«Yuzhuralzoloto» recently made a public announcement regarding the allocation of funds from the stock stabilization program. Initially, the company had planned to utilize 1 billion rubles to repurchase its shares in case of any issues with the IPO on the Moscow Exchange. However, due to the success of the IPO, this measure became unnecessary.

In light of this, Yuzhuralzoloto, owned by Konstantin Strukov, stated that it will now allocate up to 1 billion rubles, previously reserved for the stabilization program, towards reducing the debt burden and general corporate purposes. This strategic decision aims to strengthen the financial position of the company further.


To recap, the gold mining group of companies, «Yuzhuralzoloto,» conducted an initial public offering (IPO) on November 22, 2023, raising 7 billion rubles on the Moscow Exchange. The IPO included a stabilization mechanism of approximately 15% of the placement volume (equivalent to around 1 billion rubles).

Following the successful IPO, the value of the company’s shares experienced a significant surge of approximately 15%, rendering the utilization of the stabilization mechanism unnecessary. As of 1:25 p.m. Moscow time, YGK shares, traded under the ticker UGLD on the Moscow Exchange, are valued at 62 kopecks per unit. Notably, the fluctuations in share value due to this corporate news have been relatively minor.

It is worth noting that according to the company’s financial statements based on Russian Accounting Standards (RAS), «Yuzhuralzoloto» reported a net loss of 10.7 billion rubles for the first three quarters of 2023. However, there was a notable increase in quarterly revenue, which rose by one and a half times, reaching 10.6 billion rubles. Furthermore, the company disclosed that its total borrowed funds amounted to 59.8 billion rubles as of the end of September.

company revenue growth chart
Company revenue growth chart

This additional information provides a more comprehensive overview of the recent developments and financial status of «Yuzhuralzoloto.»

In conclusion, the successful IPO of «Yuzhuralzoloto» on the Moscow Exchange marked a pivotal moment for the company, rendering the prearranged stabilization program unnecessary. The reallocation of funds, originally intended for share repurchasing, towards reducing the debt burden will undoubtedly enhance the company’s overall financial stability.

Despite the staggering net loss reported in the first three quarters of 2023, the impressive surge in quarterly revenue and the strategic decision to reduce the debt load reflects the company’s commitment to improving its financial health. This proactive approach by «Yuzhuralzoloto» sets an example for other industry players, signaling the importance of strategic economic management and its impact on the company’s growth trajectory.