Navoi Mining and Metallurgical Company (NMMC) received its first credit rating from S&P Global Ratings, a 'BB-' long-term credit rating with a 'Stable' outlook, matching Uzbekistan's sovereign credit rating.
During the rating process, S&P Global Ratings also evaluated NMMC's stand-alone credit profile (SACP) at 'bb+', the highest grade ever assigned to a company from Uzbekistan. This assessment underscores the company's robust financial health and operational efficiency.
"Uzbekistan-based Navoi Mining and Metallurgical Co. (NMMC) is the world's fourth-largest gold producer with 2.9mn ounces (moz) of output in 2023. The company benefits from low production costs, vast reserves, and conservative leverage metrics, with funds from operations (FFO) to debt consistently above 60%," according to S&P Global Ratings.
In 2023, NMMC's total cash cost (TCC) amounted to $745 per ounce of gold, one of the lowest among companies evaluated by S&P Global Ratings. The rating agency expects NMMC to maintain high operational and financial performance, supported by favorable gold prices.
Eugeny Antonov, First Deputy CEO for Transformation, emphasized the significance of securing the company's first international credit rating, marking a pivotal moment in Uzbekistan's enterprise landscape. He highlighted that the rating broadens access to global capital markets, enhances the company's international reputation, and validates successful reforms and ongoing transformation efforts.
"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) at 'bb+' is deemed historic for Uzbekistan, underscoring the company's stable financial strategy and strong international investor confidence in its future development plans.
NMMC is one of Uzbekistan's largest employers, contributing 6.3% of the country's GDP. Uzbekistan, the fastest-growing economy in the region with a GDP growth of 5.5%, is currently implementing a comprehensive structural reform program to drive economic diversification and liberalization. In line with the country's reform program, NMMC is undergoing a comprehensive transformation to align with international best practices across all operations.
As the largest gold producer in Central Asia and the fourth-largest gold producer globally, NMMC mines, refines, and sells precious metals, primarily fine gold (99% of output). The company's facilities are located in the Navoi, Samarkand, and Jizzakh regions of Uzbekistan. NMMC operates 12 major mining sites, seven hydrometallurgical plants, and two heap-leaching workshops.
The Muruntau-Myutenbai open-pit mine, the largest in the world, boasts a resource base of 101 Moz. NMMC's total mineral resources are estimated at 148 Moz of gold. The Ministry of Economy and Finance of the Republic of Uzbekistan is the main shareholder of the company, holding 98% of the charter capital.
Follow Daryo's official Instagram and Twitter pages to keep current on world news.
Comments (0)