Uzbek gold giant’s profit jumps 57% as mining costs surge
Uzbekistan’s Navoi Mining and Metallurgical Company (NMMC) reported a significant increase in first-half profit as higher gold prices outweighed lower production. However, its reported costs increased faster than those of Newmont, Barrick, and Agnico Eagle, demonstrating how rising expenses are absorbing some of the windfall.
NMMC’s net profit reached $2.38 billion in January–June 2026, while revenue increased almost 50% to $7.07 billion, according to a company press release seen by Kursiv Uzbekistan. Gold production fell 1.8% to 1.51 million ounces, according to its financial results.
The company’s all-in sustaining cost — a measure that covers production and spending to maintain operations — rose 41.5% to $1,647 per ounce.
That increase exceeded the approximately 20% rise reported by Agnico Eagle and 3.6% at Barrick. Newmont’s headline measure fell 6.4%, helped by increased revenue from other metals deducted from gold production costs. All comparisons cover the first six months of each year.
Read more: Uzbekistan’s gold exports jump 32% in 2025
Why costs are climbing
NMMC attributed the increase to extraction taxes linked to gold prices, more expensive consumables, a stronger Uzbek currency and stripping work at the Muruntau gold mine to prepare for future production.
The company said currency appreciation alone added $101 to its cost per ounce. Extraction taxes and royalties accounted for approximately 31% of its all-in sustaining costs. Higher gold prices therefore increase both the money NMMC earns and part of its operating bill.
Read also: Uzbekistan identifies major copper and gold reserves
Despite those pressures, its adjusted EBITDA margin widened to 69.2% from 64.9%. All three international peers also improved their margins, although differences in accounting, taxes and mine portfolios mean the figures cannot serve as a straightforward ranking of efficiency.
A bigger tax bill absorbs cash
NMMC’s operating cash flow moved in the opposite direction to profit, falling 3.4% to $2.51 billion. The explanation lies in sharply higher income tax payments.
NMMC’s interim financial statements show that cash generated by operations before those payments rose to $4.59 billion from $2.96 billion. However, income tax paid jumped to $2.07 billion from $358 million, more than offsetting the improvement.
