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  • Gold (USD) 1,250.65 -4.35
  • MOEX (RUB) 4,664.00 -50.00
  • LSE (USD) 39.24 -0.13
1,968 koz of gold
produced in 2016 (2015: 1,763 koz)
389 $/oz
Total cash cost per ounce sold
572 $/oz
All-in sustaining cash cost
Ore processed, kt
24,824 2015
26,445 2016
Adj. EBITDA $ mln
1,278 2015
1,536 2016
6 6 operating assets: 5 hard-rock mines and alluvial operations
2,458 $ mln
Total Revenue in 2016
0.12
Lost time injury frequency rate (LTIFR) per 200k hours worked in 2016 (2015: 0.08)
Factsheet
Press Releases

Trading update for 4Q and 12M 2016

Release time IMMEDIATE

PJSC Polyus (“Polyus” or the “Company”), the largest gold producer in Russia, today releases its operating results for 4Q 2016 and FY 2016 ended 31th December 2016.

FY 2016 Highlights

  • Total gold output increased 12% y-o-y to 1,968 koz driven by higher production volumes at all the hard rock deposits.
  • Volumes of ore processed increased 7% y-o-y to 26.4 mt with throughput capacity expansion projects at the Olimpiada, Blagodatnoye, Verninskoye and Kuranakh being either completed or entering the second stage of implementation.
  • Volumes of ore mined increased 35% y-o-y to 29.7 mt, following prolonged and extensive stripping works which were completed in 1Q 2016 as part of a pit cutback at Olimpiada.
  • Annual gold sales estimated at $2,429 million (up 13% y-o-y) with the estimated average selling price (incl. the impact from the Strategic Price Protection Programme (SPPP)) of $1,287/oz, 3% above the LBMA spot price.
  • Estimated net debt was $3,241 million compared to $364 million as of the end of 2015. Net debt position as of the end of December 2016 reflects a prepayment of RUB 8.5bn transferred to Rosnedra as part of the application process for the Sukhoi Log auction.

4Q 2016 Highlights

  • Total gold output increased 23% y-o-y to 573 koz (up 3% q-o-q).
  • Volumes of ore processed increased 10% y-o-y to 7.0 mt (up 7% q-o-q) with increased volumes of ore treated at Olimpiada, Verninskoye and Kuranakh.
  • The reconfiguration of Mill No. 1 to process higher-grade ore from the Olimpiada deposit was completed in September 2016.
  • Volumes of ore mined increased 57% y-o-y to 9.1 mt (up 33% q-o-q).
  • Quarterly gold sales estimated at $660 million (up 26% y-o-y) with the estimated average selling price (incl. the impact from the Strategic Price Protection Programme (SPPP)) of $1,244/oz, 2% above the LBMA spot price.


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

“In 2016, Polyus beat production guidance for the third consecutive year, achieving gold output of 1.97 million ounces, a 12% y-o-y increase. This is above the initial guidance of 1.76-1.80 million ounces and the increased guidance of 1.87-1.90 million ounces. The Group’s outstanding progress has again been underpinned by its strict focus on operational excellence and tight cost control.

This has been a key year in the Company’s development — in 2016, we entered an active execution stage of our development projects, which will support the continued organic growth of our existing operations.

The reconfiguration of Mill No. 1 was completed in September 2016 and it is now processing higher grade Olimpiada ores. Meanwhile, significant progress has been made on debottlenecking at Olimpiada, Blagodatnoye, Verninskoye and Kuranakh. The first stages of these projects are now complete, delivering over 2.0 million tons per annum of additional processing capacity.

The development of our Natalka mine remains a strategic priority for the Company and, following a thorough review, its execution was relaunched in 2016. We have revised the model for the project’s mining and processing operations and look forward to commissioning Natalka by the end of 2017.

In 2017, we anticipate another year of production growth for the Company and expect our total gold output to exceed 2.0 million ounces as previously guided and total 2.075-2.125 million ounces.

Management are confident that Polyus has strong opportunity for growth based on its existing portfolio, and that with the development of Natalka the Company will achieve the announced output target of at least 2.7 million ounces by 2020.”

Enquiries:

Investor contact
Victor Drozdov, Investor Relations Director
+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 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.