Press releases

Trading Update for the Second Quarter of 2020

PJSC Polyus (“Polyus” or the “Company”) today releases its 2Q 2020 operating results for the period ending 30 June 2020.

2Q 2020 Highlights

  • Total gold output increased 16% to 690 thousand ounces compared to the previous quarter. Volumes of doré gold and total gold output remained largely flat year on year.
  • Volumes of ore mined amounted to 17,364 thousand tonnes, a 5% decrease on the previous quarter. On a year on year basis, volumes of ore mined rose by 11%.
  • Volumes of ore processed totalled 11,753 thousand tonnes, up 10% on the previous quarter. Year on year, volumes of ore processed rose by 8%.
  • Recovery rate stood at 83.4%, compared to 83.6% in the previous quarter.
  • Estimated gold sales amounted to $1,148 million, up 33% compared to the previous quarter, with an estimated weighted-average gold selling price of $1,723/oz.
  • As at 30 June 2020, the estimated net debt stood at $2,506 million, compared to $3,056 million as at the end of the previous quarter. These amounts include liabilities under cross currency and interest rate swaps related to RUB-denominated bank credit facilities and rouble bonds.

1H 2020 Highlights

  • Total gold output amounted to 1,285 thousand ounces, remaining flat year on year. Doré volumes totalled 1,373 thousand ounces, up 1% compared to the same period of the previous year.
  • Volumes of ore processed rose 6% year-on-year to 22,451 thousand tonnes, reflecting the performance of the Natalka Mill and the implementation of expansion projects across core assets.
  • Recovery rate stood at 83.5%, up 1.7 ppts from the prior-year period.
  • Estimated gold sales increased 23% year-on-year to $2,009 million, with an estimated weighted-average gold selling price of $1,664/oz.

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

Polyus delivered another set of solid operational results amidst a challenging environment with the COVID-19 pandemic, with total gold output increasing 16% quarter-on-quarter to 690 thousand ounces.

In response to the health risks resulting from the COVID-19 pandemic, Polyus has introduced an extensive list of health and safety protocols to protect our employees. Polyus continues to assess all potential risks on a daily basis, as the health and wellbeing of our employees and their families remain the Company’s top priority.

The virus outbreak at our Krasnoyarsk operations has been successfully contained. As Polyus conducted a thorough analysis of an updated mining schedule at Olimpiada, we reiterate initial production guidance for 2020, and expect to achieve production of approximately 2.8 million ounces of gold for the full year.

Operationally, we remain well on track with the implementation of debottlenecking projects at Olimpiada and Verninskoye as well as further operational improvement initiatives at Natalka.

In addition, Polyus intends to provide the key findings of the Pre-Feasibility study along with the maiden estimate of Sukhoi Log P&P reserves over the course of the next few months.

Conference call information

Polyus will host an analyst conference call on 16 July 2020 at 11 am London time (1 pm Moscow time) to present and discuss the second quarter operating results.

To join the conference call, please dial:

Conference ID: 22512823#

+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: 418946236#

+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.