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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 the Third Quarter of 2018

PJSC Polyus (“Polyus” or the “Company”) today releases its operating results for the three months ending 30th September 2018.

3Q 2018 Highlights

  • Total gold output increased 15% to 691 thousand ounces compared to the previous quarter (2Q 2018: 602 thousand ounces). Year on year, volumes of doré gold and total gold output rose by 10% and 8%, respectively.
  • Volumes of ore mined amounted to 12,673 thousand tonnes, a 36% increase on the previous quarter and 28% increase year on year.
  • Volumes of ore processed rose to 10,382 thousand tonnes, up 5% on the previous quarter as the Company is continuing to expand processing capacities at its core assets.
  • Volumes of antimony contained in flotation concentrate amounted to 6.4 thousand tonnes, up 3% on the previous quarter.
  • Polyus has launched the Pre-feasibility Study (“PFS”) at Sukhoi Log. The drilling campaign remains in progress.
  • Estimated gold sales amounted to $821 million, up 20% compared to the previous quarter, with an estimated weighted-average gold selling price (incl. the impact from the SPPP) of $1,209/oz (down 7% on the second quarter of 2018).
  • As at 30 September 2018, the estimated net debt stood at $3,029 million, compared to $3,208 million as at the end of the previous quarter and $3,077 million as at the end of 2017.

9M 2018 Highlights

  • Total gold output increased to 1,800 thousand ounces, compared to 1,580 thousand ounces during the respective period of 2017, representing a 14% increase. Doré volumes totalled 1,865 thousand ounces, up 16% compared to the prior-year period.
  • Volumes of ore processed rose by 38% year on year, to 28,746 thousand tonnes, driven by the ramp-up of the Natalka Mill as well as the expansion of existing operations.
  • Recovery rate stood at 80.9%, down 2.8 ppts from the prior-year period. Recoveries at the group level, adjusted for the Natalka operations, stood at 82.3%.
  • Estimated gold sales increased 8% year on year to $2,112 million, with an estimated weighted-average gold selling price (incl. the impact from the SPPP) of $1,275/oz, broadly in line with the respective period of 2017.
Pavel Grachev, Chief Executive Officer of PJSC Polyus, commented:

Polyus delivered another robust operational performance in the third quarter. Our debottlenecking initiatives at Olimpiada, Blagodatnoye and Kuranakh are progressing well, each posting a gradual increase in throughput. We remain focused on addition of profitable ounces within the perimeter of existing operations as this is where we see the greatest opportunity for ongoing value-creation.

With 1.8 million ounces of gold produced during the nine months of 2018, the Company remains confident of delivering on its production guidance of 2.375-2.425 million ounces for the full year.

The ramp-up of production at Natalka, our key development project, is approaching completion. Being among the top largest deposits globally, Natalka is not only a cornerstone of our production growth, but also an affirmation of Polyus’ team ability to bring operations on line in an efficient manner.

Conference call information

Polyus will host an analyst conference call on 16 October 2018 at 3 pm London time (5 pm Moscow time) to present and discuss the third quarter operating results.

To join the conference call, please dial:

Conference ID: 6018397

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

USA
+1 646-828-8143 (Local access)
800-949-2175 (Toll free)

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

To access the replay, please dial:

Passcode: 6018397

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)

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 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.