REG-Polymetal International plc Polymetal: Q2 2020 production results
23/07/2020 07:05
============
Polymetal International plc (POLY)
Polymetal: Q2 2020 production results
23-Jul-2020 / 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 time IMMEDIATE LSE, MOEX, AIX: POLY / ADR:
AUCOY
Date 23 July 2020
Polymetal International plc
Q2 2020 production results
Polymetal reports strong production results for the second quarter and the
six months ended June 30, 2020.
"Q2 saw a continued steady performance of the Group", said Vitaly Nesis,
Group CEO of Polymetal. "We have been taking a range of measures aimed at
protecting our employees and contractors in light of the COVID-19
pandemic, while allowing our operations and projects to proceed without
interruptions or delays to date".
HIGHLIGHTS
• There were no fatal accidents during the first half of the year within
Polymetal and the Company's contractors. LTIFR for the period improved
by 70% year-on-year (y-o-y) to 0.07 as only four minor injuries were
recorded.
• The Company's Q2 gold equivalent ("GE") production (based on 120:1
Au/Ag ratio 1 1 ) increased by 2% y-o-y to 358 Koz driven by a strong
performance at Kyzyl which compensated for the planned decline at
Svetloye. GE output for H1 stood at 723 Koz, an increase of 4% y-o-y.
• Revenue for Q2 increased by 30% y-o-y to reach US$ 641 million on the
back of higher gold prices and sales volumes. H1 revenue amounted to
US$ 1,135 million, up 20% y-o-y. There was a lag between gold
production and sales due to Varvara concentrate sales, which is
expected to close in H2 2020.
• Polymetal generated significant free cash flow in the reporting
period. Net debt was largely unchanged relative to Q1 2020 at US$ 1.69
billion, while the Company paid US$ 197 million of final dividends for
FY 2019 or US$ 0.42 per share. As in previous years, free cash flow
generation will be weighted towards the second half of the year on the
back of seasonal working capital drawdown.
• Construction and development activities at Nezhda and POX-2 progressed
on schedule. COVID-related restrictions and cautionary measures have
not slowed down execution progress of these projects.
• The Company confirms its full-year 2020 production guidance of 1.5 Moz
of GE. It also for now maintains its cost guidance, as depreciation of
the Russia Rouble and Kazakh Tenge is currently counterbalanced by
COVID-related costs. However, TCC, AISC and CapEx guidance will be
updated along with H1 financial results on August 26.
COVID-19 UPDATE
Health and safety
• No material COVID-19 outbreaks have so far occurred at our operations.
Multiple employees tested positive for the virus with the vast
majority of confirmed cases occurring during intra-shift breaks away
from mines or during mandatory observatory period.
• Health and safety of our employees and other people is our top
priority. Strict precautionary procedures are maintained at all
production sites despite gradual relaxation of state quarantine
requirements in Russia. The procedures include daily temperature
checks, regular medical surveillance and 14-day isolation of new
shifts with COVID tests performed twice - first upon arrival and then
before allowing to proceed to work on-site. Polymetal has organised
isolated accommodation space for placement of potentially infected
employees, enhanced hygiene protection in public spaces and increased
control over disinfection and sterilisation measures. Adequate medical
supplies are in place at all locations.
• Personnel at off-site offices in Russia who report to work are tested
on a rolling 2-week basis. Personal meetings and business trips are
limited. Management offices in Kazakhstan continue to work remotely.
Business continuity
• Russian regions are relaxing lockdown measures in respect of retail
and other activities. The scope and pace, however, vary across
regions. In Kazakhstan, a new quarantine was introduced from the 5th
of July after the country had started experiencing the second wave of
infections. Continuous operations and strategic industrial companies
(including Polymetal) in both countries are allowed to continue
operating at regular capacity.
• 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 from China.
• Sales and refining activities remain unaffected. Refineries in Russia
and Kazakhstan continue to operate normally.
Assistance to communities
• Polymetal continued to provide financial support to all regions of
operations in Russia and Kazakhstan in order to prevent the spread of
the COVID-19 pandemic. The Company has been purchasing critical
medical equipment such as mobile X-Ray and anesthetic-respiratory
machines, oxygen concentrators, ventilators, ultrasound machines,
pulse oximeters, personal protection gear and other medical supplies
for 25 regional and municipal hospitals, and volunteers. The total
amount of donations in H1 amounted to RUB 129 million (US$ 1.8
million).
• Polymetal remains committed to supporting local communities and
investing in their health and safety especially during the pandemic.
The Company will maintain its assistance to medical and dedicated
volunteer institutions at all levels.
3 months ended 6 months ended
June 30, % change1 June 30, % change1
2020 2019 2020 2019
Waste mined, Mt 39.2 40.0 -2% 79.1 77.6 +2%
Underground 23.2 26.1 -11% 46.4 54.3 -15%
development, km
Ore mined, Mt 4.1 4.3 -5% 8.1 8.6 -6%
Open-pit 3.1 3.3 -6% 6.0 6.5 -7%
Underground 1.0 1.0 -1% 2.0 2.1 -2%
Ore processed, Mt 4.3 4.1 +4% 7.8 7.6 +3%
Average GE grade 3.8 3.5 +8% 4.0 3.7 +7%
processed, g/t
Production
Gold, Koz 318 302 +5% 642 602 +7%
Silver, Moz 4.9 6.0 -19% 9.8 11.0 -11%
Gold equivalent, 358 352 +2% 723 694 +4%
Koz2
Sales
Gold, Koz 324 314 +3% 595 604 -2%
Silver, Moz 5.2 5.6 -8% 9.9 10.3 -4%
Revenue, US$m3 641 492 +30% 1,135 946 +20%
Net debt, US$m4 1,690 1,661 +2% 1,690 1,479 +14%
Safety5
LTIFR 0.08 0.22 -64% 0.07 0.23 -70%
Fatalities 0 1 0 2
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 (Polymetal previously used 80:1
Au/Ag ratio) and excluding base metals (previously were included).
Comparative data for 2019 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 March 2020 (for the three
months period) and 31 December 2019 (for the six months period).
(5) LTIFR = lost time injury frequency rate per 200,000 hours worked.
PRODUCTION BY MINE
3 months ended June % 6 months ended %
30, June 30,
2020 2019 change 2020 2019 change
GOLD EQ. (KOZ)1
Kyzyl 104 81 +28% 213 159 +33%
Albazino 62 55 +13% 140 136 +2%
Dukat 52 55 -6% 104 108 -4%
Omolon 46 43 +7% 88 95 -8%
Varvara 41 36 +14% 84 70 +21%
Svetloye 31 52 -41% 52 61 -15%
Voro 22 29 -24% 42 56 -25%
Mayskoye 1 - NA 1 5 -79%
TOTAL (continuing 358 352 +2% 723 691 +5%
operations)
Kapan - - NA - 3 -100%
TOTAL (including
358 352 +2% 723 694 +4%
discontinued operations)
Notes: (1) Based on 120:1 Au/Ag conversion ratio (Polymetal previously
used 80:1 Au/Ag ratio) and excluding base metals (previously were
included). Comparative data for 2019 restated accordingly.
CONFERENCE CALL AND WEBCAST
Polymetal will hold a conference call and webcast on Thursday, 23 July
2020 at 12:00 London time (14:00 Moscow time).
To participate in the call, please dial:
From the UK:
+44 330 336 9125 (local access)
0800 358 6377 (toll free)
From the US:
+1 646 828 8143 (local access)
800 263 0877 (toll free)
From Russia:
+7 495 213 1767 (local access)
8 800 500 9283 (toll free)
To participate from other countries, please dial any of the local access
numbers listed above.
Conference code: 3221219
To participate in the webcast follow the link:
2 https://webcasts.eqs.com/polymetal20200723.
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 3221219, from 17:30 Moscow time Thursday, 23 July, till 17:30
Moscow time Thursday, 30 July 2020. Webcast replay will be available on
Polymetal's website ( 3 www.polymetalinternational.com) and at
4 https://webcasts.eqs.com/polymetal20200723.
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
5 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
7425
Morgan Stanley & Co. 8000
International plc
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 June 6 months ended
30, % change June 30, % change
2020 2019 2020 2019
MINING
Waste mined, Mt 18.8 16.5 +14% 38.0 32.3 +18%
Ore mined (open-pit), 518 511 +1% 1,041 1,033 +1%
Kt
PROCESSING
Ore processed, Kt 481 512 -6% 1,006 988 +2
Gold grade, g/t 8.5 6.6 +29% 8.3 6.7 +23%
Gold recovery 87.2% 87.8% -1% 87.2% 87.3% -0%
Concentrate produced, 37.3 28.5 +31% 73.0 58.3 +25%
Kt
Concentrate gold 97.4 104.2 -7% 99.3 100.0 -1%
grade, g/t
Gold in concentrate, 117 96 +22% 233 187 +24%
Koz1
Concentrate shipped, 26.4 17.3 +52% 47.3 36.9 +28%
Kt
Payable gold shipped, 51 40 +25% 92 91 +1%
Koz
Veduga ore toll 31 - NA - - NA
processed, Kt2
Amursk POX
Concentrate 13 12 +8% 29 20 +44%
processed, Kt
Gold grade, g/t 149.2 128.9 +16% 141.8 124.7 +14%
Gold recovery 91.8% 93.4% -2% 91.8% 93.8% -2%
Gold produced, Koz 54 41 +31% 121 68 +77%
TOTAL PRODUCTION
Gold, Koz 104 81 +28% 213 159 +33%
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 Q2, grade in ore mined at Kyzyl continued to normalize down towards the
reserve average with current grade in ore mined closely reconciling to
reserve averages. Waste volumes continued to increase as equipment
productivity was positively impacted by the introduction of a quick
turn-round system for both trucks and excavators (so called Hot Seat shift
change).
Grade processed jumped 29% y-o-y to 8.5 g/t due to the impact of
accumulated ore stockpiles, which made gold production grow by 28% y-o-y
to 104 Koz.
High gold grades and high carbon grades in ore processed complicated
flowsheet management and led to a 1 percentage point decrease in recovery
at the concentrator. Amursk POX recovery also slipped as a concerted
effort was made to divert as much concentrate as possible to the POX in
the wake of COVID disruptions in China.
ALBAZINO
3 months ended June 6 months ended
30, % change June 30, % change
2020 2019 2020 2019
MINING
Waste mined, Mt 5.1 5.6 -9% 9.9 11.1 -11%
Underground 3.1 2.6 +22% 6.2 4.9 +27%
development, km
Ore mined, Kt 464 545 -15% 981 1,026 -4%
Open-pit 295 404 -27% 655 766 -14%
Underground 169 141 +19% 325 259 +25%
PROCESSING
Albazino concentrator
Ore processed, Kt 446 431 +3% 891 856 +4%
Gold grade, g/t 4.8 4.0 +21% 4.6 4.2 +10%
Gold recovery1 86.5% 86.9% -0% 86.0% 85.2% +1%
Concentrate produced, 36.8 33.7 +9% 72.7 69.3 +5%
Kt
Concentrate gold 50.0 44.1 +13% 49.1 44.3 +11%
grade, g/t
Gold in concentrate, 59 48 +24% 115 99 +16%
Koz2
Amursk POX
Concentrate 40 38 +6% 86 91 -5%
processed, Kt
Gold grade, g/t 51.6 48.0 +7% 52.6 50.1 +5%
Gold recovery 96.5% 93.4% +3% 96.5% 94.5% +2%
Gold produced, Koz 62 55 +13% 139 136 +2%
TOTAL PRODUCTION
Gold, Koz 62 55 +13% 139 136 +2%
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, quarterly gold production was up 13% y-o-y to 62 Koz driven
by gold grade increase of 21%, which was attributable to processing of
higher grade ore from the deeper levels of Anfisa pit.
Open-pit mining was limited during the quarter as Anfisa pit was
undergoing the wall push back to enhance its stability. Underground mine
productivity increased due to continued underground development at Olga.
Stoping at Ekaterina-2 commenced.
AMURSK POX
3 months ended June 6 months ended
30, % change June 30, % change
2020 2019 2020 2019
Concentrate 53 50 +7% 115 111 +4%
processed, Kt
Albazino 38 36 +7% 79 81 -2%
Kyzyl 13 12 +8% 29 20 +44%
Veduga 1 1 +11% 3 6 -48%
Other1 0 0 -89% 3 4 -8%
Gold recovery 94.2% 93.4% +1% 94.2% 94.3% -0%
Average gold grade, 75.6 67.7 +12% 75.2 63.7 +18%
g/t
Average sulphur grade 13.5% 12.6% +7% 13.9% 12.6% +10%
Total gold produced2, 116 96 +20% 260 205 +27%
Koz
Albazino 51 50 +4% 111 116 -4%
Kyzyl 54 41 +31% 121 68 +77%
Veduga 4 3 +33% 19 16 +16%
Other1 6 2 +163% 10 4 +119%
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.
Quarterly gold production at the Amursk POX increased by 20% y-o-y to 116
Koz on the back of higher concentrate grade from Kyzyl and Albazino and
larger volumes of concentrate processed.
In Q2, the plant underwent a planned 15-day maintenance shutdown. No major
issues were identified.
DUKAT OPERATIONS
3 months ended June 6 months ended
30, % change June 30, % change
2020 2019 2020 2019
MINING
Underground 10.9 14.9 -26% 22.2 30.0 -26%
development, km
Ore mined, Kt 545 649 -16% 1,084 1,252 -13%
PROCESSING
Omsukchan
concentrator
Ore processed, Kt 496 516 -4% 1,009 1,029 -2%
Grade
Gold, g/t 0.6 0.5 +18% 0.5 0.5 +0%
Silver, g/t 273 306 -11% 280 295 -5%
Recovery1
Gold 85.1% 85.3% -0% 84.8% 85.7% -1%
Silver 87.4% 86.6% +1% 86.6% 86.9% -0%
Production
Gold, Koz 8 7 +14% 14 14 -1%
Silver, Moz 3.7 4.3 -14% 7.7 8.3 -7%
Lunnoye plant
Ore processed, Kt 116 117 -0% 232 232 -0%
Grade
Gold, g/t 1.4 1.3 +4% 1.5 1.4 +4%
Silver, g/t 278 264 +5% 273 266 +3%
Recovery1
Gold 91.8% 85.1% +8% 91.2% 85.7% +6%
Silver 92.8% 90.1% +3% 92.1% 90.1% +2%
Production
Gold, Koz 5 4 +7% 10 9 +7%
Silver, Moz 1.0 0.9 +6% 1.9 1.8 +3%
TOTAL PRODUCTION
Gold, Koz 13 11 +11% 24 24 +2%
Silver, Moz 4.7 5.3 -11% 9.5 10.1 -5%
Notes: (1) Technological recovery, includes gold and silver within
work-in-progress inventory.
At Dukat, Q2 silver production contracted by 11% y-o-y to 4.7 Moz on the
back of planned decline in silver grade at the Omsukchan concentrator.
Gold production for the quarter was up 11% supported by gold-rich ore from
the underground Arylakh mine.
Better recoveries at Lunnoye plant were driven by separate processing of
Arylakh and Lunnoye ores as well as lower carbon content in Lunnoye ore.
Underground development meters declined materially following the
decommissioning of the Goltsovoye underground mine.
OMOLON OPERATIONS
3 months ended June 6 months ended
30, % change June 30, % change
2020 2019 2020 2019
MINING
Waste mined, Mt 1.1 1.9 -40% 2.0 3.2 -36%
Underground 3.7 3.3 +10% 7.0 6.5 +7%
development, Km
Ore mined, Kt 763 730 +5% 1,564 1,378 +14%
Open-pit 642 625 +3% 1,331 1,159 +15%
Underground 121 105 +16% 234 220 +6%
PROCESSING
Kubaka Mill
Ore processed, Kt 220 208 +6% 433 428 +1%
Grade
Gold, g/t 6.6 5.0 +31% 6.7 6.5 +4%
Silver, g/t 26 125 -80% 20 72 -73%
Recovery1
Gold 94.3% 97.1% -3% 93.2% 95.5% -2%
Silver 69.5% 88.8% -22% 74.3% 79.1% -6%
Gold production, Koz 41 35 +18% 83 86 -4%
Silver production, 0.1 0.7 -83% 0.2 0.8 -77%
Moz
Birkachan Heap Leach
Ore stacked, Kt 707 493 +44% 707 546 +29%
Gold grade, g/t 2.3 1.2 +95% 2.3 1.2 +95%
Gold production, Koz 3 2 +68% 3 2 +68%
TOTAL PRODUCTION
Gold, Koz 45 37 +21% 86 88 -3%
Silver, Moz 0.1 0.7 -82% 0.2 0.8 -76%
Note: (1) Technological recovery, includes gold and silver within
work-in-progress inventory.
At Omolon, gold output for the quarter jumped by 21% y-o-y to 45 Koz while
silver production was down by 82% to 0.1 Moz as Kubaka mill switched to
processing gold-rich ore from Yolochka and Birkachan underground at the
CIP circuit from treating Sopka ore with higher silver content at the
Merrill-Crowe circuit. Heap leach production also positively contributed
to the total output on the back of stacking of larger volumes of
higher-grade ore stockpiles.
At Birkachan, underground productivity is gaining pace, while open-pit
mining is planned to be completed by the end of 2020.
VARVARA
3 months ended 6 months ended
June 30, % change June 30, % change
2020 2019 2020 2019
MINING
Waste mined, Mt 10.1 11.6 -12% 20.3 22.7 -11%
Ore mined, Kt 702 977 -28% 1,484 1,938 -23%
PROCESSING
Leaching
Ore processed, Kt 796 784 +2% 1,530 1,535 -0%
Gold grade, g/t 1.5 1.4 +4% 1.5 1.4 +3%
Gold recovery1 89.1% 87.7% +2% 88.1% 86.5% +2%
Gold production (in dore), 32 34 -6% 67 65 +2%
Koz
Flotation
Ore processed, Kt 188 130 +44% 317 277 +14%
Grade
Gold, g/t 2.6 1.1 +139% 2.8 1.1 +155%
Copper 0.34% 0.52% -34% 0.33% 0.55% -39%
Recovery1
Gold 87.2% 88.7% -2% 86.5% 83.7% +3%
Copper 85.7% 90.8% -6% 84.9% 91.4% -7%
Production
Gold (in concentrate), Koz 9 2 +372% 18 4 +292%
Copper (in concentrate), 0.5 0.6 -17% 0.8 1.3 -38%
Kt
Veduga ore toll processed, - 31 -100% 30 63 -53%
Kt2
Total ore processed, Kt 984 945 +4% 1,876 1,875 +0%
TOTAL PRODUCTION
Gold, Koz 41 36 +14% 84 70 +21%
Copper, Kt 0.5 0.6 -17% 0.8 1.3 -38%
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.
Varvara delivered strong gold production y-o-y increase of 14% to 41 Koz
in Q2 and 21% to 84 Koz in H1 driven by larger volumes of high-grade
third-party ore in the flotation circuit.
The leaching circuit Q2 production was down 6% y-o-y due to accumulation
of work-in-progress as of the end of the quarter.
In Q2, high-grade Veduga feed was redirected to the Kyzyl flotation plant
which is more suitable for refractory gold ore.
In 2020, all mining at Varvara open pit will be focused on waste for the
new TSF construction.
MAYSKOYE
3 months ended 6 months ended
June 30, % change June 30, % change
2020 2019 2020 2019
MINING
Waste mined, Mt 0.6 1.4 -55% 1.7 2.6 -34%
Underground development, 5.5 5.3 +4% 11.0 10.8 +2%
km
Ore mined, Kt 306 220 +39% 567 438 +29%
Open-pit 108 70 +54% 186 134 +39%
Underground 197 150 +32% 380 305 +25%
PROCESSING
Ore processed, Kt 230 207 +11% 458 426 +8%
Gold grade, g/t 6.7 6.6 +2% 6.2 6.1 +2%
Gold recovery 84.4% 69.9% +21% 87.5% 76.5% +14%
Gold in concentrate, Koz2 37 25 +48% 76 59 +29%
Gold produced in dore from - - NA 0 - NA
concentrate (POX), Koz
Gold produced in dore from 1 - NA 1 5 -86%
carbon, Koz3
Payable gold in
concentrate shipped to - - NA - - NA
offtakers, Koz
TOTAL PRODUCTION
Gold, Koz 1 - NA 1 5 -79%
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.
At Mayskoye, gold in concentrate increased by 48% y-o-y to 37 Koz as
higher volumes of sulphide ore with better recoveries were introduced into
the feed and certain adjustments to the flowsheet were applied (grinding
fineness increase and larger volumes of collectors) to further improve
recovery.
Stripping volumes fell while ore mined spiked as the open-pit mining is
approaching completion.
SVETLOYE
3 months ended 6 months ended
June 30, % change June 30, % change
2020 2019 2020 2019
MINING
Waste mined, Mt 0.9 0.4 +127% 1.6 0.8 +104%
Ore mined (open 561 453 +24% 907 867 +5%
pit), Kt
PROCESSING
Ore stacked, Kt 317 414 -23% 626 598 +5%
Gold grade, g/t 3.7 3.5 +4% 4.0 4.0 +2%
Gold production, Koz 31 52 -41% 52 61 -15%
TOTAL PRODUCTION
Gold, Koz 31 52 -41% 52 61 -15%
At Svetloye, gold production for the quarter decreased by 41% to 31 Koz on
the back of lower stacking volumes impacted by maintenance shutdown of the
ore crushing complex (moved from Q1) and high ore acidity of freshly mined
ore, which required much higher rates of limestone addition.
Waste and ore mined jumped driven by growing productivity at the Emmy pit.
VORO
3 months ended June 6 months ended
30, % change June 30, % change
2020 2019 2020 2019
MINING
Waste mined, Mt - 0.4 -100% - 0.8 -100%
Ore mined, Kt 65 210 -69% 106 479 -78%
PROCESSING
Voro CIP
Ore processed, Kt 260 270 -4% 529 519 +2%
Gold grade, g/t 2.2 3.5 -37% 2.2 3.5 -37%
Gold recovery1 82.5% 85.7% -4% 82.3% 86.3% -5%
Gold production, 18 23 -19% 36 45 -20%
Koz
Voro Heap Leach
Ore stacked, Kt 22.2 - NA 22 - NA
Gold grade, g/t 0.9 - NA 0.9 - NA
Gold production, 4 6 -41% 6 11 -46%
Koz
TOTAL PRODUCTION
Gold, Koz 22 29 -24% 42 56 -25%
Note: (1) Technological recovery, includes gold within work-in-progress
inventory.
At Voro, H1 production declined by 25% y-o-y as open-pit mining was
completed in January and the CIP plant turned to processing lower-grade
stockpiles
At the heap leach facility the remaining part of the oxidised stockpiled
ore was stacked in Q2.
DEVELOPMENT UPDATE
At Nezhda, construction has been progressing on schedule. SAG and ball
mills have been installed. Installation of flotation cells, gravity
concentration equipment and concentrate thickeners is in progress.
Mining at the property proceeded according to plan. Widespread presence of
ice lenses in the upper benches of open pit 2 required additional
pre-stripping to ensure stable pit walls.
UVES LLC, an independent grid management company, funded by Far East and
Arctic Development Fund and Credit Bank of Moscow, has started
construction of the grid power line and substation for Nezhda with total
cost of approximately US$ 86 million, net of VAT. Following the
construction completion scheduled for Q2 2022, the facility will be leased
out to Polymetal on pre-agreed terms.
At POX-2, the autoclave arrived on site on the 21st of July. The
installation of the vessel is now ongoing and planned to be completed on
schedule by early August. The construction of the oxygen plant is also in
progress. The new concentrate storage area has been completed and
commissioned thus clearing the space for the construction on the site
previously occupied by the old concentrate storage.
SUSTAINABILITY, HEALTH AND SAFETY
In H1, there were no fatalities either among Polymetal employees or the
Сompany's contractors. Our LTIFR stood at 0.08 for the 2nd quarter and
0.07 for the first half of the year (-64% and -70% y-o-y respectively) as
only 4 minor work-related incident were recorded across the Group as of 30
June 2020.
Polymetal remains committed to maintaining zero fatalities and improving
other health and safety metrics among our employees as well as our
suppliers and contractors.
══════════════════════════════════════════════════════════════════════════
6 1 Following consistent change of the market price ratio, Polymetal
has decided to use gold/silver ratio of 120:1 (previously 80:1) for
presentation of its gold equivalent production data and guidance.
Simultaneously, base metal by-products have been excluded from gold
equivalent production data and guidance due to insignificance. The new
ratio is applied from 1 April 2020. Comparative data for previous periods
has been restated accordingly.
══════════════════════════════════════════════════════════════════════════
ISIN: JE00B6T5S470
Category Code: MSCH
TIDM: POLY
Sequence No.: 77426
EQS News ID: 1099855
End of Announcement EQS News Service
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