PJSC Polyus (Polyus or the Company) today releases its 2Q 2019 operating results for the period ending 30 June 2019.
2Q 2019 Highlights
- Total gold output increased 14% to 684 thousand ounces compared to the previous quarter. Year on year, volumes of doré gold and total gold output grew by 12% and 14% respectively.
- Volumes of ore mined amounted to 15,661 thousand tonnes, a 12% increase on the previous quarter. On a year on year basis, volumes of ore mined rose by 68%, driven by intensified mining activities across all operating assets.
- Volumes of ore processed totalled 10,901 thousand tonnes, up 6% on the previous quarter. Year on year, volumes of ore processed rose by 10%, primarily reflecting the completion of the ramp-up at Natalka.
- Recovery rate stood at 82.2%, compared to 81.4% in the previous quarter.
- Estimated gold sales amounted to $886 million, up 20% compared to the previous quarter, with an estimated weighted-average gold selling price of $1,314/oz, broadly unchanged from the first quarter of 2019.
- As at 30 June 2019, the estimated net debt stood at $3,639 million, compared to $3,011 million as at the end of the previous quarter, reflecting the repayment of the derivative liabilities and dividend payout for the second half of 2018.
Pavel Grachev, Chief Executive Officer of PJSC Polyus, commented:
Polyus has delivered another strong quarter, with gold production increasing by 14% to 684 thousand ounces, both on a quarter-on-quarter and a year-on-year basis. This performance was supported by the Natalka Mill operating at full capacity and ongoing expansion across our entire asset portfolio. We are continuously working to introduce further operational improvements at Natalka, including a set of initiatives to increase the recovery rate.
We are focused on enhancing our ESG disclosure. In the second quarter we published a special report on the safety of Polyus’ tailings storage facilities, responding to increasing requests for transparency on this area from international investors. The report describes in detail the technical features of Polyus’ tailings facilities, their history and the current state of their operation and maintenance. Polyus is committed to transparency and to ensuring safety across all of our operations.
Based on the production results for the first half of 2019, the Company remains on track to achieve production of approximately 2.8 million ounces of gold for the full year, in line with its guidance.
1H 2019 Highlights
- Total gold output increased to 1,285 thousand ounces, compared to 1,109 thousand ounces in the first half of 2018, a 16% increase year on year. Doré volumes totalled 1,362 thousand ounces, up 17% compared to the same period of the previous year.
- Volumes of ore processed rose 15% year-on-year to 21,185 thousand tonnes mainly due to the Natalka Mill ramp-up as well as expansion projects at existing operations.
- Recovery rate stood at 81.8%, up 0.8 ppts from the prior-year period.
- Estimated gold sales increased 26% year-on-year to $1,627 million, with an estimated weighted-average gold selling price of $1,311/oz, broadly flat from the first half of 2018.
Conference call information
Polyus will host an analyst conference call on 22 July 2019 at 2 pm London time (4 pm Moscow time) to present and discuss the second quarter operating results.
To join the conference call, please dial:
Conference ID: 17951896#
+44 207 194 37 59 (Local access)
0800 376 61 83 (Toll free)
+1 646 722 49 16 (Local access)
844 286 06 43 (Toll free)
+7 495 646 93 15 (Local access)
8 800 500 98 63 (Toll free)
To access the replay, please dial:
+44 20 3364 5147
+1 (646) 722-4969
+7 (495) 249-16-71
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 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.