By: Reuters

Kazakh gold miner Solidcore Resources Plc, formerly Polymetal International, which has announced plans to buy back up to $1.2 billion worth of shares, does not intend to return further capital to shareholders until it achieves the objectives set out in its strategy through 2029, Chief Executive Vitaly Nesis said.

The company on Tuesday launched a tender offer to repurchase up to about 23.2% of its current share capital, at $11.66 per share between September 9 and October 12. Nesis said the company opted for the buyback because of improved liquidity and in recognition that not all shareholders are willing to back its aggressive growth strategy.

"We decided that a buyback was the best option because it allows us to distinguish between shareholders who want to cash out and those who prefer to stay invested rather than take money off the table," Nesis said.

"This will be a watershed moment. We deliberately made the transaction this large because, once it is completed, we do not plan any further capital distributions until we achieve our strategic objective. So this is a unique opportunity."

Its largest shareholder, Oman's Maaden International Investment, which owns a 31.7%, has undertaken not to participate in the buyback

Since selling its Russian business in 2024, Solidcore has suspended dividends while pursuing a strategy to double production and reserves through acquisitions and completing the Ertis POX project by 2029.

Nesis said the company was considering further acquisitions in Oman and other Gulf countries, particularly Saudi Arabia, while also exploring opportunities in Africa, including in partnership with Minerals Development Oman (MDO), as well as in Tajikistan and Uzbekistan.

Solidcore, which has a joint venture with MDO, said it planned to announce another deal with a different partner in the coming weeks.

(Reporting by Anastasia LyrchikovaEditing by Tomasz Janowski/Andrew Osborn )