Solidcore Resources seeking new assets, could look to market for funding - CFO

ASTANA. Sept 6 (Interfax) - Solidcore Resources (formerly Polymetal) is thinking of acquiring new assets for which market financing might be raised, the gold and silver miner's CFO Maxim Nazimok said.

"We are now actively looking to acquire new assets. We do not yet know exactly how much they will cost - and since we are looking at projects at the exploration stage - how much it will cost to build an operating company there. That is why, despite the large free cash cushion, we are looking to raise money from the market," Nazimok told the Astana Finance Days forum.

He said the company's attention is currently focused on bank loans, adding that Solidcore Resources "has a good track record of communication with local Kazakh banks, development banks."

"And we are also talking to Western financial institutions. The peak year for investments will be 2026 with the current portfolio of projects, so there is time to complete the processes and structure large transactions," Nazimok said.

Nazimok also said Solidcore needed $1 billion investment to achieve final operational independence from Russia. "This is primarily for the construction of the Ertis POX hub in Kazakhstan - around $800 million but spread over five years. And some internal projects at existing mines," Nazimok said, adding that "we'll cover that billion with free cash flow."

The company plans to attract $400 million-$500 million in debt financing for the Ertis POX hub, he said.

Nazimok said the company has been reduced to one-third of its original value after the sale of Russian assets, but intends to "grow at least two-fold".

"This desire is linked to the restoration of investment attractiveness for our shareholders and investors. Unfortunately, when you become a medium-sized company, you disappear from the radar of many global investors, so the task here is both to increase production, and we hope that this will be followed by monetary capitalization. That requires market investment," he said.

The company remains the second largest gold producer in Kazakhstan following the sale of the Russian business. The principal shareholder is a consortium of Omani investors led by the Omani government-owned fund Mercury Investments International (23.9%).