DJ Polymetal International plc: Q4 and full year 2018 production results
Dow Jones received a payment from EQS/DGAP to publish this press release.
Polymetal International plc (POLY)
Polymetal International plc: Q4 and full year 2018 production results
31-Jan-2019 / 10:00 MSK
Dissemination of a Regulatory Announcement that contains inside information
according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
Release time IMMEDIATE LSE, MOEX: POLY / ADR: AUCOY
Date 31 January 2019
Polymetal International plc
Q4 and full year 2018 production results
Polymetal International plc reports record production for the fourth quarter
and twelve months ended December 31, 2018.
"The Company had a very strong Q4. Full-year production of 1.56 Moz of gold
equivalent (GE) exceeded the original guidance for the seventh year in a
row", said Vitaly Nesis, Group CEO of Polymetal. "Successful execution at
Kyzyl and the POX debottleneck have already translated into significant
production and free cash flow generation".
HIGHLIGHTS
? The Company's Q4 production jumped 23% year-on-year to a record 497 Koz
of GE on the back of the full ramp-up at Kyzyl. FY2018 GE production of
1,562 Koz was up 9% year-on-year exceeding our original production
guidance of 1,550 Koz.
? Following a very smooth ramp-up, Kyzyl delivered a total of 96 Koz of
gold following its launch in June, well above the original 80 Koz
guidance. 2019 will be the mine's first full-year of operation at full
capacity, with targeted production of more than 300 Koz.
? In Q4 net debt fell by US $301 million to US$ 1,518 million. Strong cash
flow from seasonal de-stockpiling at Mayskoye supported first revenues
from Kyzyl as well as proceeds from the disposal of non-core assets.
? Following Board approval and the receipt of all necessary government
approvals, open-pit mining and construction have commenced at Nezhda.
First production is expected in Q4 2021.
? Polymetal had no fatalities or major accidents in Q4. Full year safety
statistics also demonstrate a meaningful improvement year-on-year.
? Based on the actual 2018 average Rouble and Tenge exchange rates against
the US dollar, the Company expects full year costs to come in close to the
bottom of the range of its initial cost guidance of US$ 650-700/GE oz for
Total Cash Costs ("TCC") and US$ 875-925/GE oz for All-in Sustaining Cash
Costs ("AISC").
? The Board has decided that there will be no special dividend for 2018 as
free cash flow will be fully distributed to shareholders through the
regular dividend at a payout ratio of 50% of underlying net income. A
final dividend for 2018 will be proposed by the Board in March 2019 based
on full-year financial results.
? The Company will host a POX workshop on 11 February 2019 in London to
provide an update on the Amursk POX-2 project and an overview of the POX
technology.
2019 OUTLOOK
? The Company reiterates its current production guidance of 1.55 Moz and
1.6 Moz of GE for 2019 and 2020, respectively. The first full year of
production at Kyzyl and an increase in grades at Omolon are expected to
offset planned grade declines at Albazino, Voro and Dukat. Traditionally,
production in both years will be weighted towards 2H due to seasonality.
? TCC in 2019 is expected to be in the range of US$ 600-650/ GE oz while
AISC is expected to average US$ 800-850/ GE oz. The anticipated decrease
in costs will primarily be driven by the increasing share of low-cost
production from Kyzyl, as well as the disposal of high-cost Kapan and
Okhotsk. The cost guidance is contingent on the Rouble/Dollar exchange
rate and Brent oil price.
? Capital expenditures in 2019 are expected to be approximately US$ 380
million, in line with the previous guidance. Nezhda and POX-2 (subject to
Board approval) will consume roughly half of the capex budget with the
second half assigned to maintenance capital, capitalised stripping and
exploration.
3 months ended % 12 months ended %
Dec 31, change1 Dec 31, change1
2018 2017 2018 2017
Waste 32.2 29.3 +10% 126.7 114.0 +11%
mined, Mt
Underground 33.2 31.5 +5% 130.0 115.4 +13%
development
, km
Ore mined, 3.8 2.9 +29% 14.0 12.6 +11%
Mt
Open-pit 2.6 1.9 +42% 9.3 8.2 +13%
Underground 1.1 1.1 +6% 4.7 4.3 +7%
Ore 3.7 3.0 +24% 15.2 13.0 +16%
processed,
Mt
Production
Gold, Koz 414 317 +31% 1,216 1,075 +13%
Silver, Moz 5.9 6.6 -11% 25.3 26.8 -6%
Copper, Kt 1.3 0.8 +65% 3.9 2.7 +43%
Zinc, Kt 1.0 1.2 -12% 5.4 4.8 +12%
Gold 497 405 +23% 1,562 1,433 +9%
equivalent,
Koz2
Sales
Gold, Koz 432 356 +21% 1,198 1,099 +9%
Silver, Moz 8.3 8.3 +0% 25.7 26.5 -3%
Copper, Kt 1.4 1.3 +11% 3.3 2.6 +30%
Zinc, Kt 1.2 1.2 -3% 5.6 4.7 +20%
Revenue, 652 586 +11% 1,882 1,815 +4%
US$m3
Net debt, 1,518 1,819 -17% 1,518 1,421 +7%
US$m4
Safety5
LTIFR 0 0.18 -100% 0.09 0.15 -40%
Fatalities 0 1 -100% 1 2 -50%
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 1:80 Ag/Au, 5:1 Cu/Au and 2:1 Zn/Au
conversion ratios.
(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 2018 (for the three months period) and
31 December 2017 (for the nine months period).
(5) LTIFR = lost time injury frequency rate per 200,000
hours worked.
PRODUCTION BY MINE
3 months % 12 months %
ended Dec 31, change ended Dec 31, change
2018 2017 2018 2017
GOLD EQ. (KOZ)1
Kyzyl 86 - NA 96 - NA
Dukat 75 81 -7% 306 322 -5%
Albazino-Amursk 67 71 -5% 308 269 +15%
Omolon 58 64 -8% 195 202 -4%
Mayskoye 70 35 +102% 117 124 -6%
Varvara 39 42 -8% 142 130 +9%
Voro 29 31 -6% 107 120 -10%
Svetloye 23 22 +7% 136 106 +28%
Okhotsk 35 48 -25% 104 111 -7%
Kapan 13 13 +6% 51 50 +3%
TOTAL 497 405 +23% 1,562 1,433 +9%
Notes: (1) Based on 1:80 Ag/Au, 5:1 Cu/Au and 2:1 Zn/Au conversion ratios.
CONFERENCE CALL AND WEBCAST
Polymetal will hold a conference call and webcast on Thursday, 31 January
2019 at 9:00 London time (12:00 Moscow time).
To participate in the call, please dial:
8 800 500 98 63 access code 58246440# (free from Russia), or
+ 44 203 009 24 83 (free from the UK), or
+ 1 646 502 51 26 (free from the US), or
follow the link: http://polymetal310119-live.audio-webcast.com. Please be
prepared to introduce yourself to the moderator or register.
Webcast replay will be available on Polymetal's website
(www.polymetalinternational.com [1]) and at
http://polymetal310119-live.audio-webcast.com. A recording of the call will
be available immediately after the call at +44 20 3364 51 47 (from within
the UK), +1 646 722 49 69 (USA Toll Free) and +7 495 249 16 71 (from within
Russia), access code 418825014#, from 12:30 Moscow time Thursday, 31
January, till 12:30 Moscow time Thursday, 7 February, 2019.
Enquiries
Media Investor Relations
FTI +44 20 3727 Polymetal ir@polymetalinternational.com
Consulting 1000
Eugenia +44 20 7016 9505 (UK)
Leonid Fink Onuschenk
o
+7 812 334 3666 (Russia)
Viktor
Pomichal Michael
Vasiliev
Joint Corporate Brokers
Morgan +44 20 7425 RBC +44 20 7653 4000
Stanley 8000 Europe
Limited
Andrew
Foster Tristan
Lovegrove
Richard
Brown Marcus
Jackson
Panmure
Gordon +44 20 7886
2500
Charles
Lesser
James
Stearns
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
(MORE TO FOLLOW) Dow Jones Newswires
January 31, 2019 02:00 ET (07:00 GMT)
DJ Polymetal International plc: Q4 and full year -2-
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, chang Dec 31, chang
e e
2018 2017 2018 2017
MINING
Waste mined, 16.1 12.6 +28% 60.9 48.5 +25%
Mt
Ore mined 416 - NA 1,249 - NA
(open-pit),
Kt
Gold grade, 5.5 - NA
g/t
PROCESSING
Ore 478 - NA 914 - NA
processed,
Kt
Gold grade, 6.6 - NA 5.7 - NA
g/t
Gold 85.5% - NA 81.5% - NA
recovery
Concentrate 34 - NA 56 - NA
produced, Kt
Concentrate 79 - NA 75 - NA
gold grade,
g/t
Gold in 86.4 - NA 133.6 - NA
concentrate,
Koz1
Concentrate 40 - NA 45 - NA
shipped, Kt
Payable gold 79.3 - NA 89.3 - NA
shipped, Koz
Amursk POX
Concentrate 2 - NA 2 - NA
processed,
Kt
Gold grade, 127 - NA 127 - NA
g/t
Gold 95.5% - NA 95.5% - NA
recovery
Gold 7.0 - NA 7.0 - NA
produced,
Koz
TOTAL
PRODUCTION
Gold, Koz 86.3 - NA 96.3 - NA
Note: (1) For information only; not considered as gold produced and
therefore not reflected in the table representing total production. It will
be included in total production upon shipment to off-taker or dore
production at Amursk POX.
Kyzyl delivered a robust performance in Q4, exceeding the initial plan on
grade, throughput and production. Full-year gold production came in at 96
Koz of gold while gold in concentrate amounted to 134 Koz. The
outperformance is mainly attributable to the softer nature of the rock, as
well as the presence of small high-grade ore pods.
The new railway spur was successfully commissioned on October 19th, with the
pace of railway shipments now running at full capacity.
Offtake agreements for all concentrate production for 2019 successfully
secured despite noticeable tightening of markets in China.
DUKAT OPERATIONS
3 months ended % 12 months ended %
Dec 31, chang Dec 31, chang
e e
2018 2017 2018 2017
MINING
Dukat
Waste mined, - - NA - 0.3 -100%
Mt
Underground 8.9 8.9 +1% 35.6 33.8 +5%
development,
km
Ore mined, 404 393 +3% 1,660 1,652 +0%
Kt
Open-pit - - NA - 48 -100%
Underground 404 393 +3% 1,660 1,605 +3%
Grade
Gold, g/t 0.5 0.4 +23%
Silver, g/t 274 306 -10%
Goltsovoye
Underground 1.5 1.8 -18% 6.8 6.9 -2%
development,
km
Ore mined 49 47 +5% 193 190 +1%
(underground
), Kt
Silver 321 366 -12%
grade, g/t
Lunnoye
Underground 3.7 3.3 +11% 13.5 10.3 +31%
development,
km
Ore mined 141 143 -1% 568 573 -1%
(underground
), Kt
Grade
Gold, g/t 1.6 1.4 +18%
Silver, g/t 284 334 -15%
Perevalnoye
Underground 0.9 1.0 -6% 3.6 3.2 +11%
development,
km
Ore mined 1 - NA 5 - NA
(underground
), Kt
Silver 152 - NA
grade, g/t
TOTAL HUB
Waste mined, - - NA - 0.3 -100%
Mt
Underground 15.0 15.0 +0% 59.6 54.3 +10%
development,
km
Ore mined, 595 583 +2% 2,426 2,416 +0%
Kt
Open-pit - - NA - 48 -100%
Underground 595 583 +2% 2,426 2,368 +2%
PROCESSING
Dukat
Ore 500 517 -3% 1,995 1,979 +1%
processed,
Kt
Grade
Gold, g/t 0.5 0.5 +8% 0.5 0.4 +24%
Silver, g/t 288 316 -9% 297 321 -7%
Recovery1
Gold 86.7% 86.6% +0% 86.7% 86.3% +0%
Silver 88.0% 88.4% -0% 88.2% 88.6% -0%
Production
Gold, Koz 7.0 6.5 +7% 29.5 24.2 +22%
Silver, Moz 4.0 4.5 -11% 16.4 17.7 -7%
Lunnoye
Ore 116 114 +1% 463 460 +1%
processed,
Kt
Grade
Gold, g/t 1.5 1.2 +22% 1.3 1.2 +7%
Silver, g/t 318 320 -1% 327 352 -7%
Recovery1
Gold 84.2% 87.5% -4% 85.1% 90.3% -6%
Silver 91.7% 93.3% -2% 91.3% 92.8% -2%
Production
Gold, Koz 4.6 4.0 +13% 16.7 16.8 -0%
Silver, Moz 1.1 1.1 -6% 4.4 4.8 -9%
TOTAL
PRODUCTION
Gold, Koz 11.5 10.5 +10% 46.2 41.0 +13%
Silver, Moz 5.1 5.6 -10% 20.8 22.5 -8%
Underground mines at Dukat, Goltsovoye and Lunnoye continued to operate at
full capacity during the quarter, which translated into a slight increase in
ore mined volumes year-on-year.
Q4 gold production at the Dukat hub was up 10% over the prior year period,
while full-year production was up 13% as the Omsukchan concentrator
continued to process ore from gold-rich veins at the deeper levels of Dukat
and from Lunnoye. Quarterly silver production fell 10% year-on-year, while
full-year production was down 8% on the back of planned grade declines at
the underground mine.
At Lunnoye, quarterly processing volumes remained flat, while gold
production increased by 13% year-on-year as higher grade material from Zone
5 was processed through the mill, making up for the decline in recovery
levels. Silver production on the other hand, was down 6% to 1.1 Moz, which
is mostly attributable to depletion of high-grade areas of Zone 7.
Goltsovoye mine is approaching the end of its economic life with underground
development expected to cease in Q3 2019 and ore mining to end in early
2020.
At Perevalnoye, positive exploration results led to a significant increase
in average ore body widths and reserve tonnage. This prompted a
re-consideration of the previously proposed underground mining method. As a
result, the start of stoping has been delayed and will commence in Q4 2019.
ALBAZINO-AMURSK
3 months ended Dec % 12 months ended %
31, chang Dec 31, chang
e e
2018 2017 2018 2017
MINING
Waste mined, 5.4 5.0 +8% 21.3 19.6 +9%
Mt
Underground 2.3 2.2 +8% 9.2 7.8 +19%
development,
Km
Ore mined, 412 365 +13% 1,784 1,832 -3%
Kt
Open-pit 317 295 +7% 1,379 1,512 -9%
Underground 95 70 +36% 405 320 +27%
Gold grade, 5.2 4.7 +10%
g/t
Open-pit 5.2 4.7 +12%
Underground 5.0 4.9 +0%
PROCESSING
Albazino
concentrator
Ore 432 434 NA 1,724 1,725 -0%
processed,
Kt
Gold grade, 5.6 5.1 +8% 5.3 4.9 +8%
g/t
Gold 86.2% 87.5% -1% 85.7% 87.5% -2%
recovery1
Concentrate 37.4 35.2 +6% 143.1 140.9 +2%
produced, Kt
Concentrate 55.2 54.8 +1% 54.5 52.3 +4%
gold grade,
g/t
Gold in 66.4 62.0 +7% 250.7 237.2 +6%
concentrate,
Koz2
Amursk POX
Concentrate 39 40 -3% 170 154 +11%
processed,
Kt
Gold grade, 55.2 58.6 -6% 56.9 58.3 -2%
g/t
Gold 96.2% 97.2% -1% 96.7% 96.4% +0%
recovery
Gold 67.5 71.2 -5% 307.9 268.5 +15%
produced,
Koz
TOTAL
PRODUCTION
Gold, Koz 67.5 71.2 -5% 307.9 268.5 +15%
Notes: (1) To concentrate
(MORE TO FOLLOW) Dow Jones Newswires
January 31, 2019 02:00 ET (07:00 GMT)
DJ Polymetal International plc: Q4 and full year -3-
(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, waste stripping started at the new Ekaterina-2 open pit.
Underground mine productivity continued to improve following the full
transition to partially cemented waste backfill. The new mining method had a
positive impact on grades that offset slightly lower recovery levels
impacted by near-surface partially oxidized ore from Ekaterina-1. As a
result, both quarterly and yearly gold in concentrate volumes were up 7% and
6%, respectively.
Full-year production was up 15% to a record 308 Koz of gold on the back of
higher processing volumes. The downtick in quarterly gold production is due
to the 20-day debottlenecking and maintenance shutdown that was successfully
completed early in Q4.
Underground development started at the new Ekaterina-2 underground mine. Ore
mining is expected to commence in Q4 2019.
AMURSK POX
3 months ended Dec % 12 months ended %
31, chang Dec 31, chang
e e
2018 2017 2018 2017
Concentrate 45 40 +12% 176 160 +10%
processed,
Kt
Albazino 31 36 -12% 147 137 +7%
Purchased 8 5 +68% 23 16 +43%
feedstock1
Mayskoye 4 - NA 5 6 -26%
Kyzyl 2 - NA 2 - NA
Total gold 81.2 71.2 +14% 322.3 279.6 +15%
produced2,
Koz
Notes: (1) Included in reportable production at Albazino
(2) For information only. Already accounted for in production at operating
mines.
At Amursk POX, the debottlenecking project was successfully completed with
all new sections now operating at full capacity. Low-carbon Kyzyl
concentrate was introduced to the feed during the quarter, achieving
recovery of 96%, in line with design parameters.
OMOLON OPERATIONS
3 months ended % 12 months ended %
Dec 31, change Dec 31, change
2018 2017 2018 2017
MINING
Sopka
Waste mined, 1.5 2.2 -28% 6.1 6.4 -5%
Mt
Ore mined 227 37 +511% 627 261 +140%
(open pit),
Kt
Grade
Gold, g/t 2.7 3.7 -26%
Silver, g/t 104 117 -12%
Tsokol
Underground 1.0 0.9 +6% 3.5 3.8 -7%
development,
Km
Ore mined 43 47 -7% 152 153 -0%
(underground
), Kt
Gold grade, 7.3 10.4 -29%
g/t
Birkachan
Underground 1.3 1.1 +18% 5.0 4.5 +11%
development,
Km
Ore mined 49 31 +60% 143 114 +25%
(underground
), Kt
Gold grade, 9.7 7.6 +28%
g/t
Oroch
Waste mined, - - NA - 0.1 -100%
Mt
Ore mined - - NA - 81 -100%
(open pit),
Kt
Grade
Gold, g/t - 2.3 -100%
Silver, g/t - 164 -100%
Olcha
Waste mined, - - NA - 0.2 -100%
Mt
Underground 0.9 0.9 +4% 4.3 3.2 +36%
development,
Km
Ore mined, 36 10 +264% 92 83 +11%
Kt
Open pit - - NA - 73 -100%
Underground 36 10 +264% 92 10 +818%
Gold grade, 9.7 5.6 +74%
g/t
TOTAL HUB
Waste mined, 1.5 2.2 -28% 6.1 6.7 -9%
Mt
Underground 3.2 2.9 +10% 12.9 11.5 +12%
development,
Km
Ore mined, 356 125 +186% 1,014 692 +47%
Kt
Open-pit 227 37 +511% 627 415 +51%
Underground 129 88 +47% 387 277 +40%
PROCESSING
Birkachan
Heap Leach
Ore stacked, 39 96 -60% 997 459 +117%
Kt
Gold grade, 1.1 1.3 -17% 1.1 1.3 -13%
g/t
Gold 84.8% 90.1% -6%
recovery
Gold 3.0 1.0 +193% 12.9 4.4 +190%
production,
Koz
Kubaka Mill
Ore 220 212 +4% 862 858 +1%
processed,
Kt
Grade
Gold, g/t 8.2 9.2 -11% 5.7 6.7 -15%
Silver, g/t 37 46 -21% 98 90 +9%
Recovery1
Gold 95.7% 94.4% +1% 95.5% 94.2% +1%
Silver 75.4% 79.1% -5% 86.4% 83.9% +3%
Gold 52.9 58.6 -10% 152.7 172.0 -11%
production,
Koz
Silver 0.2 0.3 -33% 2.3 2.1 +14%
production,
Moz
TOTAL
PRODUCTION
Gold, Koz 55.8 59.6 -6% 165.5 176.4 -6%
Silver, Moz 0.2 0.3 -33% 2.3 2.1 +14%
Note: (1) Technological recovery, includes gold and silver within
work-in-progress inventory
Full-year gold production at Omolon was 166 Koz, down 6% over 2017 on the
back of grade declines at the Kubaka mill which were partially offset by
ramp-up to full capacity at the Birkachan heap leach. The grade dynamics is
largely driven by the increased share of lower grade ore from the Sopka open
pit as the Tsokol underground mine is winding down ahead of the expected
pillar removal operations in 2019-2020.
Mining activities at the Birkachan underground mine ramped up with ore mined
volumes up year-on-year. A trial run of an underground digital fleet
management system commenced at Birkachan. The system enables the analysis of
operating data from trucks, loaders, and drill rigs in real time.
At the Yolochka satellite deposit (80 km from the Kubaka mill) mining from
the open pit is expected to start in Q2.
MAYSKOYE
3 months ended % 12 months ended %
Dec 31, change Dec 31, change
2018 2017 2018 2017
MINING
Waste mined, 1.4 0.4 +291% 5.0 4.4 +13%
Mt
Underground 6.4 5.3 +20% 23.9 19.7 +21%
development,
km
Ore mined, 239 178 +34% 1,005 944 +7%
Kt
Open-pit 91 17 +436% 372 225 +65%
Underground 148 161 -8% 633 719 -12%
Grade, g/t 6.4 6.3 +1%
Open-pit 8.0 9.6 -17%
Underground 5.5 5.3 +4%
PROCESSING
Ore 221 62 +254% 861 711 +21%
processed,
Kt
Sulphide ore 221 62 +254% 491 632 -22%
Oxide ore - - NA 370 79 +367%
Gold grade, 5.9 5.3 +11% 7.1 5.9 +21%
g/t
Sulphide ore 5.9 5.3 +11% 5.5 5.4 +3%
Oxide ore - - NA 9.2 9.9 -7%
Gold 85.2% 90.0% -5% 76.8% 87.0% -12%
recovery
Sulphide ore 85.2% 90.0% -5% 86.6% 87.7% -1%
Oxide ore - - NA 69.0% 46.9% +49%
Gold in 35.6 9.6 +270% 119.8 96.4 +24%
concentrate,
Koz2
Concentrate 25.4 23.6 +8% 55.2 62.9 -12%
shipped, Kt
Amursk POX
Concentrate 4.0 - NA 4.6 6.1 -26%
processed,
Kt
Gold grade, 53.0 - NA 52.7 49.6 +6%
g/t
Gold 96.1% - NA 96.1% 96.2% -0%
recovery
Gold 6.7 - NA 7.4 11.1 -33%
produced in
dore from
concentrate
(POX), Koz
Gold 23.5 - NA 24.6 - NA
produced in
dore from
carbon, Koz3
Payable gold 39.6 34.6 +14% 84.9 101.7 -17%
in
concentrate
shipped, Koz
TOTAL
PRODUCTION
Gold, Koz 69.8 34.6 +102% 116.9 124.1 -6%
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 Voro and Amursk POX
Underground development at Mayskoye continued to increase as the new mine
level (400 m below surface) is prepared for the start of stoping in Q1 2019.
Oxide ore processing through the combined float-leach circuit delivered
solid full-year results with a significant improvement over the previous
year. Recoveries were in line with the metallurgical test work. Oxide ore
treatment will re-commence in Q2 2019.
VARVARA
3 months ended % 12 months ended %
Dec 31, change Dec 31, chang
e
2018 2017 2018 2017
MINING
Varvara
Waste mined, 1.9 1.5 +27% 7.2 9.6 -25%
Mt
Ore mined, Kt 303 191 +58% 870 1,261 -31%
Grade
Gold, float 1.2 1.0 +26%
ore, g/t
Copper, float 0.59% 0.52% +15%
ore, %
Gold, leach 1.2 1.0 +27%
ore, g/t
Komarovskoye
Waste mined, 5.0 5.1 -3% 21.5 14.2 +51%
Mt
Ore mined, Kt 561 619 -9% 2,268 1,982 +14%
(MORE TO FOLLOW) Dow Jones Newswires
January 31, 2019 02:00 ET (07:00 GMT)
Gold grade, 1.4 1.5 -9%
g/t
PROCESSING
Flotation
Ore 159 96 +65% 456 288 +58%
processed, Kt
Grade
Gold, g/t 2.6 1.3 +96% 3.3 1.9 +70%
Copper 0.59% 0.52% +14% 0.48% 0.61% -22%
Recovery1
Gold 78.5% 52.2% +50% 72.5% 64.3% +13%
Copper 92.5% 84.0% +10% 92.2% 83.1% +11%
Production
Gold (in 4.3 2.0 +119% 11.7 9.2 +28%
concentrate),
Koz
Copper (in 0.9 0.4 +121% 2.4 1.4 +68%
concentrate),
Kt
Veduga ore 22 11 +100% 108 102 +6%
toll
processed,
Kt2
Leaching
Ore 755 749 +1% 3,079 2,890 +7%
processed, Kt
Gold grade, 1.4 1.9 -28% 1.4 1.4 -3%
g/t
Gold 89.1% 85.8% +4% 88.1% 83.4% +6%
recovery1
Gold 29.7 38.1 -22% 118.2 113.9 +4%
production
(in dore),
Koz
Total ore 936 856 +9% 3,642 3,279 +11%
processed, Kt
TOTAL
PRODUCTION
Gold, Koz 34.0 40.1 -15% 129.9 123.1 +6%
Copper, Kt 0.9 0.4 +121% 2.4 1.4 +68%
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.
Full-year production at Varvara totalled 130 Koz of gold, an increase of 6%
year-on-year. This was primarily driven by growing processing volumes as
Komar railing capacity continues to improve.
Waste stripping started at the new Riverside pit at Varvara with first ore
expected in Q2 2019.
Gold recoveries in the leaching circuit continued to improve thanks to the
detailed geo-metallurgical mapping of Komar ore followed by the introduction
of flexible reagent additions earlier in the year. Copper float recoveries
jumped dramatically as less oxidized ore from lower levels of the Central
pit substituted for material from North-Eastern pit.
VORO
3 months ended % 12 months ended %
Dec 31, change Dec 31, chang
e
2018 2017 2018 2017
MINING
Voro
Waste 0.6 2.6 -78% 3.4 10.3 -67%
mined, Mt
Ore mined, 371 394 -6% 1,150 1,553 -26%
Kt
Gold grade
Primary, 3.5 3.4 +5%
g/t
Oxidised, 3.2 1.4 +121%
g/t
PROCESSING
Voro Heap
Leach
Ore - 55 -100% 62 358 -83%
stacked, Kt
Gold grade, - 1.1 -100% 1.4 1.2 +19%
g/t
Gold 73.2% 73.0% +0%
recovery
Gold 1.8 5.2 -65% 7.6 16.8 -55%
production,
Koz
Voro CIP
Ore 251 250 +0% 1,003 1,002 +0%
processed,
Kt
Gold grade, 3.7 3.5 +6% 3.9 4.0 -4%
g/t
Gold 81.8% 77.9% +5% 81.0% 80.1% +1%
recovery1
Gold 26.6 25.1 +6% 98.8 101.6 -3%
production,
Koz
TOTAL
PRODUCTION
Gold, Koz 28.4 30.3 -6% 106.4 118.4 -10%
Note: (1) Technological recovery, includes gold within work-in-progress
inventory
Gold production at Voro in Q4 decreased 6% year-on-year due to lower ore
grades and smaller contributions from the heap leach operation that shifted
to residual leaching.
Mining volumes continued to decline as the open pit nears depletion, which
is expected in Q3 2019. Exploration drilling identified substantial
mineralization below the open pit with technical studies currently underway
to determine the feasibility of underground mining.
SVETLOYE
3 months ended Dec % change 12 months ended %
31, Dec 31, chan
ge
2018 2017 2018 2017
MINING
Waste 0.2 0.1 +104% 0.7 0.4 +59%
mined, Mt
Ore mined 339 311 +9% 1,317 1,246 +6%
(open
pit), Kt
Gold 3.8 3.7 +2%
grade, g/t
PROCESSING
Ore 234 132 +77% 1,378 1,054 +31%
stacked,
Kt
Gold 3.5 2.8 +24% 3.7 4.4 -15%
grade, g/t
Gold 80.7% 80.7% +0%
recovery
Gold 23.3 21.9 +7% 135.3 105.6 +28%
production
, Koz
TOTAL
PRODUCTION
Gold, Koz 23.3 21.9 +7% 135.3 105.6 +28%
Svetloye delivered a solid set of both quarterly and yearly results on the
back of higher stacking volumes that offset minor grade declines. Gold
production in Q4 was up 7% at 23.3 Koz, while full-year production jumped
28% to 135 Koz.
Successful step-out drilling at the Emy pit and positive metallurgical test
work for the material from the nearby Levoberezhny property indicate
potential to extend the life-of-mine of Svetloye by approximately four years
to 2028.
OKHOTSK OPERATIONS (sold in December 2018)
3 months ended % 12 months ended %
Dec 31, change Dec 31, chan
ge
2018 2017 2018 2017
MINING
Avlayakan
Underground - 1.4 -100% 2.2 5.2 -57%
development,
km
Ore mined - 39 -100% 131 137 -4%
(underground
), Kt
Grade
Gold, g/t 13.7 15.9 -14%
Silver, g/t 101 147 -31%
Khotorchan
Waste mined, 0.1 - NA 0.6 - NA
Mt
Ore mined 15 - NA 86 - NA
(open pit),
Kt
Gold grade, 8.6 - NA
g/t
PROCESSING
Khakanja
Ore 156 155 +0% 625 623 +0%
processed,
Kt
Grade
Gold, g/t 6.1 7.9 -22% 4.4 4.7 -7%
Silver, g/t 111 124 -10% 101 111 -9%
Recovery1
Gold 96.8% 97.2% -0% 97.1% 97.0% +0%
Silver 84.4% 84.1% +0% 80.3% 78.6% +2%
Gold 29.8 41.7 -28% 83.4 90.4 -8%
production,
Koz
Silver 0.5 0.5 -7% 1.6 1.7 -1%
production,
Moz
TOTAL
PRODUCTION
Gold, Koz 29.8 41.7 -28% 83.4 90.4 -8%
Silver, Moz 0.5 0.5 -7% 1.6 1.7 -1%
Note: (1) Technological recovery, includes gold and silver within
work-in-progress inventory (precipitate)
At Okhotsk, Q4 gold production levels were down 28% year-on-year, with
full-year production down 8%. The decrease is primarily due to declining
grades as the Khakanja mill processed remaining material.
In December, Okhotsk was sold for a total consideration of US$ 30 million.
For more details, please refer to the transaction announcement dated 17
December 2018.
KAPAN (sold in January 2019)
3 months ended % 12 months ended %
Dec 31, change Dec 31, chang
e
2018 2017 2018 2017
MINING
Kapan
Underground 5.7 4.7 +22% 19.9 16.9 +17%
development,
km
Ore mined 168 140 +19% 637 527 +21%
(underground
), Kt
Grade
Gold, 1.8 2.2 -19%
g/t
Silver 30 39 -22%
, g/t
Copper 0.30% 0.30% -0%
, %
Zinc, 1.32% 1.31% +0%
%
Lichkvaz
Underground 0.6 - NA 2.3 - NA
development,
km
Ore mined 12 - NA 40 - NA
(underground
), Kt
Grade
Gold, g/t 2.9 - NA
Silver, g/t 23.1 - NA
Copper, % 0.42% - NA
PROCESSING
Ore 166 141 +18% 636 530 +20%
processed,
Kt
Grade
Gold, g/t 2.0 2.2 -9% 1.9 2.2 -13%
Silver, g/t 25 33 -23% 30 39 -23%
Copper, % 0.31% 0.34% -10% 0.30% 0.30% -1%
Zinc, % 1.07% 2.41% -56% 1.29% 1.30% -1%
Recovery
Gold 67.1% 79.8% -16% 78.2% 83.6% -6%
Silver 76.7% 82.1% -6% 81.7% 83.0% -2%
Copper 87.5% 93.6% -7% 93.0% 92.3% +1%
Zinc 81.5% 85.5% -5% 85.3% 89.1% -4%
TOTAL
PRODUCTION
Gold, Koz 7.8 6.9 +13% 27.8 28.0 -1%
Silver, Moz 0.1 0.1 +0% 0.4 0.5 -7%
Copper, Kt 0.4 0.4 +6% 1.5 1.3 +15%
Zinc, Kt 1.0 1.2 -12% 5.4 4.8 +12%
Q4 gold production at Kapan increased 13% year-on-year to 7.8 Koz due to
higher processing volumes that largely offset lower recoveries and grade
declines as the plant was treating third-party purchased ore and trialled
the processing of feed from Lichkvaz. Full-year production remained
relatively flat at 28 Koz, while gold equivalent production was up 3%
year-on-year at 51 Koz.
(MORE TO FOLLOW) Dow Jones Newswires
January 31, 2019 02:00 ET (07:00 GMT)
© 2019 Dow Jones News
