PJSC Polyus (Polyus or the Company) today releases 1Q 2018 operating results for the period ending 31st March 2018.
1Q 2018 Highlights
- Total gold output was 507 thousand ounces, compared to 580 thousand ounces in 4Q 2017, mainly due to seasonal slowdown in production at Alluvials and lower production volumes at Olimpiada and Blagodatnoye. Total gold output rose 13% compared to the first quarter of 2017 due to increased total gold output at Olimpiada, including higher gold contained in concentrate production.
- Volumes of ore mined amounted to 8,821 thousand tones, down 12% on the previous quarter. This was in line with the mining plan, as Polyus is conducting a pit cut back at Blagodatnoye. Volumes of ore mined increased 2% compared to the same period of 2017.
- Volumes of ore processed increased 9% compared to the previous quarter, to 8,492 thousand tones. This was driven by a gradual increase in processing volumes at the Natalka Mill. Polyus anticipates to fully ramp up the Natalka Mill in the second half of 2018. Volumes of ore processed rose 28% compared to the first quarter of 2017 due to processing capacity expansion at existing operations as well as the launch of the Natalka operations.
- Estimated gold sales amounted to $608 million, down 17% compared to the previous quarter with an estimated weighted-average gold selling price of $1,336/oz. Estimated gold sales were up 1% compared to the first quarter of 2017, despite a 6% decline in sales volumes over the same period of time.
- As of 31 March 2018, the estimated net debt stood at $3,079 million, compared to $3,077 million as of the end of the fourth quarter of 2017 and $3,128 million as of the end of the first quarter of 2017.
Pavel Grachev, Chief Executive Officer of PJSC Polyus, commented:
Over the course of the first quarter, Polyus remained focused on operational excellence, whilst making progress on its development projects. At Olimpiada, Polyus launched the antimony project and now processes high-grade antimony containing ore at Mill-1. At Natalka, we remain on track to complete the ramp-up in the second half of the year.
At Sukhoi Log, we have completed 30 thousand meters of the 180,000-meter drilling campaign launched in November. The Scoping Study is also nearing completion.
Based on the results of the first quarter, we confirm our 2018 full-year production guidance of 2.3752.425 million ounces.
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 of 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.