#Kazakhstan #Astana #Verny Capital #RG Gold #Zijin Mining

Verny Capital's Strategic Move in Gold Mining Industry

Verny Capital Group has officially signed an agreement to sell RG Gold, a prominent gold mining company in Kazakhstan that has been under its management since 2014. The deal marks a significant transition for RG Gold, which has seen substantial development initiatives and advancements during Verny Capital's stewardship.

Since taking over, Verny Capital has undertaken extensive efforts to enhance the operational efficiency of RG Gold. Notable achievements include the establishment of modern production infrastructure and the initiation of crucial modernization programs. Investments in cutting-edge equipment and geological exploration have significantly bolstered the company's operations.

Partnership with Resource Capital Funds

Since 2018, Verny Capital's strategic partner in this venture has been Resource Capital Funds (RCF), a private equity manager from the United States. Together, they have augmented RG Gold's production capacity through innovative technologies that prioritize safety and operational efficiency while minimizing operational costs. Remarkably, over the last decade, RG Gold's resources have tripled, now reaching an impressive 7.6 million ounces, according to JORC standards.

The agreement to sell RG Gold has been made with Zijin Gold International, a subsidiary of Zijin Mining Group Co. Ltd., one of the world's largest mining enterprises specializing in gold and non-ferrous metal extraction and processing. With a market capitalization of around $70 billion and a diverse portfolio exceeding 30 projects across 17 countries, Zijin Mining is poised to inject international best practices into Kazakhstan’s burgeoning mining sector. The company's focus on sustainable growth and environmental responsibility creates a compelling narrative for its entry into the Kazakh market.

A Strategic Transition for Verny Capital

In discussing the sale, Aidan Akanov, the CEO of Verny Capital Group, expressed immense pride in transforming RG Gold into one of the country’s leading gold producers over a decade. “Today, we are ready to pass RG Gold into the capable hands of a major international player with a strong track record in mining asset management. This transition demonstrates our commitment to developing assets and exiting under optimal market conditions,” said Akanov. The group is currently exploring new investment opportunities, reinforcing its belief in Kazakhstan's potential for high-performing projects.

Under Verny Capital’s direction, RG Gold launched a new $424 million gold processing plant in 2022, significantly enhancing its production capabilities. The company's successes extend beyond production numbers; it has made substantial contributions to Kazakhstan's economy and social development. As one of the largest taxpayers in the nation, RG Gold has contributed over 160 billion tenges to the national budget and has created approximately 1,200 jobs, underscoring its commitment to supporting local communities through various social initiatives.

Welcoming International Investment

Martin Valdes, a partner at RCF, also highlighted the significance of their partnership with Verny Capital: “We are truly proud to have contributed to the successful growth of one of the country’s principal production facilities. The entry of Zijin Mining Group into Kazakhstan marks a strong endorsement of the country’s appeal as a reliable partner for businesses and investors,” he remarked.

In conclusion, the recent developments surrounding RG Gold not only signify a pivotal point for Verny Capital and its strategic partners but also reflect a growing trend of international investment in Kazakhstan's mining industry. With Zijin Mining set to implement global best practices, the future looks promising for RG Gold and its contributions to the local economy and workforce. This new chapter is anticipated to bring innovative technologies, sustainability measures, and continued growth to Kazakhstan’s mining landscape.