REG - PJSC Polyus Polyus Finance PLC - Operating results for 2H 2022 and full year 2022
21/02/2023 08:15
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230221:nRSU4904Qa&default-theme=true
RNS Number : 4904Q PJSC Polyus 21 February 2023
Press
Release
21 February 2023
PJSC POLYUS
Operating Results FOR the second half of 2022 and FULL YEAR 2022
PJSC Polyus ("Polyus" or the "Company") today releases its 2H 2022 and FY 2022
operating results.
2H 2022 Highlights
· Volumes of ore mined increased 21% to 34,184 thousand tonnes,
compared to the first half of 2022, reflecting higher ore volumes mined at
Olimpiada and Blagodatnoye.
· Volumes of ore processed amounted to 24,542 thousand tonnes, a 3%
increase on the first half of 2022, driven by a seasonal improvement of heap
leaching operations at Kuranakh.
· Doré gold output stood at 1,382 thousand ounces in the second half
of 2022, up 16% compared to the first half of 2022.
· Total gold output amounted to 1,474 thousand ounces, a 38% increase
compared to the first half of 2022, reflecting a higher gold production across
all operating assets of the group. This also includes higher volumes of gold
in flotation concentrate produced in the second half of 2022 (80koz vs 4.0koz
in 1H 2022).
FY 2022 Highlights
· Volumes of ore mined in 2022 decreased 7% year-on-year to 62,333
thousand tonnes, due to lower ore volumes mined at Blagodatnoye, Natalka and
Verninskoye. This was partially offset by higher volumes of ore mined at
Olimpiada.
· Volumes of ore processed amounted to 48,319 thousand tonnes,
remaining almost flat on the previous year.
· Recovery rate decreased to 81.8%, compared to 82.7% in 2021, mainly
due to lower head grades.
· Doré gold output totalled 2,568 thousand ounces, down 6%
year-on-year.
· Total gold output declined to 2,541 thousand ounces, compared to
2,717 thousand ounces in 2021, driven by:
§ Lower production of refined gold at Olimpiada due to temporary decline in
grades in ore processed. The Company's management intentionally decided to
downscale excavation volumes versus the initial mining calendar accounting for
elevated risks of potential disruptions in supply chains for spare parts and
mining equipment. This led to a delayed access to high-grade zones of the ore
body. The excavation volumes have already been brought back to normal, and
some portion of high-grade ore planned for the second half of 2022 will be
carried forward to the first half of 2023.
§ An anticipated decrease in head grades at Blagodatnoye and Natalka.
· In 2022, the Company sold the total of 2,423 thousand ounces of gold,
down 11% from the prior year. A difference between sales and the total gold
output mainly reflects the accumulation of gold contained in concentrate
produced in the fourth quarter of 2022. Sales of flotation concentrate have
been typically lagging behind production for several months. Inventories of
concentrate will be sold and reflected in the group's financials in early
2023.
2023 production guidance and ANNOUNCEMENT of new projects
· Polyus anticipates gold production for the full year of 2023 to
reside within the range of 2.8 - 2.9 million ounces. The year-on-year increase
in production is expected to be mainly driven by higher grades in ore
processed at Olimpiada since Polyus will be mining rich gold-bearing zones of
the Vostochny pit.
· Polyus continues development of its previously announced brownfield
projects, including Mill-5 construction at Blagodatnoye, which is anticipated
to be completed in 2025.
· In addition to the existing project pipeline, Polyus launches 3 new
brownfield initiatives:
§ Throughput capacity expansion at Kuranakh' existing heap leaching
facilities aimed at increasing capacity from 1.5 million tonnes per annum to
5.0 million tonnes per annum starting from 2025.
§ Construction of new 12.5 million tonnes per annum heap leaching facilities
at Kuranakh with a scheduled launch in 2026 and the full ramp-up by 2028.
§ Introduction of a flotation circuit at Natalka by 2025.
· These projects are expected to add 0.3 - 0.4 million ounces of
incremental gold volumes per annum to the group's gold production on the
horizon of 3 - 5 years.
· Additional information on these initiatives will be provided in March
2023 when the Company discloses its financial results for the full year of
2022.
Consolidated operating results
2022 2021 Y-o-Y 2H'22 1H'22 H-o-H 2H'21 Y-o-Y
Olimpiada 959.7 1,082.9 -11% 532.0 427.7 24% 570.6 -7%
Blagodatnoye 387.8 430.3 -10% 216.5 171.3 26% 220.5 -2%
Natalka 444.7 503.3 -12% 233.5 211.2 11% 262.9 -11%
Verninskoye 296.1 292.2 1% 159.3 136.8 16% 149.8 6%
Kuranakh 239.4 237.8 1% 132.6 106.8 24% 127.5 4%
Alluvials 129.9 141.1 -8% 120.1 9.8 n/a 115.9 4%
Refined gold, koz 2,457.6 2,687.6 -9% 1,394.0 1,063.6 31% 1,447.2 -4%
Flotation concentrate production, t 30,420 15,377 98% 27,979 2,441 n/a 3,547 n/a
Antimony in flotation concentrate, t 4,391 2,499 76% 3,991 400 n/a 580 n/a
Gold in flotation concentrate, koz 83.7 29.8 n/a 79.7 4.0 n/a 7.0 n/a
Gold payable in concentrate, koz 70.5 22.8 n/a 67.4 3.1 n/a 5.4 n/a
Total gold output, koz 2,541.3 2,717.4 -6% 1,473.7 1,067.6 38% 1,454.2 1%
Rock moved, km³ 144,207 136,430 6% 70,226 73,981 -5% 71,723 -2%
Stripping ratio, m³/t 1.9 1.6 19% 1.7 2.2 -23% 1.7 0%
Rock moved, kt 369,588 351,690 5% 179,595 189,993 -5% 185,209 -3%
Stripping ratio, t/t 4.9 4.2 17% 4.3 5.7 -25% 4.5 -4%
Ore mined, kt 62,333 67,321 -7% 34,184 28,149 21% 33,655 2%
Ore processed, kt 48,319 47,895 1% 24,542 23,777 3% 24,600 0%
Recovery rate, % 81.8% 82.7% -0.9ppts 81.8% 81.8% 0.0ppts 83.2% -1.4ppts
Total doré & slime gold output, koz 2,568.0 2,736.4 -6% 1,381.8 1,186.2 16% 1,428.3 -3%
esg update
2H Highlights
· LTIFR(( 1 )) for 2H of 2022 stood at 0.11 (2H of 2021 - 0.17),
while the FY2022 ratio was 0.14 (FY2021 - 0.18). In 2022, two fatalities were
recorded at Polyus operations.
· Safety culture level on the Bradley scale reached 2.6, in line with
the Polyus Group's plan.
· No environmental incidents were recorded during the reporting
period. Not a single accident occurred.
· Coronavirus update: the overall status of vaccination was 74%. 2
Health and safety
· The employees of Polyus Aldan, Polyus Stroi, Polyus Logistics and
Polyus Magadan completed the training programme based on the updated incident
management standard.
· The corporate contest on the best occupational safety initiative was
held. The projects for setting up training grounds to practice safe operations
when connecting mining equipment implemented at Polyus Magadan and Lenzoloto
were recognised as the best initiatives.
· At Polyus Krasnoyarsk, first-aid facilities, pharmacies and medical
rooms were renovated.
· First-aid training took place across all business units. More than
400 employees completed the training programme at Polyus Krasnoyarsk.
· An independent industrial safety audit was held at Polyus Krasnoyarsk
and Polyus Logistics (Krasnoyarsk branch).
· The COVID-19 vaccination/revaccination and the flu vaccination
campaigns were launched.
· Polyus received an award for the national Best Occupational Health
Management Systems for 2022 competition arranged by the Russian Ministry of
Labor and Social Protection.
Environment and climate
· The Climate Strategy was approved by the Board of Directors and
released. The development of action plans and methodological guidance is
underway.
· The design of the tailings storage facility monitoring and control
system was completed; preparations are underway for its pilot testing. The
scheduled internal safety audits were performed across all of the Company's
tailings storage facilities.
· The Biodiversity Risk Assessment and Monitoring Regulation is
underway. Training webinars for business units were organised.
· Polyus Krasnoyarsk employees released 145,000 young sterlets into the
Yenisey river in 2022.
· Polyus topped the World Wildlife Fund (WWF) annual environmental
transparency rating for Russian mining and metals companies for the second
year in a row.
Local communities
· In Krasnoyarsk, the Geology Museum of Central Siberia (GEOS) opened
the Gold is Nearby exhibition, which was organised by Polyus together with the
Polytechnical Museum. Polyus funded the renovation of a GEOS exhibition hall,
to coincide with the event.
· Polyus allocated funds to establish a cutting-edge laboratory for
future beneficiation engineers in the Bodaibo mining college, Irkutsk region.
The facility has unique equipment to better prepare students for their career
endeavours.
· Polyus Verninskoye financed the arrangement of an off-site visit to
the Bodaibo cancer detection centre, Irkutsk region. Over 700 people had
medical consultations with Irkutsk specialists.
· As part of the Summer with Polyus in Irkutsk project, the Company
acted as the main organiser for the Moscow Theatre at Taganka, which stages
three performances in Irkutsk.
· Around 80 school students attended career guidance events arranged by
Polyus Magadan. The speakers provided an overview of mineral resources and
popular professions in today's gold mining industry. In addition, school
students learned more about Polyus's overall business, geography, structure,
corporate programmes and values.
Employees
· The third company-wide professional skills contest was held in
Krasnoyarsk. Personnel from the Krasnoyarsk, Yakutia, Irkutsk and Magadan
business units showcased top-quality professional skills, brilliant skills in
operating machinery and vehicles as well as solid teamwork.
· Polyus conducted several events under the volunteer programme,
including a grants competition for the best volunteer project, donor days,
collection of donations for charity funds and environmental trips.
· More than 80 Polyus employees took part in the Big Data Analysis
corporate workshop. They can apply such knowledge and skills in an independent
analysis of various types of data and machine learning modelling to deal with
business cases.
ESG ratings 3
· International ratings
o FTSE Russell - 3.9 (out of 5)
o ISS - C+
o Sustainalytics - 31.0
o MSCI - B
o Nature Benchmark - 34.2 (position in the overall ranking: 21/389, position
in the industry ranking: 8/97)
· Polyus was awarded with new national ratings:
o The Expert RA rating agency assigned an ESG-II(b) rating, meaning that the
Company demonstrates a high level of compliance with sustainability goals. The
score ranges from ESG-I to ESG-W, where ESG-I is the highest.
o ACRA assigned ESG-2, category ESG-B, which corresponds to a very high
rating in the field of environment, social responsibility and governance. The
score ranges from ESG-1 to ESG-17, where ESG-1 is the highest.
· The joint MOEX-RSPP Index: for the first time, Polyus was included in
Group A, the Vector of Sustainable Development, and reinforced its position in
Group B+, the Responsibility and Transparency Index.
· RAEX upgraded the Polyus rating from A to AA, making it one of the
two top Russian companies out of 160 covered by the RAEX ranking.
Olimpiada
2H 2022 Highlights
Ø Average grades in ore processed rose to 3.18 g/t.
Ø Recovery rate rose 1.6ppts to 82.8%.
FY 2022 Highlights
Ø Volumes of ore processed reached 15,189 thousand tonnes.
Ø Average grades in ore processed decreased to 2.77 g/t.
Ø Total gold output was 1,043 thousand ounces.
Gold output
Doré gold output stood at 579 thousand ounces in the second half of 2022, up
22% half-on-half, driven by improved average grades in ore processed and
higher recovery rates. Total gold output (refined and in concentrate) rose 42%
compared to the first half of 2022, to 612 thousand ounces, including 80
thousand ounces of gold contained in flotation concentrate. This increase was
driven by higher grades in ore mined at Olimpiada in the second half of 2022
when Polyus started mining activities at rich gold-bearing zones of the
Vostochny pit.
In 2022, doré gold output amounted to 1,052 thousand ounces, down 5% compared
to 2021, reflecting lower grades in ore processed. Total gold output declined
6% year-on-year to 1,043 thousand ounces.
Flotation concentrate output increased almost two-fold year-on-year to 30
thousand tonnes with volumes of gold contained in flotation concentrate
amounting to 83.7 thousand ounces, driven by an increase in processed volumes
of high-grade antimony-rich ore at Olimpiada.
Mining works
In the second half of 2022, volumes of rock moved decreased 18% to 61,779
thousand tonnes (22,773 km³) compared to the first half of 2022. Polyus
increased the volumes of ore mined to 13,453 thousand tonnes, up 7,590
thousand tonnes on the previous half of the year. The average grades in ore
mined increased to 2.72 g/t, compared to 2.04 g/t in the first half of 2022,
as the Company proceeded with mining activities in a higher-grade area of the
fourth stage of the pit.
In 2022, volumes of ore mined amounted to 19,316 thousand tonnes, a 64%
increase compared to 2021. In line with the sequence of mining works, the
average grade in ore mined for the full year of 2022 stood at 2.51 g/t
compared to 2.80 g/t in the previous year.
In 2022, accounting for elevated risks of potential disruptions in supply
chains for spare parts and mining equipment, the Company's management decided
to temporarily downscale excavation volumes versus the initial mining
calendar. This led to a delay in access to high-grade zones of the ore body.
Polyus is already back to initially planned ore mining volumes at Olimpiada,
with an ongoing improvement in grades in ore mined. The Company anticipates a
year-on-year gold output growth at Olimpiada.
Ore processing
Volumes of ore processed totalled 7,576 thousand tonnes in the second half of
2022, remaining broadly flat compared to the first half of the year. Following
an increase in average grades in ore mined, head grades rose to 3.18 g/t, from
2.37 g/t in the previous half of the year. As a result, the recovery rate
increased to 82.8% from 81.2% in first half of 2022.
In 2022, volumes of ore processed remained flat year-on-year at 15,189
thousand tonnes. The average grades in ore processed declined 8% year-on-year
to 2.77 g/t, reflecting lower average grades in ore mined during the reporting
year. Recovery rate amounted to 82.1%, compared to 84.0% in the full year of
2021.
In 2022, the Company proceeded with a number of initiatives aimed at
stabilising the current processing parameters at 15.0 million tonnes per
annum, including the start of an additional flotation concentrate thickener.
At BIO complex, Polyus has improved its efficiency by launching four
additional reactors at BIO-2.
Mining works and ore processing
2022 2021 Y-o-Y 2H'22 1H'22 H-o-H 2H'21 Y-o-Y
Rock moved, km³ 50,538 50,245 1% 22,773 27,765 -18% 28,028 -19%
incl. stripping, km³ 43,539 45,973 -5% 17,898 25,641 -30% 26,067 -31%
Stripping ratio, m³/t 2.3 3.9 -41% 1.3 4.4 -70% 4.8 -73%
Rock moved, kt 136,872 135,927 1% 61,779 75,093 -18% 75,791 -18%
incl. stripping, kt 117,556 124,136 -5% 48,326 69,230 -30% 70,382 -31%
Stripping ratio, t/t 6.1 10.5 -42% 3.6 11.8 -69% 13.0 -72%
Ore mined, kt 19,316 11,791 64% 13,453 5,863 n/a 5,409 n/a
Average grade in ore mined, g/t 2.51 2.80 -10% 2.72 2.04 33% 2.38 14%
Ore processed, kt 15,189 15,061 1% 7,576 7,613 0% 7,745 -2%
Average grade in ore processed, g/t 2.77 3.00 -8% 3.18 2.37 34% 2.98 7%
Recovery, % 82.1% 84.0% -1.9ppts 82.8% 81.2% 1.6ppts 84.8% -2.0ppts
Doré gold, koz 1,052.2 1,112.8 -5% 578.5 473.7 22% 561.5 3%
Refined gold output, koz 959.7 1,082.8 -11% 532.0 427.7 24% 570.6 -7%
Flotation concentrate production, t 30,420 15,377 98% 27,979 2,441 n/a 3,547 n/a
Antimony in flotation concentrate, t 4,391 2,499 76% 3,991 400 n/a 580 n/a
Gold contained in concentrate, koz 83.7 29.8 n/a 79.7 4.0 n/a 7.0 n/a
Total gold output, koz 1,043.4 1,112.7 -6% 611.7 431.7 42% 577.6 6%
Blagodatnoye
2H 2022 Highlights
Ø Volumes of ore mined increased 22% on a half-on-half basis.
Ø Recovery rate increased by 0.5ppts to 86.5%.
Ø Refined gold production rose 26% to 217 thousand ounces.
FY 2022 Highlights
Ø Volumes of ore processed totalled 9,034 thousand tonnes.
Ø Average grades in ore processed stood at 1.54 g/t.
Ø Refined gold output amounted to 388 thousand ounces.
Gold output
Doré gold output in the second half of 2022 amounted to 204 thousand ounces,
a 14% increase compared to the first half of 2022, mainly due to higher
average grades in ore processed and higher volumes of ore processed. Refined
gold output increased 26% half-on-half to 217 thousand ounces.
In 2022, doré gold output declined 13% year-on-year to 382 thousand ounces
and refined gold output stood at 388 thousand ounces, down 10% to 2021. That
decline was driven by lower average grades in ore processed.
Mining works
Volumes of rock moved amounted to 39,825 thousand tonnes (14,351 km³). In the
second half of 2022, volumes of ore mined went up 22% to 6,118 thousand
tonnes, compared to 5,022 thousand tonnes in previous half of the year. The
average grades in ore mined improved to 1.29 g/t (1.06 g/t in the first half
of 2022), reflecting the sequence of mining works in the second half of 2022.
On a year-on-year basis, volumes of ore mined decreased 42% and amounted to
11,140 thousand tonnes. The average grades in ore mined stood at 1.19 g/t,
down 12% compared to 2021, as the Company had completed mining activities at
the second stage of the pit, while operations at the third stage are
associated with mining at lower-grade zones.
Ore processing
Compared to the first half of 2022, volumes of ore processed increased 4% to
4,615 thousand tonnes. This growth reflects less maintenance-related downtime
in the second half of 2022. The average grades in ore processed improved from
1.48 g/t in the previous half of the year to 1.59 g/t, due to an increase in
the average grades in ore mined.
On a year-on-year basis, volumes of ore processed were broadly flat and
amounted to 9.0 million tonnes. Following a decline in grades in ore mined,
head grades decreased from 1.75 g/t in 2021 to 1.54 g/t in 2022. Recovery rate
decreased 0.5ppts to 86.3% in 2022 (86.8% in 2021) due to lower grades in ore
processed.
Mill-5
Polyus is on track with the project implementation. The Company anticipates to
launch Mill 5 in 2025. In 2022, Polyus completed the shift camp construction
and closing of a thermal envelope of the buildings. Major parts of the
foundation works for an in-pit crushing and conveying (IPCC) system were
completed during 2022. Polyus has also finished the installation of the
SAG-mill and desorption site equipment. The construction of the Yenashimo
river bridge was finalised, and the bridge is now operational.
Mining works and ore processing
2022 2021 Y-o-Y 2H'22 1H'22 H-o-H 2H'21 Y-o-Y
Rock moved, km³ 28,538 28,119 1% 14,351 14,187 1% 14,854 -3%
incl. stripping, km³ 24,560 21,311 15% 12,166 12,394 -2% 11,201 9%
Stripping ratio, m³/t 2.2 1.1 100% 2.0 2.5 -20% 1.1 82%
Total rock moved, kt 79,415 78,306 1% 39,825 39,590 1% 41,365 -4%
incl. stripping, kt 68,275 59,245 15% 33,707 34,568 -2% 31,140 8%
Stripping ratio, t/t 6.1 3.1 97% 5.5 6.9 -20% 3.0 83%
Ore mined, kt 11,140 19,061 -42% 6,118 5,022 22% 10,225 -40%
Average grade in ore mined, g/t 1.19 1.35 -12% 1.29 1.06 22% 1.38 -7%
Ore processed, kt 9,034 9,017 0% 4,615 4,419 4% 4,542 2%
Average grade in ore processed, g/t 1.54 1.75 -12% 1.59 1.48 7% 1.78 -11%
Recovery, % 86.3% 86.8% -0.5ppts 86.5% 86.0% 0.5ppts 87.0% -0.5ppts
Doré gold, koz 382.4 438.9 -13% 203.8 178.6 14% 222.7 -8%
Refined gold output, koz 387.8 430.3 -10% 216.5 171.3 26% 220.5 -2%
Natalka
2H 2022 Highlights
Ø Volumes of ore mined declined 25% on a half-on-half basis.
Ø Average grades in ore processed stood at 1.56 g/t.
Ø Refined gold output increased 11% to 233 thousand ounces on a half-on-half
basis.
FY 2022 Highlights
Ø Volumes of ore processed reached 12,427 thousand tonnes.
Ø Recovery rate stood at 72.1%.
Ø Doré gold output totalled 461 thousand ounces.
Gold output
Doré gold output in the second half of 2022 declined 6% half-on-half to 223
thousand ounces, reflecting both lower head grades and lower recovery rates.
Refined gold output amounted to 233 thousand ounces, compared to 211 thousand
ounces in the first half of 2022, reflecting changes in gold in inventory at
the refinery.
In 2022, refined gold output was down 12% year-on-year to 445 thousand ounces,
while doré gold output declined 10% year-on-year to 461 thousand ounces. This
decrease was attributable to lower average grades in ore processed.
Mining works
In the second half of 2022, volumes of rock moved rose 8% to 41,442 thousand
tonnes (16,063 km³) compared to the first half of the year. In line with the
sequence of mining works, volumes of ore mined decreased to 7,429 thousand
tonnes, down 25% half-on-half. The average grades in ore mined decreased to
1.05 g/t (1.24 g/t in the first half of 2022), as Polyus moved mining
activities to lower-grade areas.
In 2022, the Company increased volumes of rock moved by 11% year-on-year to
79,685 thousand tonnes (30,886 km³), as a result of an increase in mining
fleet operating on-site. Over the course of 2022, Polyus intensified its
stripping activities and started ore mining at the low-grade areas of the
second stage of the pit. This resulted in a decrease in the average grades in
ore mined to 1.16 g/t, compared to 1.35 g/t in 2021. Volumes of ore mined
amounted to 17,394 thousand tonnes, down 25% year-on-year.
Ore processing
Volumes of ore processed increased to 6,263 thousand tonnes in the second half
of the year, up 2 % on a half-on-half basis. Due to a decrease in average
grades in ore mined, the average grade in ore processed declined 6% to 1.56
g/t from 1.66 g/t in the first half of 2022. Recovery rate went down 4.0ppts
on the previous half of the year, reflecting the mineralogy of ore feed with a
high content of arsenic and sulphur and lower grades in ore processed. Polyus
continues implementing the operational initiatives targeted at recovery rate
maximisation. These initiatives included calibration of processing parameters
of the flash flotation circuit, improvement of the ball loading at both the
SAG and ball mills and selection of appropriate parameters for the SAG mill
discharge grates.
In 2022, the Natalka mill reached its targeted hourly throughput rate of above
1,550 t/h and is currently running at the annualized capacity of 12.5 million
tonnes per annum.
Average grades in ore processed declined 9% year-on-year to 1.61 g/t due to
lower grades in ore mined. Despite a decrease in head grades, recovery rate
remained broadly flat 72.1% in 2022 (72.0% in 2021).
Mining works and ore processing
2022 2021 Y-o-Y 2H'22 1H'22 H-o-H 2H'21 Y-o-Y
Rock moved, km³ 30,886 27,733 11% 16,063 14,823 8% 13,686 17%
incl. stripping, km³ 24,144 18,722 29% 13,184 10,960 20% 9,180 44%
Stripping ratio, m³/t 1.4 0.8 75% 1.8 1.1 64% 0.8 n/a
Total rock moved, kt 79,685 71,555 11% 41,442 38,243 8% 35,298 17%
incl. stripping, kt 62,291 48,323 29% 34,013 28,278 20% 23,682 44%
Stripping ratio, t/t 3.6 2.1 71% 4.6 2.8 64% 2.0 n/a
Ore mined, kt 17,394 23,232 -25% 7,429 9,965 -25% 11,616 -36%
Average grade in ore mined, g/t 1.16 1.35 -14% 1.05 1.24 -15% 1.35 -22%
Ore processed, kt 12,427 12,387 0% 6,263 6,164 2% 6,387 -2%
Average grade in ore processed, g/t 1.61 1.77 -9% 1.56 1.66 -6% 1.74 -10%
Recovery, % 72.1% 72.0% 0.1ppts 70.0% 74.0% -4.0ppts 72.6% -2.6ppts
Doré gold, koz 460.5 512.9 -10% 222.6 237.9 -6% 260.8 -15%
Refined gold output, koz 444.7 503.3 -12% 233.5 211.2 11% 262.9 -11%
Verninskoye
2H 2022 Highlights
Ø Volumes of ore processed amounted to 1,953 thousand tonnes.
Ø Recovery rate stood at 89.9%.
Ø Refined gold output increased 16% to 159 thousand ounces on a half-on-half
basis.
FY 2022 Highlights
Ø Volumes of ore processed went up 8%.
Ø Average grades in ore processed was 2.63 g/t.
Ø Refined gold output rose to 296 thousand ounces.
Gold output
Doré gold output stood at 146 thousand ounces in the second half of 2022,
down 4% compared to the previous half of the year. This decline was
attributable to lower average grades in ore processed during the reporting
period. Refined gold output amounted to 159 thousand ounces, up 16% compared
to 137 thousand ounces in the first half of 2022, reflecting changes in gold
in inventory at the refinery.
Over the course of 2022, both refined gold output and doré gold output
increased 1% to 296 thousand ounce and 298 thousand ounce respectively. This
increase was driven by higher volumes of ore processed, which compensated for
a decrease in the grade in ore processed.
Mining works
Volumes of rock moved declined 3% compared to the previous half of the year,
to 17,076 thousand tonnes (6,310 km³). In line with the mining plan, volumes
of ore mined went down 15% compared to the first half of the year, to 1,948
thousand tonnes. The average grades in ore mined rose 17% half-on-half to 2.59
g/t.
Volumes of rock moved in 2022 amounted to 34,690 thousand tonnes (12,833
km³), a 5% increase compared to 2021. This increase was driven by the
improved performance of excavators operating on-site and the procurement of
additional mining equipment. In line with the mining plan, volumes of ore
mined decreased 12% year-on-year and amounted to 4,230 thousand tonnes, while
the average grades in ore mined rose to 2.39 g/t (2.22 g/t in 2021).
Ore processing
Following a temporary decline in volumes of ore mined from the high-grade
areas of the deposit, the average grade in ore processed declined 5%
half-on-half to 2.56 g/t. Recovery rate remained unchanged at 89.9%.
In 2022, volumes of ore processed amounted to 3,902 thousand tonnes, a 8%
increase on the previous year. This growth reflects improved the hourly
throughput of the mill, which stood at a new historical high of 468 t/h, as
well as the implementation of operational enhancements resulting in less
maintenance downtime related to the reline of the SAG mill.
Head grades declined from 2.82 g/t in 2021 to 2.63 g/t in the reporting
period, due to a reduced portion of high-grade material in ore mined in 2022.
Despite a 7% decline in grades in ore processed, recovery rate decreased just
0.1ppts to 89.9% on a year-on year basis. This reflects the implementation of
operational initiatives, including the installation of a new desorber and
improved performance of intensive leaching reactors.
Mining works and ore processing
2022 2021 Y-o-Y 2H'22 1H'22 H-o-H 2H'21 Y-o-Y
Rock moved, km³ 12,833 12,249 5% 6,310 6,523 -3% 5,937 6%
incl. stripping, km³ 11,267 10,478 8% 5,588 5,679 -2% 5,273 6%
Stripping ratio, m³/t 2.7 2.2 23% 2.9 2.5 16% 2.9 0%
Total rock moved, kt 34,690 33,073 5% 17,076 17,614 -3% 16,031 7%
incl. stripping, kt 30,460 28,291 8% 15,128 15,332 -1% 14,237 6%
Stripping ratio, t/t 7.20 5.9 22% 7.8 6.7 16% 7.9 -1%
Ore mined, kt 4,230 4,782 -12% 1,948 2,282 -15% 1,794 9%
Average grade in ore mined, g/t 2.39 2.22 8% 2.59 2.22 17% 2.11 23%
Ore processed, kt 3,902 3,608 8% 1,953 1,949 0% 1,888 3%
Average grade in ore processed, g/t 2.63 2.82 -7% 2.56 2.70 -5% 2.81 -9%
Recovery, % 89.9% 90.0% -0.1ppts 89.9% 89.9% 0.0ppts 90.0% -0.1ppts
Doré gold , koz 298.0 294.6 1% 145.7 152.3 -4% 154.4 -6%
Refined gold output, koz 296.1 292.2 1% 159.3 136.8 16% 149.8 6%
Kuranakh
2H 2022 Highlights
Ø Volumes of ore processed amounted to 4,135 thousand tonnes, up 14% on a
half-on-half basis.
FY 2022 Highlights
Ø Volumes of ore mined rose 21% year-on-year to 10,253 thousand tonnes.
Ø Doré gold output increased to 245 thousand ounces.
Gold output
Doré gold output amounted to 133 thousand ounces, a 19% increase on the first
half of 2022, driven by higher processing volumes due to a seasonal
improvement of activities at heap leaching facilities. Refined gold output
rose 24% half-on-half to 133 thousand ounces.
In 2022, doré gold output went up 4% to 245 thousand ounces and refined gold
output reached 239 thousand ounces. This increase was driven by higher head
grades.
Mining works
Volumes of rock moved amounted to 19,473 thousand tonnes (10,729 km³),
remaining broadly flat compared to the first half of the year. Volumes of ore
mined increased to 5,236 thousand tonnes, up 4% on the first half of 2022. The
Company increased a share of lower-grade material in ore mined due to a peak
in the heap leaching activities.
Over the course of 2022, the Company increased volumes of rock moved to 38,926
thousand tonnes (21,412 km³), up 19% on the previous year. Following the
intensification of mining works, the volumes of ore mined went up 21%
year-on-year and amounted to 10,253 thousand tonnes. The average grades in ore
mined declined to 1.05 g/t (1.07 g/t in 2021).
Ore processing
In the second half of the year, volumes of ore processed reached 3,053
thousand tonnes, remaining broadly flat compared to the first half of the
year.
In 2022, volumes of ore processed at the Kuranakh mill amounted to 6,112
thousand tonnes, up 1% compared to 2021. Head grade stood at 1.23 g/t,
compared to 1.21 g/t in the previous year.
The Company is progressing with the project to expand the throughput capacity
at the Kuranakh mill to 7.5 million tonnes per annum. Some long-lead pieces of
equipment and components for the ball mill have already been delivered to the
site. Polyus has also completed construction works at thickeners, installation
of 16 sorption columns for resign-in-pulp expansion and new compressors
commissioning in 2022.
Heap leaching
Due to the seasonality of heap leaching operations, volumes of ore processed
rose by 89% half-on-half to 1,082 thousand tonnes in second half of 2022. The
average grades in ore processed increased to 0.81 g/t from 0.76 g/t in the
first half of 2022.
Volume of ore processed decreased to 1,655 thousand tonnes in 2022, down 7%
compared to 2021, which was compensated by improved grades in ore processed
(0.79 g/t in 2022 vs 0.68 g/t in 2021).
Mining works and ore processing
2022 2021 Y-o-Y 2H'22 1H'22 H-o-H 2H'21 Y-o-Y
Rock moved, km³ 21,412 18,084 18% 10,729 10,683 0% 9,218 16%
incl. stripping, km³ 15,508 13,228 17% 7,700 7,808 -1% 6,574 17%
Stripping ratio, m³/t 1.5 1.6 -6% 1.5 1.6 -6% 1.4 7%
Total rock moved, kt 38,926 32,829 19% 19,473 19,453 0% 16,724 16%
including stripping, kt 28,673 24,374 18% 14,237 14,436 -1% 12,113 18%
Stripping ratio, t/t 2.8 2.9 -3% 2.7 2.9 -7% 2.6 4%
Ore mined, kt 10,253 8,455 21% 5,236 5,017 4% 4,611 14%
Average grade in ore mined, g/t 1.05 1.07 -2% 1.05 1.06 -1% 1.02 3%
Total ore processed, kt 7,767 7,822 -1% 4,135 3,632 14% 4,038 2%
Mill
Ore processed, kt 6,112 6,034 1% 3,053 3,059 0% 3,007 2%
Average grade in ore processed, g/t 1.23 1.21 2% 1.24 1.21 2% 1.19 4%
Recovery, % 88.7% 88.7% 0.0ppts 88.7% 88.7% 0.0ppts 88.4% 0.3ppts
Doré gold, koz 214.7 207.3 4% 108.9 105.8 3% 101.5 7%
Heap-leach
Ore processed, kt 1,655 1,788 -7% 1,082 573 89% 1,031 5%
Average grade in ore processed, g/t 0.79 0.68 16% 0.81 0.76 7% 0.68 19%
Recovery, % 72.3% 72.3% 0.0ppts 72.3% 72.3% 0.0ppts 72.3% 0.0ppts
Doré gold, koz 30.3 28.8 5% 24.4 5.9 n/a 22.6 8%
Total doré gold, koz 245.0 236.1 4% 133.3 111.7 19% 124.1 7%
Refined gold output, koz 239.4 237.8 1% 132.6 106.8 24% 127.5 4%
Alluvials
2H 2022 Highlights
Ø Gold in slime production amounted to 98 thousand ounces.
Ø Refined gold output totalled 120 thousand ounces
FY 2022 Highlights
Ø Refined gold output totalled 130 thousand ounces.
In the second half of 2022, alluvial deposits produced 98 thousand ounces of
gold in slime, up approximately 66 thousand ounces on the first half of 2022.
This increase was primarily due to higher volumes of sands washed, driven by
the seasonality of placer deposits. Refined gold output increased to 120
thousand ounces, compared to 10 thousand ounces in the first half of 2022.
On a year-on-year basis, both gold in slime production and refined gold output
decreased 8% to 130 thousand ounces. This decline was due to lower volumes of
sands washed, compliant with the plan.
Sands washing
2022 2021 Y-o-Y 2H'22 1H'22 H-o-H 2H'21 Y-o-Y
Sands washed, 000 m³ 8,819 9,616 -8% 6,708 2,111 n/a 7,191 -7%
Average grade, g/m³ 0.46 0.46 0% 0.46 0.47 -2% 0.45 2%
Gold in slime, koz 129.9 141.1 -8% 97.9 32.0 n/a 104.8 -7%
Refined gold output, koz 129.9 141.1 -8% 120.1 9.8 n/a 115.9 4%
Sukhoi Log
FY 2022 Highlights
Ø Polyus is proceeding with the BFS development.
Additional drilling activity at Sukhoi Log
Polyus has drilled ca. 63 km out of its 77 km 2022 in-fill drilling campaign,
with the remaining part of the drilling programme to be completed in 2023.
Other activities
In the reporting period, the Company progressed with the construction project
for the Vitim substation and 220 kV gridline, which are within the Polyus
project scope under the agreement with the Federal Grid Company for the
technical connection of Sukhoi Log to the existing power grid.
Polyus has also completed a detailed instrumental survey of bridges and roads
on the Taksimo - Sukhoi Log route. This exercise is required for the
construction and operation of the Sukhoi Log external infrastructure.
In addition, Polyus has completed the drafting of the project design
documentation for the warehousing storage capacity expansion at Taksimo Yard
and started preparing for construction works.
Project developments
In 2022, the Company completed a general layout of the project and is
progressing on the design documents for the auxiliary infrastructure (roads,
internal gridlines, and other essential facilities). The list of facilities
scheduledfor construction in 2023 has been drawn up and approved.
Due to the current geopolitical environment, the Company postpones the
Bankable Feasibility Study completion. As the Company discontinued working
with a few international processing equipment manufacturers, Polyus has
already identified alternative suppliers for the project. The Polyus
engineering team will now proceed with amendments to the initial project
design with a focus on the mill reconfiguration, including the redesign of the
mill's building and foundation, taking into account the updated equipment
list.
The project timeline is currently under consideration. Polyus expects to
provide an updated schedule and details on the project in 2023.
Enquiries:
Investor and Media contact
Victor Drozdov, Director Communications & Investor Relations (CIR)
Department
drozdovvi@polyus.com (mailto:drozdovvi@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 of
the date of this announcement. Polyus and/or any Polyus Company assumes no
obligation in respect of, and does not intend to update, these forward-looking
statements, except as required pursuant to applicable law.
1 Based on a 200,000 work hours' factor.
2 As of 30 December 2022.
3 As of 30 December 2022.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END UPDEAKAEASDDEFA