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Polymetal International plc (POLY)
Polymetal: Nezhda start-up
18-Oct-2021 / 09:00 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 18 October 2021
Polymetal International plc
Nezhda start-up
Polymetal announces first concentrate production at the Nezhda gold-silver
mine.
"Starting production on schedule, first announced in Q4 2018, demonstrates
Polymetal's executing strength in the face of multiple challenges", said
Vitaly Nesis, Group CEO of Polymetal. "The mine should ramp-up to full
capacity and start generating free cash flows by Q2 2022".
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 a ramp-up period, and is
expected to reach its nameplate capacity and full design recovery by April
2022.
The 2 Mtpa open-pit mine and combined gravity/flotation concentrator were
built in 38 months following the final construction decision. Total
project CAPEX by the time of full ramp-up will be approximately US$ 370
million.
This year, Polymetal plans to produce up to 30 Koz of Gold Equivalent
("GE") at Nezhda with average production of 180 Koz per year in 2022-2024
at estimated AISC of US$ 850-900/oz. Further production upside is linked
to the opportunity of processing ore from the high-grade Prognoz silver
deposit 100% owned by Polymetal.
JORC-compliant Ore Reserves at Nezhda are estimated at 4.4 GE Moz at a
grade of 3.6 g/t with 24 years of mine-life. Mineral Resources additional
to reserves amount to 8.1 Moz of GE at 5.1 g/t grade.
Starting from Q3 2022, 100% of energy for Nezhda will be sourced via the
power line which is currently under construction. Grid connection will
result in a 65% reduction of Green House Gas emissions 1 1 for Nezhda
(from 118 Kt to 42 Kt per year) while the emission intensity level is
expected to stand at 624 kg CO2e/oz GE in 2023, which is in line with the
Group's trajectory for carbon footprint reduction (680 kg CO2e/oz GE by
2025).
Tailings from the plant will be stored in the form of dry cake. No
impoundments or dam structures will be required.
Nezhda will create more than 1,000 permanent jobs and generate more than
US$ 20 million per year in taxes for all levels of government. The Company
has invested approximately US$ 1.7 million into various social projects in
the region related to education, culture, sports, indigenous people, and
health, including US$ 0.5 million for COVID preventive measures.
About Polymetal
Polymetal International plc (together with its subsidiaries - "Polymetal",
the "Company", or the "Group") is a top-10 global gold producer and top-5
global silver producer with assets in Russia and Kazakhstan. The Company
combines strong growth with a robust dividend yield.
Enquiries
Media Investor Relations
Polymetal
2 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.
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3 1 Scope 1 + Scope 2
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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.: 124517
EQS News ID: 1241288
End of Announcement EQS News Service
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References
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