Kazakhstan Gold Miner Loses Half of Profits Due to Sanctions on Russia

Kazakh gold mining company Solidcore Resources (formerly Polymetal) expects high gold prices to offset falling profits caused by disruptions in concentrate supplies to Russia due to sanctions, Orda.kz reports.

According to Reuters, Solidcore’s profit in the first half of 2025 dropped by 58% because of sanctions and interruptions in concentrate shipments to Russia. However, CEO Vitaly Nesis told the agency that the situation “significantly improved” in July and August.

Because of record-high gold prices, Solidcore has postponed plans to acquire new gold and copper assets in Central Asia. Both potential deals are in “bad shape” and may not happen at all, as sellers have sharply raised their prices.

In the first quarter of 2026, Solidcore plans to sell part of its stockpiles, taking advantage of gold prices that have risen nearly 40% this year, reaching a record $3,673.95 per ounce last week.

Solidcore, formerly Polymetal International, sold its Russian assets in 2024.

However, it continued shipping gold concentrate to Russia for processing with permission from US authorities. This agreement will remain in force until 2028, when Solidcore plans to launch its own processing facility — the Ertis Hydrometallurgical Plant.

According to Nesis, the company expects to secure an agreement with international institutions in the first quarter of 2026 and raise $500–600 million in financing to launch Ertis Plant. Solidcore is one of Kazakhstan’s largest gold producers, operating two main facilities: Qyzyl (Bakyrchik deposit, Abay region) and the Varvara hub (Qostanay region).

In March, the company announced the acquisition of the Tokhtar gold deposit in northern Kazakhstan. 

The first stage of the deal was scheduled to close in the third quarter of 2025. It remains unclear whether the purchase will go ahead, given record-high gold prices.

Original Author: Nikita Drobny