DJ Polymetal: Q3 2019 production results
Polymetal International plc (POLY)
Polymetal: Q3 2019 production results
24-Oct-2019 / 09:00 MSK
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
Release time IMMEDIATE LSE, MOEX, AIX: POLY / ADR: AUCOY
Date 24 October 2019
Polymetal International plc
Q3 2019 production results
Polymetal reports solid production results for the third quarter and nine
months ended September 30, 2019.
"Continued strong performance at Kyzyl is driving our production dynamics.
We now expect to exceed our full-year production guidance", said Vitaly
Nesis, Group CEO of Polymetal.
HIGHLIGHTS
? In Q3, the Company's gold equivalent ("GE") production grew by 7%
year-on-year to 476 Koz driven by Kyzyl contributing 94 Koz. Following the
successful completion of several improvement projects, Kyzyl concentrator
achieved steady-state throughput of 2.0 Mtpa, 11% above the original
design.
? Quarterly gold production gained 13% while silver output contracted by
20% on the back of 2018 asset disposals and planned grade decline at
Dukat.
? GE production for the first nine months of 2019 increased 16% to 1,232
Koz. Polymetal is likely to exceed its full-year production guidance of
1,550 Koz by up to 50 Koz.
? Q3 revenue increased by 43% to US$ 656 million on the back of higher
sales volumes and prices. The seasonal gap between production and sales
has been closed.
? The Company notes cost increases from royalties driven by commodity
prices yet maintains its cost guidance for 2019: TCC of US$ 600-650/GE oz
and AISC of US$ 800-850/GE oz.
? Net Debt of US$ 1.7 billion as of 30 September 2019 remained largely
unchanged compared to 30 June 2019. The Company generated significant free
cash flow and paid a regular semi-annual dividend of US$ 94 million (US$
0.20 per share).
? Construction and development activities at the Nezhda and the POX-2
projects continued on schedule.
? In Q3, Polymetal had its ESG ratings upgraded - MSCI ESG Ratings score
improved from BBB to A, and ISS-Oekom Corporate Rating was raised to C+.
Furthermore, the Company was reaffirmed as a member of the Dow Jones
Sustainability Index and FTSE4Good Index Series.
3 months ended % 9 months ended %
Sep 301, change2 Sep 301, change2
2019 2018 2019 2018
Waste 41.3 33.6 +23% 118.9 94.5 +26%
mined, Mt
Underground 25.9 31.2 -17% 80.2 96.8 -17%
development
, km
Ore mined, 4.5 3.6 +22% 13.0 10.2 +28%
Mt
Open-pit 3.4 2.5 +36% 9.9 6.7 +48%
Underground 1.1 1.2 -7% 3.1 3.5 -11%
Ore 3.9 4.4 -12% 11.5 11.4 +1%
processed,
Mt
Production
Gold, Koz 402 356 +13% 1,005 801 +25%
Silver, Moz 5.4 6.7 -20% 16.4 19.4 -16%
Copper, Kt 0.6 0.9 -36% 2.0 2.5 -21%
Gold 476 447 +7% 1,232 1,066 +16%
equivalent,
Koz3
Sales
Gold, Koz 388 321 +21% 992 766 +30%
Silver, Moz 6.1 5.3 +15% 16.4 17.4 -6%
Copper, Kt 1.0 0.5 +109% 2.0 1.9 +5%
Revenue, 656 459 +43% 1,602 1,248 +28%
US$m4
Net debt, 1,702 1,700 +0% 1,702 1,518 +12%
US$m5
Safety
LTIFR6 0.11 0.07 +57% 0.15 0.13 +15%
Fatalities 0 0 NA 2 1 +1
Notes: (1) Including discontinued operations.
(2) % 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.
(3) Based on 1:80 Ag/Au, 5:1 Cu/Au, 2:1 Pb/Au and 2:1
Zn/Au conversion ratios.
(4) Calculated based on the unaudited consolidated
management accounts.
(5) Non-IFRS measure based on unaudited consolidated
management accounts. Comparative information is presented
for 30 June 2019 (for the three months period) and 31
December 2018 (for the nine months period).
(6) LTIFR = lost time injury frequency rate per 200,000
hours worked.
PRODUCTION BY MINE
3 months % 9 months %
ended Sep 30, change ended Sep 30, change
2019 2018 2019 2018
GOLD EQ. (KOZ)1
Kyzyl 94 10 NM 253 10 NM
Dukat 75 77 -2% 233 231 +1%
Albazino-Amursk 75 88 -15% 211 241 -12%
Omolon 49 50 -3% 148 136 +8%
Mayskoye 72 47 +52% 76 47 +62%
Varvara 37 37 -1% 113 103 +10%
Voro 28 23 +20% 85 78 +9%
Svetloye 46 59 -22% 107 112 -4%
TOTAL 476 392 +21% 1,227 959 +28%
(continuing
operations)
Okhotsk - 44 NA - 68 NA
Kapan - 11 NA 5 38 NA
TOTAL 476 447 +7% 1,232 1,066 +16%
(including
discontinued
operations)
Notes: (1) Based on 1:80 Ag/Au, 5:1 Cu/Au, 2:1 Pb/Au and 2:1 Zn/Au
conversion ratios.
CONFERENCE CALL AND WEBCAST
Polymetal will hold a conference call and webcast on Thursday, 24 October
2019 at 12:00 London time (14:00 Moscow time).
To participate in the call, please dial:
From the UK:
+44 330 336 9411 (local access)
0800 279 7204 (toll free)
From the US:
+1 929 477 0324 (local access)
800 458 4121 (toll free)
From Russia:
+7 495 646 9190 (local access)
8 10 8002 867 5011 (toll free)
To participate from other countries, please dial any of the local access
numbers listed above.
Conference code: 2360288
To participate in the webcast follow the link:
https://webcasts.eqs.com/polymetal20191024. Please be prepared to introduce
yourself to the moderator or register.
A recording of the call will be available immediately after the call at +44
20 7660 0134 (from the UK), +1 719 457 0820 (from the USA) and 8 10 8002 702
1012 (from Russia), access code 2360288, from 17:30 Moscow time Thursday, 24
October, till 17:30 Moscow time Thursday, 31 October, 2019. Webcast replay
will be available on Polymetal's website (www.polymetalinternational.com
[1]) and at https://webcasts.eqs.com/polymetal20191024.
About Polymetal
Polymetal International (LSE, MOEX: POLY, ADR: AUCOY) (together with its
subsidiaries - "Polymetal", the "Company", or the "Group") is the top-20
global gold producer and top-5 global silver producer with assets in Russia
and Kazakhstan. The Company combines strong growth with a robust dividend
yield.
Enquiries
Media Investor Relations
FTI +44 20 3727 Polymetal ir@polymetalinternational.com
Consulting 1000
Evgeny +44 20 7887 1475 (UK)
Leonid Fink Monakhov
Viktor Timofey
Pomichal Kulakov
+7 812 334 3666 (Russia)
Kirill
Kuznetsov
Joint Corporate Brokers
Morgan +44 20 7425 RBC +44 20 7653 4000
Stanley 8000 Europe
Limited
Andrew
Foster Marcus
Jackson
Richard
Brown Jamil
Miah
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
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
(MORE TO FOLLOW) Dow Jones Newswires
October 24, 2019 02:00 ET (06:00 GMT)
DJ Polymetal: Q3 2019 production results -2-
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 % 9 months ended Sep %
Sep 30, 30, chan
ge
change
2019 2018 2019 2018
MINING
Waste mined, 17.5 16.1 +9% 49.9 44.8 +11%
Mt
Ore mined 527 436 +21% 1,560 833 +87%
(open-pit),
Kt
PROCESSING
Ore 502 362 +39% 1,490 436 NM
processed,
Kt
Gold grade, 7.5 5.1 +45% 7.0 4.7 +49%
g/t
Gold 88.3% 78.7% +12% 87.7% 75.3% +16%
recovery
Concentrate 31.4 20.4 +54% 89.7 21.7 NM
produced, Kt
Concentrate 104.8 69.1 +52% 101.7 67.7 +50%
gold grade,
g/t
Gold in 105.9 45.2 +134% 293.3 47.2 NM
concentrate,
Koz1
Concentrate 17.2 5.4 +220% 54.2 5.4 NM
shipped, Kt
Payable gold 35.8 10.0 +259% 127.0 10.0 NM
shipped, Koz
Amursk POX
Concentrate 15 - NA 35 - NA
processed,
Kt
Gold grade, 125.9 - NA 125.3 - NA
g/t
Gold 91.7% - NA 92.9% - NA
recovery
Gold 58.2 - NA 126.5 - NA
produced,
Koz
TOTAL
PRODUCTION
Gold, Koz 94.0 10.0 NM 253.5 10.0 NM
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 continued to exceed budget on throughput and grade. Gold in
concentrate in Q3 was 106 Koz while payable gold production amounted to 94
Koz.
Q3 is expected to be the last quarter with significant positive grade
reconciliation. Starting from Q4 mining will continue beyond the
near-surface area with significant high-grade lenses and the average grade
will revert to open-pit reserve average.
The Chinese market for refractory concentrates is continuing to tighten. In
response, the Company moved to increase the share of gold contained in
low-carbon concentrate processed at Amursk POX to 70% (versus 50% planned).
This drove POX recoveries lower, but will ensure higher production and lower
costs at Kyzyl at the expense of reducing 3rd-party concentrate processing.
Following the successful completion of several improvement projects, Kyzyl
concentrator achieved steady-state throughput of 2.0 Mtpa, 11% above the
original design. Several initiatives are under way to evaluate pushing
throughput to 2.1 Mtpa level by H2 2020.
Polymetal Engineering is finalizing a FS-level technical study to
re-optimize the open pit under updated operational and economic assumptions.
The results, including the updated Ore Reserves estimate, will be presented
on November 11 at the Analyst and Investor Day.
DUKAT OPERATIONS
3 months ended % 9 months ended Sep %
Sep 30, chang 30,
e
change
2019 2018 2019 2018
MINING
Underground 15.0 14.9 +1% 45.0 44.5 +1%
development,
km
Ore mined, 642 610 +5% 1,894 1,831 +3%
Kt
PROCESSING
Omsukchan
concentrator
Ore 506 500 +1% 1,535 1,496 +3%
processed,
Kt
Grade
Gold, g/t 0.5 0.6 -15% 0.5 0.6 -5%
Silver, g/t 282 296 -5% 291 300 -3%
Recovery1
Gold 86.7% 87.0% -0% 86.1% 86.8% -1%
Silver 86.8% 88.6% -2% 86.8% 88.2% -2%
Production
Gold, Koz 7.2 8.2 -13% 21.6 22.5 -4%
Silver, Moz 3.9 4.0 -4% 12.1 12.4 -2%
Lunnoye
plant
Ore 116 120 -3% 348 347 +0%
processed,
Kt
Grade
Gold, g/t 1.4 1.4 +1% 1.4 1.3 +9%
Silver, g/t 241 310 -22% 258 330 -22%
Recovery1
Gold 91.4% 85.7% +7% 87.6% 85.4% +3%
Silver 94.5% 91.4% +3% 91.5% 91.1% +0%
Production
Gold, Koz 4.9 4.6 +6% 14.0 12.2 +15%
Silver, Moz 0.9 1.1 -20% 2.7 3.3 -19%
TOTAL
PRODUCTION
Gold, Koz 12.0 12.8 -6% 35.6 34.7 +3%
Silver, Moz 4.7 5.1 -8% 14.8 15.7 -6%
Note: (1) Technological recovery, includes gold and silver within
work-in-progress inventory.
At Dukat, quarterly silver and gold production were down 8% and 6%
year-on-year respectively. The decline was driven by the Omsukchan
concentrator processing larger volumes of lower-grade ore as well as by
planned reduction in silver grade at Lunnoye mostly attributable to the
depletion of higher-grade Zone 9.
Given the significant increase in the silver price, management is evaluating
the postponement of the mine closure at Goltsovoye by bringing marginal
stopes and areas into production. Such a development will enable full
utilization of the Dukat concentrator in 2020.
ALBAZINO
3 months ended Sep % 9 months ended Sep %
30, chang 30, chang
e e
2019 2018 2019 2018
MINING
Albazino
Waste mined, 5.7 5.5 +4% 16.8 16.0 +5%
Mt
Underground 2.9 2.2 +28% 7.7 6.9 +12%
development,
Km
Ore mined, 571 442 +29% 1,596 1,372 +16%
Kt
Open-pit 418 348 +20% 1,184 1,062 +11%
Underground 153 94 +62% 412 310 +33%
PROCESSING
Albazino
concentrator
Ore 447 431 +4% 1,303 1,291 +1%
processed,
Kt
Gold grade, 4.8 5.4 -11% 4.4 5.2 -15%
g/t
Gold 86.9% 84.9% +2% 85.9% 84.5% +2%
recovery1
Concentrate 36.8 36.8 -0% 106.0 105.7 +0%
produced, Kt
Concentrate 51.0 54.1 -6% 46.6 54.3 -14%
gold grade,
g/t
Gold in 60.3 64.0 -6% 158.9 184.3 -14%
concentrate,
Koz2
Amursk POX
Concentrate 45 49 -8% 135 131 +3%
processed,
Kt
Gold grade, 51.2 56.1 -9% 50.5 57.3 -12%
g/t
Gold 96.5% 96.6% -0% 95.2% 96.9% -2%
recovery
Gold 74.7 87.6 -15% 211.1 240.4 -12%
produced,
Koz
TOTAL
PRODUCTION
Gold, Koz 74.7 87.6 -15% 211.1 240.4 -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.
At Albazino, production dynamics continued to be affected by lower-grade ore
from the Ekaterina-1 open pit. Quarterly production of gold in concentrate
decreased by 6% year-on-year.
However, a 62% jump in underground ore mined ensured positive
quarter-on-quarter grade dynamics despite challenging ground conditions
thanks to careful customization of mining methods to specific stope
conditions.
AMURSK POX
3 months ended % 9 months ended %
Sep 30, change Sep 30, change
2019 2018 2019 2018
Concentrate 60 49 +22% 171 131 +30%
processed,
Kt
Albazino 41 44 -6% 122 115 +6%
Kyzyl 15 - NA 35 - NA
Mayskoye - 1 -100% - 1 -100%
Other1 3 5 -27% 13 16 -17%
Gold 94.3% 96.6% -2% 94.3% 96.9% -3%
recovery
Average gold 70.3 56.1 +25% 66.0 57.3 +15%
grade, g/t
Average 12.5% 9.3% +34% 12.8% 8.7% +47%
sulphur
grade
Total gold 132.9 87.6 +52% 337.5 240.4 +40%
produced2,
Koz
Albazino 62.5 72.2 -13% 178.5 202.7 -12%
Kyzyl 58.2 - NA 126.5 - NA
Other1 12.2 15.4 -21% 32.6 37.7 -14%
Notes: (1) Veduga and purchased concentrates which are included in
reportable production in the Albazino segment.
(2) For information only. Already accounted for in production at operating
mines.
Q3 gold production at the Amursk POX increased by 52% year-on-year driven by
the introduction of high-grade Kyzyl concentrate to the feed.
By implementing tight feed management procedures, the POX team managed to
increase the recovery ratio in comparison with the previous quarter and
stabilize it at the level above 94%. In Q2, the beginning of processing of
large quantities of Kyzyl concentrate had significantly changed the
operating parameters and led to a decline in recoveries.
Increased volumes of high-grade low-carbon Kyzyl concentrate displaced 3rd
(MORE TO FOLLOW) Dow Jones Newswires
October 24, 2019 02:00 ET (06:00 GMT)
DJ Polymetal: Q3 2019 production results -3-
party materials.
OMOLON OPERATIONS
3 months ended Sep % 9 months ended Sep %
30, chang 30, chang
e e
2019 2018 2019 2018
MINING
Waste mined, 1.9 1.9 +3% 5.1 4.6 +13%
Mt
Underground 3.3 3.3 +1% 9.9 9.6 +2%
development,
Km
Ore mined, 805 176 NM 2,183 658 NM
Kt
Open-pit 690 102 NM 1,849 400 NM
Underground 115 74 +55% 334 258 +30%
PROCESSING
Birkachan
Heap Leach
Ore stacked, 350 487 -28% 897 959 -6%
Kt
Gold grade, 1.2 1.2 +4% 1.2 1.1 +5%
g/t
Gold 9.0 8.8 +2% 11.0 9.9 +12%
production,
Koz
Kubaka Mill
Ore 184 220 -16% 612 642 -5%
processed,
Kt
Grade
Gold, g/t 6.0 4.4 +36% 6.3 4.8 +32%
Silver, g/t 131.6 151.2 -13% 90.0 118.8 -24%
Recovery1
Gold 95.8% 95.4% +1% 95.5% 95.4% +0%
Silver 80.8% 89.3% -10% 79.5% 83.0% -4%
Gold 32.7 29.8 +10% 119.1 99.8 +19%
production,
Koz
Silver 0.6 0.9 -37% 1.4 2.1 -34%
production,
Moz
TOTAL
PRODUCTION
Gold, Koz 41.7 38.6 +8% 130.1 109.7 +19%
Silver, Moz 0.6 0.9 -37% 1.4 2.1 -34%
Note: (1) Technological recovery, includes gold and silver within
work-in-progress inventory.
At Omolon, gold output was up 8% year-on-year while silver output was down
37% as the processing plant switched away from Sopka ore towards feed from
Birkachan and Olcha.
Following a successful in-fill drilling campaign, open-pit mining
recommenced at the Bikarchan mine with a view to extend the operation of the
heap leach facility.
Quarterly volume of ore processed at the Kubaka mill decreased by 16%
year-on-year due to the planned 14-day maintenance shutdown to complete SAG
headgear replacement.
MAYSKOYE
3 months ended % 9 months ended %
Sep 30, change Sep 30, change
2019 2018 2019 2018
MINING
Waste mined, 1.4 1.6 -13% 4.0 3.6 +12%
Mt
Underground 4.7 5.4 -13% 15.5 17.6 -11%
development,
km
Ore mined, 199 304 -34% 638 767 -17%
Kt
Open-pit 41 150 -73% 175 282 -38%
Underground 159 154 +3% 463 485 -4%
PROCESSING
Ore 232 223 +4% 658 639 +3%
processed,
Kt
Gold grade, 6.3 9.0 -30% 6.2 7.5 -18%
g/t
Gold 84.7% 71.8% +18% 79.5% 77.5% +3%
recovery
Gold in 36.3 29.3 +24% 94.9 84.3 +13%
concentrate,
Koz2
Gold - 0.7 -100% - 0.7 -100%
produced in
dore from
concentrate
(POX), Koz
Gold 1.5 1.2 +25% 6.0 1.2 +416%
produced in
dore from
carbon, Koz3
Payable gold 70.3 45.3 +55% 70.3 45.3 +55%
in
concentrate
shipped to
off-takers,
Koz
TOTAL
PRODUCTION
Gold, Koz 71.8 47.1 +52% 76.3 47.1 +62%
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 Q3, Mayskoye switched back to processing sulphide ore from the
underground mine. Consequently, grade fell and recoveries jumped. Gold in
concentrate produced increased by 24% year-on-year.
Shipments of Mayskoye concentrate to Chinese off-takers commenced with the
start of navigation period in August. Payable gold in concentrate shipped
was up 55% year-on-year. The Chinese concentrate market continues to be
challenging with high arsenic material starting to attract heavy penalties.
This is likely to have an approximately $150-200/oz negative impact on
Mayskoye's TCC and AISC for 2019.
VARVARA
3 months ended Sep % 9 months ended Sep %
30, 30, chang
e
change
2019 2018 2019 2018
MINING
Waste 11.4 7.2 +59% 34.1 21.9 +56%
mined, Mt
Ore mined, 1,014 888 +14% 2,953 2,274 +30%
Kt
PROCESSING
Flotation
Ore 134 116 +16% 411 296 +39%
processed,
Kt
Grade
Gold, g/t 1.3 1.4 -6% 1.2 1.3 -11%
Copper 0.37% 0.59% -37% 0.53% 0.55% -4%
Recovery1
Gold 52.1% 72.3% -28% 51.3% 68.7% -25%
Copper 91.3% 92.8% -2% 91.4% 92.1% -1%
Production
Gold in 2.7 3.2 -15% 7.2 7.4 -2%
concentrate
, Koz
Copper in 0.6 0.6 -6% 1.8 1.5 +26%
concentrate
, Kt
Veduga ore 35 43 -18% 98 86 +14%
toll
processed,
Kt2
Leaching
Ore 733 826 -11% 2,268 2,324 -2%
processed,
Kt
Gold grade, 1.6 1.3 +18% 1.5 1.4 +7%
g/t
Gold 87.4% 89.4% -2% 86.8% 87.7% -1%
recovery1
Gold 31.3 31.1 +1% 96.7 88.6 +9%
production
(in dore),
Koz
Total ore 902 985 -8% 2,778 2,706 +3%
processed,
Kt
TOTAL
PRODUCTION
Gold, Koz 34.0 34.3 -1% 103.9 95.9 +8%
Copper, Kt 0.6 0.6 -6% 1.8 1.5 +26%
Notes: (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.
At Varvara, gold output decreased by 1% year-on-year as the leaching circuit
underwent the planned replacement of the mill lining.
Gold grade processed increased thanks to higher mining and railing volumes
at Komar. New company-owned loco has been successfully commissioned and is
expected to further drive down Komar ore transportation costs.
VORO
3 months ended Sep % 9 months ended Sep % change
30, chan 30,
ge
2019 2018 2019 2018
MINING
Waste 0.4 0.9 -56% 1.2 2.8 -58%
mined, Mt
Ore mined, 181 204 -11% 661 779 -15%
Kt
PROCESSING
Voro CIP
Ore 264 253 +4% 783 752 +4%
processed,
Kt
Gold 4.0 3.6 +11% 3.7 3.9 -6%
grade, g/t
Gold 87.0% 80.6% +8% 86.6% 80.7% +7%
recovery1
Gold 26.4 21.4 +23% 71.4 72.2 -1%
production
, Koz
Voro Heap
Leach
Ore 58 60 -2% 58 62 -5%
stacked,
Kt
Gold 1.4 1.4 +0% 1.4 1.4 +0%
grade, g/t
Gold 1.5 2.1 -25% 12.7 5.8 +120%
production
, Koz
TOTAL
PRODUCTION
Gold, Koz 28.0 23.5 +19% 84.0 77.9 +8%
Note: (1) Technological recovery, includes gold within work-in-progress
inventory.
Q3 gold production at Voro climbed by 19% year-on-year as the CIP plant
processed high-grade oxide ore from the southern pit.
Waste volume decreased sharply as the open pit is approaching the end of its
life.
SVETLOYE
3 months ended Sep % 9 months ended Sep % change
30, chan 30,
ge
2019 2018 2019 2018
MINING
Waste 0.3 0.2 +41% 1.1 0.5 +142%
mined, Mt
Ore mined 406 317 +28% 1,273 978 +30%
(open-pit)
, Kt
PROCESSING
Ore 369 491 -25% 968 1,144 -15%
stacked,
Kt
Gold 4.1 3.8 +10% 4.0 3.8 +6%
grade, g/t
Gold 46.1 59.0 -22% 107.0 112.0 -4%
production
, Koz
TOTAL
PRODUCTION
Gold, Koz 46.1 59.0 -22% 107.0 112.0 -4%
At Svetloye, gold production contracted by 22% year-on-year as ore stacking
was negatively affected by wet and cold weather in Q3.
DEVELOPMENT UPDATE
At Nezhda, pre-stripping and construction proceeded according to plan.
Repair of the road from the Kolyma federal highway to the mine site was
completed. The road is ready for the delivery of technological equipment of
the plant and the power station in Q1 2020. The installation of the metal
framework of the processing plant building was completed, and the
manufacturing of internal metal structures is under way. The construction of
foundations for the power station and the underground tunnel from the
crusher to the concentrator started. The lining of the dry-stack tailings
storage facility commenced.
A positive conclusion of the state environmental review of the project
documentation was received.
At POX-2, the autoclave foundation boxcut was excavated and the foundation
concrete bed prepared. Polymetal signed contracts for high-pressure
(MORE TO FOLLOW) Dow Jones Newswires
October 24, 2019 02:00 ET (06:00 GMT)
auxiliary equipment around the autoclave through Hatch. Active construction
started at the new concentrate storage area.
SUSTAINABILITY, HEALTH AND SAFETY
In Q3, our LTIFR stood at 0.11 versus 0.07 in Q3 2018 with a total of 3
work-related incidents recorded across the Group (2 incidents in Q3 2018).
The increase was driven by minor incidents that occurred at remote sites
outside of production shifts (falls, slips). Accordingly, risk assessment
and safety training will be adjusted to take into account higher frequency
of this type of incidents.
In the reporting quarter Polymetal had its ESG ratings upgraded - MSCI ESG
Ratings score improved from BBB to A, and ISS-Oekom Corporate Rating was
raised to C+. Furthermore, the Company was reaffirmed as a member of the Dow
Jones Sustainability Index and FTSE4Good Index Series.
As a way to further align our ESG efforts to financial results, Polymetal
signed a new US$ 75 million sustainability-linked credit facility with
Societe Generale. The interest rate is tied to the Company's performance on
specific ESG KPIs set by the agreement.
PERSONNEL
Oleg Voronin (50) was appointed as Managing Director at Albazino. Mr.
Voronin graduated from the Krasnoyarsk Institute of Non-Ferrous Metal with a
degree in underground mining. From 1993 until 2009 he held various positions
with the Zyryanovsky mining and processing complex (now part of Kazzinc),
all the way up to the chief engineer. In 2009, Oleg joined Polymetal as the
chief engineer of Dukat operations. In 2015, he assumed the position of
chief engineer at Albazino.
ISIN: JE00B6T5S470
Category Code: MSCH
TIDM: POLY
Sequence No.: 24599
EQS News ID: 895603
End of Announcement EQS News Service
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October 24, 2019 02:00 ET (06:00 GMT)
