REG-Polymetal International plc Polymetal: Ore Reserves, Mineral Resources and Exploration update as at 1 January 2023

Polymetal International PKAnnouncement

01/03/2023 07:15

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   Polymetal International plc (POLY)
   Polymetal: Ore Reserves, Mineral Resources and Exploration update as at 1
   January 2023

   01-March-2023 / 10:00 MSK
   The issuer is solely responsible for the content of this announcement.

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   Release time IMMEDIATE                             LSE, MOEX, AIX: POLY
   Date         1 March 2023                                    ADR: AUCOY
                                                       

   Polymetal International plc

     Ore Reserves, Mineral Resources and Exploration update as at 1 January
     2023

   Polymetal International plc  (“Polymetal”, the “Company”  or the  “Group”)
   announces its Ore Reserves and Mineral Resources as at 1 January 2023,  in
   accordance with the JORC Code (2012)  and exploration update for the  year
   ended 31 December 2022.

   “Polymetal did not replace  its ore depletion  and recorded declining  ore
   reserves in  2022. The  exploration season  was severely  affected by  the
   indirect impact of sanctions placed  on, amongst other things, imports  of
   diamond drilling spares and materials into Russia. We remain confident  in
   the Group’s ability to grow our  high-quality reserve base and expect  the
   resumption of the upward trend in  2023”, said Vitaly Nesis, Group CEO  of
   Polymetal

   HIGHLIGHTS

     • In 2022,  Group  Ore  Reserves (“OR”)  decreased  by  9%  year-on-year
       (y-o-y) to  27.3 Moz  of  gold equivalent  (GE) 1  1 , mostly  due  to
       mining  depletion.  This  was  partially  offset  by  the   successful
       exploration results at Omolon  hub (Burgali and Nevenrekan),  Pesherny
       (Voro hub), as well as initial reserve estimates at Galka and Tamunier
       (Voro hub). The average grade in OR increased by 5% y-o-y and stood at
       3.6 g/t of GE. Average mine-life stands at 13 years.
     • Share of OR  for open-pit  mining remained  unchanged versus  previous
       year at 52%. Share of refractory reserves grew by 3 p.p. y-o-y to 74%.
     • Mineral Resources (additional to Ore Reserves) (“MR”) grew by 5% y-o-y
       to 25.8 Moz of  GE due to positive  revaluation at Kyzyl, Omolon,  and
       Nezhda, as well as  initial resource estimates  at Kegali and  Tumanin
       (Omolon hub). The average GE  grade in MR was up  by 10% y-o-y to  4.5
       g/t.

   2023 OUTLOOK

   In  2023,  Polymetal  will  continue  to  invest  in  both  near-mine  and
   greenfield exploration projects.

   The key objectives are:

     • Re-evaluate Ore Reserves at Kyzyl.
     • Prepare an initial Ore Reserve estimate at Talgiy (Albazino).
     • Prepare an initial Ore Reserve estimate at Pavlov (Voro hub).

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    2  1 ) GE includes gold and silver, unless otherwise stated. Base metals
   are excluded due to their immateriality.

       Ore Reserves and Mineral Resources summary (1), (2)

                                            1 January    1 January   Change %
                                               2023         2022
                                                                         
   Ore Reserves (Proved+Probable), GE Moz      27.3         29.9       -9%
   Gold, Moz                                   24.7         27.1       -9%
   Silver, Moz                                211.3        240.2       -12%
   Average reserve grade, g/t                  3.6          3.5        +5%
                                                                         
   Ore Reserves per share, GE oz/per share    0.058        0.063       -9%
                                                                         
   Mineral Resources                           25.8         24.6       +5%
   (Measured+Indicated+Inferred), GE Moz
   Gold, Moz                                   23.1         22.3       +4%
   Silver, Moz                                212.9        195.7       +9%
   Average resource grade, g/t                 4.5          4.1        +10%

    1. Ore Reserves and Mineral Resources from continuing operations. Base
       metals are not included in GE calculation as they are insignificant.
       Ore Reserves of rare earths metals are given separately and not
       included in GE calculation.
    2. Mineral Resources are additional to Ore Reserves. Mineral Resources of
       platinum group metals and rare earth metals are given separately and
       are not included in the calculation of GE. Discrepancies in
       calculations are due to rounding.

   Ore Reserves and Mineral Resources structure by metal as at 1 January 2023

          Ore Reserves Mineral Resources
   Gold       90%             91%
   Silver     10%             9%
   Total      100%           100%

   Ore Reserves reconciliation, GE Moz (1)

   Ore Reserves,                       Initial Ore  Change of GE      Ore
    01.01.2022   Depletion Revaluation   Reserve     conversion    Reserves,
                                        estimate        ratio      01.01.2023
       29.9        -2.1       -0.8        +0.2          +0.2          27.3

    1. Discrepancies in calculations are due to rounding.

   Ore Reserves and Mineral Resources as at 1 January 2023 (1)

                               Tonnage  Grade  Content
                                 Mt    GE, g/t GE, Moz
   Ore Reserves                                    
   Proved                       68.1     2.8     6.0
   Probable                     165.3    4.0    21.3
   Proved+Probable              233.5    3.6    27.3
                                                   
   Mineral Resources                               
   Measured                     26.9     3.6     3.1
   Indicated                    55.8     4.1     7.3
   Measured+Indicated           82.7     3.9    10.4
   Inferred                     94.1     5.1    15.4
   Measured+Indicated+Inferred  176.8    4.5    25.8

    1. Mineral Resources and Ore Reserves in accordance with the JORC Code
       (2012). Mineral Resources are additional to Ore Reserves. Detailed
       tables for Mineral Resources and Ore Reserves with a breakdown by
       deposits and metals are given below. Ore Reserves of rare earths
       metals are given separately and not included in GE calculation.
       Mineral Resources of platinum group metals and rare earth metals are
       given separately and are not included in the calculation of the gold
       equivalent. Discrepancies in calculations are due to rounding.

   EXPLORATION RESULTS

   Exploration areas and volumes (mine site exploration excluded) (1)

    

                  Drilling, km
                   2022  2021
                            
   Russia (2)     223.1  339.6
                            
   Kazakhstan (2)  91.1  41.9
                            
   Total          314.2  381.5

    1. Discrepancies in calculations are due to rounding.
    2. Including JVs with more than 50% share owned by Polymetal.

   In 2022, 314.2 km (including  JVs) of exploration drilling was  completed.
   As a result of the imposed  sanctions on Russia, import of drilling  spare
   parts and materials was restricted,  leading to a substantial decrease  in
   drilling activities. Furthermore,  as a  part of  budget optimisation,  JV
   grassroots exploration in Russia was reduced, contributing to overall drop
   in drilling volumes.

   Please find the full PDF  version of the announcement  at the link at  the
   bottom of the page.

   Enquiries

       Investor Relations
   Polymetal         3 ir@polymetalinternational.com
   Evgeny Monakhov  +44 20 7887 1475 (UK)
   Kirill Kuznetsov +7 717 261 0222 (Kazakhstan)
                    +7 812 334 3666 (Russia)

                                        

                           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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   Attachment

   File:  4 Polymetal: Ore Reserves, Mineral Resources and Exploration update
   as at 1 January 2023

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   Dissemination of a Regulatory Announcement, transmitted by EquityStory RS.
   The issuer is solely responsible for the content of this announcement.

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   ISIN:           JE00B6T5S470
   Category Code:  MSCH
   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.:   226479
   News ID:        1571365


    
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References

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