JSC Navoi Mining and Metallurgical Company (NMMC) Receives 'BB-' Long-Term Issuer Default Rating with a 'Stable' Outlook from Fitch Ratings

Second global credit rating reflects strong corporate fundamentals

TASHKENT, UZBEKISTAN / ACCESSWIRE / July 9, 2024 / NMMC, the world's fourth-largest gold producer and Central Asia's largest gold miner, has received its second international credit rating.

Fitch Ratings, ("Fitch") has assigned the Company a Long-Term Issuer Default Rating of ‘BB-' with a Stable Outlook, in line with Uzbekistan's sovereign credit rating and the recent assessment by S&P Global Ratings. Additionally, Fitch assessed the Company's standalone credit profile at ‘bb'.

NMMC's higher Standalone Credit Profile (SCP) of ‘bb' reflects its large scale as a top four gold producer globally with expected production of over 3 million ounces (Moz) in 2024 .

In a release, Fitch explains that NMMC benefits from a low cost-position, long mine life of its largest deposit Muruntau, high profit margins and low leverage. According to the rating agency's release, NMMC is two years ahead of schedule in completing its USD 3 billion investment programme, which will increase the Company's production capacity by 30% by the end of 2024 compared to 2017.

Consistent implementation of structural reforms in Uzbekistan, which contribute to macroeconomic stability, maintaining high GDP growth rates and improving fiscal indicators, is also one of the factors that contributed to the Company's assessment.

Eugeny Antonov, First Deputy CEO for Transformation, said:

"The confirmation of NMMC's financial stability by Fitch Ratings is another step in the Company's comprehensive transformation. It highlights our operational efficiency and strong resource base, providing a solid foundation for future growth. The rating not only enhances our credibility in front of partners and investors, but also emphasises our commitment to sustainable and responsible mining. Receiving our second credit rating also opens up new opportunities for co-operation and the introduction of new financial instruments, including the issuance of securities."

Jakhongir Khasanov, CFO, commented:

"It is important for us that two reputable international agencies independently confirmed the Company's credit rating at 'BB-' with a stable outlook. This demonstrates the Company's financial stability and creates opportunities for diversification of available financial instruments through the Company's entrance to the international capital market".

The ‘BB-' rating from Fitch reflects NMMC's solid position as a leading gold mining company in Uzbekistan, backed by its robust production capacity, significant resource base and consistent operational performance.

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SOURCE: JSC Navoi Mining and Metallurgical Company (NMMC)