PJSC Polyus (Polyus or the Company) today releases its 4Q 2020 and FY 2020 operating results for the period ending 31 December 2020.
- Total gold output of 2,766 thousand ounces comes in line with FY 2020 production guidance of approximately 2.8 million ounces. However, doré gold volumes totalled 2,803 thousand ounces. The difference in total gold output and doré gold production volumes reflects accumulation of unrefined gold to be further processed in 2021.
- Assets overview:
- Production assets remained unaffected by the COVID-19 pandemic and operated without interruption during the fourth quarter of 2020. Comprehensive COVID-19 protocols remain in place at all sites.
- FY 2021 production guidance is set at 2.7 million ounces of gold.
— Sukhoi Log Pre-Feasibility study highlights and maiden Ore Reserve estimate published.
— In FY 2020, total gold output at Olimpiada stood at 1.2 million ounces (down 14% year on year), as a decline in grades in ore processed was partially offset by higher processing volumes and recovery rate.
— Average grade in ore processed at Blagodatnoye improved to 1.82 g/t from 1.67 g/t in the previous year, resulting in 8% increase in volumes of refined gold, to 455 thousand ounces, in FY 2020.
— Recovery rate continues to improve at Natalka, reaching 74.3% in December 2020, as the Company completed the flash flotation roll-out along with a new CIL line commissioning. Output of refined gold amounted to 455 thousand ounces in FY 2020.
— Refined gold output increased 7% year-on-year at Verninskoye, to 273 thousand ounces, as volumes of ore processed increased to 3.3 million tonnes from 3.0 million tonnes in FY 2019. Polyus continues further throughput capacity expansion of the Verninskoye Mill to 3.5 million tonnes per annum to be completed in 2021.
— In FY 2020, volumes of ore processed at the Kuranakh Mill rose 6% to 6.0 million tonnes. Polyus processed another 1.6 million tonnes of ore at the Kuranakh heap leaching facilities. Refined gold output at Kuranakh stood at 239 thousand ounces.
Recently on Polyus:
- The Company completed the Ust-Omchug — Omchak power project in Magadan region. Natalka was successfully connected to a new 220 kV power grid, Ust-Omchug — Omchak (see link).
- Polyus has completed the Feasibility Study and the Board of Directors of the Company made a final investment decision on the construction of Mill-5 at the Blagodatnoye complex (see link).
- Polyus provided an overview of the key highlights of the Pre-Feasibility study for Sukhoi Log (see link).
- Polyus reported a maiden Ore Reserve estimate for Sukhoi Log and provided an update on the Mineral Resource estimate prepared by AMC Consultants Pty Ltd (AMC) in compliance with JORC Code (see link).
Pavel Grachev, Chief Executive Officer of PJSC Polyus, commented:
Our key focus in 2020 was a comprehensive response to the COVID-19 pandemic. Throughout this challenging year, the Company worked hard to ensure the health and safety of all our employees, which is our constant priority. As we move into 2021, our wide-ranging COVID-19 protocols remain in place at all our sites to ensure the absolute minimum risk to our people.
In 2020, we have made further progress with both brownfield and greenfield development projects, despite the spread of the COVID-19 pandemic, which has affected the timelines of engineering studies.
At Sukhoi Log, we completed the Pre-Feasibility study, an important milestone that reaffirmed the status of Sukhoi Log as one of the world’s highest-calibre gold deposits. On top of this, we published the maiden Ore Reserve estimate for Sukhoi Log, which currently stands at 40 million ounces. This addition to the Company’s reserve base constitutes a solid platform for our long-term development strategy. The Feasibility study for Sukhoi Log is now underway, and we anticipate its completion in 2022.
At the very end of 2020, Polyus approved the construction of Mill-5 at the Blagodatnoye complex. In upcoming years the Company will employ a disciplined and properly staged approach to developing Blagodatnoye, both on processing and mining sides of operations.
Based on the mining calendars and reached processing capabilities we expect total gold output in 2021 at 2.70 million ounces of gold.
Conference call information
Polyus will host an analyst conference call on 28 January 2021 at 1 pm London time (4 pm Moscow time) to present and discuss the fourth quarter operating results.
Conference ID: : 202374
+44 (0)330 336 9104 (Local access)
0800 358 6374 (Toll free)
+1 646-828-8195 (Local access)
+7 495 213 1765 (Local access)
8 800 500 9271 (Toll free)
To access the replay, please dial:
+44 (0) 207 660 0134
8 10 800 2702 1012
Investor and Media contact
Victor Drozdov, Director Communications & Investor Relations (CIR) Department
Forward looking statement
This announcement contains or 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.