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Rating agency National Credit Ratings (NCR) affirmed the credit rating of Seligdar PJSC at A+.ru with a stable outlook.

The business profile assessment is underpinned by Seligdar's strong and stable market position among Russian gold mining companies, the global nature of the gold market, high liquidity of finished products, and the presence of key assets sufficient for generating cash flows. The financial profile assessment is supported by strong liquidity metrics and moderate operating profitability; however, pressure on the assessment comes from the low equity value and moderately low debt burden and debt service metrics.

The significant share of loans and bonds denominated in gold, in Seligdar's debt structure helps minimise price and currency risks. The Company's long-term public listing history, high quality of governance and strategic planning, transparency of financial reporting, positive credit history and payment discipline have a positive impact on the assessment of the "Management and Beneficiaries" factor.

FACTORS DETERMINING THE BCA LEVEL: A+

Strong market position, high customer diversification

The high assessment of Seligdar's market position is driven by its ranking among the top ten largest Russian gold mining companies and the resilience of its key sales markets. Gold accounts for 89% of the Company's revenue, tin for 11% (revenue is split between the gold and tin divisions in accordance with Seligdar PJSC's IFRS financial statements for 2025 (excluding other revenue)); the assessment is also supported by high product liquidity and a diversified customer base.

The planned growth in gold production in 2026 is driven by the launch of the Khvoynoye gold processing plant in 2025: in H12026, production volumes have already increased by 20%. The plant's ramp-up to full capacity will have a positive impact on gold production volumes in the coming years (stable level of 9–10 tonnes of gold per year).

NCR assesses Seligdar's geographic presence at the highest level due to the global nature of its markets. Product prices are determined by global quotations and the US dollar exchange rate; discounts to Russian gold are minimal, while tin and copper concentrates are sold at market prices linked to LME quotations.

Seligdar is Russia's largest producer of tin concentrates. Tin and copper concentrate sales are carried out at market prices linked to quotations on the London Metal Exchange (LME).

NCR positively assesses the prospects of Seligdar's markets: in 2025, the average LBMA gold price rose by 44% to USD 3,431 per ounce, while the average LME tin price rose by 13% to USD 34,015 per tonne. In 2026, gold and tin quotations continue to rise due to strong investment demand, geopolitical uncertainty, limited tin supply, and its demand in the electronics and automotive industries. However, in the medium term, gold prices may come under pressure from rising asset yields and strengthening of developed countries' currencies.

Seligdar consistently maintained a significant share of fixed assets in its asset structure, which supports a high assessment of the "Share of key assets" metric. Due to substantial capital expenditure, including investments in strategic projects (including the Khvoynoye deposit), the ratio of capital expenditure to revenue is at the maximum level. Equipment modernisation at processing plants has contributed to an increase in the recovery rate of tin, tungsten and copper concentrates in 2025–2026.

Seligdar's production assets are concentrated in Yakutia, Buryatia, the Orenburg region, the Altai region, the Irkutsk region, the Khabarovsk region, and Chukotka. The Company's dependence on key production facilities is low; the concentration of production factors is assessed by NCR as low.

Increased debt burden amid significant liquidity and moderate profitability

Seligdar's debt burden (total debt / OIBDA) for 2025 increased from 3.83 to 4.85. The rapid growth in debt (+78%) was driven by, among other factors, the "paper" revaluation of liabilities linked to gold prices and the financing of the investment programme. OIBDA also grew significantly (+40%) amid higher realised gold prices (up 28% on average) and sales volumes (up 19% on average), but at a slower pace than debt. As at end of 2025, the Company's total debt amounted to 144.6 billion Russian roubles. The debt calculation includes lease liabilities, adjustments for loans received on special terms – a shareholder loan of USD 50 million maturing in 2029 and a loan of 8.7 billion Russian roubles maturing in 2028 – as well as guarantees on third-party loans.

The Company's debt is comprised of exchange-traded bonds denominated in gold and silver (58% of liabilities); gold-denominated loans (13%); and other loans and borrowings, including lease liabilities and guarantees on third-party loans (29%). Repayment of gold loans and interest thereon is made in gold, which naturally hedges currency and price risks. For 2026, NCR expects Seligdar's debt burden to decrease: the agency estimates the total debt / OIBDA ratio at 3.0. The forecast takes into account expected growth in operating profit due to the Khvoynoye project reaching full capacity, as well as the schedule for raising and repaying debt obligations.

The margin of safety for debt servicing is assessed as moderately low: OIBDA coverage of interest expenses as of 31 December 2025 was 1.8 (2.5 as of 31 December 2024), while the coverage of short-term liabilities and interest on loans and borrowings (from cash and OIBDA) decreased from 1.3 to 1.0 due to higher interest burden and short-term debt.

The Agency assesses the Company's liquidity as significant: the absolute liquidity ratio was 130% as of 31 December 2025, while the current liquidity ratio was 157%, partly due to increased balances of unused bank credit lines.

In 2025, Seligdar's business margins remained at a moderate level: OIBDA margin in 2025 remained high (34%), but return on assets remained negative due to a loss for the year. The primary reason for the loss was the negative non-cash effect of revaluation of gold-denominated liabilities amid high precious metal quotations.

At the same time, NCR notes the low equity share: the business is funded almost entirely by borrowed funds, which has a negative impact on the assessment of the Company's financial profile. Under NCR's methodology, loans provided to associated companies are taken into account when calculating equity; their volume increased substantially in 2025.

Moderate shareholder risks and reporting transparency

In assessing shareholder risks, the agency takes into account elevated shareholder risks in relation to one of the shareholders and one of the beneficiaries of Seligdar, who currently do not participate in the management of the Company.

Based on information available to NCR, no significant changes in Seligdar's ownership structure are expected in the near future.

NCR highly assesses the Company's quality of governance and strategic planning. Current policies and regulations are in line with best practices. The Company maintains the practice of preparing and disclosing IFRS financial statements three times a year.

The Company has related-party transactions, but they are all economically justified.

Seligdar is characterised by a positive credit history and high payment discipline.

RESULTS OF MODIFIER APPLICATION

Stress testing under negative market conditions (macro-financial stress, adverse events in the Company's industry) did not have a material impact on Seligdar's BCA level.

Following the application of modifiers, the SCA was set at a+.ru.

ASSESSMENT OF EXTERNAL INFLUENCE

NCR does not take into account the likelihood of extraordinary support from key beneficiaries.

Seligdar PJSC's credit rating corresponds to the SCA and is affirmed at A+.ru.

FACTORS THAT COULD LEAD TO A RATING CHANGE

An upgrade of the credit rating or an improvement in the outlook could result from an improvement in debt burden indicators, funding structure, and debt service coverage, combined with stronger market positions driven by the launch of new deposits, bringing new reserves with higher metal grades and lower extraction costs onto the balance sheet.

The credit rating may be downgraded, or the outlook may be revised to negative, in the event of a significant deterioration in gold and tin market conditions; failure to replenish the Company's resource base; a material deterioration in debt burden, liquidity and profitability indicators; or suspension of operations at key mining and production assets due to force majeure circumstances.