PJSC Polyus (Polyus or the Company), the largest gold producer in Russia, today releases its 3Q 2017 and 9M 2017 operating results for the period ending 30th September 2017.
3Q 2017 Highlights
- Total gold output increased 16% y-o-y to 642 koz driven by higher production volumes at Olimpiada, Verninskoye and Kuranakh.
- Volumes of ore mined rose 45% y-o-y to 9,915 kt as a result of mining volumes growth at all of Polyus’ hard rock deposits.
- Volumes of ore processed increased 12% y-o-y to 7,299 kt with throughput capacity expansion projects at Company’s core assets either being completed or entering the final stages of completion.
- Gold sales amounted to $734 million (up 5% y-o-y) with the estimated weighted-average gold selling price of $1,279/oz, broadly in line with the LBMA spot price.
- As of 30 September 2017, the estimated net debt stood at $3,151 million, compared to $3,084 million as of the end of 2Q 2017 and $3,241 million as of the end of 2016.
9M 2017 Highlights
- Total gold output increased 13% y-o-y to 1,580 koz.
- Volumes of ore mined rose 35% y-o-y to 27,744 kt.
- Volumes of ore processed increased 7% y-o-y to 20,854 kt, with higher volumes of ore treated at Olimpiada, Verninskoye and Kuranakh.
- Gold sales amounted to $1,951 million with the average selling price (incl. the impact from the SPPP) of $1,269/oz, 1% above the LBMA spot price.
Pavel Grachev, Chief Executive Officer of PJSC Polyus, commented:
3Q 2017 marked yet another quarter of operational improvements and constant drive to discover a full potential of our assets. With production increasing 16% compared to the same period of 2016 to 642 thousand ounces, Polyus posted another record quarter in the Company’s history.
On a separate note, as gold output for 9M 2017 reached 1,580 thousand ounces, we remain confidently on track to meet our previously announced production guidance for 2017 of 2.0752.125 million ounces.
All the above mentioned is a reflection of a progress achieved at our brownfields as the most of our development initiatives are either completed or entering the final stages of completion.
In September we conducted an official start of the Natalka hot commissioning ceremony at the Eastern Economic Forum in Vladivostok overseen by Russian President Vladimir Putin. Following completion of the hot commissioning, Polyus anticipates production at Natalka to be fully ramped up by the end of 2018.
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.