PrJSC United Mining and Chemical Company (UMCC), which manages Vilnohirsk Mining and Metallurgical Plant (VGMK, Dnipro region) and Irshansk Mining and Processing Plant (IGOK, Zhytomyr region), posted a net profit of UAH 61.6 million in January-June 2024.
According to Yegor Perelygin, interim chairman of the board of UMCC, on Facebook, EBITDA in this period amounted to UAH 139.8 million.
At the same time, sales of finished products in monetary terms increased by 39.1%. The Group sold nearly 70 thousand tons of main concentrates, which is 20 thousand tons more than in the same period last year. The Group paid UAH 211 million in taxes.
“We started the second half of the year very actively and energetically. I can say that, despite all the problems, Vilnohirsk Mining has a normal operating perspective until 2030. We have enough reserves for the economically viable operation of the plant,” said the CEO.
There are several options and scenarios for further developments after 2030, and UMCC is working on them, he added. He clarified that mining operations at Irshansky GOK were fully resumed in the second half of 2024, and two open pits are operating steadily. SOE also said that the nameplate capacity of Irshansk GOK is 2.5 million cubic meters of production.
“Having an understanding of our balance sheet reserves, we see at least 15 years of prospects at a capacity of 180-200 thousand tons per year (after all the reconstructions, this is the real passport capacity of ‘finishing’, i.e., final products). Also, don’t forget that we still have the Selyshchanska area and off-balance sheet resources,” explained the acting Chairman of the Board.
“I’ll be blunt: we have a good understanding of the future development of the entire Irshansk resource base within a time horizon of 27 years at Irshansk GOK (and even more!!!). We are calmly moving forward,” the CEO summarized.
As reported, in the first quarter of 2024, UMCC received UAH 30 million of net profit, while in the same period last year there was a loss.
UMCC started its actual operations in August 2014 after the property complexes of Vilnohirsk Mining and Metallurgical Plant and Irshansk Mining and Processing Plant were transferred to its management by the Cabinet of Ministers. On December 8, 2016, the state-owned enterprise was transformed into PJSC UMCC, and on December 26, 2018, it was transformed from PJSC to PrJSC.
UMCC used to sell its products to more than 30 countries. The main sales markets were the EU, China, Turkey, as well as the USA and African countries.
Ukraine has scheduled the auction of a 100% stake in UMCC for October 9, 2024, via Prozorro.Sale. The starting sale price is UAH 3 billion 899.358 million.
