REG-Polymetal International plc Polymetal: Q3 2020 production results
22/10/2020 07:00
============
Polymetal International plc (POLY)
Polymetal: Q3 2020 production results
22-Oct-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 22 October 2020
Polymetal International plc
Q3 2020 production results
Polymetal reports strong production results for the third quarter of 2020.
"In Q3 the Group continued to exceed production budget and generated
massive cash flows on the back of a seasonal release of working capital",
said Vitaly Nesis, Group CEO of Polymetal. "We remain vigilant and focused
to protect our employees, contractors, and local communities as the
COVID-19 pandemic remains a crucial risk for Polymetal".
HIGHLIGHTS
• There were no fatal accidents during the first nine months of 2020
either at Polymetal or at the Company's contractors. LTIFR among the
Group's employees for the period stood at 0.10, a decrease of 47%
year-on-year (y-o-y). There were 8 minor incidents in total in
comparison with 15 incidents during 9M 2019.
• The Company's Q3 gold equivalent ("GE") production increased by 7%
y-o-y to 477 Koz of GE driven by strong contributions from Omolon,
Varvara, and Kyzyl. GE output for 9M 2020 months reached 1,200 Koz, an
increase of 5% y-o-y.
• Q3 revenue jumped by 35% y-o-y to reach US$ 884 million on the back of
higher gold and silver prices as well as increased sales volumes. 9M
revenue amounted to US$ 2,019 million, up 26% y-o-y. The lag between
gold production and sales, mainly at Varvara and Kyzyl, is expected to
close in Q4 2020.
• Polymetal generated record quarterly free cash flow in Q3. Net debt
was down by US$ 80 million to US$ 1.61 billion, even as the Company
paid US$ 189 million of interim dividends (US$ 0.40 per share, a
two-fold increase year-on-year).
• Construction and development activities at Nezhda and POX-2 progressed
on schedule. COVID-related restrictions, precautionary measures and
cases of the disease on site have not slowed down project execution.
• The Company is on track to meet its full-year 2020 production guidance
of 1,500 Koz GE with COVID-related risks remaining the key source of
uncertainty. TCC and AISC guidance of US$ 650-700/GE oz and US$
850-900/GE oz respectively is also maintained.
• Production guidance for 2021 and 2022 of 1,500 Koz and 1,600 Koz GE
respectively is reiterated.
•
COVID-19 UPDATE
• There were 112 active cases of COVID-19 as at 20.10.2020 across the
Group. Strict precautionary procedures, previously implemented,
including 14-day mandatory isolation of new shifts and limitations on
meetings and travel, are maintained at all production sites and
offices. These restrictions are expected to continue at least into Q2
2021.
• Mayskoye suffered a C-19 outbreak in September. All infected persons
and their contacts were transferred to observatory facilities or
hospitals. Currently 18 people remain isolated on site and 8 are in
hospital with 1 person in a serious condition. All mining and
processing activities continued at regular pace.
• In September, Olcha underground and open pit (part of Omolon hub)
returned to production after a 5-week stoppage caused by the COVID-19
outbreak. All people infected (approximately 50) have recovered. The
stoppage is not expected to result in any production or cost
downgrades.
• Russia is undergoing a second wave of the pandemic with daily
infections above the previous peak levels seen in May. Some regions
partially re-introduced restrictive measures. Kazakhstan lifted most
of the quarantine restrictions in August following significant drops
in the number of infected and intensive care admissions. The infection
rates remain stable so far.
• At the same time, governments have relaxed a number of cross-border
travel restrictions allowing flights between Russia, Kazakhstan and
Belarus to resume. This has facilitated bringing Kazakh employees to
Dukat and Mayskoye.
• Polymetal continues to provide varied financial and operational
support to healthcare facilities across all regions of its presence
with US$ 2.9 million spent so far in 2020. The main areas of
assistance include purchasing PPE, medical supplies, and specialized
diagnostic equipment.
• The Company estimates additional COVID-related cash expenses at
approximately US$ 3 million per month with the bulk recorded as
operating costs. This translates into approximately US$ 20 per GE
ounce produced in Q3.
COVID-19 STATISTICS AS OF 20.10.2020
Employees Russia Kazakhstan Group
Tests administered 17,491 8,108 25,599
C-19 positive tests 390 222 612
Active cases 99 13 112
In hospital 29 0 29
OPERATING HIGHLIGHTS
3 months ended Sep 9 months ended
30, % change1 Sep 30, % change1
2020 2019 2020 2019
Waste mined, Mt 43.8 41.3 +6% 122.8 118.9 +3%
Underground 21.0 25.9 -19% 67.4 80.2 -16%
development, km
Ore mined, Mt 4.2 4.5 -7% 12.2 13.0 -6%
Open-pit 3.1 3.4 -10% 9.1 9.9 -8%
Underground 1.1 1.1 +2% 3.1 3.1 -0%
Ore processed, Mt 4.0 3.9 +2% 11.8 11.5 +3%
Average GE grade 3.8 3.9 -2% 3.9 3.8 +3%
processed, g/t
Production
Gold, Koz 438 402 +9% 1,080 1,005 +8%
Silver, Moz 4.6 5.4 -13% 14.4 16.4 -12%
Gold equivalent, 477 447 +7% 1,200 1,141 +5%
Koz2
Sales
Gold, Koz 410 388 +6% 1,005 992 +1%
Silver, Moz 4.2 6.1 -31% 14.1 16.4 -14%
Revenue, US$m3 884 656 +35% 2,019 1,602 +26%
Net debt, US$m4 1,610 1,690 -5% 1,610 1,479 +9%
Safety5
LTIFR 0.15 0.11 +36% 0.10 0.19 -47%
Fatalities 0 0 NA 0 2 -100%
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 (prior to Q2 2020, Polymetal
used 80:1 Au/Ag ratio) and excluding base metals (previously were
included). Historical comparative data 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 30 June 2020 (for the three
months period) and 31 December 2019 (for the nine months period).
(5) LTIFR = lost time injury frequency rate per 200,000 hours worked.
PRODUCTION BY MINE
3 months ended Sep % 9 months ended Sep %
30, 30,
2020 2019 change 2020 2019 change
GOLD EQ. (KOZ)1
Kyzyl 102 94 +8% 314 253 +24%
Mayskoye 77 72 +7% 78 76 +2%
Albazino 65 75 -13% 204 211 -3%
Omolon 65 47 +40% 153 142 +8%
Dukat 48 51 -7% 152 159 -5%
Varvara 46 34 +35% 130 104 +25%
Svetloye 39 46 -15% 91 107 -15%
Voro 35 28 +24% 77 84 -9%
TOTAL (continuing 477 447 +7% 1,200 1,138 +6%
operations)
Kapan - - NA - 3 -100%
TOTAL (including
477 447 +7% 1,200 1,141 +5%
discontinued
operations)
Notes: (1) Based on 120:1 Au/Ag conversion ratio (prior to Q2 2020,
Polymetal used 80:1 Au/Ag ratio) and excluding base metals (previously
were included). Historical comparative data restated accordingly.
CONFERENCE CALL AND WEBCAST
Polymetal will hold a conference call and webcast on Thursday, 22 October
2020 at 11:00 London time (13:00 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:
+1 929 477 0324 (local access)
800 289 0571 (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: 9476909
To participate in the webcast follow the link:
1 https://webcasts.eqs.com/polymetal20201022.
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 9476909, from 16:30 Moscow time Thursday, 22 October, till
16:30 Moscow time Thursday, 29 October 2020. Webcast replay will be
available on Polymetal website ( 2 www.polymetalinternational.com) and at
3 https://webcasts.eqs.com/polymetal20201022.
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
Andrew Foster RBC Europe
Limited
Richard Brown
Marcus +44 20 7653 4000
Panmure Gordon Jackson
Daniel Norman Jamil Miah
John Prior +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 Sep 9 months ended
30, % change Sep 30, % change
2020 2019 2020 2019
MINING
Waste mined, Mt 20.0 17.5 +14% 58.0 49.9 +16%
Ore mined (open-pit), 513 527 -3% 1,555 1,560 -0%
Kt
PROCESSING
Ore processed, Kt 509 502 +1% 1,515 1,490 +2%
Gold grade, g/t 7.4 7.5 -1% 8.0 7.0 +14%
Gold recovery 89.0% 88.3% +1% 87.8% 87.7% +0%
Concentrate produced, 37.2 31.4 +18% 110.2 89.7 +23%
Kt
Concentrate gold 90.6 104.8 -14% 96.4 101.7 -5%
grade, g/t
Gold in concentrate, 108.2 105.9 +2% 341.3 293.3 +16%
Koz1
Concentrate shipped, 21.1 17.2 +22% 68.3 54.2 +26%
Kt
Payable gold shipped, 40 36 +11% 132 127 +4%
Koz
Veduga ore toll - - NA 31 - NA
processed, Kt2
Amursk POX
Concentrate processed, 15 15 -3% 44 35 +24%
Kt
Gold grade, g/t 147.8 125.9 +17% 143.8 125.3 +15%
Gold recovery 92.6% 91.7% +1% 92.1% 92.9% -1%
Gold produced, Koz 62 58 +6% 183 126 +44%
TOTAL PRODUCTION
Gold, Koz 102 94 +8% 314 253 +24%
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.
Kyzyl production for Q3 increased by 8% y-o-y to 102 Koz on the back of
higher grades in the open pit. Grades will continue to normalize towards
reserve average (6.7 g/t) as mining progresses to lower levels where small
high-grade lenses are significantly less usual.
Recoveries at the concentrator improved by 1 percentage point thanks to
continuous optimization of reclaim water quality. Investment in additional
thickening and drying capacity is expected to enable stable recoveries
despite the introduction of higher-carbon, more refractory ore in 2021.
MAYSKOYE
3 months ended Sep 9 months ended
30, % change Sep 30, % change
2020 2019 2020 2019
MINING
Waste mined, Mt 0.6 1.4 -55% 2.3 4.0 -41%
Underground 4.9 4.7 +3% 15.9 15.5 +2%
development, km
Ore mined, Kt 289 199 +45% 855 638 +34%
Open-pit 91 41 +123% 278 175 +59%
Underground 197 159 +24% 578 463 +25%
PROCESSING
Ore processed, Kt 225 232 -3% 683 658 +4%
Gold grade, g/t 7.9 6.3 +24% 6.8 6.2 +9%
Gold recovery 70.9% 84.7% -16% 81.1% 79.5% +2%
Gold in concentrate, 29 36 -21% 104 95 +10%
Koz2
Gold produced in dore 2 1 +42% 3 6 -55%
from carbon, Koz3
Payable gold in
concentrate shipped to 75 70 +6% 75 70 +6%
offtakers, Koz
TOTAL PRODUCTION
Gold, Koz 77 72 +7% 78 76 +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 upon sale to off-taker or dore production at Amursk POX.
(3) Gold produced from carbon at Amursk POX.
At Mayskoye, larger volumes of oxide ore were processed in Q3 compared to
the previous year which resulted in higher grades and lower recoveries.
The Company decided to continue open-pit mining through another pushback
at Zone 1. The management believes that the pushback will create
substantial value in the current gold price environment. In addition,
open-pit ore tonnage will reduce risks at the underground mine where
development for the new material handling system (electric conveyor
replacing diesel trucks) has started.
Shipment of concentrate to China has commenced in August. Chinese off-take
market remains strong with substantial demand from new customers.
ALBAZINO
3 months ended Sep 9 months ended
30, % change Sep 30, % change
2020 2019 2020 2019
MINING
Waste mined, Mt 5.2 5.7 -8% 15.1 16.8 -10%
Underground 2.5 2.9 -12% 8.7 7.7 +13%
development, km
Ore mined, Kt 421 571 -26% 1,401 1,596 -12%
Open-pit 249 418 -40% 905 1,184 -24%
Underground 172 153 +12% 497 412 +21%
PROCESSING
Albazino concentrator
Ore processed, Kt 429 447 -4% 1,320 1,303 +1%
Gold grade, g/t 4.7 4.8 -4% 4.6 4.4 +5%
Gold recovery1 88.4% 86.9% +2% 86.8% 85.9% +1%
Concentrate produced, 34.9 36.8 -5% 107.6 106.0 +2%
Kt
Concentrate gold 50.3 51.0 -1% 49.5 46.6 +6%
grade, g/t
Gold in concentrate, 56 60 -6% 171 159 +8%
Koz2
Amursk POX
Concentrate processed, 41 45 -9% 126 135 -6%
Kt
Gold grade, g/t 49.2 51.2 -4% 51.5 50.5 +2%
Gold recovery 96.5% 96.5% -0% 96.5% 95.2% +1%
Gold produced, Koz 65 75 -13% 204 211 -3%
TOTAL PRODUCTION
Gold, Koz 65 75 -13% 204 211 -3%
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 down 13% y-o-y to 65 Koz driven
by lower grade and throughput. The Anfisa open pit, long the mainstay of
ore production, is nearing its depletion in early 2022.
Gold recovery at the concentrator improved by 2 p.p. y-o-y as the
operating team tweaked the reagent addition rates to cope with higher
quantities of complex ore from Ekaterina-2.
Underground development declined significantly due to challenging
geotechnical conditions at deeper levels of the Olga underground mine.
Permanent downgrade to underground mine productivity led to the decision
to cancel plans to double the size of the underground mine. Production
shortfall will be compensated largely by the recently approved Kutyn heap
leach project. Kutyn will be developed as part of the Albazino hub with
first gold pour expected in Q2 2023.
AMURSK POX
3 months ended Sep 9 months ended Sep
30, % change 30, % change
2020 2019 2020 2019
Concentrate 56 60 -7% 170 171 -0%
processed, Kt
Albazino 40 41 -3% 119 122 -3%
Kyzyl 15 15 -3% 44 35 +24%
Veduga - 3 -100% 3 9 -67%
Other1 1 - NA 4 4 +17%
Gold recovery 94.5% 94.3% +0% 94.3% 94.3% -0%
Average gold 75.5 70.3 +7% 75.3 66.0 +14%
grade, g/t
Average sulphur 14.4% 12.5% +15% 14.1% 12.8% +10%
grade
Total gold 127 133 -5% 387 338 +15%
produced2, Koz
Albazino 65 62 +3% 176 178 -2%
Kyzyl 62 58 +6% 183 126 +44%
Veduga - 12 -100% 19 28 -33%
Other1 0 0 -3% 10 5 +112%
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.
Gold production for the quarter at the Amursk POX decreased by 5% y-o-y to
127 Koz due to the absence of concentrate from Veduga ore.
The facility successfully underwent a regular 2-week maintenance shutdown
in early October.
OMOLON OPERATIONS
3 months ended Sep 9 months ended
30, % change Sep 30, % change
2020 2019 2020 2019
MINING
Waste mined, Mt 0.7 1.9 -63% 2.8 5.1 -46%
Underground 3.1 3.3 -7% 10.0 9.9 +2%
development, Km
Ore mined, Kt 607 805 -25% 2,171 2,183 -1%
Open-pit 497 690 -28% 1,828 1,849 -1%
Underground 110 115 -4% 344 334 +3%
PROCESSING
Kubaka Mill
Ore processed, Kt 214 184 +16% 648 612 +6%
Grade
Gold, g/t 7.1 6.0 +19% 6.9 6.3 +8%
Silver, g/t 28 132 -79% 22 90 -75%
Recovery1
Gold 95.0% 95.8% -1% 93.8% 95.5% -2%
Silver 73.0% 80.8% -10% 73.8% 79.5% -7%
Gold production, Koz 49 33 +49% 132 119 +10%
Silver production, Moz 0.1 0.6 -76% 0.3 1.4 -76%
Birkachan Heap Leach
Ore stacked, Kt 411 350 +17% 1,118 897 +25%
Gold grade, g/t 1.6 1.2 +33% 2.0 1.2 +71%
Gold production, Koz 15 9 +67% 18 11 +67%
TOTAL PRODUCTION
Gold, Koz 64 42 +53% 150 130 +15%
Silver, Moz 0.2 0.6 -70% 0.4 1.4 -74%
Note: (1) Technological recovery, includes gold and silver within
work-in-progress inventory.
At Omolon, gold output for the quarter jumped by 53% y-o-y while silver
production was down 70%. Kubaka mill processed gold-rich ore from
Birkachan underground and Yolochka through the CIP circuit as opposed to
Sopka ore with higher silver content though the Merrill-Crowe circuit in
2019. Heap leach production positively contributed to the total output on
the back of stacking of larger volumes of higher-grade ore stockpiles.
Open-pit mining was down as Birkachan and Olcha pits are nearing end of
mining in Q4 2020. Preparations have started to commence open-pit mining
at the new satellite deposit, Burgali, in Q2 2021.
DUKAT OPERATIONS
3 months ended Sep 9 months ended
30, % change Sep 30, % change
2020 2019 2020 2019
MINING
Underground 10.6 15.0 -30% 32.8 45.0 -27%
development, km
Ore mined, Kt 614 642 -4% 1,698 1,894 -10%
PROCESSING
Omsukchan concentrator
Ore processed, Kt 493 506 -3% 1,502 1,535 -2%
Grade
Gold, g/t 0.5 0.5 -3% 0.5 0.5 -1%
Silver, g/t 258 282 -9% 273 291 -6%
Recovery1
Gold 84.7% 86.7% -2% 84.8% 86.1% -1%
Silver 86.6% 86.8% -0% 86.6% 86.8% -0%
Production
Gold, Koz 7 7 -5% 21 22 -2%
Silver, Moz 3.5 3.9 -9% 11.2 12.1 -8%
Lunnoye plant
Ore processed, Kt 116 116 +0% 348 348 +0%
Grade
Gold, g/t 1.3 1.4 -5% 1.4 1.4 +1%
Silver, g/t 265 241 +10% 271 258 +5%
Recovery1
Gold 88.3% 91.4% -3% 90.3% 87.6% +3%
Silver 93.1% 94.5% -1% 92.4% 91.5% +1%
Production
Gold, Koz 4 5 -9% 14 14 +2%
Silver, Moz 0.9 0.9 +4% 2.8 2.7 +3%
TOTAL PRODUCTION
Gold, Koz 11 12 -6% 35 36 -1%
Silver, Moz 4.4 4.7 -7% 13.9 14.8 -6%
Notes: (1) Technological recovery, includes gold and silver within
work-in-progress inventory.
At Dukat, silver grade decreased y-o-y resulting in production being down
by 7% to 4.4 Moz. At the same time, the mine exceeded the budget grade on
the back of lower than expected dilution enabled by expanding usage of
smaller equipment and narrower mining widths.
Underground development volumes declined materially following the
decommissioning of the Goltsovoye underground mine.
In response to material silver price growth, lower-grade areas at Dukat
will be systematically re-evaluated to identify potentially economic
stopes which were left behind in the period of lower silver prices.
VARVARA
3 months ended Sep 9 months ended
30, % change Sep 30, % change
2020 2019 2020 2019
MINING
Waste mined, Mt 10.1 11.4 -12% 30.3 34.1 -11%
Ore mined, Kt 725 1,014 -29% 2,209 2,953 -25%
PROCESSING
Leaching
Ore processed, Kt 773 733 +6% 2,303 2,268 +2%
Gold grade, g/t 1.4 1.6 -12% 1.4 1.5 -2%
Gold recovery1 88.1% 87.4% +1% 88.1% 86.8% +1%
Gold production (in 32 31 +1% 99 97 +2%
dore), Koz
Flotation
Ore processed, Kt 176 134 +31% 493 411 +20%
Grade
Gold, g/t 3.2 1.3 +139% 3.0 1.2 +150%
Copper 0.33% 0.49% -33% 0.33% 0.53% -37%
Recovery1
Gold 88.7% 69.5% +28% 87.4% 78.4% +11%
Copper 84.2% 91.3% -8% 84.6% 91.4% -7%
Production
Gold (in concentrate), 14 3 +418% 32 7 +340%
Koz
Copper (in 0.5 0.6 -10% 1.3 1.8 -29%
concentrate), Kt
Veduga ore toll - 35 -100% 30 98 -70%
processed, Kt2
Total ore processed, 949 902 +5% 2,825 2,778 +2%
Kt
TOTAL PRODUCTION
Gold, Koz 46 34 +35% 130 104 +25%
Copper, Kt 0.5 0.6 -10% 1.3 1.8 -29%
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 demonstrated strong gold production y-o-y increase of 35% to 46
Koz in Q3 and 25% to 130 Koz in 9M driven by larger volumes of high-grade
third-party ore through the flotation circuit and better recoveries
attributable to the flow sheet improvements.
Average gold grade in ore processed at the leaching circuit was down 12%
y-o-y on the back of planned decrease of gold grade at Komar.
SVETLOYE
3 months ended 9 months ended Sep
Sep 30, % change 30, % change
2020 2019 2020 2019
MINING
Waste mined, Mt 0.7 0.3 +115% 2.3 1.1 +108%
Ore mined (open pit), 547 406 +35% 1,454 1,273 +14%
Kt
PROCESSING
Ore stacked, Kt 395 369 +7% 1,021 968 +5%
Gold grade, g/t 4.0 4.1 -4% 4.0 4.0 -0%
Gold production, Koz 39 46 -15% 91 107 -15%
TOTAL PRODUCTION
Gold, Koz 39 46 -15% 91 107 -15%
At Svetloye, quarterly gold production decreased by 15% y-o-y to 39 Koz as
larger volumes of ore from the Emmy pit with lower recoveries and slower
kinetics were stacked.
VORO
3 months ended Sep 9 months ended Sep
30, % change 30, % change
2020 2019 2020 2019
MINING
Waste mined, Mt - 0.4 -100% - 1.2 -100%
Ore mined, Kt 132 181 -27% 239 661 -64%
PROCESSING
Voro CIP
Ore processed, Kt 257 264 -3% 786 783 +0%
Gold grade, g/t 2.0 4.0 -50% 2.1 3.7 -42%
Gold recovery1 83.2% 87.0% -4% 82.6% 86.6% -5%
Gold production, 27 26 +1% 63 71 -12%
Koz
Voro Heap Leach
Ore stacked, Kt - 58 -100% 22.2 58 -62%
Gold grade, g/t - 1.4 -100% 0.9 1.4 -35%
Gold production, 8 2 +410% 14 13 +10%
Koz
TOTAL PRODUCTION
Gold, Koz 35 28 +24% 77 84 -9%
Note: (1) Technological recovery, includes gold within work-in-progress
inventory.
In Q3, Voro saw an increase in production of 24% y-o-y to 35 Koz due to
work-in-progress release at both CIP and heap leach facilities. Production
from the current operations was down y-o-y as CIP turned to processing
lower-grade stockpiles after mining was completed in 2020.
DEVELOPMENT UPDATE
At Nezhda, mining and construction activities have been progressing on
schedule. Installation of flotation and gravity concentration equipment is
completed. New boiler house was commissioned with permanent heating
established in all buildings including the concentrator. ROM ore crusher
and crushed ore reclaim feeders installed. The installation of pylons for
the external grid power line commenced. Ore mining started.
3 months ended Sep 9 months ended Sep
30, % change 30, % change
2020 2019 2020 2019
MINING
Waste mined, 4.7 - NA 4.7 - NA
Mt
Ore mined, Kt 200 - NA 200 - NA
POX-2 development proceeds on schedule. Construction is currently focused
on POX and oxygen station buildings. The autoclave vessel has been
successfully installed on its foundation in August. Oxygen plant has been
delivered on site. Construction of downstream areas (CIL,
desorption/electrolysis) commenced.
At Veduga, ore mining ceased in October with focus shifting to building
the exploration decline and pre-stripping ahead of the potential approval
of the project in 2021.
SUSTAINABILITY, HEALTH AND SAFETY
There were no fatal accidents during 9M 2020 within Polymetal and the
Company's contractors. LTIFR for the reporting quarter grew by 36% y-o-y
to 0.15 as 4 minor incidents were recorded in comparison with 3 minor
incidents in Q3 2019. During the first 9 months of 2020 there were 8 minor
work-related incidents in total, LTIFR stood at 0.10, a decrease of 47%
y-o-y.
In Q3, the Company's leadership in ESG was reaffirmed by FTSE Rusell which
maintained Polymetal as a constituent of FTSE4Good Index Series with 4.4
score (out of possible 5) and 92 percentile. Polymetal was also awarded
Best Communication of ESG by IR Magazine.
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ISIN: JE00B6T5S470
Category Code: MSCH
TIDM: POLY
Sequence No.: 86343
EQS News ID: 1142340
End of Announcement EQS News Service
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