Press releases

Final Investment Decision on Blagodatnoye Mill-5

PJSC Polyus (LSE, MOEX — PLZL) (“Polyus”, or the “Company”) announces that the Board of Directors of the Company (the “Board”) made a final investment decision on the construction of Mill-5 at the Blagodatnoye complex.

The Company has successfully completed the Feasibility Study (“FS”) for the construction of a new mill at the Blagodatnoye complex.

The FS findings assume that the most efficient option for the long-term development of Blagodatnoye is continued open pit mining down to the bottom elevation of −70mrl with simultaneous throughput expansion.

In terms of the pit development, Polyus expects to further increase the proportional use of large-scale mining equipment. The FS also assumes the introduction of an in-pit crushing and conveying (“IPCC”) system, as opposed to conventional truck delivery. IPCC will start delivering ore to both Mill-4 and Mill-5.

According to the FS, the nominal processing capacity of Mill-5 stands at 8.0 million tonnes per annum, increasing total throughput capacity at the Blagodatnoye complex to 17.0 million tonnes per annum combined. The Company expects to apply a conventional gravity-flotation flowsheet at Mill-5, similar to the flowsheet at Mill-4.

The grade in ore processed at Mill-5 is expected to average 1.4 gram per tonne for the life of mine. The anticipated decline in grades compared to current levels at Mill-4 is attributable to the processing of mix of in-situ and the low-grade stockpiled material.

During the first five years of operations the estimated recovery rate at Mill-5 is 87.9%. TCC is estimated to average $320 per ounce.

Construction capex for Mill-5 is now estimated at approximately $600 million. This figure includes construction of the new mill and IPCC as well as the upgrade of the mining fleet and relevant infrastructure spending.

In accordance with the current construction schedule, the launch of the Mill-5 is anticipated in 2025. Post the ramp-up, Mill-5 is expected to provide 390 thousand ounces of incremental gold volumes.

A full presentation on the construction of Mill-5 can be found in the Presentations section of Polyus’ website:


Polyus is the world’s fourth-largest gold mining company by production volumes and one of two gold miners with the largest attributable gold reserves. The company demonstrates the lowest production costs among major global gold producers.

Its principal operations are located in Siberia and the Russian Far East: Krasnoyarsk, Irkutsk and Magadan regions and the Republic of Sakha (Yakutia).

Investor and Media contact
Victor Drozdov, Director Communications & Investor Relations (CIR) Department
+7 (495) 641 33 77

Forward looking statement

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.