Solidcore Resources (POYYF) H2 2025 earnings summary

Executive summary

• Achieved strong profitability in 2025 with a 13% revenue rise to $1.5 billion, despite a 19% decrease in gold equivalent production to 395 Koz, driven by favorable gold prices and operational efficiency.

• Adjusted EBITDA increased 37% to $972 million with a 65% margin, and underlying net earnings grew 40% to $701 million.

• Free cash flow declined 20% to $348 million due to higher costs and capital expenditure.

• Maintained excellent safety record: zero lost time injuries and eighth consecutive year with no fatalities at Kazakhstan operations.

• Inventory accumulation at Kyzyl led to lower reported payable production, but mine-level output remained stable; normalization expected in 2026.

Financial highlights

• Revenue increased 13% year-over-year to $1.5 billion, with Adjusted EBITDA up 37% to $972 million and underlying net earnings up 40%.

• Total cash cost rose 17% to $1,138/oz, and all-in sustaining cash cost increased 18% to $1,532/oz, both exceeding guidance.

• Net cash rose 24% to $464 million; gross debt reduced to $267 million.

• CapEx grew 23% to $255 million, mainly for Ertis POX and other projects.

• Net operating cash flow was $600 million; free cash flow post-M&A dropped 64% to $196 million.

Outlook and guidance

• 2026 guidance: significant increase in payable production to 540,000 ounces, mainly from inventory release; mine-level production to rise slightly.

• TCC expected at $1,350–1,550/oz and AISC at $1,850–2,050/oz in 2026, reflecting higher mining taxes and inflation.

• CapEx expected to nearly double in 2026 to $510 million, with peak spending on Ertis POX and start of Syrymbet and Kyzyl underground projects.

• Expect almost doubling of mineral extraction tax (MET) in 2026 and 20% increase in total cash costs due to higher tax rates, currency appreciation, and inflation.

• No dividend proposed for 2025; capital return policy may be revised after preconditions are met.