REG-Polymetal International plc Polymetal: CORRECTION Q3 2021 production results
26/10/2021 08:25
============
Polymetal International plc (POLY)
Polymetal: CORRECTION Q3 2021 production results
26-Oct-2021 / 10:24 MSK
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
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Release IMMEDIATE
time LSE, MOEX, AIX: POLY / ADR: AUCOY
Date 26 October 2021
Polymetal International plc
CORRECTION: Q3 2021 production results
PLEASE SEE BELOW THE CORRECTED PRESS-RELEASE. THE TOTAL CASH COST AND
ALL-IN SUSTAINING CASH COST GUIDANCE IS UNCHANGED AT US$ 700-750/GE oz AND
US$ 925-975/GE oz RESPECTIVELY.
Polymetal reports solid production results for the third quarter of 2021.
"Start of production at Nezhda capped a solid Q3 performance. Polymetal's
portfolio of mines delivered results in line with the budget with the
company firmly on track to meet its full-year production guidance", said
Vitaly Nesis, Group CEO of Polymetal.
HIGHLIGHTS
• There have been no fatal accidents during the first nine months of
2021 among Polymetal's workforce (similar to 9M 2020). As reported
previously, on July 18 a drilling contractor lost his life at the Saum
open-pit mine. Accident response details can be found in the Health &
Safety section of this announcement. There were no lost-time injuries
in Q3.
• Q3 gold equivalent ("GE") production decreased by 8% y-o-y to 437 Koz
as results reverted to the mean from the all-time quarterly production
record set in Q3 2020. GE output for nine months was down by 4% to
1,151 Koz driven by planned grade declines at Kyzyl, Svetloye and
Voro.
• Russia is going through the fourth wave of the COVID pandemic with
multiple daily highs set recently for both new cases and deaths. At
Polymetal, the number of active cases rose to 72 as of the date of
this press release. The epidemiological situation remains under
control with operations and projects continuing undisrupted despite
several localised outbreaks.
• COVID-related transportation restrictions at railway and seaports in
China persist. However, the Company successfully shortened concentrate
transit times by switching from bulk (boxcar) to container shipping.
The lag between sales and production as well as excess working capital
decreased significantly and are expected to be eliminated by the
year-end.
• Revenue for the quarter declined by 7% y-o-y to US$ 819 million driven
by lower gold and silver prices. 9M revenue reached US$ 2,093 million,
up 4% y-o-y. Net debt marginally increased for the quarter to US$ 1.90
billion as the Company generated substantial free cash flows and paid
an interim dividend of US$ 0.2 billion (45 cents per share).
• Nezhda produced first concentrate on October 16, two weeks ahead of
the previously announced target date (November 1st). The Company
expects to reach the plant's nameplate capacity and full design
recovery by April 2022. POX-2 construction is progressing on schedule.
All heavy equipment arrived on site and has been installed.
• In October, Polymetal received an ESG Risk Rating of 15.9 1 1 and
was assessed by Sustainalytics to be at low risk of experiencing
material financial impact from ESG factors. This is an improvement
from the prior year rating of 20.3 (medium risk). Polymetal is now
ranked by Sustainalytics within top 3 precious metals companies
globally.
• The Company is on track to meet its full-year 2021 production guidance
of 1,500 GE Koz. TCC and AISC guidance of US$ 700-750/GE oz and US$
925-975/GE oz respectively is maintained. The cost guidance remains
contingent on the RUB/USD and KZT/USD exchange rates.
• Polymetal will host its Analyst & Investor Day on November 8 in the
format of a video webcast and conference call. The management will
provide updates on mid-term production and CAPEX guidance as well as
on the key development projects.
OPERATING HIGHLIGHTS
3 months ended Sep 9 months ended
30, % change1 Sep 30, % change1
2021 2020 2021 2020
Waste mined, Mt 54.1 43.8 +24% 152.0 122.8 +24%
Underground 24.2 21.0 +15% 70.5 67.4 +5%
development, km
Ore mined, Mt 4.1 4.0 +1% 11.6 12.0 -3%
Open-pit 3.1 2.9 +5% 8.7 8.9 -2%
Underground 1.0 1.1 -10% 2.9 3.1 -7%
Ore processed, Mt 4.1 4.0 +3% 11.7 11.8 -1%
Average GE grade 3.4 3.8 -11% 3.5 3.9 -10%
processed, g/t
Production
Gold, Koz 399 438 -9% 1,035 1,080 -4%
Silver, Moz 4.5 4.6 -3% 13.9 14.4 -4%
Gold equivalent, 437 477 -8% 1,151 1,200 -4%
Koz2
Sales
Gold, Koz 406 410 -1% 1,002 1,005 -0%
Silver, Moz 4.6 4.2 +10% 12.6 14.1 -11%
Revenue, US$m3 819 884 -7% 2,093 2,019 +4%
Net debt, US$m4 1,897 1,827 +4% 1,897 1,351 +40%
LTIFR5 0 0.15 -100% 0.11 0.10 +10%
Fatalities 0 0 NA 0 0 NA
Notes: (1) % changes can be different from zero even when absolute numbers
are unchanged because of rounding. Likewise, % changes can be equal to
zero when absolute numbers differ due to the same reason. This note
applies to all tables in this release.
(2) Based on 120:1 Au/Ag conversion ratio and excluding base metals.
Comparative data for 2020 restated accordingly.
(3) Calculated based on the unaudited consolidated management accounts.
(4) Non-IFRS measure based on unaudited consolidated management accounts.
Comparative information is presented for 31 June 2021 (for the three
months period) and 31 December 2020 (for the nine months period).
(5) LTIFR = lost time injury frequency rate per 200,000 hours worked.
PRODUCTION BY MINE
3 months ended Sep % 9 months ended Sep 30, %
30,
2021 2020 change 2021 2020 change
GOLD EQ. (KOZ)1
Kyzyl 91 102 -10% 274 314 -13%
Albazino 67 65 +3% 190 204 -7%
Varvara 47 46 +2% 157 130 +21%
Omolon 60 65 -8% 157 153 +2%
Dukat 44 48 -8% 142 152 -6%
Mayskoye 75 77 -3% 85 78 +9%
Svetloye 31 39 -22% 84 91 -8%
Voro 22 35 -36% 62 77 -19%
TOTAL 437 477 -8% 1,151 1,200 -4%
Notes: (1) Based on 120:1 Au/Ag conversion ratio and excluding base
metals. Comparative data for 2020 restated accordingly.
CONFERENCE CALL AND WEBCAST
The Company will hold a conference call and webcast on Tuesday, 26 October
2021 at 10:00 London time (12:00 Moscow time).
To participate in the call, please dial:
From the UK:
+44 203 984 9844 (local access)
+44 800 011 9129 (toll free)
From the US:
+1 718 866 4614 (local access)
+1 888 686 3653 (toll free)
From Russia:
+7 495 283 9858 (local access)
To participate from other countries, please dial any of the local access
numbers listed above.
Conference code: 785872
To participate in the webcast follow the link:
2 https://mm.closir.com/slides?id=785872.
Please be prepared to introduce yourself to the moderator or register.
A recording of the call will be available at the same numbers and webcast
link listed above within an hour after the call and until 2 November 2021.
About Polymetal
Polymetal International plc (together with its subsidiaries - "Polymetal",
the "Company", or the "Group") is a top-10 global gold and silver producer
with assets in Russia and Kazakhstan. The Company combines strong growth
with a robust dividend yield.
Enquiries
Media Investor Relations
Polymetal
3 ir@polymetalinternational.com
FTI Consulting Evgeny
+44 20 Monakhov +44 20 7887 1475 (UK)
Leonid Fink 3727
1000 Timofey
Viktor Pomichal Kulakov
+7 812 334 3666 (Russia)
Kirill
Kuznetsov
Joint Corporate Brokers
+44 20
Morgan Stanley & Co. 7425
International plc 8000
Andrew Foster RBC Europe
Limited
Richard Brown
Marcus +44 20 7653 4000
Panmure Gordon Jackson
John Prior Jamil Miah
Rupert Dearden +44 20
7886
2500
Forward-looking statements
This release may include statements that are, or may be deemed to be,
"forward-looking statements". These forward-looking statements speak only
as at the date of this release. These forward-looking statements can be
identified by the use of forward-looking terminology, including the words
"targets", "believes", "expects", "aims", "intends", "will", "may",
"anticipates", "would", "could" or "should" or similar expressions or, in
each case their negative or other variations or by discussion of
strategies, plans, objectives, goals, future events or intentions. These
forward-looking statements all include matters that are not historical
facts. By their nature, such forward-looking statements involve known and
unknown risks, uncertainties and other important factors beyond the
company's control that could cause the actual results, performance or
achievements of the company to be materially different from future
results, performance or achievements expressed or implied by such
forward-looking statements. Such forward-looking statements are based on
numerous assumptions regarding the company's present and future business
strategies and the environment in which the company will operate in the
future. Forward-looking statements are not guarantees of future
performance. There are many factors that could cause the company's actual
results, performance or achievements to differ materially from those
expressed in such forward-looking statements. The company expressly
disclaims any obligation or undertaking to disseminate any updates or
revisions to any forward-looking statements contained herein to reflect
any change in the company's expectations with regard thereto or any change
in events, conditions or circumstances on which any such statements are
based.
KYZYL
3 months ended Sep 9 months ended
30, % change Sep 30, % change
2021 2020 2021 2020
MINING
Waste mined, Mt 21.2 20.0 +6% 62.0 58.0 +7%
Ore mined (open-pit), 574 513 +12% 1,672 1,555 +8%
Kt
PROCESSING
Ore processed, Kt 550 509 +8% 1,683 1,515 +11%
Gold grade, g/t 6.1 7.4 -18% 6.2 8.0 -23%
Gold recovery 88.4% 89.0% -1% 89.1% 87.8% +1%
Concentrate produced, 28.9 37.2 -22% 98.1 110.2 -11%
Kt
Concentrate gold 102.3 90.6 +13% 94.3 96.4 -2%
grade, g/t
Gold in concentrate, 95 108 -12% 297 341 -13%
Koz1
Concentrate shipped, 9.7 21.1 -54% 58.1 68.3 -15%
Kt
Payable gold shipped, 18 40 -55% 104 132 -21%
Koz
Amursk POX
Concentrate processed, 19 15 +28% 44 44 +1%
Kt
Gold grade, g/t 133.8 147.8 -9% 133.9 143.8 -7%
Gold recovery 93.1% 92.6% +1% 92.1% 92.1% +0%
Gold produced, Koz 74 62 +19% 170 183 -7%
TOTAL PRODUCTION
Gold, Koz 91 102 -10% 274 314 -13%
Note: (1) For information only; not considered as gold produced and
therefore not reflected in the table representing total production. It
will be included in total production upon shipment to off-taker or dore
production at Amursk POX.
(2) To be further processed at Amursk POX.
In Q3, gold production at Kyzyl continued to be impacted by the planned
grade decline towards the reserve average. The impact was partially
compensated by increase in throughput with the concentrator currently
running at the upper limit of tailings disposal license. As a result,
quarterly output decreased by 10% y-o-y to 91 Koz.
Concentrate shipments to China experienced disruptions related to acute
rail car and ship deficit due to Chinese anti-COVID precautionary measures
at seaports and railway crossings. The Company expects the
sales/production gap to close fully by year-end.
ALBAZINO
3 months ended Sep 9 months ended
30, % change Sep 30, % change
2021 2020 2021 2020
MINING
Waste mined, Mt 5.7 5.2 +8% 16.3 15.1 +8%
incl. Kutyn 0.5 - NA 0.5 NA -
Underground 4.5 2.5 +79% 11.7 8.7 +34%
development, km
Ore mined, Kt 581 421 +38% 1,530 1,401 +9%
Open-pit 382 249 +53% 958 905 +6%
Underground 199 172 +16% 572 497 +15%
PROCESSING
Albazino concentrator
Ore processed, Kt 458 429 +7% 1,329 1,320 +1%
Gold grade, g/t 4.3 4.7 -8% 4.2 4.6 -10%
Gold recovery1 89.4% 88.4% +1% 88.8% 86.8% +2%
Concentrate produced, 37.6 34.9 +8% 104.1 107.6 -3%
Kt
Concentrate gold 46.7 50.3 -7% 47.6 49.5 -4%
grade, g/t
Gold in concentrate, 56.6 56.5 +0% 159.3 171.2 -7%
Koz2
Amursk POX
Concentrate processed, 42.1 40.8 +3% 124.5 126.5 -2%
Kt
Gold grade, g/t 50.1 49.2 +2% 50.3 51.5 -2%
Gold recovery 96.4% 96.5% -0% 96.4% 96.5% -0%
Gold produced, Koz 67 65 +3% 189 204 -7%
TOTAL PRODUCTION
Gold, Koz 67 65 +3% 189 204 -7%
Notes: (1) To concentrate.
(2) For information only; not considered as gold produced and therefore
not reflected in the table representing total production. Included in
total production after Dore production at the Amursk POX.
At Albazino, grade eroded y-o-y as the high-grade Anfisa pit approaches
full depletion. Persistently challenging geotechnical conditions in the
underground mine led to increased dilution and losses. The action plan to
shift to sublevel caving has been developed with the goal to achieve
transition at deep levels by the end of 2022. The management believes unit
mining costs and productivity can be improved with the new mining method
while mining losses and grades can be maintained at current levels.
Waste and mining volumes were higher y-o-y on the back of Farida open pit
development. Underground development almost doubled due to ramping-up
Ekaterina and Anfisa underground mines.
Grade decline has been fully compensated by increasing throughput to
record levels and improving recoveries. Overall quarterly gold production
at the Albazino-Amursk hub increased by 3% to 67 Koz due to processing of
higher-grade third-party concentrate at the Amursk POX.
At Kutyn heap leach project, pre-stripping has started following the
receipt of final development permits.
AMURSK POX
3 months ended Sep 9 months ended Sep
30, % change 30, % change
2021 2020 2021 2020
Concentrate 61 56 +10% 171 170 +1%
processed, Kt
Albazino 39 40 -2% 116 119 -2%
Kyzyl 19 15 +28% 44 44 +1%
Mayskoye - - NA 3 - NA
Veduga - NA 4 3 +38%
Other1 3 1 +232% 4 4 -6%
Gold recovery 94.6% 94.5% +0% 94.2% 94.3% -0%
Average gold 76.3 75.5 +1% 72.0 75.3 -4%
grade, g/t
Average sulphur 13.8% 14.4% -4% 13.8% 14.1% -2%
grade
Total gold 140 129 +9% 364 390 -7%
produced2, Koz
Kyzyl 74 62 +19% 170 183 -7%
Albazino 59 65 -9% 171 176 -3%
Veduga 1 - NA 11 19 -43%
Mayskoye 0 - NA 5 0 NM
Other1 7 0 NA 8 10 -25%
Notes: (1) Purchased concentrates which are included in reportable
production in the Albazino segment.
(2) For information only. Already accounted for in production
at operating mines.
POX quarterly output was up y-o-y due to higher volumes of Kyzyl and
third-party high-grade concentrate in the feedstock.
A planned two-week autoclave maintenance shutdown in October went smoothly
and has not identified any material issues.
VARVARA
3 months ended Sep 9 months ended
30, % change Sep 30, % change
2021 2020 2021 2020
MINING
Waste mined, Mt 11.2 10.1 +11% 30.7 30.3 +1%
Ore mined, Kt 908 725 +25% 2,815 2,209 +27%
PROCESSING
Leaching
Ore processed, Kt 830 773 +7% 2,387 2,303 +4%
Gold grade, g/t 1.6 1.4 +14% 1.6 1.4 +13%
Gold recovery1 89.9% 88.1% +2% 88.8% 88.1% +1%
Gold production (in 38 32 +19% 122 99 +24%
dore), Koz
Flotation
Ore processed, Kt 133 176 -24% 508 523 -3%
Gold grade, g/t 2.9 3.2 -9% 2.8 3.0 -7%
Recovery1 88.4% 88.7% -0% 85.4% 87.4% -2%
Gold in concentrate, 9 14 -35% 35 32 +10%
Koz
Total ore processed, 963 949 +1% 2,896 2,825 +2%
Kt
TOTAL PRODUCTION
Gold, Koz 47 46 +2% 157 130 +21%
Note: (1) Technological recovery, includes gold and copper within
work-in-progress inventory. Does not include toll-treated ore.
In Q3, flotation circuit at Varvara was undergoing maintenance and ore
tonnage was redirected to the leaching circuit. On a like for like basis,
leaching circuit production increased due to higher grade in the Komar ore
and improvements to the flow sheet (increased residence time and cyanide
consumption rate). As a result, total quarterly production at Varvara was
up by 2% y-o-y to 47 Koz of gold.
OMOLON OPERATIONS
3 months ended Sep 9 months ended
30, % change Sep 30, % change
2021 2020 2021 2020
MINING
Waste mined, Mt 1.7 0.7 +142% 3.3 2.8 +20%
Underground 3.0 3.1 -3% 8.6 10.0 -14%
development, Km
Ore mined, Kt 297 607 -51% 482 2,171 -78%
Open-pit 208 497 -58% 242 1,828 -87%
Underground 89 110 -20% 240 344 -30%
PROCESSING
Kubaka Mill
Ore processed, Kt 222 214 +4% 651 648 +1%
Grade
Gold, g/t 6.7 7.1 -6% 6.7 6.9 -3%
Silver, g/t 88 28 +216% 59 22 +163%
Recovery1
Gold 95.8% 95.0% +1% 94.6% 93.8% +1%
Silver 84.0% 73.0% +15% 81.6% 73.8% +11%
Gold production, Koz 43 49 -13% 131 132 -1%
Silver production, Moz 0.6 0.1 +285% 1.0 0.3 +205%
Birkachan Heap Leach
Ore stacked, Kt 348 411 -15% 701 1,118 -37%
Gold grade, g/t 2.4 1.6 +51% 1.8 2.0 -9%
Gold production, Koz 13 15 -14% 17 18 -7%
TOTAL PRODUCTION
Gold, Koz 55 64 -13% 148 150 -1%
Silver, Moz 0.6 0.2 +237% 1.1 0.4 +187%
Note: (1) Technological recovery, includes gold and silver within
work-in-progress inventory.
At Omolon, gold output for the quarter contracted by 13% y-o-y while
silver production more than doubled as sufficient volumes of high silver
grade material became available and Merrill-Crowe circuit at the Kubaka
mill was re-launched in Q2 after a shut-down in 2020.
Quarterly gold production at the Birkachan heap leach decreased due to
accumulation of work-in-progress inventories. Stacking was lower with the
crusher focused on re-handling of the higher-grade stockpiles.
Ore mining was down y-o-y as Olcha open pit and underground mines as well
as Birkachan open pit were fully depleted. However, relative to the
previous quarter the volumes jumped almost threefold as mining at the new
open pit at Burgali gained momentum.
DUKAT OPERATIONS
3 months ended Sep 9 months ended
30, % change Sep 30, % change
2021 2020 2021 2020
MINING
Waste mined, Mt 0.9 - NA 1.9 - NA
Underground 10.9 10.6 +3% 33.7 32.8 +3%
development, km
Ore mined, Kt 631 614 +3% 1,913 1,698 +13%
Open-pit 92 - NA 316 - NA
Underground 538 614 -12% 1,598 1,698 -6%
PROCESSING
Omsukchan concentrator
Ore processed, Kt 516 493 +5% 1 537 1 502 +2%
Grade
Gold, g/t 0.4 0.5 -15% 0.5 0.5 -7%
Silver, g/t 219 258 -15% 243 273 -11%
Recovery1
Gold 83.9% 84.7% -1% 84.9% 84.8% +0%
Silver 84.0% 86.6% -3% 86.2% 86.6% -0%
Production
Gold, Koz 6 7 -13% 20 21 -5%
Silver, Moz 3.0 3.5 -15% 10.1 11.2 -10%
Lunnoye plant
Ore processed, Kt 121 116 +4% 358 348 +3%
Grade
Gold, g/t 1.8 1.3 +32% 1.6 1.4 +15%
Silver, g/t 239 265 -10% 236 271 -13%
Recovery1
Gold 90.0% 88.3% +2% 90.5% 90.3% +0%
Silver 94.4% 93.1% +1% 93.2% 92.4% +1%
Production
Gold, Koz 6 4 +40% 17 14 +19%
Silver, Moz 0.9 0.9 -4% 2.5 2.8 -9%
TOTAL PRODUCTION
Gold, Koz 12 11 +8% 37 35 +5%
Silver, Moz 3.8 4.4 -13% 12.6 13.9 -9%
Notes: (1) Technological recovery, includes gold and silver within
work-in-progress inventory.
Dukat silver production continued to be driven by the planned grade
decline and decreased by 13% y-o-y in Q3 to 3.8 Moz. Gold production was
up due to higher share of Lunnoye gold-rich ore and lower share of Arylakh
ore in the Lunnoye plant's feed.
Open-pit mine at Dukat which targets the extraction of the crown pillar
has ramped up to full capacity and is expected to drive an uptick in
grades and production starting from Q4.
First ore from Primorskoye satellite underground was shipped to
third-party smelters in October.
MAYSKOYE
3 months ended Sep 9 months ended
30, % change Sep 30, % change
2021 2020 2021 2020
MINING
Waste mined, Mt 1.0 0.6 +53% 2.9 2.3 +26%
Underground 5.0 4.9 +3% 14.8 15.9 -7%
development, km
Ore mined, Kt 195 289 -33% 582 855 -32%
Open-pit 33 91 -64% 84 278 -70%
Underground 161 197 -18% 498 578 -14%
PROCESSING
Ore processed, Kt 234 225 +4% 669 683 -2%
Gold grade, g/t 5.7 7.9 -28% 5.9 6.8 -14%
Gold recovery 71.6% 70.9% +1% 85.3% 81.1% +5%
Gold in concentrate, 26 29 -11% 102 104 -2%
Koz2
Payable gold in
concentrate shipped to 74 75 -0% 75 75 -0%
offtakers, Koz
Amursk POX
Gold produced in dore
from concentrate 0 - NM 5 - NM
(POX), Koz
Gold produced in dore - 2 NM 5 3 NM
from carbon, Koz3
TOTAL PRODUCTION
Gold, Koz 75 77 -3% 85 78 +9%
Notes: (1) To concentrate.
(2) For information only; not considered as gold produced and therefore
not reflected in the table representing total production. Included in
total production upon sale to off-taker or dore production at Amursk POX.
(3) Gold produced from carbon at Amursk POX.
In Q3, Mayskoye started processing oxidised ore from the open pit which
was recommenced in Q1. The new material has lower grades and is highly
carbonaceous, which resulted in a y-o-y decrease in gold in concentrate.
The installation of underground material handling system comprising
crushers, conveyors and transfer points has commenced with all equipment
and materials arrived on site despite significant logistical challenges.
The commissioning of the system is expected in Q3 2022.
SVETLOYE
3 months ended 9 months ended Sep
Sep 30, % change 30, % change
2021 2020 2021 2020
MINING
Waste mined, Mt 1.2 0.7 +70% 3.0 2.3 +28%
Ore mined (open pit), 473 547 -14% 1,399 1,454 -4%
Kt
PROCESSING
Ore stacked, Kt 451 395 +14% 1,100 1,021 +8%
Gold grade, g/t 2.3 4.0 -41% 3.1 4.0 -22%
Gold production, Koz 30 39 -22% 83 91 -8%
TOTAL PRODUCTION
Gold, Koz 30 39 -22% 83 91 -8%
Quarterly gold production at Svetloye contracted y-o-y on the back of the
planned decline in grade.
Q3 stacking volumes increased y-o-y due to favorable weather conditions
(less rainfall) and certain improvements implemented during maintenance in
May.
Waste mined substantial growth is attributable to the start of mining at
the new Lyudmila pit (launched earlier in 2021) and the commencement of
the new pushback (Stage 3) at the Emmy pit.
VORO
3 months ended Sep 9 months ended Sep
30, % change 30, % change
2021 2020 2021 2020
MINING
Waste mined, Mt 2.8 - NA 6.4 - NA
Ore mined, Kt 178 - NA 239 - NA
PROCESSING
CIP
Ore processed, Kt 262 257 +2% 784 786 -0%
Gold grade, g/t 1.8 2.0 -10% 2.0 2.1 -8%
Gold recovery1 84.4% 83.2% +1% 84.3% 82.6% +2%
Gold production, 20 27 -24% 56 63 -10%
Koz
Heap Leach
Ore stacked, Kt - - NA - 22 -100%
Gold grade, g/t - - NA 0.9 -100%
Gold production, 1 8 -82% 5 14 -63%
Koz
TOTAL PRODUCTION
Gold, Koz 22 35 -37% 61 77 -20%
Note: (1) Technological recovery, includes gold within work-in-progress
inventory.
At Voro, gold production remains focused on processing low-grade
historical stockpiles - the key source of feedstock for the CIP plant.
Recoveries were higher y-o-y both in Q3 and 9M as the plant started
processing high-grade third-party material, as well as oxide ores from
Peschernoye and Saum. The Company expects average gold grade to improve in
Q4 as more material from these sources will be introduced into the feed.
At Voro flotation plant, major processing equipment has been installed and
the concentrator building is expected to be fully winterized in Q4.
NEZHDA
3 months ended Sep 9 months ended Sep
30, % change 30, % change
2021 2020 2021 2020
MINING
Waste mined, 5.8 4.7 +24% 16.7 4.7 +259%
Mt
Ore mined, Kt 226 200 +13% 937 200 +367%
Following the completion of all construction and commissioning activities,
Nezhda successfully produced first gold and silver concentrate on October
16th. This is two weeks ahead of the previously announced target date of
November 1st. The concentrator now enters ramp-up period and is expected
to reach its nameplate capacity and full design recovery by April 2022.
Nezhda is expected to produce on average 180 Koz per year in 2022-2024 at
estimated AISC of US$ 850-900/oz.
POX-2
Construction continues on schedule. All equipment in the high-bay section
of the plant has been successfully installed. This includes pressure
letdown and cooling tanks. All heavy equipment items are now in place.
Construction is currently focused on installing stainless steel tankage in
hot cure, slurry cooling, and neutralization sections of the facility. CIP
tanks installation has commenced. Maintenance shop and production
warehouse metal frameworks have been finalised. Power substation equipment
installation has started.
SUSTAINABILITY, HEALTH AND SAFETY
There were no work-related accidents resulting in lost time in Q3, with
zero Polymetal employees fatalities during the first nine months of 2021.
Following the fatal accident with our drilling contractor employee at Saum
reported in July, Polymetal completed a comprehensive review of safety
risks management among contractors and introduced a set of preventive and
contractor screening measures at the mine (which will be spread at other
operations where applicable). This includes regular (at least twice a
month) inspections, designating employees responsible for safety control
at different kinds of contractor works, arranging individual safety
measures. Polymetal will also train contractors on the principles of
hazards identification, risk assessment and procedure of ongoing
production control and workplace monitoring. The requirement to regularly
identify and assess hazards and risks is now set in all agreements with
contractors. The Company remains committed to its strategic objective of
zero fatalities both among employees and contractors.
LTIFR among the Group's employees for 9M period stood at 0.11, an increase
of 10% year-on-year. There were 10 incidents in total in comparison with
eight incidents during 9M 2020.
In October 2021, Polymetal received an ESG Risk Rating of 15.9 4 2 and
was assessed by Sustainalytics to be at low risk of experiencing material
financial impacts from ESG factors. This is an improvement from an ESG
Risk Rating of 20.3 (medium risk) in 2020.
In August 2021, Polymetal's MSCI ESG Rating has been upgraded to AA from
A. This places Polymetal among the companies with the highest ESG Rating
in the Precious Metals sector. MSCI has highlighted Polymetal's safety
initiatives and improvements, robust governance structure and business
ethics practices, active engagement with local communities and robust
approach to mitigating the risk of dam-related incidents.
COVID-19 UPDATE
Epidemiological situation in the Company remains under control. Operations
and development projects continue undisrupted. There were 2 disease
outbreaks at Kubaka and Svetloye which have been successfully contained
and have not affected production.
The Company recorded q-o-q growth of active cases as Russia has entered
the so-called "fourth wave" dominated by the Delta variation of the C-19
virus. As of the date of this press release, there are 72 active cases of
the disease in Polymetal.
Polymetal continues to facilitate non-obligatory vaccination among
employees by organizing vaccination at local hospitals or establishing
vaccination points on site. 45% of Polymetal employees are already
vacinated.
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5 1 https://www.sustainalytics.com/esg-ratings
6 2 https://www.sustainalytics.com/esg-ratings
══════════════════════════════════════════════════════════════════════════
ISIN: JE00B6T5S470
Category Code: MSCM
TIDM: POLY
LEI Code: 213800JKJ5HJWYS4GR61
OAM Categories: 3.1. Additional regulated information required to be
disclosed under the laws of a Member State
Sequence No.: 125216
EQS News ID: 1243513
End of Announcement EQS News Service
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