Press releases

Trading Update for the First Quarter of 2020

PJSC Polyus (“Polyus” or the “Company”) today releases its 1Q 2020 operating results for the period ending 31 March 2020.

1Q 2020 Highlights

  • Total gold output in the first quarter of 2020 amounted to 595 thousand ounces, compared to 804 thousand ounces in the fourth quarter of 2019. The decrease reflects a seasonal slowdown in production at Alluvials and lower refined gold volumes at Olimpiada, Blagodatnoye, Natalka and Kuranakh. At Olimpiada, Blagodatnoye and Natalka, a decrease in refined gold volumes mainly reflects changes in gold in inventory at the refinery.
  • Volumes of ore mined amounted to 18,226 thousand tonnes, down 4% on the previous quarter, primarily reflecting lower ore volumes mined at Olimpiada.
  • Volumes of ore processed decreased 7% to 10,698 thousand tonnes, compared to the previous quarter, primarily driven by lower processing volumes at Natalka, Olimpiada and Blagodatnoye. Recovery rate rose to 83.6%, compared to 83.2% in the fourth quarter of 2019, reflecting higher recoveries at Olimpiada and Blagodatnoye.
  • Estimated gold sales amounted to $861 million, down 33% compared to the previous quarter, with an estimated weighted-average gold selling price of $1,592/oz (up 7% on the fourth quarter of 2019).
  • As at 31 March 2020, the estimated net debt stood at $3,060 million, compared to $3,253 million as at the end of the previous quarter and $3,555 million as 31 March 2019. These amounts include the liabilities under cross currency and interest rate swaps related to RUB-denominated bank credit facilities and rouble bonds.

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

In the face of the threat of COVID-19, the health and wellbeing of our employees and their families remain our top priority. We are taking action to protect our workers and to contribute to measures taken by the government to prevent the spread of the virus in the regions of our presence. While the Company’s operations remain uninterrupted, we continue to assess any potential risks on a daily basis. We have also asked employees at our Moscow headquarters and a number of other offices to work from home until further notice.

Operationally, we have had a solid quarter, with total gold output of 595 thousand ounces almost flat year-on-year. The Company continues to progress with its development projects across its asset portfolio. In addition, we are finalizing feasibility studies on a number of new brownfield projects and will provide a detailed overview of those later in 2020.

At our main greenfield project, Sukhoi Log, we are proceeding with the in-fill drilling programme, and the Pre-Feasibility study is nearing completion.

Conference call information

Polyus will host an analyst conference call on 23 April 2020 at 3 pm London time (5 pm Moscow time) to present and discuss the first quarter operating results.

To join the conference call, please dial:

Conference ID: 55043563#

UK +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:

Passcode: 418925932#

+44 20 3364 5147

+1 (646) 722-4969

+7 (495) 249-16-71


Investor and Media contact
Victor Drozdov, Director Communications & Investor
Relations (CIR) Department

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.