Fitch Ratings has upgraded the standalone credit profile of Navoi Mining and Metallurgical Company (NMMC) from ‘bb’ to ‘bb+’ and assigned a final senior unsecured rating of 'BB-' with a Recovery Rating of 'RR4' to its debut notes offering.
This offering consists of two tranches: $500mn in notes due 2028 and $500mn in notes due 2031, which will rank pari passu with NMMC's existing and future senior unsecured debt.
This rating aligns with NMMC's Issuer Default Rating (IDR) of 'BB-' and reflects a Stable Outlook. The upgrade in NMMC's standalone credit profile is primarily attributed to an extension in the company's amortization profile and an ongoing diversification of its funding sources.
The issuance of these notes represents a key milestone in NMMC's strategic plan aimed at enhancing its financial stability. Proceeds from the offering will be allocated towards capital expenditures and the refinancing of existing debt, enabling the company to sustain operational growth and financial resilience.
NMMC's revised standalone credit profile emphasizes its solid financial standing as the world's fourth-largest gold producer, with an expected output exceeding 3mn ounces in 2024. This production volume, along with a robust mineral resource base, positions NMMC as one of the lowest-cost producers in the industry.
Furthermore, ongoing improvements in corporate governance and financial strategy are expected to bolster NMMC's ability to maintain strong performance and facilitate further expansion into international markets.
Navoi Mining and Metallurgical Company ranks as the fourth-largest gold producer in the world, with an annual production of 2.9mn ounces of gold in 2023 and a total mineral resource base of 148mn ounces. One of its key assets is the Muruntau-Myutenbay mine, which is acknowledged as the largest gold deposit in the world, boasting a resource base of over 100mn ounces.
NMMC's extensive business model includes exploration, mine development, operations, processing facilities, and gold refining, along with the manufacturing and repair of mining equipment. The company employs more than 47,000 staff across 12 key mining locations and 9 processing plants.
Earlier it was reported that NMMC continued to be the largest taxpayer in the country in 2024, contributing an impressive UZS 18.656 trillion (approximately $1.5bn). NMMC’s crucial involvement in gold and uranium production reinforces its prominent position in Uzbekistan's economy.
Follow Daryo's official Instagram and Twitter pages to keep current on world news.
Comments (0)