REG-Polymetal International plc Polymetal: Q3 2022 production results
02/11/2022 07:15
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Polymetal International plc (POLY)
Polymetal: Q3 2022 production results
02-Nov-2022 / 10:00 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
Date 2 November 2022 ADR: AUCOY
Polymetal International plc
Q3 2022 production results
Polymetal reports solid production results for the third quarter of 2022.
“In Q3, Polymetal stayed on track to meet our full year guidance of 1.7
Moz GE. The Company has successfully completed the restructuring of its
sales channels and started to unwind accumulated inventory. We expect
strong positive free cash flows in Q4”, said Vitaly Nesis, Group CEO of
Polymetal.
HIGHLIGHTS
• There have been no fatal accidents during the first nine months of
2022 among Polymetal’s workforce and contractors (similar to 9M 2021).
In Q3 2022, four minor lost-time incidents were recorded among
employees. Lost time injury frequency rate (LTIFR) for the first nine
months of 2022 stood at 0.09, a year-on-year (y-o-y) decrease of 18%.
• Q3 gold equivalent (GE) production grew by 7% y-o-y to 490 Koz driven
by Nezhda contribution which offset output reductions at Mayskoye
(timing of shipments) and Kyzyl (grade). GE output for the first nine
months of 2022 declined by 2% y-o-y to 1,187 Koz.
• All construction projects, including POX-2, progressed in line with
the revised schedules (refer to further detail within the POX-2
section below) despite continuing supply chain challenges. Kytyn heap
leach, part of Albazino hub, delivered first production of 13 Koz in
September.
• During the first nine months of 2022, a total of 198 Koz of finished
goods inventory was accumulated across the Group’s Russian mines. In
late Q3 2022, export sales resumed at full speed and the management
expects the gap between production and sales to be closed by the end
of the year.
• Revenue for the quarter was down by 13% y-o-y to US$ 714 million,
while 9M revenue decreased by 16% to US$ 1,762 million. The decline is
attributable to inventory accumulation as well as lower metal prices.
• Net debt at the end of Q3 stood at approximately US$ 2.8 billion
(stable since Q2), while by the end of October it decreased to US$ 2.7
billion driven by working capital release.
• The Company reiterates its 2022 full-year production guidance of 1.7
Moz GE and maintains its TCC and AISC guidance of US$ 900-1,000/GE oz
and US$ 1,300-1,400/GE oz, respectively.
• Initial guidance for 2023 and 2024 envisages stable production of 1.7
Moz per annum, which is contingent on supply chain risks. Cost
guidance for 2023 will be provided in late January 2023 together with
the 2022 full year production results.
OPERATING HIGHLIGHTS
3 months ended 9 months ended
% change1 % change1
Sep 30, Sep 30,
2022 2021 2022 2021
Waste mined, Mt 52.1 54.1 -4% 162.1 152.0 +7%
Underground 25.6 24.2 +6% 74.5 70.5 +6%
development, km
Ore mined, Mt 5.5 4.1 +35% 14.9 11.6 +29%
Open-pit 4.4 3.1 +44% 11.9 8.7 +37%
Underground 1.1 1.0 +7% 3.1 2.9 +6%
Ore processed, Mt 5.2 4.1 +26% 13.6 11.7 +16%
Average GE grade 3.7 3.6 +5% 3.5 3.7 -5%
processed, g/t
Production
Gold, Koz 427 401 +7% 1,014 1,037 -2%
Silver, Moz 5.0 4.5 +10% 13.8 13.9 -1%
Gold equivalent, 490 457 +7% 1,187 1,210 -2%
Koz2
Sales
Gold, Koz 360 406 -11% 816 1,002 -19%
Silver, Moz 6.3 4.6 +39% 15.1 12.6 +20%
Revenue, US$m3 714 819 -13% 1,762 2,093 -16%
Net debt, US$m4 2,781 2,801 -1% 2,781 1,647 +69%
LTIFR (Employees)5 0.11 - NA 0.09 0.11 -18%
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 80:1 Au/Ag conversion ratio and excluding base metals.
Comparative data for 2021 restated accordingly (120:1 Au/Ag conversion
ratio was used previously). Discrepancies in calculations are due to
rounding.
(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 2022 (for the three
months period) and 31 December 2021 (for the nine months period).
(5) LTIFR = lost time injury frequency rate per 200,000 hours worked.
(6) DIS – days lost due to work-related injuries.
PRODUCTION BY MINE
3 months ended Sep % 9 months ended Sep 30, %
30,
2022 2021 change 2022 2021 change
GOLD EQ. (KOZ)1
Kazakhstan 133 140 -5% 377 433 -13%
Kyzyl 82 93 -12% 217 275 -21%
Varvara 51 47 +9% 160 157 +2%
Russia 356 317 +12% 809 778 +4%
Dukat 64 60 +6% 191 195 -2%
Albazino 71 67 +7% 166 190 -12%
Omolon 58 63 -9% 142 161 -12%
Nezhda 45 - NA 106 - NA
Svetloye 33 31 +7% 76 84 -10%
Voro 27 22 +21% 66 63 +5%
Mayskoye 59 75 -21% 63 85 -26%
TOTAL 490 457 +7% 1,187 1,210 -2%
Notes: (1) Based on 80:1 Au/Ag conversion ratio and excluding base metals.
Comparative data for 2021 restated accordingly (120:1 Au/Ag conversion
ratio was used previously). Discrepancies in calculations are due to
rounding.
CONFERENCE CALL AND WEBCAST
The Company will hold a conference call and webcast on Wednesday, 2
November 2022 at 11:00 London time (14:00 Moscow time).
Please complete the registration using the 1 link to participate in the
call. Dial-in details will be sent to you via email after registration.
To participate in the webcast follow the link:
2 https://www.webcast-eqs.com/polymetal20221102.
Enquiries
Investor Relations
Polymetal 3 ir@polymetalinternational.com
Evgeny Monakhov +44 20 7887 1475 (UK)
Timofey Kulakov
Kirill Kuznetsov +7 812 334 3666 (Russia)
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
2022 2021 2022 2021
MINING
Waste mined, Mt 20.6 21.2 -3% 62.3 62.0 +0%
Ore mined (open pit), 558 574 -3% 1,689 1,672 +1%
Kt
PROCESSING
Ore processed, Kt 565 550 +3% 1,651 1,683 -2%
Gold grade, g/t 5.6 6.1 -7% 5.1 6.2 -18%
Gold recovery 89.2% 88.4% +1% 88.7% 89.1% -0%
Concentrate produced, 28.9 28.9 +0% 78.3 98.1 -20%
Kt
Concentrate gold 98.4 102.3 -4% 95.0 94.3 +1%
grade, g/t
Gold in concentrate, 92 95 -4% 239 297 -20%
Koz1
Concentrate shipped, 16 10 +59% 42 58 -28%
Kt
Payable gold shipped, 30 20 +54% 78 106 -26%
Koz
Amursk POX
Concentrate 14 19 -25% 35 44 -21%
processed, Kt
Gold grade, g/t 136.8 133.8 +2% 134.0 133.9 +0%
Gold recovery 94.1% 93.1% +1% 94.3% 92.1% +2%
Gold produced, Koz 52 74 -29% 139 170 -18%
TOTAL PRODUCTION
Gold, Koz 82 93 -12% 217 275 -21%
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.
At Kyzyl, y-o-y production fell on the back of the planned grade decline
towards the reserve average. Grade increased q-o-q as mining shifted from
historical underground workings to the higher quality ore blocks.
Concentrate and dore sales and shipments (both domestic and to China) have
normalized and the Company expects to fully release the accumulated
inventories by year-end.
VARVARA
3 months ended Sep 9 months ended Sep %
30, % change 30,
2022 2021 2022 2021 change
MINING
Waste mined, Mt 10.8 11.2 -3% 32.1 30.7 +4%
Ore mined (open 963 908 +6% 3,032 2,815 +8%
pit), Kt
PROCESSING
Leaching
Ore processed, Kt 823 830 -1% 2,421 2,387 +1%
Gold grade, g/t 1.7 1.6 +7% 1.7 1.6 +2%
Gold recovery1 91.0% 89.9% +1% 90.6% 88.8% +2%
Gold production (in 41 38 +10% 128 122 +5%
dore), Koz
Flotation
Ore processed, Kt 197 133 +48% 567 508 +12%
Gold grade, g/t 2.9 2.9 +0% 2.8 2.8 +3%
Recovery1 86.4% 88.4% -2% 89.4% 85.4% +5%
Gold in 10 9 +5% 32 35 -9%
concentrate, Koz
TOTAL PRODUCTION
Gold, Koz 51 47 +9% 160 157 +2%
Note:
(1) Technological recovery, includes gold and copper within
work-in-progress inventory. Does not include toll-treated ore.
At Varvara, quarterly gold production was up by 9% y-o-y to 51 Koz mostly
driven by better grades of Komar ore and larger volumes of higher-grade
third party feed through the leaching circuit. Flotation circuit also
increased its output on the back of recovery of processing volumes after
long maintenance in Q3 2021.
Varvara Mine has become the first company in Kazakhstan (and third in
Polymetal after Voro and Amursk POX) which was certified for full
compliance under the International Cyanide Management Code by the
International Cyanide Management Institute (ICMI).
DUKAT
3 months ended Sep 9 months ended
30, % change Sep 30, % change
2022 2021 2022 2021
MINING
Waste mined, Mt 1.2 0.9 +37% 3.1 1.9 +60%
Underground 12.3 10.9 +13% 35.9 33.7 +6%
development, km
Ore mined, Kt 659 631 +5% 1,894 1,913 -1%
Open pit 120 92 +30% 336 316 +6%
Underground 539 538 +0% 1,558 1,598 -2%
PROCESSING
Omsukchan
concentrator
Ore processed, Kt 500 516 -3% 1,521 1,537 -1%
Grade
Gold, g/t 0.4 0.4 -7% 0.5 0.5 +6%
Silver, g/t 226 219 +3% 235 243 -3%
Recovery1
Gold 82.8% 83.9% -1% 83.4% 84.9% -2%
Silver 85.5% 84.0% +2% 85.2% 86.2% -1%
Production
Gold, Koz 5 6 -11% 21 20 +3%
Silver, Moz 3.0 3.0 +1% 9.5 10.1 -6%
Lunnoye plant
Ore processed, Kt 120 121 -0% 353 358 -1%
Grade
Gold, g/t 1.5 1.8 -13% 1.8 1.6 +12%
Silver, g/t 199 239 -17% 195 236 -18%
Recovery1
Gold 89.4% 90.0% -1% 90.5% 90.5% +0%
Silver 94.2% 94.4% -0% 93.4% 93.2% +0%
Production
Gold, Koz 5 6 -13% 19 17 +11%
Silver, Moz 0.7 0.9 -18% 2.1 2.5 -18%
Primorskoye
Ore shipped, Kt 6.4 - NA 6.4 - NA
Production
Gold, Koz 2 - NA 2 - NA
Silver, Moz 0.4 - NA 0.4 - NA
TOTAL PRODUCTION
Gold, Koz 12 12 -0% 41 37 +11%
Silver, Moz 4.1 3.8 +7% 12.0 12.6 -5%
Notes:
(1) Technological recovery, includes gold and silver within
work-in-progress inventory.
In Q3, silver production at Dukat grew by 7% y-o-y to 4.1 Moz due to
higher grade from Perevalnoye ore at Omsukchan concentrator as well as
contribution from Primorskoye. Planned contraction in gold production at
both processing circuits was compensated by Primorskoye output.
Primorskoye delivered first batches of high-grade direct-shipment ore to
third-party customers. The Company also started milling Primorskoye ore at
the Omsukchan concentrator (without beneficiation) for further sales to
off-takers as concentrate.
ALBAZINO
3 months ended Sep 9 months ended
30, % change Sep 30, % change
2022 2021 2022 2021
MINING
Waste mined, Mt 8.2 5.7 +45% 22.5 16.3 +38%
Underground 5.2 4.5 +16% 14.8 11.7 +26%
development, km
Ore mined, Kt 1,170 581 +101% 3,007 1,530 +97%
Open pit 936 382 +145% 2,360 958 +146%
Underground 234 199 +18% 648 572 +13%
PROCESSING
Albazino concentrator
Ore processed, Kt 465 458 +2% 1,372 1,329 +3%
Gold grade, g/t 3.3 4.3 -22% 3.3 4.2 -22%
Gold recovery1 87.5% 89.4% -2% 86.8% 88.8% -2%
Concentrate produced, 35.1 37.6 -7% 100.2 104.1 -4%
Kt
Concentrate gold 38.7 46.7 -17% 38.8 47.6 -19%
grade, g/t
Gold in concentrate, 44 57 -23% 125 159 -22%
Koz2
Kutyn Heap Leach
Ore stacked, Kt 562 - NA 562 - NA
Gold grade, g/t 4.0 - NA 4.0 - NA
Gold production, Koz 13 - NA 13 - NA
Amursk POX
Concentrate 37 42 -11% 105 124 -16%
processed, Kt
Gold grade, g/t 38.5 50.1 -23% 41.1 50.3 -18%
Gold recovery 96.5% 96.4% +0% 96.2% 96.4% -0%
Gold produced, Koz 58 67 -12% 153 189 -19%
TOTAL PRODUCTION
Gold, Koz 71 67 +7% 166 189 -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.
Albazino Q3 gold production increased by 7% y-o-y to 71 Koz due to the
successful start-up of Kutyn heap leach in September (please see the
4 press release for more information), which produced 13 Koz by the end
of the month. Kutyn has offset the decline in production from the
concentrator driven by the completion of mining at the largest high-grade
Anfisa open pit.
To ensure equipment availability at the main underground Olga mine, the
Сompany transitioned Ekaterina-2 underground mine to care and maintenance
in October. The goal is to optimize the management of key spare part
stocks..The concentrator will continue operating at full throughput and
processing lower-grade stockpiled ore.
The management made the decision to delay Albazino grid project timeline
by 9 months with commissioning now expected in Q2 2025. The delay will
lower capital commitments for 2023 and allow more time to ensure careful
selection of electrical equipment in full compliance with all applicable
sanctions.
AMURSK POX
3 months ended Sep 9 months ended Sep
30, % change 30, % change
2022 2021 2022 2021
Concentrate 53 61 -14% 144 171 -16%
processed, Kt
Albazino 35 39 -10% 101 116 -13%
Kyzyl 14 19 -25% 35 44 -21%
Nezhda 1 - NA 4 - NA
Mayskoye - 2 -100% 0 3 -92%
Veduga - - NA - 4 -100%
Other1 2 3 -23% 4 4 -16%
Gold recovery 95.1% 94.6% +1% 95.2% 94.2% +1%
Average gold 65.2 76.3 -14% 63.7 72.0 -12%
grade, g/t
Average sulphur 17.6% 13.8% +27% 15.7% 13.8% +14%
grade
Total gold 113 140 -20% 297 364 -19%
produced2, Koz
Albazino 56 59 -4% 151 171 -12%
Kyzyl 52 74 -29% 139 170 -18%
Nezhda 2 - NA 3 - NA
Mayskoye - 0 -100% 2 5 -71%
Veduga - 1 -100% - 11 -100%
Other1 2 7 -68% 2 8 -70%
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.
The decrease in POX production was due to the decline in grade in
feedstock sourced from Kyzyl and Albazino. The plant continued to process
Nezhda’s low-carbon gold flotation concentrate with reasonable average
recovery of 90% for the quarter.
OMOLON
3 months ended Sep 9 months ended
30, % change Sep 30, % change
2022 2021 2022 2021
MINING
Waste mined, Mt 1.9 1.7 +12% 6.0 3.3 +81%
Underground 2.5 3.0 -17% 8.4 8.6 -3%
development, Km
Ore mined, Kt 217 297 -27% 431 482 -11%
Open pit 114 208 -45% 114 242 -53%
Underground 103 89 +17% 318 240 +32%
PROCESSING
Kubaka Mill
Ore processed, Kt 220 222 -1% 646 651 -1%
Grade
Gold, g/t 6.5 6.7 -3% 6.2 6.7 -7%
Silver, g/t 19 88 -78% 21 59 -64%
Recovery1
Gold 94.5% 95.8% -1% 93.9% 94.6% -1%
Silver 77.0% 84.0% -8% 76.4% 81.6% -6%
Gold production, Koz 43 43 +0% 119 131 -9%
Silver production, 0.1 0.6 -81% 0.3 1.0 -66%
Moz
Birkachan Heap Leach
Ore stacked, Kt 317 348 -9% 467 701 -33%
Gold grade, g/t 1.1 2.4 -57% 1.1 1.8 -43%
Gold production, Koz 13 13 +2% 18 17 +6%
TOTAL PRODUCTION
Gold, Koz 56 55 +1% 137 148 -7%
Silver, Moz 0.1 0.6 -76% 0.4 1.1 -63%
Note:
(1) Technological recovery, includes gold and silver within
work-in-progress inventory.
In Q3, gold production at Omolon was stable y-o-y. Silver production was
down as the Merrill-Crowe circuit remains idle.
Heap leach was not engaged in re-handling of high-grade ore stockpiles (as
it was in Q3 2021), hence the grade declined y-o-y.
Underground mining at Burgali commenced and will replace ore tonnage from
the Burgali open pit, to be depleted by the end of the year.
NEZHDA
3 months ended 9 months ended
Sep 30, % change Sep 30, % change
2022 2021 2022 2021
MINING
Waste mined, Mt 5.0 5.8 -14% 15.0 16.7 -10%
Ore mined (open pit), Kt 764 226 +238% 2,088 937 +123%
PROCESSING
Ore processed, Kt 524 - NA 1,500 - NA
Grade
Gold, g/t 4.0 - NA 3.8 - NA
Silver, g/t 51.3 - NA 41.1 - NA
Recovery1
Gold 76.1% - NA 73.9% - NA
Silver 86.8% - NA 81.0% - NA
Gold in concentrate, Koz 51 - NA 134 - NA
Silver in concentrate, 0.7 - NA 1.6 - NA
Moz
Concentrate shipped, Kt 17 - NA 24 - NA
Payable gold in 25 - NA 77 - NA
concentrate, Koz
Payable silver in 0.6 - NA 1.2 - NA
concentrate, Moz
Amursk POX
Concentrate processed, Kt 1 - NA 4 - NA
Gold grade, g/t 41.3 - NA 40.5 - NA
Gold recovery 90.3% - NA 89.7% - NA
Gold produced, Koz 2 - NA 3 - NA
Gold produced in dore
11 - NA 11 - NA
(at Voro and Dukat), Koz
TOTAL PRODUCTION1
Gold, Koz 38 - NA 91 - NA
Silver, Moz 0.6 - NA 1.2 - NA
Notes:
(1) Includes concentrate produced and stockpiled for future sale, and
excludes low-grade material. Expected 90% gold payable ratio is applied.
At Nezhda, the majority of the production volume came from payable gold in
gravity and silver concentrates. In Q3, the Company started processing
gravity concentrate at Voro and Dukat. After the launch of the intensive
cyanidation section of POX-2 in Q1 2023, the material will be directed
there. Flotation concentrate will now be split into low-carbon and
high-carbon materials, similar to Kyzyl. Low-carbon material will be
processed, on the basis of two successful trial batch campaigns, through
POX-1 at Amursk. High-carbon material will be mostly stockpiled until
POX-2 is fully launched in H1 2024.
The recovery rate at the concentrator is continuously growing towards the
design level as the Company is implementing technological improvements.
Grade in ore processed increased q-o-q according to the mine plan.
The Company has accumulated sufficient ore stockpiles to ensure full
productivity of the flotation plant for several months. Therefore, the
management decided to temporarily suspend mining activity at the Nezhda
open-pit from December 1st for four months in order to optimize costs..
SVETLOYE
3 months ended Sep 9 months ended Sep
30, % change 30, % change
2022 2021 2022 2021
MINING
Waste mined, Mt 1.5 1.3 +16% 4.6 3.0 +54%
Ore mined (open 831 473 +76% 1,839 1,399 +31%
pit), Kt
PROCESSING
Ore stacked, Kt 404 451 -10% 1,073 1,100 -2%
Gold grade, g/t 4.8 2.3 +104% 3.1 3.1 -2%
Gold recovery 80.8% 80.8% +0% 80.8% 81.3% -1%
Gold production, 33 30 +7% 75 83 -10%
Koz
TOTAL PRODUCTION
Gold, Koz 33 30 +7% 75 83 -10%
Quarterly gold production at Svetloye saw a 7% y-o-y increase to reach 33
Koz due to contribution from the Emmy pit where pushback was completed and
higher-grade ore blocks introduced into the feed.
VORO
3 months ended Sep 9 months ended Sep
30, % change 30, % change
2022 2021 2022 2021
MINING
Waste mined, Mt 2.3 2.8 -19% 8.8 6.4 +36%
Ore mined (open 79 178 -55% 260 239 +9%
pit), Kt
PROCESSING
CIP
Ore processed, Kt 267 262 +2% 768 784 -2%
Gold grade, g/t 2.8 1.8 +57% 2.4 2.0 +24%
Gold recovery1 80.9% 84.4% -4% 83.4% 84.3% -1%
Gold production, 24 20 +17% 59 56 +4%
Koz
Heap Leach
Ore stacked, Kt - - NA - - NA
Gold grade, g/t - NA - NA
Gold production, 1 1 -21% 3 5 -48%
Koz
TOTAL PRODUCTION
Gold, Koz 26 22 +21% 64 61 +5%
Note:
(1) Technological recovery, includes gold within work-in-progress
inventory.
At Voro, gold production for the quarter increased by 21% y-o-y to 26 Koz
driven by large-scale introduction of high-grade transitional ore from
Peshernoye.
Mining volumes were substantially down in the reporting quarter as
open-pit mining at Saum was discontinued on the back of deteriorating
economics (strong rouble and higher rail tariffs).
The management made the decision to accelerate the execution of the second
stage of the Urals flotation project. Start-up is now targeted for Q3 2024
(previous plan was 2027). The objective is to bring forward cash flows
from high-grade polymetallic deposits.
MAYSKOYE
3 months ended 9 months ended
Sep 30, % change Sep 30, % change
2022 2021 2022 2021
MINING
Waste mined, Mt 0.6 1 -42% 2.6 3.0 -12%
Underground development, 5.5 5.0 +10% 15.5 14.8 +5%
km
Ore mined, Kt 248 195 +28% 677 582 +16%
Open-pit 72 33 +118% 127 84 +50%
Underground 176 161 +9% 551 498 +11%
PROCESSING
Ore processed, Kt 224 234 -4% 683 669 +2%
Gold grade, g/t 5.8 5.7 +2% 5.6 5.9 -4%
Gold recovery1 58.0% 71.6% -19% 80.1% 85.3% -6%
Gold in concentrate, Koz2 20 26 -22% 95 102 -7%
Amursk POX
Gold produced in dore
from concentrate (POX), - 0 -100% 2 5 -71%
Koz
Gold produced in dore 0 0 -100% 3 5 -50%
from carbon, Koz3
TOTAL PRODUCTION
Gold, Koz 59 75 -21% 63 85 -26%
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, Q3 production contracted due to the recovery decrease
attributable to higher than expected carbon content with lower sulfide and
higher iron grades in the oxide ore.
Open-pit mining at Mayskoye has been completed.
POX-2
At POX-2, the installation of pulp conditioning and neutralization tanks,
air coolers, a pulp cooling tank park, as well as technological equipment
for the downstream section has been completed. The installation of
structural steel and concrete floors and structures for High Bay is
nearing completion. The construction of metal frameworks and concrete
works for the installation of technological equipment in the CIL building
continues.
The start-up of the gravity concentrate processing circuit is planned for
Q1 2023. This will allow full in-house processing of gravity concentrates
from Nezhda.
Full commissioning of POX-2 is expected in Q2 2024 and remains at risk
given material supply chain challenges. The management nevertheless
remains confident that the current plan is realistic and continues to
implement a variety of risk mitigation measures, mostly focused on
procuring critical equipment and spares from alternative suppliers.
VEDUGA
The management made the decision to delay Veduga project timeline by 12
months with first production now expected in H2 2027. This schedule
optimization will reduce capital commitments for 2023 and allow for
thorough selection of processing equipment to ensure full compliance with
all applicable sanctions and flexible construction planning.
SUSTAINABILITY, HEALTH AND SAFETY
There were no fatal accidents during the first nine months of 2022 among
Polymetal’s workforce and contractors (consistent with 9M 2021). In Q3
2022, six minor lost-time incidents were recorded at Polymetal’s sites:
four among employees and two among contractors. Employee LTIFR for the
quarter amounted to 0.11 (zero LTIFR in Q3 2021), while 9M LTIFR stood at
0.09, a decrease of 18% y-o-y. All the LTIs have been investigated to
eliminate the risks of similar incidents in the future.
PERSONNEL
Gennady Fukalov was appointed as the Managing Director of Svetloye
replacing Vasilina Tarabarova (see below). Gennady is a mining
professional with more than 25 years of experience in the industry. He
joined Polymetal in 2005 as the mining engineer at Okhotsk Mining and
Exploration Company LLC (sold in 2018) and was most recently the Chief
Engineer at Kutyn. He graduated from the Krasnoyarsk Institute of
Non-ferrous Metals with a degree in underground mining and from
Vladivostok State University with a degree in economics and management.
Vasilina Tarabarova was appointed as the Managing Director at Kutyn.
Vasilina joined Polymetal in 2002 and held various positions at Okhotsk
Mining and Exploration Company and Svetloye, having grown from junior to
executive roles with her previous position being Managing director at
Svetloye. She holds degrees in underground mining and geological survey of
solid mineral deposits from Saint Petersburg Mining University as well as
a degree in management from Komsomolsk-on-Amur State Technical University.
══════════════════════════════════════════════════════════════════════════
ISIN: JE00B6T5S470
Category Code: UPD
TIDM: POLY
LEI Code: 213800JKJ5HJWYS4GR61
Sequence No.: 198214
EQS News ID: 1476835
End of Announcement EQS News Service
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