REG-Polymetal International plc Polymetal: Q2 2021 production results
27/07/2021 07:05
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Polymetal International plc (POLY)
Polymetal: Q2 2021 production results
27-Jul-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 27 July 2021
Polymetal International plc
Q2 2021 production results
Polymetal reports solid production results for the second quarter and the
six months ended June 30, 2021.
"In Q2, Polymetal delivered steady results. All producing mines made
budget targets while mechanical completion and start of commissioning at
Nezhda represented a key development milestone", said Vitaly Nesis, Group
CEO of Polymetal.
HIGHLIGHTS
• There were no fatal accidents during the first half of the year
(consistent with H1 2020) among Polymetal's workforce and the
Company's contractors. Unfortunately, on July 18 a drilling contractor
lost his life at the Saum open-pit mine, part of Voro operations. We
send our condolences to the family and friends of our colleague.
• The Company's Q2 gold equivalent ("GE") production decreased by 6%
y-o-y to 339 Koz due to the planned grade declines at Kyzyl and
Albazino. GE output for H1 was 714 Koz, a 1% decrease y-o-y.
• Russia and Kazakhstan have entered the third wave of the COVID
pandemic with record numbers of infections and deaths from the virus.
At Polymetal, the epidemiological situation remains well controlled
with less than fifty presently active cases, none at operating sites.
COVID-related transportation restrictions have led to a material
increase of Kyzyl concentrate in storage and transit to China and
prompted the management to accelerate seasonal summer purchasing
campaign across the portfolio. These factors drove a significant
increase in working capital levels, which should normalise by the
year-end.
• Revenue for the quarter was up 6% y-o-y and reached US$ 681 million on
the back of higher metal prices. H1 revenue increased by 12% y-o-y to
US$ 1,274 million. Net debt increased by US$ 0.5 billion for the
quarter to US$ 1.83 billion due to record final dividend payment of
US$ 0.4 billion and working capital build-up.
• Construction and development activities at Nezhda and POX-2 projects
progressed on schedule amid continued tightness in the construction
contractor market and COVID-related cross-border travel restrictions.
Nezhda achieved mechanical completion of the key equipment. The
project is on track to produce first concentrate in early November in
line with the schedule.
• Following the latest review by Vigeo Eris, a global leader in ESG
assessments, data, research and analytics, Polymetal's ESG overall
score improved to 69 (out of 100), corresponding to the Advanced level
of performance and placing Polymetal on the 2nd place among 43
industry peers 1 1 .
• Polymetal confirms its 2021 production guidance of 1.5 Moz of GE and
maintains the full-year cost guidance of US$ 700-750/GE oz for TCC and
US$ 925-975/GE oz for AISC. The cost guidance remains contingent on
the Russian rouble and Kazakh tenge exchange rate dynamics. The
Company notes the continuous macro and COVID-related pressures
affecting its capital expenditures. The Company continues to
prioritize timely project execution and to incur additional costs to
avoid project schedule slippage.
•
OPERATING HIGHLIGHTS
3 months ended 6 months ended
June 30, % change1 June 30, % change1
2021 2020 2021 2020
Waste mined, Mt 52.5 39.2 +34% 98.0 79.1 +24%
Underground 23.3 23.2 +0% 46.3 46.4 -0%
development, km
Ore mined, Mt 3.8 4.1 -8% 7.5 8.0 -6%
Open-pit 2.8 3.0 -7% 5.6 5.9 -6%
Underground 0.9 1.0 -9% 1.9 2.0 -5%
Ore processed, Mt 4.0 4.3 -7% 7.6 7.8 -3%
Average GE grade 3.5 3.8 -9% 3.6 4.0 -9%
processed, g/t
Production
Gold, Koz 299 318 -6% 635 642 -1%
Silver, Moz 4.8 4.9 -1% 9.4 9.8 -4%
Gold equivalent, 339 358 -6% 714 723 -1%
Koz2
Sales
Gold, Koz 315 324 -3% 595 595 +0%
Silver, Moz 4.3 5.2 -18% 8.0 9.9 -19%
Revenue, US$m3 681 641 +6% 1,274 1,135 +12%
Net debt, US$m4 1,827 1,321 +38% 1,827 1,351 +35%
LTIFR5 0.10 0.08 +25% 0.17 0.07 +143%
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 March 2021 (for the three
months period) and 31 December 2020 (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 June %
30, 30,
2021 2020 change 2021 2020 change
GOLD EQ. (KOZ)1
Kyzyl 93 104 -10% 182 213 -14%
Varvara 51 41 +23% 110 84 +31%
Dukat 50 52 -3% 98 104 -5%
Omolon 50 46 +9% 96 88 +10%
Albazino 46 62 -26% 123 140 -12%
Svetloye 26 31 -15% 53 52 +2%
Voro 18 22 -17% 40 42 -5%
Mayskoye 4 1 NM 10 1 NM
TOTAL 339 358 -6% 714 723 -1%
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, 27 July
2021 at 12:00 London time (14:00 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 3 August 2021.
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
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 June 6 months ended
30, % change June 30, % change
2021 2020 2021 2020
MINING
Waste mined, Mt 20.6 18.8 +10% 40.9 38.0 +7%
Ore mined (open-pit), 542 518 +5% 1,098 1,041 +5%
Kt
PROCESSING
Ore processed, Kt 569 481 +18% 1,133 1,006 +13%
Gold grade, g/t 6.5 8.5 -24% 6.2 8.3 -25%
Gold recovery 89.9% 87.2% +3% 89.4% 87.2% +2%
Concentrate produced, 34.2 37.3 -8% 69.3 73.0 -5%
Kt
Concentrate gold 97.0 97.4 -0% 90.9 99.3 -8%
grade, g/t
Gold in concentrate, 107 117 -9% 202 233 -13%
Koz1
Concentrate shipped, 21.4 26.4 -19% 48.4 47.3 +2%
Kt
Payable gold shipped, 40 51 -21% 86 92 -6%
Koz
Amursk POX
Concentrate 13 13 +1% 25 29 -13%
processed, Kt
Gold grade, g/t 130.8 149.2 -12% 133.9 141.8 -6%
Gold recovery 90.2% 91.8% -2% 91.3% 91.8% -1%
Gold produced, Koz 53 54 -0% 96 121 -20%
TOTAL PRODUCTION
Gold, Koz 93 104 -10% 182 213 -14%
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, the Kyzyl concentrator set a quarterly throughput record (second in
a row) and also achieved the record recovery following full commissioning
of the expanded dewatering section. Grade processed, as expected, declined
y-o-y towards the open-pit reserve average. The planned grade decline will
continue to impact production at Kyzyl throughout 2021 and will be only
partially offset by higher throughput and improved recoveries.
A 10% increase in open-pit rock moved was achieved without new equipment
thanks to productivity improvements driven by reduction in truck and
excavator downtime.
Delivery of Kyzyl concentrate to Сhina was disrupted given the anti-COVID
precautionary measures at seaports and railway crossings which have
resulted in substantial rail car and ship deficit as well as lengthening
round-trip times. Polymetal is switching from bulk (boxcar) to container
shipping to accelerate cycle times and expects the sales/production gap to
close by year-end.
ALBAZINO
3 months ended June 6 months ended
30, % change June 30, % change
2021 2020 2021 2020
MINING
Waste mined, Mt 5.6 5.1 +10% 10.7 9.9 +8%
Underground 3.9 3.1 +24% 7.1 6.2 +15%
development, km
Ore mined, Kt 455 464 -2% 949 981 -3%
Open-pit 268 295 -9% 576 655 -12%
Underground 187 169 +11% 373 325 +15%
PROCESSING
Albazino concentrator
Ore processed, Kt 444 446 -0% 871 891 -2%
Gold grade, g/t 4.0 4.8 -16% 4.1 4.6 -11%
Gold recovery1 88.4% 86.5% +2% 88.6% 86.0% +3%
Concentrate produced, 33.7 36.8 -8% 66.5 72.7 -9%
Kt
Concentrate gold 46.7 50.0 -7% 48.1 49.1 -2%
grade, g/t
Gold in concentrate, 51 59 -14% 103 115 -10%
Koz2
Amursk POX
Concentrate 34 40 -15% 82 86 -4%
processed, Kt
Gold grade, g/t 47.1 51.6 -9% 50.4 52.6 -4%
Gold recovery 96.3% 96.5% -0% 96.4% 96.5% -0%
Gold produced, Koz 46 62 -26% 123 139 -12%
TOTAL PRODUCTION
Gold, Koz 46 62 -26% 123 139 -12%
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.
In H1, Albazino recorded a 12% decrease in production as the Anfisa
high-grade open pit is nearing full depletion. The ramp-up of stoping at
the Ekaterina-2 underground mine only partially compensates for this
development. The new open pit, Farida, with lower grades, drove a 10%
increase in waste volumes.
Recovery at the concentrator improved by 2 p.p. and 3 p.p. in Q2 and H1
2021 respectively as feedstock mix shifted to ores from deeper underground
levels.
Construction at the Kutyn heap leach project is in full swing with final
construction permits in place and contractors fully mobilized on site.
MAYSKOYE
3 months ended 6 months ended
June 30, % change June 30, % change
2021 2020 2021 2020
MINING
Waste mined, Mt 1.0 0.6 +63% 2.0 1.7 +16%
Underground development, 4.7 5.5 -14% 9.8 11.0 -11%
km
Ore mined, Kt 197 306 -36% 388 567 -32%
Open-pit 38 108 -64% 51 186 -73%
Underground 158 197 -20% 336 380 -12%
PROCESSING
Ore processed, Kt 218 230 -5% 435 458 -5%
Gold grade, g/t 5.7 6.7 -15% 6.0 6.2 -4%
Gold recovery 92.0% 84.4% +9% 92.3% 87.5% +5%
Gold in concentrate, Koz2 37 37 -1% 77 76 +2%
Gold produced in dore from 4 - NM 5 - NM
concentrate (POX), Koz
Gold produced in dore from - 1 NM 5 1 NM
carbon, Koz3
TOTAL PRODUCTION
Gold, Koz 4 1 NM 10 1 NM
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, in Q2 2021 the plant only processed sulphide ore while in Q2
2020 oxidised material from the open pit was also part of the feed. Thus,
the grades and recoveries are not comparable y-o-y. The Company started
processing oxidised ore in July 2021.
Underground mine electrification project is running on schedule. Conveyor
installation has commenced with first ore deliveries to the surface
expected in Q2 2022.
AMURSK POX
3 months ended June 6 months ended
30, % change June 30, % change
2021 2020 2021 2020
Concentrate 50 53 -7% 110 115 -4%
processed, Kt
Albazino 33 38 -14% 77 79 -2%
Kyzyl 13 13 +1% 25 29 -13%
Mayskoye 2 - NA 3 - NA
Veduga - 1 -100% 4 3 +38%
Other1 1 0 NA 1 3 -73%
Gold recovery 93.0% 94.2% -1% 94.0% 94.2% -0%
Average gold grade, 69.8 75.6 -8% 69.7 75.2 -7%
g/t
Average sulphur grade 14.1% 13.5% +4% 13.8% 13.9% -1%
Total gold produced2, 103 116 -11% 224 261 -14%
Koz
Albazino 45 51 -13% 112 111 +1%
Kyzyl 53 54 -0% 96 121 -20%
Mayskoye 4 - NA 5 0 NA
Veduga - 4 -100% 9 19 -49%
Other1 1 6 -86% 1 10 -91%
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 down due to lower production from Albazino
concentrate and a 1 p.p. decrease in POX recovery on the back of the
increased share of more metallurgically challenging material from Kyzyl.
A planned three-week autoclave maintenance shutdown in April went smoothly
and identified no material issues.
VARVARA
3 months ended June 6 months ended
30, % change June 30, % change
2021 2020 2021 2020
MINING
Waste mined, Mt 10.0 10.1 -1% 19.5 20.3 -4%
Ore mined, Kt 850 702 +21% 1,906 1,484 +28%
PROCESSING
Leaching
Ore processed, Kt 794 796 -0% 1,558 1,530 +2%
Gold grade, g/t 1.7 1.5 +11% 1.7 1.5 +12%
Gold recovery1 89.9% 89.1% +1% 88.2% 88.1% +0%
Gold production (in 38 32 +19% 84.4 66.8 +26%
dore), Koz
Flotation
Ore processed, Kt 185 188 -1% 375 317 +19%
Gold grade, g/t 2.8 2.6 +9% 2.7 2.8 -4%
Recovery1 83.9% 87.2% -4% 84.3% 86.5% -3%
Gold in concentrate, 12 9 +41% 26 18 +47%
Koz
Total ore processed, 979 984 -0% 1,933 1,876 +3%
Kt
TOTAL PRODUCTION
Gold, Koz 51 41 +23% 110 84 +31%
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.
Q2 gold production at Varvara was up 23% y-o-y driven by higher grade
leach ore from Komar and grade increase in third-party material at
flotation circuit. Gold recovery from low copper grade ore improved to
89.9% after leaching circuit expansion increased residence time.
DUKAT OPERATIONS
3 months ended June 6 months ended
30, % change June 30, % change
2021 2020 2021 2020
MINING
Waste mined, Mt 0.7 - NA 1.1 - NA
Underground 11.1 10.9 +1% 22.8 22.2 +3%
development, km
Ore mined, Kt 638 545 +17% 1,283 1,084 +18%
Open-pit 119 - NA 223 - NA
Underground 518 545 -5% 1,060 1,084 -2%
PROCESSING
Omsukchan
concentrator
Ore processed, Kt 508 496 +3% 1,021 1,009 +1%
Grade
Gold, g/t 0.6 0.6 -6% 0.5 0.5 -3%
Silver, g/t 257 273 -6% 255 280 -9%
Recovery1
Gold 87.1% 85.1% +2% 85.3% 84.8% +1%
Silver 87.6% 87.4% +0% 87.2% 86.6% +1%
Production
Gold, Koz 8 8 -1% 14 14 -0%
Silver, Moz 3.6 3.7 -4% 7.1 7.7 -7%
Lunnoye plant
Ore processed, Kt 122 116 +5% 237 232 +2%
Grade
Gold, g/t 1.6 1.4 +15% 1.6 1.5 +7%
Silver, g/t 219 278 -21% 235 273 -14%
Recovery1
Gold 90.0% 91.8% -2% 90.8% 91.2% -0%
Silver 93.2% 92.8% +0% 92.6% 92.1% +1%
Production
Gold, Koz 6 5 +17% 11 10 +9%
Silver, Moz 0.8 1.0 -17% 1.6 1.9 -12%
TOTAL PRODUCTION
Gold, Koz 13 13 +6% 25 24 +3%
Silver, Moz 4.4 4.7 -6% 8.8 9.5 -8%
Notes: (1) Technological recovery, includes gold and silver within
work-in-progress inventory.
Dukat continues to experience planned grade decline, which resulted in a
y-o-y production decrease. Ore mined was higher y-o-y as open-pit mining
recommenced in Q1.
Primorskoye satellite underground mine produced first ore from development
with first deliveries of high-grade direct shipment material to
third-party smelters expected in Q3.
OMOLON OPERATIONS
3 months ended June 6 months ended
30, % change June 30, % change
2021 2020 2021 2020
MINING
Waste mined, Mt 1.3 1.1 +13% 1.6 2.0 -23%
Underground 3.0 3.7 -19% 5.7 7.0 -19%
development, Km
Ore mined, Kt 113 763 -85% 186 1,564 -88%
Open-pit 34 642 -95% 34 1,331 -97%
Underground 78 121 -35% 151 234 -35%
PROCESSING
Kubaka Mill
Ore processed, Kt 217 220 -1% 429 433 -1%
Grade
Gold, g/t 6.5 6.6 -1% 6.7 6.7 -1%
Silver, g/t 64 26 +150% 44 20 +122%
Recovery1
Gold 95.0% 94.3% +1% 93.9% 93.2% +1%
Silver 81.0% 69.5% +17% 79.5% 74.3% +7%
Gold production, Koz 43 41 +6% 88 83 +7%
Silver production, 0.3 0.1 +177% 0.5 0.2 +144%
Moz
Birkachan Heap Leach
Ore stacked, Kt 308 707 -56% 353 707 -50%
Gold grade, g/t 1.3 2.3 -44% 1.2 2.3 -45%
Gold production, Koz 4 3 +7% 4 3 +24%
TOTAL PRODUCTION
Gold, Koz 47 45 +6% 93 86 +8%
Silver, Moz 0.3 0.1 +171% 0.5 0.2 +141%
Note: (1) Technological recovery, includes gold and silver within
work-in-progress inventory.
In Q2, the Merrill-Crowe circuit at Kubaka plant was re-launched after a
shut-down in 2020 as sufficient volumes of high silver grade material
became available.
Grade at Birkachan heap leach decreased due to the higher base in 2020
when higher-grade stockpiled ore was processed. Stacking was lower with
the crusher focused on re-handling of previously stacked ore.
Ore mining was down as Olcha open pit and underground mines as well as
Birkachan open pit have been depleted. A new open pit mine at Burgali, 110
km from the processing plant, produced first ore.
The commissioning of the 2.5 MWh solar power plant commenced in July. The
dry tailings storage facility achieved mechanical completion and is on
track to enter production by the end of 2021.
SVETLOYE
3 months ended 6 months ended
June 30, % change June 30, % change
2021 2020 2021 2020
MINING
Waste mined, Mt 1.1 0.9 +22% 1.8 1.6 +9%
Ore mined (open 536 561 -4% 926 907 +2%
pit), Kt
PROCESSING
Ore stacked, Kt 366 317 +16% 648 626 +4%
Gold grade, g/t 2.8 3.7 -24% 3.7 4.0 -9%
Gold production, Koz 26 31 -15% 53 52 +2%
TOTAL PRODUCTION
Gold, Koz 26 31 -15% 53 52 +2%
Quarterly gold production at Svetloye contracted y-o-y on the back of the
planned decline in grade. Stacking increase is attributable to the low
base of Q2 2020 when stacking volumes were impacted by maintenance
shutdown of the ore crushing complex.
Waste mined jumped as mining started at the new Lyudmila pit.
VORO
3 months ended June 6 months ended
30, % change June 30, % change
2021 2020 2021 2020
MINING
Waste mined, Mt 3.0 - NA 3.6 - NA
Ore mined, Kt 57 - NA 68 - NA
PROCESSING
CIP
Ore processed, Kt 262 260 +1% 522 529 -1%
Gold grade, g/t 1.9 2.2 -17% 2.0 2.2 -8%
Gold recovery1 84.6% 82.5% +3% 84.2% 82.3% +2%
Gold production, 16 18 -11% 36 36 -0%
Koz
Heap Leach
Ore stacked, Kt - 22 -100% - 22 -100%
Gold grade, g/t - 0.9 -100% - 0.9 -100%
Gold production, 2 4 -53% 4 6 -38%
Koz
TOTAL PRODUCTION
Gold, Koz 18 22 -18% 40 42 -6%
Note: (1) Technological recovery, includes gold within work-in-progress
inventory.
Gold production at Voro continued to drift lower as the plant processed
predominantly low-grade historical stockpiles. Recovery for the reporting
quarter and H1 improved by 3 p.p. and 2 p.p. y-o-y respectively as
oxidized ore from Saum was introduced to the feed.
At the Voro flotation plant, the foundations for equipment and steel
framework for the concentrator building were completed. SAG and ball mills
have been installed. The project is 50% completed.
NEZHDA
3 months ended June 6 months ended June
30, % change 30, % change
2021 2020 2021 2020
MINING
Waste mined, 5.6 - NA 11.0 - NA
Mt
Ore mined, Kt 365 - NA 710 - NA
Construction and mining activities proceeded on schedule. Mechanical
completion of key equipment, including SAG and ball mills, was achieved.
Cold commissioning of individual equipment items is in progress with
multiple representatives of international suppliers on site.
Construction of the dry-stack tailings storage facility is nearing
completion. The project is on track to produce first concentrate on
November 1, 2021.
POX-2
Construction progressed on schedule. In Q2, the large-sized equipment of
oxygen station was installed. Equipment foundation construction at the POX
building is being finalized. Downstream circuit metal framework
construction was completed.
The Suez straits crisis lead to multiple delays in shipment of key
equipment from Europe. The management is evaluating alternative options of
ensuring the timely arrival of items on the critical path, including
booking single-cargo vessels at increased cost.
SUSTAINABILITY, HEALTH AND SAFETY
There were no fatal accidents during the first half of the year
(consistent with H1 2020) among Polymetal's workforce and the Company's
contractors. We regret to report that on July 18 a drilling contractor
lost his life at the Saum open-pit mine, part of Voro operations. We send
our condolences to the family and friends of our colleague. The incident
is currently under investigation to understand the root cause of the
accident to prevent any recurrence.
LTIFR among the Group's employees in Q2 2021 stood at 0.10, in comparison
with 0.08 in Q2 2020, while for the first half of 2021 LTIFR was 0.17 vs
0.07 a year earlier. There were three incidents among employees during the
quarter and no incidents with contractor workers. During H1 2021, there
were ten lost-time injuries in total vs four cases during H1 2020.
In Q2, Vigeo Eiris (part of Moody's ESG solutions), a global leader in ESG
assessments, data, research and analytics, raised Polymetal's overall ESG
score from 48 to 69 (out of 100) which corresponds with the Advanced
level, the highest on the company's ranking scale. The new score places
Polymetal on the second place out of 43 in the Mining & Metals sector and
22nd place in the global ranking universe (4,939 companies). For more
information visit vigeo-eiris.com.
The reporting quarter was also marked with a couple of other external
recognitions, which confirms our success as a responsible company:
Polymetal took the 7th place in Russia's 30 most eco-friendly companies
rating and the 2nd place among metals and mining companies in Russia by
Forbes.
COVID-19 UPDATE
Epidemiological situation in the Company remains under control. Number of
active cases increased q-o-q as Russia and Kazakhstan entered the third
wave of the pandemic. As of the date of this press release, there are less
than 50 active cases of the disease in Polymetal, none of which observed
at production sites. Operations and development projects continue
undisrupted. All precautionary measures, including extensive testing and
observatory periods, are maintained at all sites.
Multiple regions introduced requirements for mandatory vaccination within
certain industries (hospitality, transportation services). Continuously
operating industries (including mining) are currently not targeted.
Polymetal continues to facilitate non-obligatory vaccination among
employees by organizing vaccination at local hospitals or establishing
vaccination points on site.
The Company estimates COVID-related cash expenses at approximately US$ 5
million per month with the majority recorded as operating costs. This
translates into roughly US$ 35 per GE ounce in AISC.
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4 1 For more information visit vigeo-eiris.com.
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ISIN: JE00B6T5S470
Category Code: MSCH
TIDM: POLY
LEI Code: 213800JKJ5HJWYS4GR61
Sequence No.: 118521
EQS News ID: 1221796
End of Announcement EQS News Service
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