PJSC Polyus («Polyus» or the «Company»), the largest gold producer in Russia, today releases its operating results for 1Q 2017.
1Q 2017 Highlights
- Total gold output increased 17% y-o-y to 450 koz driven by higher production volumes at Olimpiada, Blagodatnoye and Kuranakh.
- In 1Q 2017, volumes of ore processed increased 4% y-o-y to 6.6mt as a result of the throughput capacity expansion at Olimpiada, Blagodatnoye and Kuranakh mills following the partial completion of the brownfield development projects.
- Volumes of ore mined increased 26% y-o-y to 8.6mt on the back of volumes growth at Olimpiada and commencement of the full-scale mining activity at Natalka.
- Gold sales estimated at $600 million (up 19% y-o-y) with the estimated average selling price (incl. the impact from the Strategic Price Protection Programme (SPPP)) of $1,258/oz, 3% above the LBMA spot price.
- Estimated net debt stood at $3,128 million as compared to $3,241 million at the end of 2016.
Pavel Grachev, Chief Executive Officer of PJSC Polyus, commented:
This has been a healthy quarter for Polyus, with the Company delivering another set of solid operational results, which reflects ongoing operational improvements and successful throughput capacity expansion at several of our assets.
In 1Q 2017, Polyus remained firmly on track to deliver on its development plans and made further progress at its brownfield projects. The additional BIO circuit at the Mills-1, 2, 3 complex is expected to be launched by the end of 2017, providing the Company with capacities to process all flotation concentrate in-house. At Blagodatnoye, Polyus is implementing technical measures to ensure the mill’s stable recoveries at the achieved 8.0 mtpa capacity level. We have also been further expanding our processing capacities at Verninskoye and Kuranakh, and will continue with these projects for the rest of 2017. We also expect to launch heap leaching operations at Kuranakh in 2017.
In the reporting quarter, Polyus launched full-scale mining at Natalka, with volumes of rock moved reaching 3.3 million tonnes. We continue to anticipate commissioning of the Natalka operations by the end of 2017.
On top of that, Polyus was awarded a license to develop Sukhoi Log, one of the world’s largest undeveloped deposits and the biggest Russian gold greenfield project. We believe that this unique asset fits perfectly within Polyus’ portfolio of large-scale open-pit operations and our long-term development strategy. We plan to develop the asset in a disciplined manner, while its advancement will enable us to enter the next stage of the Company’s growth, cementing Polyus position among the global gold majors.
Overall, we are confident that our portfolio of high-quality assets combined with the sharp focus on operational excellence and cost management will allow Polyus to deliver strong results in 2017.
Victor Drozdov, Director Investor Relations
+7 (495) 641 33 77
Victoria Vasilyeva, Director Public Relations
+7 (495) 641 33 77
Forward looking statements
This announcement may contain «forward-looking statements» concerning Polyus and/or Polyus Group. Generally, the words «will», «may», «should», «could», «would», «can», «continue», «opportunity», «believes», «expects», «intends», «anticipates», «estimates» or similar expressions identify forward-looking statements. The forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Forward-looking statements include statements relating to future capital expenditures and business and management strategies and the expansion and growth of Polyus’ and/or Polyus Group’s operations. Many of these risks and uncertainties relate to factors that are beyond Polyus’ and/or Polyus Group’s ability to control or estimate precisely and therefore undue reliance should not be placed on such statements which speak only as at the date of this announcement. Polyus and/or any Polyus Company assumes no obligation in respect of, and does not intend to update, these forward-looking statements, except as required pursuant to applicable law.