2% of NMMC shares transferred to balance sheet of UzSAMA

In Uzbekistan, there was a redistribution of shares of the largest company – the Navoi Mining and Metallurgical Combine. This is stated in the combine’s report for the first half of 2023.

It is noted that in August last year, 2% of the shares were transferred to the State Assets Management Agency (UzSAMA). Prior to this, 100% of the shares of NMMC belonged to the Ministry of Economy and Finance.

NMMC is mainly engaged in gold mining and processing. The report notes that NMMC’s net profit in the first half of last year amounted to $774 million. For comparison, this amount amounted to $841 million for the corresponding period in 2022. In addition, taxes paid on profits decreased from $619 million to $547 million. And the amount of dividends decreased from $454 million to $326 million.

The value of mine and mineral rights fell from $4 billion to $3.86 billion. The amount of long-term debt increased from $1.63 billion to $1.81 billion, and the average lending rate increased from 6.73% to 8.57%.

Will NMMC be partially privatized?

Deputy Prime Minister Jamshid Kuchkarov, in his speech at the Economic Forum of Uzbekistan, held in Tashkent in September 2021, said that it is planned to sell 10-15% of the shares of NMMC through an IPO.

“Navoi Mining and Metallurgical Combine (NMMC) will also hold an IPO and part of it will be privatized. Since uranium and gold are mined at the plant, privatization will not be carried out in full. 10-15% of the plant’s shares will be sold at the IPO,” Kuchkarov said.

According to the presidential decree “On additional measures to reduce state participation in the economy,” which entered into force on March 29, 2023, through a public IPO, it was planned to sell 2% of the shares of the Navoi Mining and Metallurgical Plant on the principle of “one share – one lot”.

For reference, for 11 months of 2023, NMMC paid taxes in the amount of 22.9 trillion soums. The company’s net profit in 2022 amounted to 15.4 trillion soums.