Polyus PJSC (MOEX – PLZL) ("Polyus" or the "Company") hosted a webcast on 10 December 2024 to provide updates on the current status of its Sukhoi Log strategic project and other key growth projects.
During the webcast, Alexey Vostokov, Chief Executive Officer of Polyus PJSC, together with the management team, outlined the key milestones for the Sukhoi Log development, provided updates on the project's technical and economic estimates, and gave an overview of the current status and implementation plans for the Chulbatkan and the Chertovo Koryto projects.
- Sukhoi Log, located in Irkutsk Region, is one of the world’s largest gold greenfield projects, with 43.5 million ounces of estimated gold reserves. Its start-up, planned for 2028–2029, and subsequent ramp-up are expected to boost gold production in Russia by over 20%, positioning the country as the global leader in gold production based on 2023 levels.
- The project’s plans include building the most powerful gold process plant in Russia. The new process plant will have a throughput of 34 million tonnes per annum of ore, with an annual production capacity ranging from 2.3 to 2.8 million ounces of gold. For comparison, in 2023, volumes of ore processed by the entire Polyus group totaled 49 million tonnes, resulting in the production of 2.9 million ounces of gold.
- In 2024, Polyus initiated pilot processing of Sukhoi Log ore at the nearby Verninskoye mill, and by October, it had produced the first metric tonne of gold from Sukhoi Log ore.
- The Company is actively constructing internal infrastructure, including power supply facilities, a fuel and lubricants storage, a tailings storage facility, and social infrastructure. Additionally, work is underway on external infrastructure, such as the Vitim substation, Taksimo logistics base, as well as the reconstruction of bridges and roads along the route from Bodaibo to Sukhoi Log.
- The Sukhoi Log project will utilize green electricity and smart technologies with a high degree of process automation.
- The project’s CAPEX is estimated at $6 billion. This is the largest investment project in Russia's gold mining industry.
Two other growth projects, Chulbatkan in Khabarovsk Territory and Chertovo Koryto in Irkutsk Region, are expected to receive investment decisions in 2025. The launch of these two projects is planned for 2029.
It is anticipated that by 2030, following the launch of production at Sukhoi Log, Chulbatkan and Chertovo Koryto, Polyus will double its gold output and secure the second position globally in terms of gold production. The total annual production of Polyus group will reach 6 million ounces of gold.
A webcast recording and presentation are available via link.
Polyus
Polyus ranks fourth among the world's largest gold mining companies by production and first by gold reserves. The Company has the lowest production costs among major global gold producers. Its principal operations are located in Siberia and the Russian Far East: Krasnoyarsk Territory, Irkutsk and Magadan Regions, and the Republic of Sakha (Yakutia).
Investor and media contact
Capital Markets Department
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IR@polyus.com
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.