PJSC Polyus (Polyus or the Company) today releases its 3Q 2020 operating results for the period ending 30 September 2020.
3Q 2020 Highlights
- Total gold output increased 12% to 771 thousand ounces compared to the previous quarter. Year on year, volumes of doré gold remained flat, while total gold output grew by 2% respectively.
- Volumes of ore mined amounted to 18,264 thousand tonnes, a 5% increase on the previous quarter. On a year on year basis, volumes of ore mined rose by 5%, driven by intensified mining activities at Natalka, Verninskoye and Kuranakh.
- Volumes of ore processed totalled 12,224 thousand tonnes, up 4% on the previous quarter. Year on year, volumes of ore processed rose by 8%, primarily due to higher processing volumes at Olimpiada and Blagodatnoye.
- Recovery rate increased to 84.1%, compared to 83.4% in the previous quarter.
- Estimated gold sales amounted to $1,444 million, up 26% compared to the previous quarter, with an estimated weighted-average gold selling price of $1,907/oz, an 11% increase on the second quarter of 2020.
- As at 30 September 2020, the estimated net debt stood at $2,299 million, compared to $2,506 million as at the end of the previous quarter.
9M 2020 Highlights
- Total gold output and volumes of doré gold amounted to 2,056 thousand ounces and 2,143 thousand ounces, respectively, remaining almost flat compared to the prior-year period.
- Volumes of ore processed increased 7% to 34,675 thousand tonnes, reflecting the performance of the Natalka Mill and the implementation of throughput capacity expansion projects across core assets. Recovery rate rose to 83.7%, up 1.8 ppts from the prior-year period, primarily driven by an increase in recoveries at Olimpiada.
- Estimated gold sales increased 28% year-on-year to $3,453 million, with an estimated weighted-average gold selling price of $1,755/oz (9M 2019: $1,372/oz).
Pavel Grachev, Chief Executive Officer of PJSC Polyus, commented:
Polyus produced 771 thousand ounces of gold during the reporting period, delivering 12% growth in gold production compared to the previous quarter. We continue to implement efficiency improvement initiatives across the company’s assets, and have already achieved a visible growth in recovery rates at Olimpiada and Natalka.
We are also progressing well with the development of our flagship greenfield project, Sukhoi Log. We have today published a Maiden Ore Reserve estimate, of 40 million ounces at a grade of 2.3 g/t, confirming Sukhoi Log as the largest gold deposit globally, both among greenfields and operating gold mines.
Looking ahead to the full year, with almost 2.1 million ounces produced in the first nine months of 2020, we are on track to meet our production target for the year, which remains intact and stands at approximately 2.8 million ounces.
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: : 63885695#
+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:
+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.