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En Ru
2,160 koz of gold
produced in 2017 (2016: 1,968 koz)
364 $/oz
Total cash cost per ounce sold
621 $/oz
All-in sustaining cash cost
Ore processed, kt
26,445 2016
28,663 2017
Adj. EBITDA $ mln
1,536 2016
1,702 2017
5 5 operating assets: 4 hard-rock mines and alluvial operations
2,721 $ mln
Total Revenue in 2017
0.10
Lost time injury frequency rate (LTIFR) per 200k hours worked in 2017 (2016: 0.13)
Factsheet
Press releases

Trading Update for 2Q 2018

PJSC Polyus (LSE, MOEX — PLZL) (“Polyus” or the “Company”) today releases its operating results for the second quarter of 2018 ending 30th June 2018.

2Q 2018 Highlights

  • Total gold output increased 19% to 602 thousand ounces compared to the previous quarter (1Q 2018: 507 thousand ounces). Year on year, volumes of doré gold and total gold output rose by 18% and 23%, respectively.
  • Volumes of ore mined amounted to 9,317 thousand tonnes, a 6% increase on the previous quarter and 1% increase year on year.
  • Volumes of ore processed rose to 9,872 thousand tonnes, up 16% on the previous quarter and 43% on the second quarter of 2017. This growth reflected progress on capacity expansion projects at existing operations as well as the launch of the Natalka Mill. Capacity expansion at the Company’s core assets remains under way.
  • Volumes of antimony contained in flotation concentrate amounted to 6.2 thousand tonnes. In April 2018, Polyus obtained a license to export antimony-rich flotation concentrate to third-party offtakers and began first shipments in May.
  • Natalka is currently operating at above 90% of its design capacity. Polyus expects to complete the ramp-up of the Natalka Mill in the second half of 2018.
  • Sukhoi Log: Scoping Study completed.
  • Estimated gold sales amounted to $683 million, up 12% compared to the previous quarter, with an estimated weighted-average gold selling price of $1,300 per ounce (down 3% on the first quarter of 2018).
  • Estimated net debt stood at $3,208 million as at 30 June 2018, compared to $3,079 million as at the end of the previous quarter and $3,077 million as at the end of 2017.

1H 2018 Highlights

  • Total gold output increased to 1,109 thousand ounces, compared to 938 thousand ounces in the first half of 2017, an 18% increase on a year on year basis. Doré volumes totalled 1,166 thousand ounces, up 20% compared to the prior-year period.
  • Volumes of ore processed rose 36% year on year to 18,364 thousand tonnes mainly due to the Natalka Mill ramp-up and also expansions of the existing operations.
  • Recovery rate stood at 81.0%, down 2.6 ppts from the prior-year period. Recoveries at the group level, adjusted for the Natalka operations, stood at 82.4%.
  • Estimated gold sales increased 6% year on year to $1,291 million, with an estimated weighted-average gold selling price of $1,317 per ounce, up 4% compared to the first half of 2017.

Pavel Grachev, Chief Executive Officer of PJSC Polyus, commented:

Polyus has had a strong second quarter. We have been actively increasing the share of large-scale mining equipment, expanding processing capacities as well as upgrading management and control systems across our core operations. These initiatives have further improved efficiency of our operations and contributed to double-digit growth of gold output compared to the same period of last year.

The ramp-up of production at Natalka, our key development project, is in its final stage. The Natalka Mill is already operating at above 90% of its design throughput capacity of 10 million tonnes on an annualized basis. We expect to complete ramp-up at Natalka in the second half of the year.

At Sukhoi Log, one of the world’s largest gold greenfield projects, we have completed the Scoping Study and verification drilling, and entered the pre-feasibility stage. The results of Polyus’ verification drilling support the data from historical exploration programmes and we remain confident in the potential of this deposit to drive significant growth for the group in the future.

Conference call

A conference call for investors and analysts hosted by Vladimir Polin (Senior Vice President, Operations) and Mikhail Stiskin (Senior Vice President, Finance and Strategy) will be held today, on 24 July 2018, at 13.00 (London) / 15.00 (Moscow).

To join the conference call, please dial:

UK
+ 44 (0)330 336 9411 (Local access)
0800 279 7204 (Toll free)

USA
+ 1 323—994-2082 (Local access)
888—204-4368 (Toll free)

Russia
+ 7 495 646 9190 (Local access)
8 10 8002 8675011 (Toll free)

Conference ID: 7133159

The call will be recorded and there will be a replay facility as follows:

UK
+ 44 (0) 207 660 0134 (Local access)
0 808 101 1153 (Toll free)

USA
+ 1 719—457-0820 (Local access)
888—203-1112 (Toll free)

Russia
810 800 2702 1012 (Toll free)

Conference ID: 7133159

Polyus

Polyus is the largest gold producer in Russia and one of the top 10 gold miners globally with the lowest cost position. Based on its 2017 Ore Reserves and Mineral Resources, the Polyus group ranks second by attributable gold reserves and gold resources among the world’s largest gold mining companies.

The Polyus group’s principal operations are located in Krasnoyarsk, Irkutsk and Magadan regions and the Republic of Sakha (Yakutia).

Enquiries

Investor Contact
Victor Drozdov, Director Investor Relations
7 (495) 641 33 77 drozdovvi@polyus.com

Media contact
Victoria Vasilyeva, Director Public Relations
7 (495) 641 33 77 vasilevavs@polyus.com

Forward-looking statement

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 group company assumes no obligation in respect of, and does not intend to update, these forward-looking statements, except as required pursuant to applicable law.