Freedom: recovery of sales and gold demand support Solidcore shares

The recovery of sales of accumulated inventory and favorable dynamics in gold prices may support Solidcore Resources (AIX: CORE), according to analysts at Freedom Broker. The company’s investment thesis and key risks are presented in a new investment review.

Solidcore Resources is a gold mining company with assets in Kazakhstan. Its main production facilities are Kyzyl and Varvara. The company is also building the Ertis hydrometallurgical plant, which is expected to reduce dependence on third-party processing.

Production increased, revenue supported by prices

According to the production report for Q3 2026, output amounted to 148 thousand ounces of gold equivalent, up 18% year over year. The figure includes precious metals converted into gold.

Revenue increased by 12% to $602 million. At the same time, sales in physical terms fell by 10% to 141 thousand ounces of gold equivalent. Thus, the increase in quarterly revenue should not be viewed as the result of higher sales volumes: materially higher prices provided significant support.

For the nine months, the picture was stronger: sales rose by 33% to 345 thousand ounces, and revenue by 83% to $1.575 billion. Production was supported by third-party concentrate processing and a reduction in accumulated inventories.

What could support the shares

Freedom believes the results confirm the temporary nature of the disruptions in the first half of the year. Maintaining the full-year guidance and further drawdown of inventories create conditions for improved cash flow.

An additional factor is demand for gold from central banks and investment funds. According to analysts’ estimates, it supports the prospects for a recovery in metal prices in the medium term. However, this scenario remains dependent on market conditions.

The Ertis plant is a long-term growth project

The construction of the Ertis hydrometallurgical plant should expand Solidcore’s in-house processing capabilities. This is important for reducing dependence on external facilities and ensuring a more resilient production chain.

Previously, Freedom in an analysis of the first-half results noted that the company had secured $700 million in credit financing for the project. At the same time, a large-scale investment program requires significant cash resources.

Therefore, the positive view of the company is accompanied by risks: high capital expenditures, the tax burden, and sensitivity of results to the gold price. A detailed breakdown of the factors behind Solidcore’s investment appeal is presented in Freedom Broker’s review.

This is not an individual investment recommendation.