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REG-Polymetal International plc Polymetal: Q1 2020 production results

============

   Polymetal International plc (POLY)
   Polymetal: Q1 2020 production results

   20-Apr-2020 / 09:00 MSK
   Dissemination of a Regulatory Announcement, transmitted by EQS Group.
   The issuer is solely responsible for the content of this announcement.

   ══════════════════════════════════════════════════════════════════════════

    

                 

   Release time IMMEDIATE                         LSE, MOEX, AIX: POLY / ADR:
                AUCOY
   Date         20 April 2020

    

   Polymetal International plc

     Q1 2020 production results

    

   Polymetal reports solid production results for the first quarter ended  31
   March 2020

    

   "Q1 was a  strong start  to the year  for the  Company, delivering  steady
   performance amidst unprecedented global disruption and uncertainty",  said
   Vitaly Nesis, Group  CEO of Polymetal.  "In light of  the global  COVID-19
   pandemic we have been taking  significant measures to keep our  employees,
   suppliers, contractors, and other counterparties healthy and safe, and  to
   maintain  continuous  operations.  So  far  we  have  been  proven  to  be
   successful in mitigating any impact".

   HIGHLIGHTS

     • There  were  no  fatal  accidents  during  the  quarter  either  among
       Polymetal employees or at the Company's contractors. LTIFR improved by
       71% year-on-year  (y-o-y) to  0.07  as only  two minor  injuries  were
       recorded.
     • The Company's Q1 gold equivalent ("GE") production grew by 5% y-o-y to
       391 Koz as strong performance at Kyzyl, Svetloye and Varvara more than
       offset planned grade declines at Omolon and Voro.
     • Quarterly revenue increased by 9% y-o-y to US$ 494 million on the back
       of higher gold prices. Sales volumes decreased by 7% y-o-y due to  the
       COVID-related slowdown of concentrate  shipments to China, which  have
       fully normalised since early March.
     • Net debt grew to  US$ 1.66 billion primarily  due to seasonal  advance
       purchases of diesel fuel and other consumables and low sales  volumes.
       Free cash  flow generation  in  2020, as  seen historically,  will  be
       weighted towards  the  second half  of  the year  driven  by  seasonal
       working capital drawdowns.
     • Construction and development activities  at Nezhda and POX-2  projects
       progressed on schedule.
     • The Company confirms its  2020 production guidance of  1.6 Moz of  GE.
       Management acknowledges  material devaluation  of Russian  Rouble  and
       Kazakh Tenge  since the  beginning  of the  year. However,  given  the
       highly volatile macroeconomic  background, we  currently maintain  the
       full-year guidance of US$ 650-700/GE oz for TCC and US$ 850-900/GE  oz
       for AISC. The guidance will be revisited along with 1H results.
     • Polymetal remains committed to its dividend policy and does not intend
       to change the  previously announced final  dividend recommendation  of
       US$ 0.42 per share or US$ 197  million in total for FY 2019, which  is
       due to be paid on 29 May 2020 (subject to the AGM approval on 27 April
       2020). This will take the total dividend paid for 2019 to US$ 0.82 per
       share or US$ 385 million in aggregate.
     • The Company  will host  its  annual Analyst  &  Investor Day  and  ESG
       Investor Presentation on  28 April  2020 in the  format of  conference
       call and webcast.

    

   COVID-19 UPDATE

   Health and safety

     • No cases of COVID-19 have been registered within Polymetal so far.
     • Health and  safety  of our  employees  and  other people  is  our  top
       priority.  Strict  precautionary  procedures  are  in  place  at   all
       production sites, including daily temperature checks, regular  medical
       surveillance and isolation of new shifts (at remote sites).  Polymetal
       has  organised  isolated  accommodation  for  potential  placement  of
       patients with suspicion  of COVID-19, enhanced  hygiene protection  in
       public  spaces   and   increased   control   over   disinfection   and
       sterilisation measures. Adequate medical supplies are in place at  all
       locations.
     • Off-site offices are  currently manned by  skeleton crews tasked  with
       minimum maintenance of  essential information  and financial  systems.
       Most of the work  and communication is  conducted remotely from  home.
       Personal meetings and business trips have been cancelled.
     • Polymetal  has  started  to  provide  financial  support  for  medical
       institutions in all  regions of operation.  The Company is  purchasing
       mobile   X-Ray    and   anesthetic-respiratory    equipment,    oxygen
       concentrators, ventilators  and other  medical supplies  for  Chukotka
       district hospital, Magadan  regional hospital,  medical facilities  in
       Yakutsk,  and  10  other  municipal  hospitals  in  Russia  and  4  in
       Kazakhstan.

   Sales

     • Sales and refining activities remain unaffected. Refineries in  Russia
       and Kazakhstan continue to operate normally. Concentrate shipments  to
       China by sea and by rail are back to regular schedule after  temporary
       suspension of shipments in February.
     • Although the Central  Bank of  Russia decided  to temporarily  suspend
       gold purchases, commercial banks in Russia continue to buy bullion. No
       negative signs  of demand  repercussions  for domestic  producers  are
       present. The Company  also maintains  the ability  to directly  export
       bullion abroad.

   Business continuity

     • Both  Russia  and  Kazakhstan  have  imposed  various   self-isolation
       requirements that  differ  among regions.  Continuous  operations  and
       strategic industrial companies  (including Polymetal)  are allowed  to
       continue operating.
     • In both  countries,  Polymetal  has had  no  interruptions  either  in
       production or supply chain. The vast majority of operating consumables
       and spares are sourced domestically and in China. 
     • At Nezhda,  all  critical  equipment  has  been  shipped  by  vendors.
       Installation  support  and  start-up  services  can  be  performed  by
       domestic crews or remotely. Project delay risks are thus minimal.
     • Should the lockdown measures in  response to the COVID-19 pandemic  be
       tightened further,  some operations  and development  projects  remain
       exposed to the actions countries have taken or may take, including:

          ◦ Ability to bring employees across the border between Russia and
            Kazakhstan (materially relevant for Dukat).
          ◦ Ability to change shifts at remote sites while observing
            inter-regional quarantine restrictions in Russia and Kazakhstan.
          ◦ Delivery of key equipment for the POX-2 depends on the duration
            of industrial lockdowns in Belgium, Italy, and France. Project
            schedule may slip if such restrictive measures continue for more
            than 3 to 4 months.

   Liquidity and funding

     • In  order  to   further  mitigate  potential   risks,  Polymetal   has
       proactively secured medium-term (6 to 9 months) funding to establish a
       cash cushion for a potential liquidity gap. Currently the Company  has
       $565 million of cash on its balance sheet and continue to maintain US$
       600+  million   of  available   credit   lines  for   any   additional
       requirements.

    

    

                               3 months ended Mar 31, % change1
                                  2020        2019
                                                           
   Waste mined, Mt                39.9        37.6       +6%
   Underground development, km    23.1        28.2      -18%
   Ore mined, Mt                   3.9        4.2        -7%
   Open-pit                        2.9        3.2        -8%
   Underground                     1.0        1.0        -2%
   Ore processed, Mt               3.5        3.4        +2%
   Production                                              
   Gold, Koz                       324        301        +8%
   Silver, Moz                     4.9        5.0        -1%
   Gold equivalent, Koz2           391        371        +5%
   Sales                                                   
   Gold, Koz                       271        291        -7%
   Silver, Moz                     4.7        4.7        +1%
   Revenue, US$m3                  494        454        +9%
   Net debt, US$m4                1,661      1,479      +12%
   Safety                                                  
   LTIFR5                         0.07        0.24      -71%
   Fatalities                       0          1           

   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 1:80 Ag/Au, 5:1 Cu/Au and 2:1 Zn/Au conversion ratios.

   (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 December 2019.

   (5) LTIFR = lost time injury frequency rate per 200,000 hours worked.

   PRODUCTION BY MINE

                                             3 months ended Mar 31,   %

                                                2020        2019    change
                                                                       
   GOLD EQ. (KOZ)1                                                     
   Kyzyl                                         109         78      +39%
   Albazino                                      78          81      -5%
   Dukat                                         76          76      +0%
   Varvara                                       45          38      +20%
   Omolon                                        42          53      -20%
   Svetloye                                      21          9      +133%
   Voro                                          20          27      -26%
   Mayskoye                                       0          5       -93%
   TOTAL (continuing operations)                 391        367      +7%
   Kapan                                          -          52     -100%
   TOTAL (including discontinued operations)     391        371      +5%

   Notes: (1) Based on 1:80 Ag/Au, 5:1 Cu/Au and 2:1 Zn/Au conversion ratios.

              (2) Production up to asset disposal date on 30 January 2019

   CONFERENCE CALL AND WEBCAST

   Polymetal will hold a conference call and webcast on Monday, 20 April 2020
   at 12:00 London time (14:00 Moscow time).

   To participate in the call, please dial:

   From the UK:

   +44 330 336 9104 (local access)

   0800 358 6374 (toll free)

   From the US:

   +1 646 828 8195 (local access)

   888 378 4398 (toll free)

   From Russia:

   +7 495 213 1765 (local access)

   8 800 500 9271 (toll free)

   To participate from other countries, please  dial any of the local  access
   numbers listed above.

   Conference code: 971224

   To     participate     in     the     webcast     follow     the     link:
    1 https://webcasts.eqs.com/polymetal20200420.

   Please be prepared to introduce yourself to the moderator or register.

   A recording of the call  will be available at +44  207 660 0134 (from  the
   UK), +1 719 457 0820 (from the USA) and 8 10 800 2702 1012 (from  Russia),
   access code 8636392, from 17:30 Moscow  time Monday, 20 April, till  17:30
   Moscow time Monday,  27 April 2020.  Webcast replay will  be available  on
   Polymetal's    website    ( 2 www.polymetalinternational.com)    and    at
    3 https://webcasts.eqs.com/polymetal20200420.

   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
                                              4 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
                                  RBC Europe
   Andrew Foster                  Limited

   Richard Brown                  Marcus     +44 20 7653 4000
                                  Jackson
   Panmure Gordon          
                                  Jamil Miah
   James Stearns          +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 Mar 31, % change
                                  2020        2019
   MINING                                                 
   Waste mined, Mt                19.2        15.9      +21%
   Ore mined, Kt                   523        522       +0%
                                                          
   PROCESSING                                             
   Ore processed, Kt               526        476       +10%
   Gold grade, g/t                 8.0        6.9       +17%
   Gold recovery                  87.2%      86.8%      +0%
   Concentrate produced, Kt       35.7        29.8      +20%
   Concentrate gold grade, g/t    101.4       96.0      +6%
   Gold in concentrate, Koz1      116.4       91.9      +27%
                                                          
   Concentrate shipped, Kt        20.8        19.6      +6%
   Payable gold shipped, Koz      41.3        50.7      -19%
                                                          
   Amursk POX                                             
   Concentrate processed, Kt       16          8       +100%
   Gold grade, g/t                135.8      118.3      +15%
   Gold recovery                  91.8%      94.4%      -3%
   Gold produced, Koz             67.2        27.4     +146%
                                                          
   TOTAL PRODUCTION                                       
   Gold, Koz                      108.6       78.1      +39%

   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.

   In  Q1,   Kyzyl  continued   to   demonstrate  material   positive   grade
   reconciliation - the average gold grade in ore processed grew by 17% y-o-y
   to 8.0 g/t,  well above  the mine plan.  The company  expects the  average
   grade at Kyzyl to normalize in Q2.

   POX recovery fell as more  material with medium-carbon grade was  diverted
   to Amursk from China following COVID-related shipment delays in February.

    

    

   ALBAZINO

                               3 months ended Mar 31, % change
                                  2020        2019
   MINING                                                 
   Waste mined, Mt                 4.8        5.5       -13%
   Underground development, Km     3.1        2.3       +32%
   Ore mined, Kt                   517        480       +8%
   Open-pit                        360        362       -1%
   Underground                     157        118       +33%
   PROCESSING                                             
   Albazino concentrator                                  
   Ore processed, Kt               445        425       +5%
   Gold grade, g/t                 4.5        4.4       +1%
   Gold recovery1                 85.6%      83.7%      +2%
   Concentrate produced, Kt       35.9        35.6      +1%
   Concentrate gold grade, g/t    48.1        44.5      +8%
   Gold in concentrate, Koz2      55.6        50.9      +9%
                                                          
   Amursk POX                                             
   Concentrate processed, Kt       46          53       -14%
   Gold grade, g/t                53.6        51.6      +4%
   Gold recovery                  96.4%      95.2%      +1%
   Gold produced, Koz             77.5        81.3      -5%
   TOTAL PRODUCTION                                       
   Gold, Koz                      77.5        81.3      -5%

   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, gold in concentrate production was up 9% y-o-y on the back of
   higher grades and recoveries. This was driven by the lower base in Q1 2019
   attributable to more complex metallurgy and lower grade from Ekaterina-1.

   Underground mine productivity at  Albazino increased by  33% y-o-y due  to
   continued underground development  at Olga ore  zone and increased  mining
   fleet.  The  Company  plans  to  fully  ramp  up  underground  mining   at
   Ekaterina-2 this year.

   Reported gold production for the quarter decreased by 5% y-o-y as Albazino
   and third-party concentrate  were supplanted by  Kyzyl concentrate at  the
   POX plant.

    

   AMURSK POX

                             3 months ended Mar 31, % change
                                2020        2019
   Concentrate processed, Kt     62          61       +1%
       Albazino                  41          45       -10%
       Kyzyl                     16          8       +100%
       Veduga                     1          4        -67%
       Other1                     3          3        -0%
   Gold recovery                94.2%      95.0%      -1%
   Average gold grade, g/t      74.9        60.3      +24%
   Average sulphur grade        14.2%      12.7%      +12%
   Total gold produced2, Koz    144.7      108.7      +33%
       Kyzyl                    67.2        27.4     +146%
       Albazino                 59.7        66.5      -10%
       Veduga                   14.4        12.8      +12%
       Other                     3.4        2.0       +67%

   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.

   Amursk POX achieved the record quarterly throughput and gold production of
   62 Kt and 145 Koz respectively on the back of larger volumes from Kyzyl.  

   The operation copes well with relatively high-carbon incremental  material
   from Kyzyl although the  introduction of this off-specification  feedstock
   led to a moderate decrease in the recovery y-o-y.

   DUKAT OPERATIONS

                               3 months ended Mar 31, % change
                                  2020        2019
   MINING                                                 
                                                          
   Underground development, Km    11.3        15.2      -26%
   Ore mined, Kt                   539        603       -11%
                                                          
   PROCESSING                                             
   Omsukchan concentrator                                 
   Ore processed, Kt               513        513       +0%
   Grade                                                  
   Gold, g/t                       0.5        0.6       -15%
   Silver, g/t                     286        284       +1%
   Recovery1                                              
   Gold                           84.5%      86.2%      -2%
   Silver                         86.0%      87.2%      -1%
   Production                                             
   Gold, Koz                       6.3        7.4       -15%
   Silver, Moz                     3.9        3.9       +0%
    
                                                          
   Lunnoye plant
   Ore processed, Kt               116        116       +0%
   Grade                                                  
   Gold, g/t                       1.5        1.5       +3%
   Silver, g/t                     269        268       +0%
   Recovery1                                              
   Gold                           90.7%      86.2%      +5%
   Silver                         91.4%      90.2%      +1%
   Production                                             
   Gold, Koz                       5.1        4.7       +8%
   Silver, Moz                     0.9        0.9       +1%
   TOTAL PRODUCTION                                       
   Gold, Koz                      11.3        12.1      -6%
   Silver, Moz                     4.8        4.8       +0%

   Note:  (1)  Technological  recovery,  includes  gold  and  silver   within
   work-in-progress inventory.

   At Dukat,  silver  production exceeded  expectations  due to  higher  than
   planned grade  supported  by  lower underground  dilution.  As  a  result,
   quarterly  silver  output   remained  largely   unchanged  y-o-y   despite
   discontinuation of mining from the relatively high-grade Goltsovoye mine.

    

   VARVARA

                                  3 months ended Mar 31, % change
                                     2020        2019
   MINING                                                    
   Waste mined, Mt                   10.2        11.2      -9%
   Ore mined, Kt                      782        961       -19%
                                                             
   PROCESSING                                                
   Leaching                                                  
   Ore processed, Kt                  734        752       -2%
   Gold grade, g/t                    1.5        1.5       +1%
   Gold recovery1                    87.0%      85.3%      +2%
   Gold production (in dore), Koz    34.7        31.4      +10%
                                                             
   Flotation                                                 
   Ore processed, Kt                  129        147       -12%
   Grade                                                     
   Gold, g/t                          3.1        1.1      +180%
   Copper                            0.32%      0.57%      -45%
   Recovery1                                                 
   Gold                              85.7%      79.3%      +8%
   Copper                            83.6%      91.9%      -9%
   Production                                                
   Gold (in concentrate), Koz         8.7        2.6      +234%
   Copper (in concentrate), Kt        0.3        0.7       -55%
                                                             
   Veduga ore toll processed, Kt2     30          33       -8%
                                                             
   Total ore processed, Kt            893        931       -4%
    
                                                             
   TOTAL PRODUCTION
   Gold, Koz                         43.3        34.0      +28%
   Copper, Kt                         0.3        0.7       -55%

   Note:  (1)  Technological  recovery,  includes  gold  and  copper   within
   work-in-progress inventory. Does not include toll-treated ore.

            (2) To be further processed at Amursk POX.

   At Varvara, Q1  gold output increased  by 28%  y-o-y to 43  Koz driven  by
   larger volumes of high-grade third-party ore in the flotation circuit.

   All mining at Varvara is focused on waste for the new TSF construction.

    

   OMOLON OPERATIONS

                               3 months ended Mar 31, % change
                                  2020        2019
   MINING                                                 
   Waste mined, Mt                 0.9        1.3       -30%
   Underground development, Km     3.3        3.2       +3%
   Ore mined, Kt                   802        648       +24%
       Open-pit                    689        533       +29%
       Underground                 113        115       -2%
                                                          
   PROCESSING                                             
   Kubaka Mill                                            
   Ore processed, Kt               213        220       -3%
   Grade                                                  
   Gold, g/t                       6.9        7.9       -13%
   Silver, g/t                     14          22       -39%
   Recovery1                                              
   Gold                           92.1%      94.2%      -2%
   Silver                         83.8%      72.9%      +15%
   Gold production, Koz           41.5        51.5      -19%
   Silver production, Moz          0.1        0.1       -41%
                                                          
   Birkachan Heap Leach                                   
   Ore stacked, Kt                  -          54      -100%
   Gold grade, g/t                  -         1.2      -100%
   Gold production, Koz             -          -         NA
   TOTAL PRODUCTION                                       
   Gold, Koz                      41.5        51.5      -19%
   Silver, Moz                     0.1        0.1       -41%

   Note:  (1)  Technological  recovery,  includes  gold  and  silver   within
   work-in-progress inventory.

   At Omolon,  gold production  declined by  19% to  41 Koz  on the  back  of
   increased processing volumes  of lower-grade open-pit  ore from  Yolochka.
   Mining at the deposit  is now complete, mining  fleet and mining camp  are
   being re-located to Olcha where step-out drilling identified  near-surface
   reserves sufficient for a 6-month mining campaign.

   In March, Polymetal completed sale of Sopka assets including low-grade ore
   stockpiles from Sopka, Dalneye  and Oroch deposits as  well as mining  and
   exploration licenses  for  Sopka, Dalneye,  and  Irbychan. Mining  at  the
   properties ceased in 2018.

   In February, the  Company started  construction of the  new dry-stack  TSF
   which is expected to be launched in Q4 2021. The facility has the capacity
   of 5.9 mln m3 which implies 12  years of stacking at 850 Ktpa Kubaka  mill
   throughout. The project  CAPEX is  estimated at  RUB 1.5  billion (US$  24
   million at the budget exchange rate).

   MAYSKOYE

                                              3 months ended Mar 31, % change
                                                 2020        2019
   MINING                                                                
   Waste mined, Mt                                1.1        1.2       -9%
   Underground development, km                    5.5        5.5       -1%
   Ore mined, Kt                                  261        218       +20%
   Open-pit                                       78          64       +23%
   Underground                                    183        155       +18%
                                                                         
   PROCESSING                                                            
   Ore processed (sulphide ore), Kt               227        219       +4%
   Gold grade, g/t                                5.7        5.7       +1%
   Gold recovery                                 91.2%      83.8%      +9%
   Gold in concentrate, Koz2                     38.2        33.4      +15%
                                                                         
   Gold produced in dore from concentrate         0.3         -         NA
   (POX), Koz
   Gold produced in dore from carbon, Koz3         -         4.6      -100%
                                                                         
   Payable gold in concentrate shipped to          -          -         -
   off-takers, Koz
                                                                         
   TOTAL PRODUCTION                                                      
   Gold, Koz                                      0.3        4.6       -93%

    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-takers or dore production at Amursk POX.

   (3) Gold produced from carbon at Amursk POX.

   At Mayskoye, gold in concentrate produced increased by 15% y-o-y to 38 Koz
   due  to  better  recoveries  driven  by  flowsheet  improvements  (rougher
   concentrate re-grinding).

   SVETLOYE

                            3 months ended Mar 31, % change
                               2020        2019
   MINING                                              
   Waste mined, Mt              0.7        0.4       +82%
   Ore mined (open pit), Kt     346        413       -16%
                                                       
   PROCESSING                                          
   Ore stacked, Kt              308        184       +67%
   Gold grade, g/t              4.4        4.9       -10%
   Gold recovery               80.8%      80.7%      +0%
                                                       
   TOTAL PRODUCTION                                    
   Gold, Koz                   21.3        9.2      +133%

   At  Svetloye,  stacking  volumes  and  leach  kinetics  continued  to   be
   positively impacted by warmer winter. This  resulted in a 133% y-o-y  jump
   in quarterly gold production to reach 21 Koz.

    

    

    

   VORO

                        3 months ended Mar 31, % change
                           2020        2019
   MINING                                          
   Waste mined, Mt           -         0.4      -100%
   Ore mined, Kt            41         269       -85%
                                                   
   PROCESSING                                      
   Voro CIP                                        
   Ore processed, Kt        269        249       +8%
   Gold grade, g/t          2.2        3.4       -37%
   Gold recovery1          82.1%      87.0%      -6%
   Gold production, Koz    17.8        22.3      -20%
                                                   
   Voro Heap Leach                                 
   Gold production, Koz     2.3        4.8       -52%
   TOTAL PRODUCTION                                
   Gold, Koz               20.1        27.0      -26%

   Note: (1) Technological  recovery, includes  gold within  work-in-progress
   inventory.

   At Voro, open-pit mining was completed in January and the CIP plant turned
   to processing lower-grade stockpiles which resulted in 26% y-o-y  decrease
   in quarterly gold production to 20 Koz.

   DEVELOPMENT UPDATE

   At Nezhda, construction and mining activities are progressing on schedule.
   Construction within the  concentrator was focused  on the installation  of
   internal walls  and  structural  steel  for  the  equipment  installation.
   Installation of apron feeder and  flotation cells commenced. The SAG  mill
   and the first two (out of eight) gensets arrived on site. Foundations  for
   the power plant and the boiler house were completed.

   At POX-2, detailed engineering and  contracting of auxiliary equipment  is
   ongoing. Autoclave vessel construction  completed and the testing  program
   initiated.  The  vessel  is  expected  to  arrive  in  Q3  subject  to  no
   interruption due to the COVID-19.

   Polymetal entered into  an offtake agreement  with Blackham Resources,  an
   Australian gold mining  company, to purchase  refractory gold  concentrate
   from Wiluna mine which  will be available for  processing at POX-2  during
   2023-2027.

   SUSTAINABILITY, HEALTH AND SAFETY

   In Q1, there were no fatalities neither among Polymetal employees nor  the
   Сompany's contractors. Our LTIFR stood at 0.07, a 71% decline over 0.15 in
   Q1 2018. There were two  minor work-related incidents recorded across  the
   Group (6 incidents in 2019).

   Safety remains a top priority for Polymetal and the Company reaffirms  its
   commitment to further  improvements across  health and  safety metrics  to
   achieve our zero harm target in relation to our employees, as well as  our
   suppliers and contractors.

   PERSONNEL

   Tagir Ibragimov (41) was  appointed as Managing  Director at Mayskoye.  He
   joined Mayskoye in 2015 as Deputy Chief Engineer for Drilling and Blasting
   Operations. Most  recently  he was  Head  of  the Mine  and  Deputy  Chief
   Engineer for  Production. Mr.  Ibragimov  graduated from  Kazakh  National
   Technical University with a degree in mining.

   ══════════════════════════════════════════════════════════════════════════

   ISIN:          JE00B6T5S470
   Category Code: MSCH
   TIDM:          POLY
   Sequence No.:  59037
   EQS News ID:   1024621


    
   End of Announcement EQS News Service

   ══════════════════════════════════════════════════════════════════════════

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