Navoi Mining receives S&P credit rating upgrade

[Ben Graham]

Navoi Mining and Metallurgical Company (NMMC) has received a credit rating upgrade by S&P Global to reflect its status as one of the world’s biggest gold producers.

On Tuesday, S&P upgraded the Uzbekistani miner’s long-term credit rating to ‘BB’, with a ‘Stable’ outlook, citing the Central Asian nation’s improved sovereign. The upgrade reflects “the company’s solid financial position and the resilience of its operational performance,” the firm said in a statement.

The agency expects NMMC to maintain a balanced financial approach, enabling the company to continue making a significant contribution to the national economy, it added.

S&P’s rating also aligns with the issuer default rating given recently by Fitch, which cited NMMC’s status as the fourth-largest gold producer globally with production of over 3 million oz. and one of the lowest cost producers with long mine life, high profit margins and low leverage.

Earlier this year, the company successfully placed a new $500 million corporate bond in London, with Citi, JP Morgan, Société Générale and MUFG serving as its bookrunners. Proceeds from the placement will be used to further optimize and diversify the company’s existing credit portfolio on more favorable terms, NMMC said in a May press release.

NMMC currently operates the massive Muruntau deposit in the Kyzylkum Desert, one of the largest in the world. Across all its projects in the region, the company holds a resource gold base that is estimated at 150 million oz.