Umicore to sell gold inventories as metal hits record price (updated)

Umicore SA

08/10/2025 08:23

Writes through to add context on Umicore, share reaction and analyst's comments

Oct 8 (Reuters) - Belgian metal recycling group Umicore UMI.BR plans to sell its permanent gold inventories for about 410 million euros ($476 million) in a bid to capitalize on the metal's record prices, it said on Wednesday.

Gold prices reached an all-time high on Wednesday, with spot gold rising to more than $4,000 per ounce for the first time driven by safe-haven demand by investors seeking safety from mounting economic and geopolitical uncertainty.

Umicore's shares surged nearly 8% to 16.6 euros in early Brussels trading, their highest in more than a year, giving it a market value of 4.1 billion euros.

Umicore said in a statement that it would sell and lease its tied up inventories held within the Jewelry & Industrial Metals and Precious Metals Refining business units.

The Belgian group produces semi-finished gold used in jewellery, electronics and many more industries. It also recycles gold from electronic waste or refines it into industrial components like wires.

The sale will generate a net after tax capital gain of 370 million euros and an earnings before interest, taxes, depreciation and amortization (EBITDA) contribution of around 480 million euros.

J.P. Morgan analyst Chetan Udeshi said in a note that the deal marked a significant cash unlock from the strength in gold prices.

"In the case of gold, the company has assessed that it is more efficient to lease the metal instead of owning it as the gold lease market is highly liquid with lease costs also attractive with a relatively stable trend," Udeshi wrote.

($1 = 0.8610 euros)

(Reporting by Gianluca Lo Nostro; Editing by Matt Scuffham and Milla Nissi-Prussak)

((gianluca.lonostro@thomsonreuters.com;))