowings consist of unsecured and secured loans and credit facilities, predominantly denominated in US Dollar.
|
Effective interest rate at |
30 June 2026 |
31 December 2025 |
|||||||
|
Type of rate |
30 June 2026 |
31 Dec 2025 |
Current |
Non-current |
Total |
Current |
Non-current |
Total |
|
|
US$m |
US$m |
US$m |
US$m |
US$m |
US$m |
||||
|
Secured loans from third parties |
|||||||||
|
U.S. Dollar denominated |
fixed |
4.58% |
4.58% |
41 |
10 |
51 |
42 |
31 |
73 |
|
Total secured loans from third parties |
41 |
10 |
51 |
42 |
31 |
73 |
|||
|
Unsecured loans from third parties |
|||||||||
|
U.S. Dollar denominated |
floating |
5.93% |
6.31% |
32 |
132 |
164 |
60 |
121 |
181 |
|
Euro denominated |
floating |
2.60% |
2.53% |
2 |
8 |
10 |
3 |
10 |
13 |
|
Total unsecured loans from third parties |
34 |
140 |
174 |
63 |
131 |
194 |
|||
|
Total loans from third parties |
75 |
150 |
225 |
105 |
162 |
267 |
|||
The Group’s non-current borrowings include borrowings amounting to US$ 150 million that contain covenants, which, if not met, would result in the borrowings becoming repayable on demand. These borrowings are otherwise repayable more than 12 months after the end of the reporting period. As at 30 June 2026, the Group has complied with all the covenants that were required to be met on or before 30 June 2026. The covenants that are required to be complied with after the end of the current reporting period do not affect the classification of the related borrowings as current or non-current at the end of the current reporting period. Therefore, all these borrowings remain classified as non-current liabilities.
Movements in borrowings are presented in Note 22 below.
The table below summarises maturities of borrowings:
|
30 June 2026 |
31 December 2025 |
||
|
US$m |
US$m |
||
|
Less than 1 year |
75 |
105 |
|
|
1-5 years |
116 |
148 |
|
|
More than 5 years |
34 |
14 |
|
|
Total |
225 |
267 |
- COMMITMENTS AND CONTINGENCIES
Capital commitments
The Group’s budgeted capital expenditure commitments as at 30 June 2026 amounted to US$ 411 million net of VAT (31 December 2025: US$ 158 million). The increase in capital commitments is due to the acceleration of construction works at Ertis POX, in accordance with the schedule.
Social commitments
In accordance with various memoranda with regional Akimats (local Kazakhstan government bodies), the Group participates in financing of certain social and infrastructure development project of the region. The total social expense commitment as at 30 June 2026 amounts to US$ 6 million, payable in the future periods.
Taxation
Kazakhstan 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 2026 and 31 December 2025.
- FAIR VALUE ACCOUNTING
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 2026 and 31 December 2025, 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.
|
30 June 2026 |
|||||||
|
Level 1 |
Level 2 |
Level 3 |
Total |
||||
|
US$m |
US$m |
US$m |
US$m |
||||
|
Financial instruments at fair value through profit or loss (FVTPL) |
|||||||
|
Receivables from provisional copper, gold and silver concentrate sales |
– |
11 |
– |
11 |
|||
|
Cash balances held in money market funds |
201 |
– |
– |
201 |
|||
|
Interest rate swap |
– |
1 |
– |
1 |
|||
|
Receivables from conditional share exchange |
– |
– |
11 |
11 |
|||
|
Financial instruments designated at fair value through other comprehensive income (FVTOCI) |
|||||||
|
Equity investments designated at FVTOCI |
– |
– |
19 |
19 |
|||
|
201 |
12 |
30 |
243 |
||||
|
31 December 2025 |
|||||||
|
Level 1 |
Level 2 |
Level 3 |
Total |
||||
|
US$m |
US$m |
US$m |
US$m |
||||
|
Financial instruments at fair value through profit or loss (FVTPL) |
|||||||
|
Receivables from provisional copper, gold and silver concentrate sales |
– |
61 |
– |
61 |
|||
|
Cash balances held in money market funds |
164 |
– |
– |
164 |
|||
|
Interest rate swap |
– |
2 |
– |
2 |
|||
|
Financial instruments designated at fair value through other comprehensive income (FVTOCI) |
|||||||
|
Equity investments designated at FVTOCI |
– |
– |
26 |
26 |
|||
|
164 |
63 |
26 |
253 |
||||
Receivables from conditional share exchange
In October 2025, as part of the Final Exchange Offer, the Company entered into a conditional exchange offer buyback agreement to repurchase and exchange 11.1 million shares for AIX-listed ordinary shares on a one-for-one basis where the completion is subject to completion of the restricted share disposal, the cessation (or licensing) of applicable sanctions, and Euroclear receiving the buyback price from the trustee and distributing it to the direct participants.
The Group recognised a financial asset of USD 11 million, representing the reimbursement of the buyback price for such shares. The asset is classified and measured at fair value through profit or loss (FVTPL). The Group classified the receivable as non-current, as the conditions for completion are not expected to be fulfilled during the 12 months after the reporting date.
The receivable is classified withinLevel 3of the fair value hierarchy. The fair value is estimated using a probability-weighted discounted cash flow technique. Key unobservable inputs include the probability of sanctions relief, the expected timing of the Euroclear distribution, and estimated trustee deductions. There were no transfers into or out of Level 3 during the six months ended 30 June 2026.
Equity investments designated at FVTOCI
In June 2025, the Group completed the acquisition of 10.68% interest in JSC “Ulmus Besshoky” (Besshoky) for total consideration of US$ 15 million. The acquisition was made through several consecutive deals with third parties. Besshoky is an exploration company, holding Besshoky project in 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.
During the six months ended 30 June 2026 the Group recognised a fair value decrease of US$ 7 million on this investment in other comprehensive income (with a corresponding decrease in the fair value reserve within equity). As at 30 June 2026 the carrying amount of the investment was US$ 19 million (31 December 2025: US$ 26 million).
Borrowings
The estimated fair value of the Group’s debt, calculated using the market interest rate available to the Group as at 30 June 2026 and 31 December 2025 did not differ from its carrying value.
Receivables from provisional copper, gold and silver concentrate sales
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.
- RELATED PARTIES
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.
The Group had the following outstanding balances with related parties:
|
30 June 2026 |
31 December 2025 |
||
|
US$m |
US$m |
||
|
Loans provided to related parties (Note 16) |
12 |
6 |
During the six months ended 30 June 2026 the Group advanced additional loans to related parties of US$ 6 million (six months ended 30 June 2025: nil). The loans are unsecured, interest-bearing and repayable in accordance with the contractual terms.
There were no other significant transactions with related parties during the six months ended 30 June 2026 or 30 June 2025.
- SUPPLEMENTARY CASH FLOW INFORMATION
|
Period ended |
Period ended |
||||
|
Notes |
30 June 2026 |
30 June 2025 |
|||
|
US$m |
US$m |
||||
|
Profit before tax |
612 |
118 |
|||
|
Adjustments for: |
|||||
|
Depreciation and depletion recognised in the interim condensed consolidated statement of comprehensive income |
7, 8 |
45 |
25 |
||
|
Finance costs |
8 |
8 |
|||
|
Finance income |
(44) |
(18) |
|||
|
Change in fair value of financial instruments |
– |
11 |
|||
|
Foreign exchange loss, net |
15 |
8 |
|||
|
Impairment losses on financial assets |
16 |
5 |
– |
||
|
Other non-cash items |
– |
1 |
|||
|
641 |
153 |
||||
|
Movements in working capital |
|||||
|
Change in inventories |
(93) |
(127) |
|||
|
Change in VAT and other taxes |
(26) |
(1) |
|||
|
Change in trade and other receivables |
33 |
(32) |
|||
|
Change in prepayments to suppliers |
2 |
3 |
|||
|
Change in trade and other payables |
(6) |
(4) |
|||
|
Cash generated from/(used in) operations |
551 |
(8) |
|||
|
Interest paid |
(3) |
(7) |
|||
|
Interest received |
34 |
11 |
|||
|
Income tax paid |
(146) |
(82) |
|||
|
Net cash generated by/(used in) operating activities |
436 |
(86) |
Cash and cash equivalents
|
30 June 2026 |
31 December 2025 |
||
|
US$m |
US$m |
||
|
Bank deposits -USD |
102 |
66 |
|
|
– KZT |
125 |
181 |
|
|
– other currencies |
– |
24 |
|
|
US treasury bills – USD |
359 |
124 |
|
|
Current bank accounts– USD |
91 |
101 |
|
|
– KZT |
– |
71 |
|
|
Money market funds– USD |
198 |
164 |
|
|
– other currencies |
3 |
– |
|
|
Total |
878 |
731 |
Changes in liabilities arising from financing activities
The 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 flow were, or future cash flows will be, classified in the Group’s consolidated cash flow statements as cash flows from financing activities.
|
Period ended 30 June 2026 |
||
|
Borrowings |
||
|
US$m |
||
|
1 January 2026 |
267 |
|
|
Cash inflow |
11 |
|
|
Cash outflow |
(52) |
|
|
Changes from financing cash flows |
(41) |
|
|
Net foreign exchange losses |
(9) |
|
|
Currency translation adjustment |
8 |
|
|
Other changes |
(1) |
|
|
30 June 2026 |
225 |
|
|
Less current portion |
(75) |
|
|
Total non-current liabilities at 30 June 2026 |
150 |
|
|
Period ended 30 June 2025 |
|||||
|
Borrowings |
Deferred consideration payable at fair value |
Lease liabilities |
|||
|
US$m |
US$m |
US$m |
|||
|
1 January 2025 |
322 |
16 |
3 |
||
|
Cash inflow |
21 |
– |
– |
||
|
Cash outflow |
(137) |
– |
– |
||
|
Changes from financing cash flows |
(116) |
– |
– |
||
|
Additions |
– |
– |
1 |
||
|
Change in fair value |
– |
11 |
|||
|
Unwind of discount |
1 |
– |
– |
||
|
Lease termination |
– |
– |
(2) |
||
|
Net foreign exchange losses |
(3) |
– |
– |
||
|
Currency translation adjustment |
4 |
1 |
(1) |
||
|
Other changes |
2 |
12 |
(2) |
||
|
30 June 2025 |
208 |
28 |
1 |
||
|
Less current portion |
(105) |
– |
(1) |
||
|
Total non-current liabilities at 30 June 2025 |
103 |
28 |
– |
||
- SUBSEQUENT EVENTS
In July 2026, the Group secured US$ 600 million of committed financing for the construction of the Ertis POX project. The package comprises:
- a US$ 300 million 10-year loan from the European Bank for Reconstruction and Development (EBRD); and
- a US$ 300 million syndicated facility provided equally by ING (Coordinating Mandated Lead Arranger), Société Générale and Abu Dhabi Commercial Bank, with an initial tenor of five years (extendable to seven years) and an accordion option of up to an additional US$ 300 million.
The facilities have a 36-month grace period, with repayments scheduled to commence in 2029 following the completion of construction.
In September 2026, the Group signed a US$100 million seven-year facility with KfW IPEX-Bank to finance the Ertis POX project.
In July 2026, subsequent to the reporting date, the Group, through Solidcore Middle East SPC, entered into an earn-in agreement and a shareholders’ agreement with Minerals Development Oman SAOC and Minerals Development Oman First LLC in relation to the Khabiyat copper-gold project in Oman. The project is held through Majan Base Metals LLC.
Under the agreements, the Group will acquire an initial 20% interest in Majan Base Metals LLC. Following satisfaction or waiver of specified conditions, the Group will pay US$ 6.9 million to Minerals Development Oman as consideration for the initial 20% interest, of which US$ 6.4 million will be contributed by Minerals Development Oman to Majan Base Metals LLC as part of the US$ 8.0 million Stage 1 exploration funding. The Group will contribute the remaining US$ 1.6 million. As at the date of approval of these condensed consolidated interim financial statements, those conditions had not been satisfied, and neither the share consideration nor the Stage 1 contribution had been paid.
On completion of Stage 1, the Group is required to pay a further US$ 1.5 million to Minerals Development Oman. Subject to completion of the applicable exploration, funding, share-purchase and other contractual conditions, the Group may elect to increase its interest to 45% (Stage 2) and subsequently to 60% (Stage 3).
If the Group exercises these rights, at Stage 2 it will pay a further US$ 11.0 million to Minerals Development Oman First LLC and contribute a further US$ 9.0 million to Majan Base Metals LLC. At Stage 3, the Group will pay an election payment of US$ 1.5 million to Minerals Development Oman First LLC, together with the purchase price for the additional shares, which is also payable to Minerals Development Oman First LLC. The Stage 3 purchase price is formula-based and could not be estimated reliably as at the date these condensed consolidated interim financial statements were approved.
Specified decisions concerning the activities that significantly affect the returns of Majan Base Metals LLC, including approval of the work programme and budget, material technical studies, licences and the development concept, require the agreement of both shareholders. Following completion of the initial acquisition and effectiveness of the relevant governance provisions, the Group is assessing the date from which it obtained, or will obtain, joint control. From that date, the investment will be classified as a joint venture under IFRS 11 Joint Arrangements and accounted for using the equity method.
The transaction is a non-adjusting event after the reporting period. Accordingly, no investment in Majan Base Metals LLC has been recognised in the interim condensed consolidated statement of financial position as at 30 June 2026.
ALTERNATIVE PERFORMANCE MEASURES
Introduction
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:
- Widely used by the investor and analyst community in the mining sector and, together with IFRS measures, provide a holistic view of the Company;
- Applied by investors to assess earnings quality, facilitate period to period trend analysis and forecasting of future earnings, and understand performance through eyes of management;
- Highlight key value drivers within the business that may not be obvious in the financial statements;
- Ensure comparability of information between reporting periods and operating segments by adjusting for uncontrollable or one-off factors which impact upon IFRS measures;
- Used internally by management to assess the financial performance of the Company and its operating segments; and
- Certain APMs are used in setting directors’ and management’s remuneration (i.e., total cash costs adjusted for gold price related expenses).
APMs and justification for their use
|
Company APM |
Closest equivalent IFRS measure |
Adjustments made to IFRS measure |
Rationale for adjustments |
|
Underlying net earnings |
|
|
|
|
Underlying earnings per share |
|
|
|
|
Underlying return on equity |
|
|
|
|
Return on assets |
|
|
|
|
EBITDA |
|
|
|
|
Adjusted EBITDA |
|
|
|
|
Net debt or (cash) |
|
|
|
|
Net debt or (cash)/Adjusted EBITDA ratio |
|
|
|
|
Free cash flow |
|
|
|
|
Free cash flow post-M&A |
|
|
|
|
Total cash costs (TCC) |
|
|
|
|
All-in sustaining cash costs (AISC) |
|
|
|
[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 period.
[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]Defined in the “Alternative performance measures” section below.
[6]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.
[7] Defined in the “Alternative performance measures” section below. Comparative information is presented for 31 December 2025.
[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]Gross metal output generated at the mine site before accounting for third-party refining or processing losses. Based on 80:1 Au/Ag conversion ratio and excluding base metals. Discrepancies in calculations are due to rounding.
[10] Payable production delivered for final processing or sale to off-takers and with accounting for third-party processing and refining losses. Based on 80:1 Au/Ag conversion ratio and excluding base metals.
[11] LTIFR = lost time injury frequency rate per 200,000 hours worked. Company employees only are taken into account.
[12] Based on actual realised prices.
[13] Without effect of treatment charges deductions from revenue.
[14] TCC comprise cost of sales of the operating assets (adjusted for depreciation expense, rehabilitation expenses and write-down of metal and non-metal inventory to net realisable value and certain other adjustments) and general, administrative and selling expenses of the operating assets. Gold equivalent sales volume is calculated based on average realised metal prices in the relevant period. Total cash cost per gold equivalent ounce sold is calculated as Total cash costs divided by total gold equivalent unit ounces sold. For more information refer to 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 total cash costs (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$ 226 million in H1 2026 (H1 2025: US$ 132 million).
[22] Defined in the “Alternative performance measures” section below.
[23] H1 2026 – on a last twelve months basis.
[24] Comparative figures as at 31 December 2025 have been reclassified to present long-term VAT receivable within non-current assets.
[25] Excluding lease liabilities and royalty payments.
08/09/2026 Dissemination of a Financial Press Release, transmitted by EQS News.
The issuer is solely responsible for the content of this announcement.
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