Fitch Ratings has awarded Navoi Mining and Metallurgical Company (NMMC) an inaugural Long-Term Issuer Default Rating (IDR) of 'BB-' with a Stable Outlook, recognizing the firm's strong financial standing and pivotal role in Uzbekistan's economy .
NMMC's rating is bolstered by its status as a Government-Related Entity (GRE), closely linked to its sole shareholder, the government of Uzbekistan (BB-/Stable). This alignment stresses substantial state oversight, influencing NMMC's operational strategies and financial flows through taxation and dividends.
As the world's fourth-largest gold producer, NMMC anticipates exceeding 3 million ounces in production by 2024. Operating across 12 major sites, its Muruntau mine alone contributes approximately 70% of total output.
The company maintains a conservative financial approach, boasting low leverage with net and gross debt to EBITDA ratios anticipated to remain below 1x. Positioned in the top quartile globally for gold producers in cost efficiency, NMMC reported an all-in-sustaining cost of USD866 per ounce in 2023.
Benefiting from robust governmental support and oversight, NMMC aligns its governance practices with international standards, including IFRS financial reporting and JORC reserve estimates. Despite operational strengths, the company faces risks associated with Uzbekistan's complex business landscape and concentrated operations.
NMMC's industry peers include global giants such as Agnico Eagle Mines Limited, Kinross Gold Corporation, and AngloGold Ashanti Limited, highlighting its competitive stature despite regional challenges.
On July 5, NMMC also secured its first credit rating from S&P Global Ratings at 'BB-' with a Stable outlook, mirroring Uzbekistan's sovereign rating . S&P Global Ratings assigned NMMC a stand-alone credit profile (SACP) of 'bb+', the highest ever for a Uzbekistani entity, affirming its robust financial health and operational efficiency.
NMMC, a major employer in Uzbekistan, contributes significantly to the country's GDP, accounting for 6.3%. Uzbekistan, the region's fastest-growing economy with a GDP growth rate of 5.5%, is currently implementing extensive structural reforms aimed at diversifying and liberalizing its economy. Aligned with these reforms, NMMC is undergoing a comprehensive modernization to adopt international best practices across its operations.
As Central Asia's largest and the world's fourth-largest gold producer, NMMC mines, refines, and markets precious metals, predominantly fine gold (99% of its output). Its operations span the Navoi, Samarkand, and Jizzakh regions of Uzbekistan, encompassing 12 major mining sites, seven hydrometallurgical plants, and two heap-leaching workshops.
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