REG-Polymetal International plc Polymetal: Q4 and FY 2022 production results
25/01/2023 07:15
============
Polymetal International plc (POLY)
Polymetal: Q4 and FY 2022 production results
25-Jan-2023 / 10:00 MSK
Dissemination of a Regulatory Announcement, transmitted by EquityStory RS.
The issuer is solely responsible for the content of this announcement.
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Release time IMMEDIATE LSE, MOEX, AIX: POLY
Date 25 January 2023 ADR: AUCOY
Polymetal International plc
Q4 and FY 2022 production results
Polymetal (the “Company” or the “Group”) reports strong production results
for the fourth quarter of 2022 and meets full-year production guidance of
1.7 Moz GE.
“2022 presented unprecedented challenges for our company. Nevertheless,
Polymetal met original production guidance and maintained solid safety
performance. In 2023, we are targeting stable production and return to
free cash flow generation”, said Vitaly Nesis, Group CEO of Polymetal.
HIGHLIGHTS
• No fatal accidents among the Group’s employees and contractors
occurred in 2022. Lost time injury frequency rate (LTIFR) among the
Company’s workforce for the full year decreased by 17% year-on-year
(y-o-y) to 0.10. Days lost due to work-related injuries (DIS) fell by
42% y-o-y to 877.
• The Company’s FY 2022 gold equivalent (“GE”) production amounted to
1,712 Koz, a y-o-y increase of 2% and in line with the original
production guidance of 1.7 Moz. First full year of operations at
Nezhda and initial production at Kytyn compensated for declining
grades at mature assets. Q4 GE output grew by 16% y-o-y to 540 Koz
driven by Nezhda contribution and strong grades at Kyzyl.
• POX-2 and other developement projects progressed in line with the
revised schedules. 2023 will be marked by the launch of Voro flotation
plant and start of mining at Prognoz.
• Revenue for FY 2022 stood at US$ 2.8 billion, a y-o-y decrease of 3%
on the back of lower average gold and silver prices. Q4 revenue was up
by 30% y-o-y to US$ 1.0 billion as the Company sold down metal and
concentrate inventory accumulated in the previous quarters. The
remaining gap between production and sales is expected to close during
the course of H1 2023.
• In Q4, net debt decreased by US$ 0.4 billion to approximately US$ 2.4
billion on the back of strong positive free cash flows from unwinding
of working capital.
• The Company expects full-year Total Cash Costs (“TCC”) and All-in
Sustaining Cash Costs (“AISC”) to be within the announced guidance
range of US$ 900-1,000/GE oz and US$ 1,300-1,400/GE oz, respectively.
CAPEX is also estimated within the guidance range of US$ 725-775
million.
2023 OUTLOOK
• The Company reiterates its current production guidance for FY 2023 of
1.7 Moz of GE.
• Polymetal expects its costs to be in the ranges of US$ 950-1,000/GE oz
for TCC and US$ 1,300-1,400/GE oz for AISC 1 1 . A minor y-o-y
increase is mostly due to domestic inflation, stronger rouble, and
royalty increase in Kazakhstan.
• Capital expenditures are expected to be approximately US$ 700-750
million. Major investment projects include POX-2, Albazino power line,
Voro flotation, and Prognoz.
UPDATE ON THE POTENTIAL MODIFICATION OF ASSET HOLDING STRUCTURE
• As previously announced, the Company has continued to evaluate all
available options to modify its asset holding structure in order to
maximise shareholder value.
• Further to the announcement on 22 September 2022, the Company has
progressed the evaluation of a potential re-domiciliation of the
parent company, Polymetal International plc, to jurisdiction deemed to
be “friendly” by the Russian Federation, a move which could unblock
the ability to execute further corporate actions.
• Based on the initial analysis, the Company are of the view that a
re-domiciliation into the Astana International Financial Centre
(AIFC), a financial hub in Astana, Kazakhstan, is the preferred
jurisdiction, taking into account the Group’s significant operations
and presence in the region, the AIFC legal system, tax regime and the
ability to execute such a re-domiciliation.
• Should the Company proceed with a re-domiciliation to the AIFC, The
Company’s primary listing may move to AIX where its Ordinary Shares
will be traded with the new ISIN. The Company will look to ensure
continuous liquidity of trading.
• The evaluation of the re-domiciliation process continues to be ongoing
and will, in any event, be subject to a number of conditions. No
decision has been made in relation to the various options available to
the Company. There can therefore be no certainty that the Company will
proceed with, or ultimately complete, a re-domiciliation nor any
certainty as to which jurisdiction would be ultimately selected were
it to proceed.
• The Company confirms that any actions will be compliant with all
applicable international sanctions, counter-sanctions and regulatory
requirements.
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2 1 Based on 65 RUB/USD, 450 KZT/USD rates, 7% inflation in Russia and
9% in Kazakhstan.
OPERATING HIGHLIGHTS
3 months ended % 12 months ended %
Dec 31, change1 Dec 31, change1
2022 2021 2022 2021
Waste mined, Mt 49.0 53.9 -9% 211.1 205.9 +3%
Underground 23.5 25.0 -6% 98.0 95.5 +3%
development, km
Ore mined, Mt 4.5 4.1 +11% 19.5 15.6 +24%
Open-pit 3.5 3.0 +17% 15.4 11.7 +32%
Underground 1.0 1.1 -6% 4.1 4.0 +3%
Ore processed, Mt 4.7 4.1 +15% 18.3 15.8 +16%
Average GE grade 3.9 4.0 -2% 3.6 3.8 -4%
processed, g/t
Production
Gold, Koz 451 385 +17% 1,450 1,422 +2%
Silver, Moz 7.2 6.5 +10% 21.0 20.4 +3%
Gold equivalent, 540 467 +16% 1,712 1,677 +2%
Koz2
Sales
Gold, Koz 560 384 +46% 1,376 1,386 -1%
Silver, Moz 3.5 4.9 -29% 18.5 17.5 +6%
Revenue, US$m3 1,039 798 +30% 2,801 2,890 -3%
Net debt, US$m4 2,393 2,781 -14% 2,393 1,647 +45%
LTIFR5 0.12 0.16 -25% 0.10 0.12 -17%
DIS6 877 1,516 -42%
Fatalities
Employees 0 0 NA 0 0 NA
Contractors 0 0 NA 0 1 -100%
Average headcount 14,694 13,268 +11%
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 Septenber 2022 (for the three
months period) and 31 December 2021 (for the twelve months period).
(5) LTIFR = lost time injury frequency rate per 200,000 hours worked.
Company employees only are taken into account.
(6) DIS – days lost due to work-related injuries. Company employees only
are taken into account.
PRODUCTION BY MINE
3 months ended Dec % 12 months ended Dec 31, %
31,
2022 2021 change 2022 2021 change
GOLD EQ. (KOZ)1
Kazakhstan 164 125 +31% 541 558 -3%
Kyzyl 113 85 +34% 330 360 -8%
Varvara 51 40 +27% 211 198 +7%
Russia 376 342 +10% 1,170 1,120 +5%
Dukat 101 96 +6% 292 291 +0%
Albazino 64 59 +8% 230 249 -8%
Omolon 56 55 +2% 199 217 -8%
Nezhda 42 21 +96% 133 21 +518%
Mayskoye 57 54 +6% 120 139 -14%
Svetloye 28 26 +9% 104 109 -5%
Voro 28 30 -10% 93 93 +0%
TOTAL 540 467 +16% 1,712 1,677 +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 Group’s management will discuss production results during the Analyst
and Investor Day on Wednesday, 25 January 2023, at 12:00 GMT (15:00 Moscow
time) at the Queen Elizabeth II Centre – Broad Sanctuary, London, SW1P
3EE. To join the webcast please follow the link
3 https://edge.media-server.com/mmc/p/oym5gsx7.
Enquiries
Investor Relations
Polymetal 4 ir@polymetalinternational.com
Evgeny Monakhov +44 20 7887 1475 (UK)
Kirill Kuznetsov +7 812 334 3666 (Russia)
+7 717 261 0222 (Kazakhstan)
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 Dec %
31, 31,
2022 2021 change 2022 2021 change
MINING
Waste mined, Mt 20.9 21.0 -0% 83.2 83.0 +0%
Ore mined (open pit), 534 505 +6% 2,223 2,177 +2%
Kt
Gold grade, g/t 5.5 6.2 -11%
PROCESSING
Ore processed, Kt 549 517 +6% 2,200 2,200 +0%
Gold grade, g/t 6.6 6.3 +4% 5.5 6.2 -12%
Gold recovery 89.4% 87.3% +2% 88.9% 88.6% +0%
Concentrate produced, 35.3 30.0 +18% 113.6 128.1 -11%
Kt
Concentrate gold 91.3 94.2 -3% 93.9 94.2 -0%
grade, g/t
Gold in concentrate, 104 91 +14% 343 388 -12%
Koz1
Concentrate shipped, 25 26 -4% 67 84 -20%
Kt
Payable gold shipped, 46 50 -8% 125 156 -20%
Koz
Amursk POX
Concentrate 13 11 +25% 48 55 -12%
processed, Kt
Gold grade, g/t 129.3 132.7 -3% 132.7 133.6 -1%
Gold recovery 92.4% 93.0% -1% 93.8% 92.3% +2%
Gold produced, Koz 67 34 +94% 205 204 +1%
TOTAL PRODUCTION
Gold, Koz 113 85 +34% 330 360 -8%
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, quarterly gold production increased by 34% y-o-y to 113 Koz
driven by mining of higher-grade ore blocks accompanied by better
recoveries as well as larger volumes of low-carbon concentrate processed
at Amursk POX. Full-year production contracted by 8% to 330 Koz due to the
planned grade decline.
VARVARA
3 months ended Dec % 12 months ended Dec %
31, 31,
2022 2021 change 2022 2021 change
MINING
Waste mined, Mt 11.2 11.3 -1% 43.3 42.0 +3%
Ore mined (open pit), 825 810 +2% 3,857 3,624 +6%
Kt
Gold grade, g/t 1.6 1.5 +2%
PROCESSING
Leaching
Ore processed, Kt 778 796 -2% 3,199 3,183 +1%
Gold grade, g/t 1.4 1.4 -1% 1.6 1.6 +1%
Gold recovery1 87.7% 89.4% -2% 90.0% 88.9% +1%
Gold production (in 42 31 +34% 170 153 +11%
dore), Koz
Flotation
Ore processed, Kt 185 188 -2% 752 696 +8%
Gold grade, g/t 2.4 2.4 +1% 2.7 2.6 +3%
Recovery1 86.4% 85.6% +1% 87.2% 85.5% +2%
Gold in concentrate, 9 9 +1% 41 44 -7%
Koz
TOTAL PRODUCTION
Gold, Koz 51 40 +27% 211 197 +7%
Note:
(1) Technological recovery, includes gold and copper within
work-in-progress inventory. Does not include toll-treated ore.
At Varvara, Q4 gold production was up by 27% y-o-y to 51 Koz, mostly on
the back of work-in-progress release at the leaching circuit. Full-year
output increased by 7% to 211 Koz on the back of better grades from Komar.
The Company has commenced engineering for solar power plant and will
complete feasibility study by the end of 2023.
DUKAT
3 months ended Dec % 12 months ended Dec %
31, 31,
2022 2021 change 2022 2021 change
MINING
Waste mined, Mt 1.0 0.9 +9% 4.1 2.8 +44%
Underground 10.8 11.0 -1% 46.7 44.7 +4%
development, km
Ore mined, Kt 630 701 -10% 2,523 2,615 -3%
Open pit 100 115 -13% 435 431 +1%
Underground 530 586 -10% 2,088 2,184 -4%
Grade
Gold, g/t 1.1 0.8 +39%
Silver, g.t 301 266 +13%
PROCESSING
Omsukchan
concentrator
Ore processed, Kt 511 518 -1% 2,033 2,055 -1%
Grade
Gold, g/t 0.4 0.8 -43% 0.5 0.6 -11%
Silver, g/t 236 335 -30% 236 266 -11%
Recovery1
Gold 83.3% 86.0% -3% 83.3% 85.3% -2%
Silver 87.0% 85.4% +2% 85.7% 86.0% -0%
Production
Gold, Koz 6 11 -45% 27 31 -14%
Silver, Moz 3.3 4.6 -29% 12.8 14.7 -13%
Lunnoye plant
Ore processed, Kt 121 119 +2% 474 477 -1%
Grade
Gold, g/t 1.8 1.7 +10% 1.8 1.6 +11%
Silver, g/t 231 248 -7% 204 239 -15%
Recovery1
Gold 89.3% 87.4% +2% 90.2% 89.7% +1%
Silver 92.7% 92.6% +0% 93.2% 93.1% +0%
Production
Gold, Koz 6 6 +14% 25 22 +12%
Silver, Moz 0.8 0.9 -5% 2.9 3.4 -15%
Primorskoye
Ore shipped, Kt 23.1 - NA 29.5 - NA
Production
Gold, Koz 10 2 +299% 11 2 +359%
Silver, Moz 2.2 0.7 +238% 2.7 0.7 +300%
TOTAL PRODUCTION
Gold, Koz 22 19 +17% 63 56 +13%
Silver, Moz 6.3 6.2 +3% 18.3 18.8 -3%
Notes:
(1) Technological recovery, includes gold and silver within
work-in-progress inventory.
Direct high-grade ore shipments from Primorskoye compensated for grade
declines at other mining areas. As a result, Dukat silver production for
the quarter increased by 3% y-o-y to 6.3 Moz while gold production was up
17% to 22 Koz. Due to the abnormally cold weather, last shipments of ore
in 2022 were canceled.
ALBAZINO
3 months ended Dec % 12 months ended Dec %
31, 31,
2022 2021 change 2022 2021 change
MINING
Waste mined, Mt 8.1 6.7 +21% 30.6 23.0 +33%
Underground 4.4 5.2 -16% 19.1 16.9 +13%
development, km
Ore mined, Kt 841 729 +15% 3,849 2,259 +70%
Open pit 635 527 +20% 2,994 1,485 +102%
Underground 207 202 +2% 855 774 +10%
Gold grade, g/t 2.7 3.8 -30%
Open-pit 2.2 3.9 -43%
Underground 4.3 3.8 +14%
PROCESSING
Albazino concentrator
Ore processed, Kt 470 448 +5% 1,843 1,777 +4%
Gold grade, g/t 2.9 5.2 -44% 3.2 4.4 -29%
Gold recovery1 85.2% 89.6% -5% 86.4% 89.1% -3%
Concentrate produced, 34.6 39.6 -13% 134.8 143.7 -6%
Kt
Concentrate gold 32.8 52.7 -38% 37.2 49.0 -24%
grade, g/t
Gold in concentrate, 36 67 -46% 161 226 -29%
Koz2
Kutyn Heap Leach
Ore stacked, Kt 340 - NA 902 - NA
Gold grade, g/t 3.9 - NA 3.9 - NA
Gold production, Koz 39 - NA 52 - NA
Amursk POX
Concentrate 31 27 +14% 136 151 -10%
processed, Kt
Gold grade, g/t 33.3 51.1 -35% 39.3 50.5 -22%
Gold recovery 95.9% 96.5% -1% 96.2% 96.4% -0%
Gold produced, Koz 24 59 -59% 177 248 -29%
TOTAL PRODUCTION
Gold, Koz 63 59 +7% 229 248 -8%
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, gold production for the reporting quarter increased by 7%
y-o-y to 63 Koz thanks to contribution from the recently launched Kutyn
Heap Leach. Full-year production declined by 8% to 229 Koz of gold as the
high-grade Anfisa open pit was fully depleted.
Construction of the power line linking Albazino to the grid has commenced.
Commissioning is expected in Q2 2025.
AMURSK POX
3 months ended Dec % 12 months ended Dec %
31, 31,
2022 2021 change 2022 2021 change
Concentrate 47 43 +10% 191 214 -11%
processed, Kt
Albazino 31 26 +18% 132 142 -7%
Kyzyl 13 11 +25% 48 55 -12%
Nezhda 3 - NA 7 - NA
Mayskoye 0 6 -100% 0 8 -98%
Veduga - - NA - 4 -100%
Other1 - 1 -100% 4 5 -29%
Gold recovery 93.4% 94.4% -1% 94.8% 94.3% +1%
Average gold grade, 60.9 71.9 -15% 63.0 72.0 -13%
g/t
Average sulphur grade 16.5% 15.9% +4% 15.9% 14.2% +12%
Total gold produced2, 95 102 -6% 392 466 -16%
Koz
Albazino 24 56 -57% 174 227 -23%
Kyzyl 67 34 +94% 205 204 +1%
Nezhda 5 - NA 8 - NA
Mayskoye 0 8 -100% 2 14 -89%
Veduga - 0 -100% - 11 -100%
Other1 0 3 -88% 3 10 -75%
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 annual 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 95% for the year.
A planned two-week autoclave maintenance shutdown was successfully
completed in October.
OMOLON
3 months ended Dec % 12 months ended Dec %
31, 31,
2022 2021 change 2022 2021 change
MINING
Waste mined, Mt 1.8 1.6 +9% 7.7 4.9 +57%
Underground 2.5 3.1 -19% 10.9 11.8 -7%
development, Km
Ore mined, Kt 197 257 -23% 628 740 -15%
Open pit 102 165 -38% 216 407 -47%
Underground 95 92 +3% 413 332 +24%
Grade
Gold, g/t 6.1 6.6 -7%
Silver, g/t 16.8 29.3 -43%
PROCESSING
Kubaka Mill
Ore processed, Kt 214 211 +1% 860 862 -0%
Grade
Gold, g/t 7.9 6.8 +16% 6.6 6.7 -1%
Silver, g/t 22 31 -27% 22 52 -58%
Recovery1
Gold 93.9% 95.4% -2% 93.9% 94.8% -1%
Silver 77.2% 72.6% +6% 76.6% 79.1% -3%
Gold production, Koz 49 49 +1% 168 180 -6%
Silver production, 0.1 0.2 -42% 0.5 1.2 -62%
Moz
Birkachan Heap Leach
Ore stacked, Kt 188 150 +25% 655 851 -23%
Gold grade, g/t 1.1 1.1 +3% 1.1 1.7 -37%
Gold production, Koz 5 4 +40% 24 21 +12%
TOTAL PRODUCTION
Gold, Koz 55 53 +4% 192 201 -4%
Silver, Moz 0.1 0.2 -37% 0.5 1.3 -59%
Note:
(1) Technological recovery, includes gold and silver within
work-in-progress inventory.
In Q4, gold production at Omolon grew by 4% y-o-y to 55 Koz thanks to
increased volumes of higher-grade ore from the Burgali open pit.
NEZHDA
3 months ended Dec % 12 months ended Dec %
31, 31,
2022 2021 change 2022 2021 change
MINING
Waste mined, Mt 3.1 5.2 -40% 18.1 22.0 -18%
Ore mined (open 566 255 +122% 2,654 1,192 +123%
pit), Kt
Grade
Gold, g/t 3.0 2.2 +35%
Silver, g/t 41.8 13.5 +210%
PROCESSING
Ore processed, Kt 511 344 +49% 2,011 344 +485%
Grade
Gold, g/t 4.8 3.7 +29% 4.0 3.7 +9%
Silver, g/t 54 24 +127% 44 24 +86%
Recovery1
Gold 79% 73% +8% 76% 73% +3%
Silver 88% 67% +32% 83% 67% +25%
Gold in concentrate, 61 30 +106% 195 30 +560%
Koz
Silver in 0.8 0.2 +347% 2.4 0.2 +1,276%
concentrate, Moz
Concentrate shipped, 4 - NA 28 - NA
Kt
Payable gold in 13 - NA 74 - NA
concentrate, Koz
Payable silver in 0.6 - NA 1.7 - NA
concentrate, Moz
Amursk POX
Concentrate 3 - NA 7 - NA
processed, Kt
Gold grade, g/t 40.1 - NA 40.3 - NA
Gold recovery 87.4% - NA 88.6% - NA
Gold produced, Koz 5 - NA 8 - NA
Gold produced in 18 - NA 29 - NA
dore, Koz
TOTAL PRODUCTION1
Gold, Koz 35 20 +74% 111 20 +454%
Silver, Moz 0.6 0.1 +395% 1.8 0.1 +1,398%
Notes:
(1) Includes concentrate produced and stockpiled for future sale, and
excludes low-grade material. Expected 90% gold payable ratio is applied.
In the first full year of operation, Nezhda reached its nameplate capacity
and recovery. Total annual production amounted to 111 Koz. The Company
expects the output to increase as soon as the gravity concentrate will be
redirected from Voro and Dukat to the intensive cyanidation section of
POX-2 (launch planned for Q2 2023) and flotation concentrate processed at
POX-2 after its launch in H1 2024 (currently low-carbon concentrate is
processed at POX-1 and high-carbon mostly stockpiled).
Mining activity at the Nezhda open-pit is temporarily suspended from the
1st of December 2022 for four months in order to optimize costs.
Sufficient ore stockpiles are available to ensure full productivity of the
flotation plant for several months.
MAYSKOYE
3 months ended Sep % 12 months ended Dec %
31, 31,
2022 2021 change 2022 2021 change
MINING
Waste mined, Mt 0 0.8 -100% 2.6 3.7 -30%
Underground 5.8 4.7 +22% 21.3 19.5 +9%
development, km
Ore mined, Kt 162 198 -19% 839 781 +7%
Open-pit - 25 -100% 127 109 +16%
Underground 162 174 -7% 712 671 +6%
Gold grade, g/t 5.7 5.7 +1%
Open-pit 5.4 4.5 +18%
Underground 5.7 5.8 -2%
PROCESSING
Ore processed, Kt 242 232 +5% 925 901 +3%
Gold grade, g/t 5.4 5.4 -1% 5.6 5.7 -3%
Gold recovery1 90.8% 92.2% -2% 82.8% 86.9% -5%
Gold in concentrate, 38 37 +2% 133 140 -5%
Koz2
Payable gold in
concentrate shipped 53 43 +24% 112 117 -5%
to offtakers, Koz
Amursk POX
Gold produced in dore
from concentrate 0 8 -100% 2 14 -89%
(POX), Koz
Gold produced in dore 4 3 +35% 7 8 -17%
from carbon, Koz3
TOTAL PRODUCTION
Gold, Koz 57 54 +6% 120 139 -14%
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 Q4, gold production at Mayskoye recorded a y-o-y increase of 5% and
amounted to 57 Koz driven by concentrate stockpile unwinding namely sale
to China. Annual output was 14% lower y-o-y due to grade and recovery
decrease (higher carbon content).
Conveyor system has been fully ramped up. In 2023, the backfill plant
construction project will enter full-scale construction. Commissioning,
which will help reduce dilution and thus optimize costs, is scheduled for
2024.
SVETLOYE
3 months ended Dec % 12 months ended Dec %
31, 31,
2022 2021 change 2022 2021 change
MINING
Waste mined, Mt 1.5 1.6 -5% 6.2 4.6 +33%
Ore mined (open pit), 704 400 +76% 2,542 1,800 +41%
Kt
Gold grade, g/t 2.3 2.1 +8%
PROCESSING
Ore stacked, Kt 331 304 +9% 1,404 1,404 +0%
Gold grade, g/t 3.4 2.4 +45% 3.1 3.0 +6%
Gold production, Koz 28 25 +9% 103 109 -5%
TOTAL PRODUCTION
Gold, Koz 28 25 +9% 103 109 -5%
In Q4, ongoing Emmy pit development drove increases in ore mined and grade
processed. Ore stacking volumes also grew on the back of favorable weather
conditions and sufficient ore moisture. Gold production for the quarter
was up by 9% y-o-y to 28 Koz.
Full-year production was down by 5% to 103 Koz of gold driven by negative
grade dynamics during the first nine months of 2022.
VORO
3 months ended Dec % 12 months ended Dec %
31, 31,
2022 2021 change 2022 2021 change
MINING
Waste mined, Mt 1.4 2.7 -49% 10.1 9.1 +11%
Ore mined (open pit), 70 217 -68% 330 456 -28%
Kt
Gold grade, g/t 4.4 3.8 +14%
PROCESSING
CIP
Ore processed, Kt 263 265 -1% 1,030 1,049 -2%
Gold grade, g/t 3.0 2.8 +8% 2.6 2.2 +19%
Gold recovery1 76.6% 86.6% -12% 81.4% 85.0% -4%
Gold production, Koz 21 26 -19% 79 82 -3%
Heap Leach
Ore stacked, Kt - - NA - - NA
Gold grade, g/t - - NA - NA
Gold production, Koz 6 4 +45% 9 9 -6%
TOTAL PRODUCTION
Gold, Koz 27 30 -10% 91 91 -0%
Note:
(1) Technological recovery, includes gold within work-in-progress
inventory.
In Q4, CIP plant at Voro recordered higher grade but lower recoveries due
to processing of transitional ore from Peshernoye. Quarterly gold
production demonstrated negative y-o-y dynamics mostly on the back of the
high base of Q4 2021 when significant work-in-progress was released.
Full-year production was stable.
Mining at Saum was discontinued in Q3 on the back of deteriorating
economics (strong rouble and higher rail tariffs).
Voro flotation is nearing completion (90% completion rate). Start-up is
scheduled for Q2 2023.
POX-2
At POX-2, the installation of cable structures and equipment in the power
unit section of the downstream circuit was completed, voltage was
successfully supplied for the commissioning of the intensive cyanidation
section (expected in Q1 2023). The installation of pipelines and
connection of technological equipment are nearing completion.
CIL thermal circuit completed. High Bay heating and ventilation systems
are being installed (steam conditioning section). The construction of
metal frameworks and concrete works for installing technological equipment
in the CIL and High Bay sections continues.
The project remains on track to be fully commissioned in Q2 2024.
SUSTAINABILITY, HEALTH AND SAFETY
There were no fatal accidents in 2022. 13 lost-time incidents took place
among Polymetal’s employees and 12 among contractors, all classified as
minor. Most were the result of slipping or tripping while walking or being
jammed by a rotating mechanism. Employees’ lost-time injury frequency rate
(LTIFR) decreased by 17% y-o-y and stood at 0.10 (compared with 0.12 in
2021). Days lost due to work-related employees’ injuries for the full year
were down by 43% y-o-y to 877 (compared with 1,545 in 2021).
PERSONNEL
Alexander Simon (47) was appointed as the Director of the Magadan Business
Unit. Prior to this role, he held various positons at Polymetal since
2003, most recently as a Managing Director at Nezhda. Alexander started
his career in 1995 at “Karelsky Okatysh”, an iron ore mining company. He
holds a degree in mining engineering from St. Petersburg State Mining
Institute.
Oleg Pavlov (53) was appointed the Managing Director for Nezhda. Oleg
joined Polymetal in 2012 and held various positions at Albazino, having
grown from Head of open-pit to senior executive roles with his previous
position being Technical Director at Nezhda. Oleg began his career in 1991
at “Kurzhunkul mine management”. Prior to joining Polymetal he held
various executive roles at Aluminium of Kazakhstan Company. Mr Pavlov
graduated from Rudny Industrial Institute (Kazakhstan) as an open-pit
mining engineer.
Alexey Sharabarin (47) was appointed as the Managing Director at Albazino.
Alexey is a mining professional with more than 25 years of experience in
the industry. He joined Polymetal in 2006 at Voro and held various
positions at Veduga, Albazino and Dukat. Alexey graduated from Krasnoyarsk
Institute of Non-ferrous Metals with a degree in open-pit mining.
Abdurakhman Isaev (39) was appointed as the Managing Director at Varvara.
Abdurakhman joined Polymetal in 2018 and held various senior positions at
Mayskoye and Varvara. Overall he has 18 years of experience in the
industry. Mr Isaev holds degree in Underground mining of mineral deposits
from the Moscow State Mining University.
══════════════════════════════════════════════════════════════════════════
ISIN: JE00B6T5S470
Category Code: UPD
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.: 218090
News ID: 1542801
End of Announcement EquityStory RS News Service
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