REG-Polymetal International plc Polymetal: Q4 2021 production results
27/01/2022 07:05
============
Polymetal International plc (POLY)
Polymetal: Q4 2021 production results
27-Jan-2022 / 10:00 MSK
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
══════════════════════════════════════════════════════════════════════════
Release IMMEDIATE
time LSE, MOEX, AIX: POLY / ADR: AUCOY
Date 27 January 2022
Polymetal International plc
Q4 2021 production results
Polymetal reports solid production results for the fourth quarter of 2021.
"In 2021, we continued to deliver on our promises despite persistent
challenges. Polymetal beat production guidance, maintained solid safety
track record, and paid record dividends. The successful ramp-up of Nezhda
and steady progress on POX-2 paved the way for the approval of Veduga and
ensured the Company remains on its path to consistent and significant
long-term growth", said Vitaly Nesis, Group CEO of Polymetal. "2022 should
see another step-up in Polymetal's output at competitive costs".
HIGHLIGHTS
• No fatal accidents among the Group's employees occurred in 2021 (nor
any in 2020). As reported earlier, a contract driller lost his life in
July at Saum, part of the Voro hub (no fatalities among contractors in
2020). Lost time injury frequency rate (LTIFR) among the Group's
employees was stable at 0.12. Days lost due to work-related injuries
(DIS) for the full year decreased by 10% y-o-y to 1,516.
• The Company's FY2021 gold equivalent ("GE") production amounted to
1,677 Koz 1 1 , a 2% increase y-o-y and 5% above the original
production guidance of 1.6 Moz. Q4 GE output grew by 24% y-o-y driven
by concentrate stockpile release at Kyzyl, high grades at Dukat and
first production from Nezhda.
• Nezhda smoothly ramped up to full design throughput and recovery
within three months of first concentrate production, a testament to
high quality of in-house engineering and construction. Consequently,
the Board approved US$ 471 million investment in the 4 Moz Veduga
project which will produce 200 Koz of gold per year on average over
21-year mine-life. Construction will commence in Q3 2022, with start
of production scheduled for Q2 2025.
• Revenue in 2021 was stable y-o-y at US$ 2.9 billion, while Q4 revenue
was down 6% y-o-y to US$ 0.8 billion on the back of lower commodity
prices. The lag between silver production and sales originating from
very strong December production at Dukat will be closed in H1 2022.
• The Company expects full-year Total Cash Costs ("TCC") to be within
the original guidance of US$ 700-750/GE oz. CAPEX for the full year
is expected to be approximately 5% above the upper end of the previous
guidance range of US$ 675-725 million. All-in Sustaining Cash Costs
("AISC") are also expected to be c. 5% above the upper end of the
guidance range of US$ 925-975/GE.
• In Q4, Polymetal generated exceptionally strong free cash flows with
Net Debt falling to US$ 1.65 billion by the end of 2021, Net
Debt/EBITDA is expected to be approximately at 1.1x. For the full
year, Net Debt increased by US$ 296 million. The Company paid US$ 632
million in dividends in 2021.
• In 2021, Polymetal received further external recognition of its ESG
efforts with improved ratings and scores by MSCI ESG Ratings,
Sustainalytics, Vigeo Eiris, ISS ESG Corporate Rating. The Company
announced a target to cut GHG emission intensity by 30% by 2030 and is
developing the plan to achieve carbon neutrality (to be announced in
Q4 2022).
• After a slowdown in Q4, Russia and Kazakhstan encountered a rise in
C-19 infection rate at the beginning of 2022. Among Polymetal
employees, the number of active cases presently stands at
approximately 130 with three people hospitalized. The Company
re-introduced remote work for some off-site personnel. Operations and
projects continue undisrupted.
2022 OUTLOOK
• The Company reiterates its current production guidance of 1.7 Moz of
GE for FY2022 and 1.75 Moz of GE for FY2023. Operations in Kazakhstan
have not been affected by recent events.
• TCC in 2022 is expected to be in the range of US$ 850-900/GE oz
(approximately 20% increase versus 2021). The y-o-y TCC dynamics will
be driven by:
◦ A significant increase in CPI in Russia and Kazakhstan (to
approximately 8.5%) driving wage and salary increases;
◦ Commodity-driven inflation including diesel fuel, gas (with
impact on explosives and cyanide), and steel prices;
◦ A manifold increase in both bulk and container sea freight rates.
• Capital expenditures in 2022 are expected to be approximately US$ 700
million. The US$ 90 million increase compared to the previous guidance
is driven by:
◦ Advance payments for electrical excavators and mining trucks for
Veduga and other projects in anticipation of increasing lead
times for such equipment;
◦ Accelerated construction of Kutyn and Urals flotation projects
with the goal to bring forward commissioning and first production
by 3-6 months compared with original plan (H2 2022 in both
cases);
◦ Decarbonization of on-site power supply infrastructure following
the agreement for 3rd-party investment in the grid line to
Albazino.
• As a result, AISC in 2022 is expected to average US$ 1,100-1,200/GE
oz.
•
OPERATING HIGHLIGHTS
3 months ended 12 months ended
Dec 31, % change1 Dec 31, % change1
2021 2020 2021 2020
Waste mined, Mt 53.9 44.0 +23% 205.9 166.8 +23%
Underground 25.0 22.6 +11% 95.5 90.0 +6%
development, km
Ore mined, Mt 4.1 3.4 +20% 15.6 15.4 +2%
Open-pit 3.0 2.4 +28% 11.7 11.2 +4%
Underground 1.1 1.0 +0% 4.0 4.2 -5%
Ore processed, Mt 4.1 3.7 +12% 15.8 15.4 +2%
Average GE grade 4.0 4.1 -3% 3.8 4.1 -8%
processed, g/t
Production
Gold, Koz 385 322 +20% 1,422 1,402 +1%
Silver, Moz 6.5 4.4 +48% 20.4 18.8 +8%
Gold equivalent, 467 377 +24% 1,677 1,637 +2%
Koz2
Sales
Gold, Koz 384 386 -1% 1,386 1,392 -0%
Silver, Moz 4.9 5.2 -7% 17.5 19.3 -10%
Revenue, US$m3 798 846 -6% 2,890 2,865 +1%
Net debt, US$m4 1,647 1,897 -13% 1,647 1,351 +22%
LTIFR 0.16 0.16 - 0.12 0.12 -
(Employees)5
DIS (Employees)6 1,516 1,679 -10%
Fatalities 0 0 NA 1 0 NM
Employees 0 0 NA 0 0 NM
Contractors 0 0 NA 1 0 NM
Average headcount 13,268 12,065 +10%
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 2020 restated accordingly (120:1 Au/Ag conversion
ratio was used previously).
(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 September 2021 (for the three
months period) and 31 December 2020 (for the twelve 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 Dec % 12 months ended Dec %
31, 31,
2021 2020 change 2021 2020 change
GOLD EQ. (KOZ)1
Kyzyl 85 67 +26% 360 382 -6%
Dukat 96 66 +46% 291 275 +6%
Albazino 59 56 +5% 249 261 -5%
Omolon 55 58 -4% 217 213 +2%
Varvara 40 28 +42% 198 159 +24%
Mayskoye 54 61 -11% 139 139 +0%
Svetloye 26 28 -10% 109 120 -9%
Voro 30 12 +153% 93 89 +5%
Nezhda 21 - NA 21 - NA
TOTAL 467 377 +24% 1,677 1,637 +2%
Notes: (1) Based on 80:1 Au/Ag conversion ratio and excluding base metals.
Comparative data for 2020 restated accordingly 120:1 Au/Ag conversion
ratio was used).
CONFERENCE CALL AND WEBCAST
The Company will hold a conference call and webcast on Thursday, 27
January 2022 at 11:00 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 February 2022.
About Polymetal
Polymetal International plc (together with its subsidiaries - "Polymetal",
the "Company", or the "Group") is a top-10 global gold and 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 Dec 12 months ended
31, % change Dec 31, % change
2021 2020 2021 2020
MINING
Waste mined, Mt 21.0 19.7 +6% 83.0 77.7 +7%
Ore mined 505 486 +4% 2,177 2,041 +7%
(open-pit), Kt
Gold grade, g/t 6.2 7.2 -14%
PROCESSING
Ore processed, Kt 517 488 +6% 2,200 2,004 +10%
Gold grade, g/t 6.3 7.8 -19% 6.2 7.9 -22%
Gold recovery 87.3% 88.6% -2% 88.6% 88.0% +1%
Concentrate 30.0 40.5 -26% 128.1 150.6 -15%
produced, Kt
Concentrate gold 94.2 83.4 +13% 94.2 92.9 +1%
grade, g/t
Gold in concentrate, 91 108 -16% 388 450 -14%
Koz1
Concentrate shipped, 25.8 15.9 +62% 83.9 84.3 -0%
Kt
Payable gold 50 28 +80% 156 160 -2%
shipped, Koz
Amursk POX
Concentrate 11 10 +12% 55 53 +3%
processed, Kt
Gold grade, g/t 132.7 136.8 -3% 133.6 142.6 -6%
Gold recovery 93.0% 91.7% +1% 92.3% 92.0% +0%
Gold produced, Koz 34 39 -13% 204 222 -8%
TOTAL PRODUCTION
Gold, Koz 85 67 +26% 360 382 -6%
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 Q4, gold production at Kyzyl grew by 26% y-o-y to 85 Koz after the
Company managed to eliminate the gap and ship the concentrate stockpiled
in the previous quarters due to disruptions at the railway border-crossing
point. The sales/production gap was closed.
The full-year production was impacted by the planned grade decline towards
the reserve average partially offset by an increase in throughput to 2.2
Mtpa. As a result, gold production for 2021 stood at 360 Koz, a decrease
of 6% year-on-year.
Recoveries and concentrate quality remained stable despite grade decline.
Kyzyl concentrate quality is sufficiently high to avoid the recently
imposed import restrictions in China.
DUKAT OPERATIONS
3 months ended Dec 12 months ended
31, % change Dec 31, % change
2021 2020 2021 2020
MINING
Waste mined, Mt 0.9 - NA 2.8 - NA
Underground 11.0 10.9 +1% 44.7 43.6 +2%
development, km
Ore mined, Kt 701 530 +32% 2,615 2,228 +17%
Open-pit 115 - NA 431 - NA
Underground 586 530 +11% 2,184 2,228 -2%
Grade
Gold, g/t 0.8 0.2 +349%
Silver, g/t 266 242 +10%
PROCESSING
Omsukchan
concentrator
Ore processed, Kt 518 499 +4% 2,055 2,001 +3%
Grade
Gold, g/t 0.8 0.6 +36% 0.6 0.5 +4%
Silver, g/t 335 245 +37% 266 266 +0%
Recovery1
Gold 86.0% 85.3% +1% 85.3% 84.9% +0%
Silver 85.4% 85.6% -0% 86.0% 86.4% -0%
Production
Gold, Koz 11 8 +43% 31 29 +8%
Silver, Moz 4.6 3.2 +42% 14.7 14.4 +2%
Lunnoye plant
Ore processed, Kt 119 118 +1% 477 466 +2%
Grade
Gold, g/t 1.7 1.5 +11% 1.6 1.4 +14%
Silver, g/t 248 278 -11% 239 273 -12%
Recovery1
Gold 87.4% 90.8% -4% 89.7% 90.4% -1%
Silver 92.6% 93.1% -1% 93.1% 92.6% +1%
Production
Gold, Koz 6 5 +8% 22 19 +16%
Silver, Moz 0.9 1.0 -11% 3.4 3.7 -10%
Primorskoye DSO
Ore shipped, Kt 5.9 - NA 5.9 - NA
Payable gold 2 - NA 2 - NA
contained, Koz
Payable silver 0.7 - NA 0.7 - NA
contained, Moz
TOTAL PRODUCTION
Gold, Koz 19 13 +48% 56 48 +16%
Silver, Moz 6.2 4.2 +46% 18.8 18.2 +3%
Notes: (1) Technological recovery, includes gold and silver within
work-in-progress inventory.
At Dukat, Q4 production jumped by nearly half as grades increased both
underground (due to mining high-grade narrow veins) and open pit (better
grade control and highly selective mining).
Primorskoye delivered its first batches of high-grade direct-shipment ore
(DSO) to several customers across the world. DSO shipments are expected
to more than compensate for planned grade decline at Dukat in 2022.
Engineering and procurement for the transition of the Omsukchan
concentrator to dry-stack tailings commenced. The project is planned for
completion in H1 2024.
ALBAZINO
3 months ended Dec 12 months ended
31, % change Dec 31, % change
2021 2020 2021 2020
MINING
Waste mined, Mt 6.7 4.8 +40% 23.0 19.9 +16%
Underground 5.2 3.4 +53% 16.9 12.1 +39%
development, km
Ore mined, Kt 729 592 +23% 2,259 1,993 +13%
Open-pit 527 403 +31% 1,485 1,308 +14%
Underground 202 189 +7% 774 686 +13%
Gold grade, g/t 3.8 4.2 -10%
Open-pit 3.9 4.2 -8%
Underground 3.8 4.4 -14%
PROCESSING
Albazino
concentrator
Ore processed, Kt 448 451 -1% 1,777 1,771 +0%
Gold grade, g/t 5.2 4.6 +12% 4.4 4.6 -4%
Gold recovery1 89.6% 88.5% +1% 89.1% 87.2% +2%
Concentrate 39.6 35.4 +12% 143.7 143.0 +0%
produced, Kt
Concentrate gold 52.7 51.2 +3% 49.0 49.9 -2%
grade, g/t
Gold in concentrate, 67 58 +15% 226 229 -1%
Koz2
Amursk POX
Concentrate 26.7 32.3 -17% 151.2 158.7 -5%
processed, Kt
Gold grade, g/t 51.1 53.9 -5% 50.5 52.0 -3%
Gold recovery 96.5% 96.2% +0% 96.4% 96.4% +0%
Gold produced, Koz 59 56 +4% 248 261 -5%
TOTAL PRODUCTION
Gold, Koz 59 56 +4% 248 261 -5%
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, grade in Q4 increased by 12% y-o-y as underground mining made
some progress in limiting dilution by reducing the stope size. Higher
grade as well as continued improvement in recoveries led to the 4%
increase in gold production. Full-year grade dynamics was negative on the
back of depleting high-grade Anfisa pit, and challenging geotechnical
conditions in the underground mine. Annual output contracted by 5% to 248
Koz.
Waste and ore mining volumes were higher throughout the year driven by
Farida and Kutyn open pit development. Underground development advanced
due to ramping-up of Ekaterina and Anfisa underground mines.
Kutyn project proceeded ahead of schedule. First ore was mined. The
Merrill-Crowe and ore crusher buildings construction is in progress, key
equipment has been installed. Start-up is expected in Q3 2022.
AMURSK POX
3 months ended Dec 12 months ended
31, % change Dec 31, % change
2021 2020 2021 2020
Concentrate 43 45 -4% 214 215 -0%
processed, Kt
Albazino 26 28 -8% 142 147 -3%
Kyzyl 11 10 +12% 55 53 +3%
Mayskoye 6 3 +94% 8 3 +182%
Veduga - 4 -100% 4 7 -43%
Other1 1 - NA 5 4 +11%
Gold recovery 94.4% 94.3% +0% 94.3% 94.3% -0%
Average gold grade, 71.9 71.8 +0% 72.0 74.6 -3%
g/t
Average sulphur 15.9% 15.6% +2% 14.2% 14.4% -2%
grade
Total gold 102 100 +2% 466 487 -4%
produced2, Koz
Albazino 56 46 +21% 227 222 +2%
Kyzyl 34 39 -13% 204 222 -8%
Mayskoye 8 4 +116% 14 4 +227%
Veduga 0 10 -99% 11 29 -63%
Other1 3 - NA 10 10 +2%
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 up y-o-y due to higher grade in the feed from
Albazino, while full-year production decreased by 4% to 466 Koz driven by
lower gold/sulphur ratio in Kyzyl concentrate.
OMOLON OPERATIONS
3 months ended Dec 12 months ended
31, % change Dec 31, % change
2021 2020 2021 2020
MINING
Waste mined, Mt 1.6 0.6 +169% 4.9 3.4 +46%
Underground 3.1 3.1 +2% 11.8 13.1 -10%
development, Km
Ore mined, Kt 257 353 -27% 740 2,525 -71%
Open-pit 165 206 -20% 407 2,034 -80%
Underground 92 147 -37% 332 491 -32%
Grade
Gold, g/t 6.6 3.4 +96%
Silver, g/t 29.3 13.2 +121%
PROCESSING
Kubaka Mill
Ore processed, Kt 211 215 -2% 862 863 -0%
Grade
Gold, g/t 6.8 7.6 -11% 6.7 7.1 -5%
Silver, g/t 31 29 +7% 52 24 +117%
Recovery1
Gold 95.4% 96.2% -1% 94.8% 94.5% +0%
Silver 72.6% 67.1% +8% 79.1% 71.8% +10%
Gold production, Koz 49 49 +0% 180 181 -0%
Silver production, 0.2 0.1 +45% 1.2 0.5 +160%
Moz
Birkachan Heap Leach
Ore stacked, Kt 150 199 -25% 851 1 318 -35%
Gold grade, g/t 1.1 1.6 -34% 1.7 2.0 -13%
Gold production, Koz 4 7 -44% 21 25 -17%
TOTAL PRODUCTION
Gold, Koz 53 56 -6% 201 206 -2%
Silver, Moz 0.2 0.1 +37% 1.3 0.5 +145%
Note: (1) Technological recovery, includes gold and silver within
work-in-progress inventory.
At Omolon, gold and silver production demonstrated the opposite dynamics
both in Q4 and FY2021 as the Merrill- Crowe circuit of the Kubaka mill was
processing higher silver grade material, while in 2020 it was suspended
due to the lack of appropriate feed. Gold production at the heap leach was
lower y-o-y due to re-handling of the stockpiles.
Overall, gold equivalent production for the full year was up by 2% to 217
Koz.
Grades in ore mined were substantially higher y-o-y due to the absence of
low-grade Birkachan heap leach ore, higher grade at Birkachan underground
and start of mining at high-grade Burgali open-pit.
In Q4, both dry tails TSF and solar power plant have been successfully
commissioned at Kubaka.
VARVARA
3 months ended Dec 12 months ended
31, % change Dec 31, % change
2021 2020 2021 2020
MINING
Waste mined, Mt 11.3 10.3 +10% 42.0 40.6 +4%
Ore mined, Kt 810 603 +34% 3,624 2,812 +29%
Gold grade, g/t 1.5 1.4 +7%
PROCESSING
Leaching
Ore processed, Kt 796 753 +6% 3,183 3,056 +4%
Gold grade, g/t 1.4 1.4 +1% 1.6 1.4 +10%
Gold recovery1 89.4% 87.4% +2% 88.9% 87.9% +1%
Gold production (in 31 22 +40% 153 121 +27%
dore), Koz
Flotation
Ore processed, Kt 188 167 +13% 696 660 +6%
Gold grade, g/t 2.4 2.6 -9% 2.6 2.9 -8%
Recovery1 85.6% 83.5% +2% 85.5% 86.6% -1%
Gold in concentrate, 9 6 +49% 44 38 +17%
Koz
TOTAL PRODUCTION
Gold, Koz 40 28 +42% 197 159 +24%
Note: (1) Technological recovery, includes gold and copper within
work-in-progress inventory. Does not include toll-treated ore.
At Varvara, gold production at the leaching circuit recorded y-o-y
increases both in the Q4 and full year 2021 due to larger processing
volumes, higher grade in the Komar ore and better recoveries after
flowsheet improvements.
At the flotation circuit, production was up y-o-y on the back of higher
throughput, improve in recoveries and work-in-progress release. Grade
decline in ore processed is attributable to lower volumes of higher grade
third-party material.
As a result of the positive production dynamics at the both units, total
production at Varvara increased by 42% y-o-y to 40 Koz in Q4, and by 24%
to 197 Koz for the full year.
MAYSKOYE
3 months ended 12 months ended
Dec 31, % change Dec 31, % change
2021 2020 2021 2020
MINING
Waste mined, Mt 0.8 0.5 +44% 3.7 2.9 +29%
Underground development, 4.7 5.3 -10% 19.5 21.1 -8%
km
Ore mined, Kt 198 184 +8% 781 1 039 -25%
Open-pit 25 0 NA 109 278 -61%
Underground 174 184 -5% 671 761 -12%
Gold grade, g/t 5.7 6.6 -14%
Open-pit 4.5 8.0 -43%
Underground 5.8 6.1 -4%
PROCESSING
Ore processed, Kt 232 229 +1% 901 912 -1%
Gold grade, g/t 5.4 6.1 -11% 5.7 6.6 -13%
Gold recovery1 92.2% 91.6% +1% 86.9% 83.6% +4%
Gold in concentrate, 37 41 -10% 140 145 -4%
Koz2
Payable gold in
concentrate shipped to 43 49 -12% 117 123 -5%
offtakers, Koz
Amursk POX
Gold produced in dore
from concentrate (POX), 8 4 +116% 14 4 +227%
Koz
Gold produced in dore 3 8 -63% 8 11 -27%
from carbon, Koz3
TOTAL PRODUCTION
Gold, Koz 54 61 -11% 139 139 +0%
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, Q4 gold production was down y-o-y on the back of a decline in
grade in the underground driven by geotechnical issues. Full-year output
was stable y-o-y as production at POX compensated for the gold in
concentrate decrease stemming from low-grade and highly carbonaceous
open-pit ore.
Polymetal continued construction of infrastructure needed to commission
ore transportation conveyor. The project is on track for launch in Q3
2022.
Backfill construction is progressing on schedule. The start-up is expected
in Q1 2023.
SVETLOYE
3 months ended 12 months ended Dec
Dec 31, % change 31, % change
2021 2020 2021 2020
MINING
Waste mined, Mt 1.6 0.7 +145% 4.6 3.0 +54%
Ore mined (open 400 434 -8% 1,800 1,888 -5%
pit), Kt
Gold grade, g/t 2.1 2.7 -20%
PROCESSING
Ore stacked, Kt 304 282 +8% 1,404 1,303 +8%
Gold grade, g/t 2.4 3.7 -36% 3.0 3.9 -25%
Gold recovery 81.2% 80.8% +1%
Gold production, Koz 25 28 -10% 109 119 -9%
TOTAL PRODUCTION
Gold, Koz 25 28 -10% 109 119 -9%
Quarterly and annual gold production at Svetloye contracted y-o-y on the
back of the planned decline in grade.
Stacking volumes were higher throughout the year due to favorable weather
conditions and ore properties as well as technological improvements.
Waste mined increase is attributable to the start of mining at the new
Lyudmila pit (launched earlier in 2021), new pushback (Stage 3) at the
Emmy pit and increase in mining fleet.
VORO
3 months ended Dec 12 months ended
31, % change Dec 31, % change
2021 2020 2021 2020
MINING
Waste mined, Mt 2.7 - NA 9.1 - NA
Ore mined, Kt 217 - NA 456 - NA
Gold grade 3.8 - NA
PROCESSING
CIP
Ore processed, Kt 265 257 +3% 1,049 1,043 +1%
Gold grade, g/t 2.8 2.3 +18% 2.2 2.2 -1%
Gold recovery1 86.6% 82.9% +4% 85.0% 82.7% +3%
Gold production, Koz 26 11 +136% 82 74 +11%
Heap Leach
Ore stacked, Kt - - NA - 22 -100%
Gold grade, g/t - - NA 0.9 -100%
Gold production, Koz 4 1 +299% 9 15 -37%
TOTAL PRODUCTION
Gold, Koz 30 12 +152% 91 89 +3%
Note: (1) Technological recovery, includes gold within work-in-progress
inventory.
At Voro, quarterly gold production jumped by 152% y-o-y to 30 Koz on the
back of processing significant volumes of very high-grade third-party and
Pesherny feedstocks. The surge in Q4 offset the negative dynamics seen in
the previous nine months of 2021 and resulted in a y-o-y increase in the
full year production of 3% to 91 Koz.
Voro flotation plant construction proceeded ahead of schedule. Major
processing equipment has been installed and the concentrator building has
been fully winterized. Start-up is expected in Q4 2022.
Polymetal completed initial Mineral Resource estimate of the Pavlov gold
property (330 km from Voro). The estimate comprise 9.7 Mt of open-pittable
mineralized material with an average Au grade of 2.7 g/t containing 0.7
Moz of gold. The deposit is represented by free-milling ore which can be
processed at Polymetal's Voro and Varvara mills.
NEZHDA
3 months ended 12 months ended
Dec 31, % change Dec 31, % change
2021 2020 2021 2020
MINING
Waste mined, Mt 5.2 5.3 -1% 22.0 10.0 +121%
Ore mined, Kt 255 211 +21% 1 192 411 +190%
Grade
Gold, g/t 2.2 - NA
Silver, g/t 13.5 - NA
PROCESSING
Ore processed, Kt 344 - NA 344 - NA
Grade
Gold, g/t 3.7 - NA 3.7 - NA
Silver, g/t 23.8 - NA 23.8 - NA
Recovery1
Gold 73% - NA 73% - NA
Silver 67% - NA 67% - NA
Concentrate produced, Kt 8.5 - NA 8.5 - NA
Concentrate gold grade, 109 - NA 109 - NA
g/t
Gold in concentrate, Koz 30 - NA 30 - NA
TOTAL PRODUCTION1
Gold, Koz 20 - NA 20 - NA
Silver, Moz 0.1 - NA 0.1 - NA
Notes: (1) Includes concentrate produced and stockpiled for future sale,
and excludes low-grade material. Expected 90% gold payable ratio is
applied.
Nezhda concentrator is fully ramped up within 3 months of first
concentrate production, significantly faster than planned. The plant has
achieved 100% of design hourly throughput on a consistent basis.
Availability has reached 90% over the last four weeks (compared with 90%
design). Monthly throughput in December was 160 Kt at 4.1 g/t gold (10%
above plan due to mining sequencing). Average gold recovery in December
was 77%.
Payable metal in Q4 equaled 21 Koz of gold equivalent. Approximately 75%
of payable metal reported to materials where exports are not impacted by
the recent Chinese imports restrictions.
POX-2
Construction continues on schedule. The project is 65% complete. At the
POX circuit all preparation work for the key equipment installation was
completed, heating was installed. Foundation works for thickener,
downstream circuit equipment, boiler-house were finalized. Chemicals
storage construction completed.
Project photo update as of January 2022 is available at the 4 link.
VEDUGA
Following pre-feasibility study results including updated Ore Reserve
estimate of 4.0 Moz of gold @ 3.9 g/t, the Board approved construction of
Veduga. Start of construction is scheduled for Q3 2022 with the first
production and full ramp-up expected in Q2 and Q3 2025 respectively.
Please see our announcement for more information at the 5 link. In 2022,
the Company will focus on detailed engineering, contracting major
equipment and continued pre-stripping activities.
SUSTAINABILITY, HEALTH AND SAFETY
In 2021, our lost-time injury frequency rate (LTIFR) stood at 0.12 with 15
lost-time injuries, compared with 0.12 and 13 cases in the previous year.
DIS decreased by 10% y-o-y to 1,516 days.
As reported earlier, a contractor employee lost his life in July (please
see our Q3 2021 report for more details), while no fatal accidents
occurred among our employees.
Most of the other injuries were classified as minor except for the two
severe injuries among our employees: one resulted from a hit by a spare
part during a mill maintenance and the other resulted in tripping and
falling while walking. Following the incidents, the Company updated the
risk maps for relevant facilities and ensured the employees received
relevant instructions to eliminate such risks.
The safety action plan for 2021 covered mitigation measures for all key
safety risks. For example, there was an increased frequency of injuries
related to tripping and falling while walking at the beginning of the
year. The review of such incidents demonstrated that in most cases, the
surfaces were not sanded on time or were not intended for entrance without
special personal protection equipment. Relevant preventive measures were
taken, such as fencing-off hazardous areas and introducing strict
instructions for walking on the site.
One of the focus areas in 2021 was improving the safety of geological
exploration works. The Company assigned responsible personnel and
introduced risk assessment procedures, identified key hazards for every
exploration site, developed mitigation plans and carried out internal
safety checks in line with corporate standards.
Road safety programme was further developed, with separate sets of
measures for transportation via public roads and at our own sites. For
example, Polymetal banned the transportation of workers for more than 200
kilometres at night-time (allowing this only as an exception in extreme
situations). Mining vehicles are equipped with collision warning systems
and flashing beacons.
Where possible, Polymetal applies digital technologies to improve the
safety of workplaces: last year a positioning system was launched at the
Varvara processing plant, which enables local management to know the exact
location of each worker and prevent them from entering hazardous areas, as
well as promptly receive feedback (e.g. in case of emergency).
In Q4, following the 2021 S&P Global Corporate Sustainability Assessment,
Polymetal has been reaffirmed as a member of the DJSI World for the second
year in a row and DJSI Emerging Markets for the fourth year in a row.
Earlier in 2021, Polymetal upgraded it external ESG recognition receiving
better rating and scores with MSCI ESG Ratings, Sustainalytics, Vigeo
Eiris, ISS ESG Corporate Rating.
The Company set a 10-year target to cut GHG emission intensity by 30% by
2030. In 2022, Polymetal plans to develop long-term GHG reduction goals
until 2050, develop the plan to achieve carbon neutrality, as well as set
Scope 3 targets.
COVID-19 UPDATE
Epidemiological situation in the Company remains under control. Operations
and development projects continue undisrupted.
The number of active cases in Polymetal decreased in Q4, though following
recent outbreaks in Omicron variation of the C-19 virus in Russia and
Kazakhstan the Company returned to remote work for some of the off-site
employees. As of the date of this press release, there are 130 active
cases of the disease in Polymetal.
The regions are taking divergent paths on the scope and severity of C-19
related restrictions. Enforcement, in general, is very unstable. Polymetal
operations are not affected given there is a specific federal carve-out
for the transportation of FIFO employees.
Polymetal continues to facilitate non-obligatory vaccination among
employees by organizing vaccination at local hospitals or establishing
vaccination points on site. 65% of Polymetal employees are already
vaccinated.
PERSONNEL
Alexandr Govorunov (67) was appointed as the EVP for Security. Formerly,
he was the Chief of Staff for the Mayor of St. Petersburg and EVP-Security
at Sberbank. His predecessor, Sergey Babkin, resigned for personal
reasons.
══════════════════════════════════════════════════════════════════════════
6 1 Based on 80:1 Au/Ag conversion ratio and excluding base metals.
Comparative data for 2020 and guidance for 2021 restated accordingly
(120:1 Au/Ag conversion ratio was used previously).
══════════════════════════════════════════════════════════════════════════
ISIN: JE00B6T5S470
Category Code: MSCH
TIDM: POLY
LEI Code: 213800JKJ5HJWYS4GR61
OAM Categories: 3.1. Additional regulated information required to be
disclosed under the laws of a Member State
Sequence No.: 139112
EQS News ID: 1273369
End of Announcement EQS News Service
══════════════════════════════════════════════════════════════════════════
7 fncls.ssp?fn=show_t_gif&application_id=1273369&application_name=news&site_id=refinitiv
References
Visible links
1. file:///data/ucdp/tmp/xhtmlconvert_parsn_eqs_06CHKSmz.html#_ftn1
2. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=52307b21fc245a6b7d9af7a66a80f82a&application_id=1273369&site_id=refinitiv&application_name=news
3. mailto:ir@polymetalinternational.com
4. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=4e430c089156b4ba4c93a6eae69cf3b2&application_id=1273369&site_id=refinitiv&application_name=news
5. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=05dd5d621d9a0d2d4daa67c18d9888b4&application_id=1273369&site_id=refinitiv&application_name=news
6. file:///data/ucdp/tmp/xhtmlconvert_parsn_eqs_06CHKSmz.html#_ftnref1
============Recent news on Polymetal International PK
See all newsREG - Official List Polymetal Int PLC - Removal - Polymetal International plc
AnnouncementREG - Stock Exch Notice Polymetal Int PLC - Cancellation - Polymetal International plc
AnnouncementREG-Polymetal International plc Polymetal: Resumption of trading on AIX
AnnouncementREG-Polymetal International plc Polymetal: Q2 2023 production results
AnnouncementREG-Polymetal International plc Polymetal: Re-Domiciliation to AIFC Completed
Announcement