REG-Polymetal International plc Polymetal: Q3 2019 production results
24/10/2019 07:05
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Polymetal International plc (POLY)
Polymetal: Q3 2019 production results
24-Oct-2019 / 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 24 October 2019
Polymetal International plc
Q3 2019 production results
Polymetal reports solid production results for the third quarter and nine
months ended September 30, 2019.
"Continued strong performance at Kyzyl is driving our production dynamics.
We now expect to exceed our full-year production guidance", said Vitaly
Nesis, Group CEO of Polymetal.
HIGHLIGHTS
• In Q3, the Company's gold equivalent ("GE") production grew by 7%
year-on-year to 476 Koz driven by Kyzyl contributing 94 Koz. Following
the successful completion of several improvement projects, Kyzyl
concentrator achieved steady-state throughput of 2.0 Mtpa, 11% above
the original design.
• Quarterly gold production gained 13% while silver output contracted by
20% on the back of 2018 asset disposals and planned grade decline at
Dukat.
• GE production for the first nine months of 2019 increased 16% to 1,232
Koz. Polymetal is likely to exceed its full-year production guidance
of 1,550 Koz by up to 50 Koz.
• Q3 revenue increased by 43% to US$ 656 million on the back of higher
sales volumes and prices. The seasonal gap between production and
sales has been closed.
• The Company notes cost increases from royalties driven by commodity
prices yet maintains its cost guidance for 2019: TCC of US$ 600-650/GE
oz and AISC of US$ 800-850/GE oz.
• Net Debt of US$ 1.7 billion as of 30 September 2019 remained largely
unchanged compared to 30 June 2019. The Company generated significant
free cash flow and paid a regular semi-annual dividend of US$ 94
million (US$ 0.20 per share).
• Construction and development activities at the Nezhda and the POX-2
projects continued on schedule.
• In Q3, Polymetal had its ESG ratings upgraded - MSCI ESG Ratings score
improved from BBB to A, and ISS-Oekom Corporate Rating was raised to
C+. Furthermore, the Company was reaffirmed as a member of the Dow
Jones Sustainability Index and FTSE4Good Index Series.
3 months ended 9 months ended
Sep 301, % change2 Sep 301, % change2
2019 2018 2019 2018
Waste mined, Mt 41.3 33.6 +23% 118.9 94.5 +26%
Underground 25.9 31.2 -17% 80.2 96.8 -17%
development, km
Ore mined, Mt 4.5 3.6 +22% 13.0 10.2 +28%
Open-pit 3.4 2.5 +36% 9.9 6.7 +48%
Underground 1.1 1.2 -7% 3.1 3.5 -11%
Ore processed, Mt 3.9 4.4 -12% 11.5 11.4 +1%
Production
Gold, Koz 402 356 +13% 1,005 801 +25%
Silver, Moz 5.4 6.7 -20% 16.4 19.4 -16%
Copper, Kt 0.6 0.9 -36% 2.0 2.5 -21%
Gold equivalent, 476 447 +7% 1,232 1,066 +16%
Koz3
Sales
Gold, Koz 388 321 +21% 992 766 +30%
Silver, Moz 6.1 5.3 +15% 16.4 17.4 -6%
Copper, Kt 1.0 0.5 +109% 2.0 1.9 +5%
Revenue, US$m4 656 459 +43% 1,602 1,248 +28%
Net debt, US$m5 1,702 1,700 +0% 1,702 1,518 +12%
Safety
LTIFR6 0.11 0.07 +57% 0.15 0.13 +15%
Fatalities 0 0 NA 2 1 +1
Notes: (1) Including discontinued operations.
(2) % 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.
(3) Based on 1:80 Ag/Au, 5:1 Cu/Au, 2:1 Pb/Au and 2:1 Zn/Au conversion
ratios.
(4) Calculated based on the unaudited consolidated management accounts.
(5) Non-IFRS measure based on unaudited consolidated management accounts.
Comparative information is presented for 30 June 2019 (for the three
months period) and 31 December 2018 (for the nine months period).
(6) LTIFR = lost time injury frequency rate per 200,000 hours worked.
PRODUCTION BY MINE
3 months % 9 months %
ended Sep 30, change ended Sep 30, change
2019 2018 2019 2018
GOLD EQ. (KOZ)1
Kyzyl 94 10 NM 253 10 NM
Dukat 75 77 -2% 233 231 +1%
Albazino-Amursk 75 88 -15% 211 241 -12%
Omolon 49 50 -3% 148 136 +8%
Mayskoye 72 47 +52% 76 47 +62%
Varvara 37 37 -1% 113 103 +10%
Voro 28 23 +20% 85 78 +9%
Svetloye 46 59 -22% 107 112 -4%
TOTAL (continuing operations) 476 392 +21% 1,227 959 +28%
Okhotsk - 44 NA - 68 NA
Kapan - 11 NA 5 38 NA
TOTAL (including discontinued 476 447 +7% 1,232 1,066 +16%
operations)
Notes: (1) Based on 1:80 Ag/Au, 5:1 Cu/Au, 2:1 Pb/Au and 2:1 Zn/Au
conversion ratios.
CONFERENCE CALL AND WEBCAST
Polymetal will hold a conference call and webcast on Thursday, 24 October
2019 at 12:00 London time (14:00 Moscow time).
To participate in the call, please dial:
From the UK:
+44 330 336 9411 (local access)
0800 279 7204 (toll free)
From the US:
+1 929 477 0324 (local access)
800 458 4121 (toll free)
From Russia:
+7 495 646 9190 (local access)
8 10 8002 867 5011 (toll free)
To participate from other countries, please dial any of the local access
numbers listed above.
Conference code: 2360288
To participate in the webcast follow the link:
https://webcasts.eqs.com/polymetal20191024. Please be prepared to
introduce yourself to the moderator or register.
A recording of the call will be available immediately after the call at
+44 20 7660 0134 (from the UK), +1 719 457 0820 (from the USA) and 8 10
8002 702 1012 (from Russia), access code 2360288, from 17:30 Moscow time
Thursday, 24 October, till 17:30 Moscow time Thursday, 31 October, 2019.
Webcast replay will be available on Polymetal's website
( 1 www.polymetalinternational.com) and at
https://webcasts.eqs.com/polymetal20191024.
About Polymetal
Polymetal International (LSE, MOEX: POLY, ADR: AUCOY) (together with its
subsidiaries - "Polymetal", the "Company", or the "Group") is the top-20
global gold producer and top-5 global silver producer with assets in
Russia and Kazakhstan. The Company combines strong growth with a robust
dividend yield.
Enquiries
Media Investor Relations
Polymetal
2 ir@polymetalinternational.com
FTI Consulting Evgeny
Monakhov +44 20 7887 1475 (UK)
Leonid Fink +44 20
3727 1000 Timofey
Viktor Pomichal Kulakov
+7 812 334 3666 (Russia)
Kirill
Kuznetsov
Joint Corporate
Brokers
Morgan Stanley +44 20
7425 8000
Andrew Foster RBC Europe
Limited
Richard Brown
Marcus Jackson +44 20 7653 4000
Panmure Gordon
Jamil Miah
Charles Lesser
+44 20
James Stearns 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 Sep % 9 months ended Sep
30, 30, % change
2019 2018 change 2019 2018
MINING
Waste mined, Mt 17.5 16.1 +9% 49.9 44.8 +11%
Ore mined 527 436 +21% 1,560 833 +87%
(open-pit), Kt
PROCESSING
Ore processed, Kt 502 362 +39% 1,490 436 NM
Gold grade, g/t 7.5 5.1 +45% 7.0 4.7 +49%
Gold recovery 88.3% 78.7% +12% 87.7% 75.3% +16%
Concentrate 31.4 20.4 +54% 89.7 21.7 NM
produced, Kt
Concentrate gold 104.8 69.1 +52% 101.7 67.7 +50%
grade, g/t
Gold in concentrate, 105.9 45.2 +134% 293.3 47.2 NM
Koz1
Concentrate shipped, 17.2 5.4 +220% 54.2 5.4 NM
Kt
Payable gold 35.8 10.0 +259% 127.0 10.0 NM
shipped, Koz
Amursk POX
Concentrate 15 - NA 35 - NA
processed, Kt
Gold grade, g/t 125.9 - NA 125.3 - NA
Gold recovery 91.7% - NA 92.9% - NA
Gold produced, Koz 58.2 - NA 126.5 - NA
TOTAL PRODUCTION
Gold, Koz 94.0 10.0 NM 253.5 10.0 NM
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.
Kyzyl continued to exceed budget on throughput and grade. Gold in
concentrate in Q3 was 106 Koz while payable gold production amounted to 94
Koz.
Q3 is expected to be the last quarter with significant positive grade
reconciliation. Starting from Q4 mining will continue beyond the
near-surface area with significant high-grade lenses and the average grade
will revert to open-pit reserve average.
The Chinese market for refractory concentrates is continuing to tighten.
In response, the Company moved to increase the share of gold contained in
low-carbon concentrate processed at Amursk POX to 70% (versus 50%
planned). This drove POX recoveries lower, but will ensure higher
production and lower costs at Kyzyl at the expense of reducing 3rd-party
concentrate processing.
Following the successful completion of several improvement projects, Kyzyl
concentrator achieved steady-state throughput of 2.0 Mtpa, 11% above the
original design. Several initiatives are under way to evaluate pushing
throughput to 2.1 Mtpa level by H2 2020.
Polymetal Engineering is finalizing a FS-level technical study to
re-optimize the open pit under updated operational and economic
assumptions. The results, including the updated Ore Reserves estimate,
will be presented on November 11 at the Analyst and Investor Day.
DUKAT OPERATIONS
3 months ended Sep 9 months ended Sep %
30, % change 30,
2019 2018 2019 2018 change
MINING
Underground 15.0 14.9 +1% 45.0 44.5 +1%
development, km
Ore mined, Kt 642 610 +5% 1,894 1,831 +3%
PROCESSING
Omsukchan
concentrator
Ore processed, Kt 506 500 +1% 1,535 1,496 +3%
Grade
Gold, g/t 0.5 0.6 -15% 0.5 0.6 -5%
Silver, g/t 282 296 -5% 291 300 -3%
Recovery1
Gold 86.7% 87.0% -0% 86.1% 86.8% -1%
Silver 86.8% 88.6% -2% 86.8% 88.2% -2%
Production
Gold, Koz 7.2 8.2 -13% 21.6 22.5 -4%
Silver, Moz 3.9 4.0 -4% 12.1 12.4 -2%
Lunnoye plant
Ore processed, Kt 116 120 -3% 348 347 +0%
Grade
Gold, g/t 1.4 1.4 +1% 1.4 1.3 +9%
Silver, g/t 241 310 -22% 258 330 -22%
Recovery1
Gold 91.4% 85.7% +7% 87.6% 85.4% +3%
Silver 94.5% 91.4% +3% 91.5% 91.1% +0%
Production
Gold, Koz 4.9 4.6 +6% 14.0 12.2 +15%
Silver, Moz 0.9 1.1 -20% 2.7 3.3 -19%
TOTAL PRODUCTION
Gold, Koz 12.0 12.8 -6% 35.6 34.7 +3%
Silver, Moz 4.7 5.1 -8% 14.8 15.7 -6%
Note: (1) Technological recovery, includes gold and silver within
work-in-progress inventory.
At Dukat, quarterly silver and gold production were down 8% and 6%
year-on-year respectively. The decline was driven by the Omsukchan
concentrator processing larger volumes of lower-grade ore as well as by
planned reduction in silver grade at Lunnoye mostly attributable to the
depletion of higher-grade Zone 9.
Given the significant increase in the silver price, management is
evaluating the postponement of the mine closure at Goltsovoye by bringing
marginal stopes and areas into production. Such a development will enable
full utilization of the Dukat concentrator in 2020.
ALBAZINO
3 months ended Sep 9 months ended
30, % change Sep 30, % change
2019 2018 2019 2018
MINING
Albazino
Waste mined, Mt 5.7 5.5 +4% 16.8 16.0 +5%
Underground 2.9 2.2 +28% 7.7 6.9 +12%
development, Km
Ore mined, Kt 571 442 +29% 1,596 1,372 +16%
Open-pit 418 348 +20% 1,184 1,062 +11%
Underground 153 94 +62% 412 310 +33%
PROCESSING
Albazino concentrator
Ore processed, Kt 447 431 +4% 1,303 1,291 +1%
Gold grade, g/t 4.8 5.4 -11% 4.4 5.2 -15%
Gold recovery1 86.9% 84.9% +2% 85.9% 84.5% +2%
Concentrate produced, 36.8 36.8 -0% 106.0 105.7 +0%
Kt
Concentrate gold 51.0 54.1 -6% 46.6 54.3 -14%
grade, g/t
Gold in concentrate, 60.3 64.0 -6% 158.9 184.3 -14%
Koz2
Amursk POX
Concentrate processed, 45 49 -8% 135 131 +3%
Kt
Gold grade, g/t 51.2 56.1 -9% 50.5 57.3 -12%
Gold recovery 96.5% 96.6% -0% 95.2% 96.9% -2%
Gold produced, Koz 74.7 87.6 -15% 211.1 240.4 -12%
TOTAL PRODUCTION
Gold, Koz 74.7 87.6 -15% 211.1 240.4 -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.
At Albazino, production dynamics continued to be affected by lower-grade
ore from the Ekaterina-1 open pit. Quarterly production of gold in
concentrate decreased by 6% year-on-year.
However, a 62% jump in underground ore mined ensured positive
quarter-on-quarter grade dynamics despite challenging ground conditions
thanks to careful customization of mining methods to specific stope
conditions.
AMURSK POX
3 months ended Sep 9 months ended Sep
30, % change 30, % change
2019 2018 2019 2018
Concentrate 60 49 +22% 171 131 +30%
processed, Kt
Albazino 41 44 -6% 122 115 +6%
Kyzyl 15 - NA 35 - NA
Mayskoye - 1 -100% - 1 -100%
Other1 3 5 -27% 13 16 -17%
Gold recovery 94.3% 96.6% -2% 94.3% 96.9% -3%
Average gold 70.3 56.1 +25% 66.0 57.3 +15%
grade, g/t
Average sulphur 12.5% 9.3% +34% 12.8% 8.7% +47%
grade
Total gold 132.9 87.6 +52% 337.5 240.4 +40%
produced2, Koz
Albazino 62.5 72.2 -13% 178.5 202.7 -12%
Kyzyl 58.2 - NA 126.5 - NA
Other1 12.2 15.4 -21% 32.6 37.7 -14%
Notes: (1) Veduga and purchased concentrates which are included in
reportable production in the Albazino segment.
(2) For information only. Already accounted for in production at operating
mines.
Q3 gold production at the Amursk POX increased by 52% year-on-year driven
by the introduction of high-grade Kyzyl concentrate to the feed.
By implementing tight feed management procedures, the POX team managed to
increase the recovery ratio in comparison with the previous quarter and
stabilize it at the level above 94%. In Q2, the beginning of processing of
large quantities of Kyzyl concentrate had significantly changed the
operating parameters and led to a decline in recoveries.
Increased volumes of high-grade low-carbon Kyzyl concentrate displaced 3rd
party materials.
OMOLON OPERATIONS
3 months ended Sep 9 months ended
30, % change Sep 30, % change
2019 2018 2019 2018
MINING
Waste mined, Mt 1.9 1.9 +3% 5.1 4.6 +13%
Underground 3.3 3.3 +1% 9.9 9.6 +2%
development, Km
Ore mined, Kt 805 176 NM 2,183 658 NM
Open-pit 690 102 NM 1,849 400 NM
Underground 115 74 +55% 334 258 +30%
PROCESSING
Birkachan Heap Leach
Ore stacked, Kt 350 487 -28% 897 959 -6%
Gold grade, g/t 1.2 1.2 +4% 1.2 1.1 +5%
Gold production, Koz 9.0 8.8 +2% 11.0 9.9 +12%
Kubaka Mill
Ore processed, Kt 184 220 -16% 612 642 -5%
Grade
Gold, g/t 6.0 4.4 +36% 6.3 4.8 +32%
Silver, g/t 131.6 151.2 -13% 90.0 118.8 -24%
Recovery1
Gold 95.8% 95.4% +1% 95.5% 95.4% +0%
Silver 80.8% 89.3% -10% 79.5% 83.0% -4%
Gold production, Koz 32.7 29.8 +10% 119.1 99.8 +19%
Silver production, Moz 0.6 0.9 -37% 1.4 2.1 -34%
TOTAL PRODUCTION
Gold, Koz 41.7 38.6 +8% 130.1 109.7 +19%
Silver, Moz 0.6 0.9 -37% 1.4 2.1 -34%
Note: (1) Technological recovery, includes gold and silver within
work-in-progress inventory.
At Omolon, gold output was up 8% year-on-year while silver output was down
37% as the processing plant switched away from Sopka ore towards feed from
Birkachan and Olcha.
Following a successful in-fill drilling campaign, open-pit mining
recommenced at the Bikarchan mine with a view to extend the operation of
the heap leach facility.
Quarterly volume of ore processed at the Kubaka mill decreased by 16%
year-on-year due to the planned 14-day maintenance shutdown to complete
SAG headgear replacement.
MAYSKOYE
3 months ended Sep 9 months ended
30, % change Sep 30, % change
2019 2018 2019 2018
MINING
Waste mined, Mt 1.4 1.6 -13% 4.0 3.6 +12%
Underground 4.7 5.4 -13% 15.5 17.6 -11%
development, km
Ore mined, Kt 199 304 -34% 638 767 -17%
Open-pit 41 150 -73% 175 282 -38%
Underground 159 154 +3% 463 485 -4%
PROCESSING
Ore processed, Kt 232 223 +4% 658 639 +3%
Gold grade, g/t 6.3 9.0 -30% 6.2 7.5 -18%
Gold recovery 84.7% 71.8% +18% 79.5% 77.5% +3%
Gold in concentrate, 36.3 29.3 +24% 94.9 84.3 +13%
Koz2
Gold produced in dore
from concentrate - 0.7 -100% - 0.7 -100%
(POX), Koz
Gold produced in dore 1.5 1.2 +25% 6.0 1.2 +416%
from carbon, Koz3
Payable gold in
concentrate shipped to 70.3 45.3 +55% 70.3 45.3 +55%
off-takers, Koz
TOTAL PRODUCTION
Gold, Koz 71.8 47.1 +52% 76.3 47.1 +62%
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.
In Q3, Mayskoye switched back to processing sulphide ore from the
underground mine. Consequently, grade fell and recoveries jumped. Gold in
concentrate produced increased by 24% year-on-year.
Shipments of Mayskoye concentrate to Chinese off-takers commenced with the
start of navigation period in August. Payable gold in concentrate shipped
was up 55% year-on-year. The Chinese concentrate market continues to be
challenging with high arsenic material starting to attract heavy
penalties. This is likely to have an approximately $150-200/oz negative
impact on Mayskoye's TCC and AISC for 2019.
VARVARA
3 months ended Sep % 9 months ended Sep
30, 30, % change
2019 2018 change 2019 2018
MINING
Waste mined, Mt 11.4 7.2 +59% 34.1 21.9 +56%
Ore mined, Kt 1,014 888 +14% 2,953 2,274 +30%
PROCESSING
Flotation
Ore processed, Kt 134 116 +16% 411 296 +39%
Grade
Gold, g/t 1.3 1.4 -6% 1.2 1.3 -11%
Copper 0.37% 0.59% -37% 0.53% 0.55% -4%
Recovery1
Gold 52.1% 72.3% -28% 51.3% 68.7% -25%
Copper 91.3% 92.8% -2% 91.4% 92.1% -1%
Production
Gold in concentrate, 2.7 3.2 -15% 7.2 7.4 -2%
Koz
Copper in 0.6 0.6 -6% 1.8 1.5 +26%
concentrate, Kt
Veduga ore toll 35 43 -18% 98 86 +14%
processed, Kt2
Leaching
Ore processed, Kt 733 826 -11% 2,268 2,324 -2%
Gold grade, g/t 1.6 1.3 +18% 1.5 1.4 +7%
Gold recovery1 87.4% 89.4% -2% 86.8% 87.7% -1%
Gold production (in 31.3 31.1 +1% 96.7 88.6 +9%
dore), Koz
Total ore processed, 902 985 -8% 2,778 2,706 +3%
Kt
TOTAL PRODUCTION
Gold, Koz 34.0 34.3 -1% 103.9 95.9 +8%
Copper, Kt 0.6 0.6 -6% 1.8 1.5 +26%
Notes: (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, gold output decreased by 1% year-on-year as the leaching
circuit underwent the planned replacement of the mill lining.
Gold grade processed increased thanks to higher mining and railing volumes
at Komar. New company-owned loco has been successfully commissioned and is
expected to further drive down Komar ore transportation costs.
VORO
3 months ended Sep 9 months ended Sep
30, % change 30, % change
2019 2018 2019 2018
MINING
Waste mined, Mt 0.4 0.9 -56% 1.2 2.8 -58%
Ore mined, Kt 181 204 -11% 661 779 -15%
PROCESSING
Voro CIP
Ore processed, Kt 264 253 +4% 783 752 +4%
Gold grade, g/t 4.0 3.6 +11% 3.7 3.9 -6%
Gold recovery1 87.0% 80.6% +8% 86.6% 80.7% +7%
Gold production, 26.4 21.4 +23% 71.4 72.2 -1%
Koz
Voro Heap Leach
Ore stacked, Kt 58 60 -2% 58 62 -5%
Gold grade, g/t 1.4 1.4 +0% 1.4 1.4 +0%
Gold production, 1.5 2.1 -25% 12.7 5.8 +120%
Koz
TOTAL PRODUCTION
Gold, Koz 28.0 23.5 +19% 84.0 77.9 +8%
Note: (1) Technological recovery, includes gold within work-in-progress
inventory.
Q3 gold production at Voro climbed by 19% year-on-year as the CIP plant
processed high-grade oxide ore from the southern pit.
Waste volume decreased sharply as the open pit is approaching the end of
its life.
SVETLOYE
3 months ended 9 months ended Sep
Sep 30, % change 30, % change
2019 2018 2019 2018
MINING
Waste mined, Mt 0.3 0.2 +41% 1.1 0.5 +142%
Ore mined (open-pit), 406 317 +28% 1,273 978 +30%
Kt
PROCESSING
Ore stacked, Kt 369 491 -25% 968 1,144 -15%
Gold grade, g/t 4.1 3.8 +10% 4.0 3.8 +6%
Gold production, Koz 46.1 59.0 -22% 107.0 112.0 -4%
TOTAL PRODUCTION
Gold, Koz 46.1 59.0 -22% 107.0 112.0 -4%
At Svetloye, gold production contracted by 22% year-on-year as ore
stacking was negatively affected by wet and cold weather in Q3.
DEVELOPMENT UPDATE
At Nezhda, pre-stripping and construction proceeded according to plan.
Repair of the road from the Kolyma federal highway to the mine site was
completed. The road is ready for the delivery of technological equipment
of the plant and the power station in Q1 2020. The installation of the
metal framework of the processing plant building was completed, and the
manufacturing of internal metal structures is under way. The construction
of foundations for the power station and the underground tunnel from the
crusher to the concentrator started. The lining of the dry-stack tailings
storage facility commenced.
A positive conclusion of the state environmental review of the project
documentation was received.
At POX-2, the autoclave foundation boxcut was excavated and the foundation
concrete bed prepared. Polymetal signed contracts for high-pressure
auxiliary equipment around the autoclave through Hatch. Active
construction started at the new concentrate storage area.
SUSTAINABILITY, HEALTH AND SAFETY
In Q3, our LTIFR stood at 0.11 versus 0.07 in Q3 2018 with a total of 3
work-related incidents recorded across the Group (2 incidents in Q3 2018).
The increase was driven by minor incidents that occurred at remote sites
outside of production shifts (falls, slips). Accordingly, risk assessment
and safety training will be adjusted to take into account higher frequency
of this type of incidents.
In the reporting quarter Polymetal had its ESG ratings upgraded - MSCI ESG
Ratings score improved from BBB to A, and ISS-Oekom Corporate Rating was
raised to C+. Furthermore, the Company was reaffirmed as a member of the
Dow Jones Sustainability Index and FTSE4Good Index Series.
As a way to further align our ESG efforts to financial results, Polymetal
signed a new US$ 75 million sustainability-linked credit facility with
Societe Generale. The interest rate is tied to the Company's performance
on specific ESG KPIs set by the agreement.
PERSONNEL
Oleg Voronin (50) was appointed as Managing Director at Albazino. Mr.
Voronin graduated from the Krasnoyarsk Institute of Non-Ferrous Metal with
a degree in underground mining. From 1993 until 2009 he held various
positions with the Zyryanovsky mining and processing complex (now part of
Kazzinc), all the way up to the chief engineer. In 2009, Oleg joined
Polymetal as the chief engineer of Dukat operations. In 2015, he assumed
the position of chief engineer at Albazino.
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ISIN: JE00B6T5S470
Category Code: MSCH
TIDM: POLY
Sequence No.: 24599
EQS News ID: 895603
End of Announcement EQS News Service
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