Tue, 1 July
18.1 C
Yerevan
USD: 384.47 RUB: 4.90 EUR: 450.83 GEL: 141.25 GBP: 526.80

Moody’s assigns a b2 corporate family rating to Zngezur Copper Molybdenum Combine CJSC

YEREVAN, September 23. /ARKA/. Moody’s Investors Service (“Moody’s”) has assigned a corporate family rating (CFR) of B2, probability of default rating (PDR) of B2-PD to Zangezur Copper Molybdenum Combine CJSC (ZCMC), one of the largest exploration and mining companies in Armenia. The outlook is stable.

ZCMC has a concentrated ownership structure with Cronimet Group holding 75% in the company, while its board of directors lacks independent members. ZCMC has substantial related party transactions, which include molybdenum processing under tolling scheme and molybdenum sales, which are conducted with the companies under common control on an arm’s length basis. The risk of concentrated ownership is somewhat mitigated by the track record of conservative financial policy and operational improvements since 2015-17.

The stable outlook reflects Moody’s expectation that the company will be able to maintain its solid credit metrics notwithstanding copper price volatility, improve its liquidity in the short-term and demonstrate an adequate liquidity on a sustainable basis.

Moody’s could downgrade the ratings if the company’s leverage, as measured by Moody’s adjusted debt/EBITDA, deteriorates to above 3.5x on a sustained basis; weak liquidity is not timely addressed; or operating metrics (production, metal content, recovery) materially weaken.

Zangezur Copper Molybdenum Combine CJSC (ZCMC) is one of the largest exploration and mining companies in Armenia. The company principally produces copper concentrate and molybdenum from its single open-pit mine. In 2018, the company generated revenue of $414 million and Moody’s-adjusted EBITDA of $96 million. ZCMC is privately owned by Cronimet Group (75%), the company’s management (12.5%) and a private investor Jean Buffet (12.5%). -0-

spot_img

POPULAR

US dollar exchange rate unchanged, euro and ruble rise

The average market exchange rate of the U.S. dollar to the Armenian dram on March 7, 2025, remained at 394.58 drams, unchanged compared to March 6.

Central Bank of Armenia considering introducing long-term mechanisms for insurance against fraud

The Central Bank of Armenia is considering the possibility of introducing mechanisms for insurance against fraud.

Armenia to receive EUR 26 million loan from KfW bank for renewable energy development

Armenia will receive a loan and a grant from the German KfW bank for the implementation of the "Renewable Energy and Energy Efficiency Development" program.

Ratio of loans to deposits in commercial banks of Armenia has improved – WB review

In April 2025, deposits and loans of commercial banks of Armenia increased by 1.5% y/y and 0.8% y/y, respectively, slightly improving the ratio of loans to deposits compared to the figures for the previous year.

Euro falls by 0.62 points to 450.23 drams

The average market exchange rate of the US dollar against the Armenian dram as of June 27, 2025, decreased by 0.59 points compared to June 26 and amounted to 384.32 drams.

LATEST NEWS

spot_imgspot_imgspot_img