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En Ru
2,440 koz of gold
produced in 2018 (2017: 2,160 koz)
348 $/oz
Total cash cost per ounce sold
605 $/oz
All-in sustaining cash cost
Ore processed, kt
28,663 2017
38,025 2018
Adj. EBITDA $ mln
1,702 2017
1,865 2018
6 6 operating assets: 5 hard-rock mines and alluvial operations
2,915 $ mln
Total Revenue in 2018
0.09
Lost time injury frequency rate (LTIFR) per 200k hours worked in 2018
Factsheet
Press releases

Trading Update for the Third Quarter of 2019

PJSC Polyus (“Polyus” or the “Company”) today releases its 3Q 2019 operating results for the period ending 30 September 2019.

3Q 2019 Highlights

  • Total gold output increased 10% to 753 thousand ounces compared to the previous quarter. Year on year, volumes of doré gold and total gold output grew by 10% and 9% respectively.
  • Volumes of ore mined amounted to 17,477 thousand tonnes, a 12% increase on the previous quarter. On a year on year basis, volumes of ore mined rose by 38%, driven by intensified mining activities at Blagodatnoye and Natalka.
  • Volumes of ore processed totalled 11,366 thousand tonnes, up 4% on the previous quarter. Year on year, volumes of ore processed rose by 9% mainly due to the ramp-up of Natalka.
  • Recovery rate stood at 82.1%, compared to 82.2% in the previous quarter.
  • Estimated gold sales amounted to $1,061 million, up 20% compared to the previous quarter, with an estimated weighted-average gold selling price of $1,482/oz, a 13% increase on the second quarter of 2019.
  • As at 30 September 2019, the estimated net debt stood at $3,317 million, compared to $3,639 million as at the end of the previous quarter.

9M 2019 Highlights

  • Total gold output increased to 2,037 thousand ounces, compared to 1,800 thousand ounces in the prior-year period, a 13% increase year on year. Doré volumes totalled 2,132 thousand ounces, up 14% compared to the same period of the previous year.
  • Volumes of ore processed rose 13% year-on-year to 32,551 thousand tonnes mainly due to the ramp-up of the Natalka Mill and throughput capacity expansion projects at existing operations.
  • Recovery rate stood at 81.9%, up 1.0 ppts from the prior-year period.
  • Estimated gold sales increased 27% year-on-year to $2,688 million, with an estimated weighted-average gold selling price of $1,372/oz (9M 2018: $1,278/oz).

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

Polyus has had a strong third quarter, setting a new historical high in quarterly total gold output, with 753 thousand ounces produced in the reporting period. We remain well on track proceeding with the company-wide debottlenecking initiatives. Taking those factors into account, as well as Natalka operating at full capacity, we are confirming our production guidance of approximately 2.8 million ounces of gold for the full year.

Our focus remains on further improvement of safety standards within the Company, with LTIFR for the first nine months of 2019 residing at 0.06, one of the lowest levels in industry. On top of that the Company continues to further enhance its disclosure of ESG related activities and metrics. And I’m proud to mention, that our endeavors have been once again recognized, with Polyus SAM rating score upgraded to 45 from 22 in 2018.

Conference call information

Polyus will host an analyst conference call on 22 October 2019 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: 55297362#

UK
+44 203 009 24 70 (Local access)
0800 2794054 (Toll free)

USA
+1 877 423 08 30 (Local access)

Russia
+7 495 646 93 13 (Local access)
8 800 500 98 20 (Toll free)

To access the replay, please dial:

Passcode: 315567870#

UK
+44 20 3364 5150

USA
+1 (844) 307-9362

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.