We set our target price at $7.5 per share for Solidcore Resources PLC (the “Company”), implying an upside potential of 36% from the current market level. We assign the shares a “Buy” rating.
Solidcore stock remains significantly undervalued relative to our DCF based fair value estimate, reflecting our view of: (1) stable long-term production supported by a strong resource base, (2) construction of an in-house hydrometallurgical plant (POX), and (3) positive momentum in global gold prices.
An experienced gold producer with strong assets. Solidcore Resources is the second-largest gold producer in Kazakhstan, with an annual output of around half a million ounces. The Company owns two key gold mining projects that have been operating steadily for several years. The flagship Kyzyl project holds proven and probable reserves of nearly 10 million ounces of gold, featuring a relatively low cost per ounce. The second major asset is the Varvara Hub, which comprises several deposits with combined reserves exceeding 2 million ounces of gold and approximately 47 thousand tons of copper. The Company also owns a stake in the Syrymbet project, which is expected to produce tin in the future.
Construction of an in-house pressure oxidation plant. Previously, the refractory gold concentrate from the Kyzyl project was processed at the Amursk POX plant in Russia under legacy operational arrangements. To mitigate sanctions-related risks, the Company has launched the construction of its own Ertis Hydrometallurgical Plant (Ertis POX) in the Pavlodar region. The new plant will employ pressure oxidation (POX) technology, ensuring efficient and environmentally friendly processing of Kyzyl concentrate. The design capacity of Ertis POX will reach up to 300 thousand tons of concentrate per year, enabling the production of around 15 tons of Dore alloy with 96–98% gold content.
Gold price growth and investment appeal. In 2025, global gold prices continued to rise amid a slowing world economy and expectations of monetary easing by major central banks. According to several investment bank forecasts, gold prices are likely to remain strong into 2026. Against this backdrop, Solidcore Resources shares represent an attractive investment opportunity, given the Company’s current market undervaluation. Our DCF model and relative valuation both indicate substantial upside potential for the stock.
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