TIDMPGIL
RNS Number : 0717D
Polyus Gold International Ltd
22 October 2015
Release time IMMEDIATE
Date 22 October, 2015
Polyus Gold International Limited (LSE - PGIL, MICEX-RTS - PGIL,
"PGIL",
"Polyus Gold" or the "Group"), the largest gold producer in
Russia, today releases its operating results for 3Q and 9M
2015.
3Q and 9M 2015 Highlights
Ø A 17% q-o-q increase in refined gold output to 507 koz in 3Q, a record high level for the
Group, achieved through seasonally higher output at Alluvials
and a stellar performance at
Blagodatnoye
Ø 9M 2015 refined gold production of 1,291 koz, 5% above the 9M 2014 level due to
outperformance at all hard rock mines
Ø Record high processed volumes of 2,003 kt during the quarter at Blagodatnoye
Ø Strong progress achieved in 9M 2015 with recoveries at Olimpiada, Verninskoye, Kuranakh
and Titimukhta
Ø Estimated net debt of $115 million(1) as at the end of 3Q 2015
Ø Estimated quarterly gold sales of $593 million with an average selling price of $1,203/oz
Pavel Grachev, Chief Executive Officer of Polyus Gold,
commente:([1])
"I am pleased to announce that in 3Q Polyus Gold delivered the
highest volume of gold production in its history. Our lowest-cost
mine, Blagodatnoye, continued to demonstrate a stellar performance,
and we are happy to report another quarter of high recovery levels
at our hard-rock mines.
In addition, we are moving forward with the development of the
growth projects at our operating assets, while at Natalka we are
progressing well with the process flowsheet optimisation studies
with the aim to complete them in 1Q 2016.
Our strong operational performance during the quarter enabled us
to cement our financial position and lower net debt to $115
million.
Given this strong operational performance, we believe that our
FY 2015 gold output will be closer to the upper limit of the
previously published guidance of 1.63-1.71 million ounces".
Health and safety update
LTIFR remained below the previous year's level, standing at 0.10
in 9M 2015 vs 0.12 in 9M 2014.
The Group continued to implement a two-year action plan
(2015-2016) to ensure full compliance with ICMM sustainability
development principles. Polyus Gold's working group monitors the
implementation of the action plan and submits monthly reports to
the HSEC Committee of the Board of Directors.
The Group has set sustainable development strategic objectives
and goals for 2016-2018. By the end of 2015, Polyus Gold will have
adopted a corporate sustainable development management system along
with revised policies and standards.
Verninskoye and Polyus Logistics, in liaison with Bureau
Veritas, completed preparation for certification of operating
companies in accordance with the international standards ISO14001
and OHSAS18001.
The Group prepared the concept for the development of the HSE
management system for 2015-2018.
The updated Golden Rules of Safety were implemented and are
currently in place at all of the Group's business units and
professional services. Monitoring is being carried out to reveal
any violations.
DuPont consultants and in-house coaches trained over 800 Polyus
Gold employees under the safety culture improvement program.
Lost Time Injury Frequency Rate (LTIFR)([2])
9M 2015 9M 2014 FY 2014 FY 2013 FY 2012
Total 0.10 0.12 0.09 0.11 0.15
Consolidated operating results
3Q 2Q Q-o-Q 1Q 4Q 3Q Y-o-Y Y-o-Y
2015 2015 change 2015 2014 2014 change 9M 2015 9M 2014 change
------------------- ------ ------ ----------- ------ ------ ------ ----------- -------- -------- -----------
Olimpiada(3) 192 201 -4% 162 182 189 2% 555 536 4%
------------------- ------ ------ ----------- ------ ------ ------ ----------- -------- -------- -----------
Blagodatnoye 112 95 18% 92 115 95 18% 298 279 7%
------------------- ------ ------ ----------- ------ ------ ------ ----------- -------- -------- -----------
Titimukhta([3]) 28 28 0% 29 29 32 -13% 85 64 33%
------------------- ------ ------ ----------- ------ ------ ------ ----------- -------- -------- -----------
Verninskoye 43 42 2% 37 38 39 10% 122 108 13%
------------------- ------ ------ ----------- ------ ------ ------ ----------- -------- -------- -----------
Alluvials 88 33 167% - 50 104 -15% 121 140 -14%
------------------- ------ ------ ----------- ------ ------ ------ ----------- -------- -------- -----------
Kuranakh 44 33 33% 33 36 34 29% 110 101 9%
------------------- ------ ------ ----------- ------ ------ ------ ----------- -------- -------- -----------
Refined gold, koz 507 432 17% 353 450 493 3% 1,291 1,228 5%
------------------- ------ ------ ----------- ------ ------ ------ ----------- -------- -------- -----------
Gold in flotation
concentration,koz - - - - 10 - - - - -
------------------- ------ ------ ----------- ------ ------ ------ ----------- -------- -------- -----------
Total gold
produced,
koz 507 432 17% 353 460 493 3% 1,291 1,228 5%
------------------- ------ ------ ----------- ------ ------ ------ ----------- -------- -------- -----------
Total rock moved, 16,116 15,897 14% 16,111 16,667 17,356 -7% 48,125 49,238 -2%
000 m(3)
------------------- ------ ------ ----------- ------ ------ ------ ----------- -------- -------- -----------
Average stripping
ratio, m(3)/t 2.6 2.4 8% 2.8 3.1 3.0 -13% 2.6 2.1 24%
------------------- ------ ------ ----------- ------ ------ ------ ----------- -------- -------- -----------
Total ore mined,
kt 5,296 5,774 -8% 5,016 4,801 5,130 3% 16,085 19,545 -18%
------------------- ------ ------ ----------- ------ ------ ------ ----------- -------- -------- -----------
Total ore
processed, kt 6,283 6,121 3% 5,965 6,041 6,053 4% 18,368 17,702 4%
------------------- ------ ------ ----------- ------ ------ ------ ----------- -------- -------- -----------
Total doré
and slime gold
procudtion,koz 497 458 9% 369 438 485 2% 1,323 1,268 4%
------------------- ------ ------ ----------- ------ ------ ------ ----------- -------- -------- -----------
In 3Q 2015, refined gold production reached 507 koz, a 17%
increase over 2Q 2015. The growth was on account of the peak of
washing season at Alluvials, a significant increase in doré
production at Blagodatnoye, and refining of doré volumes produced
in previous quarters at Kuranakh. For 9M 2015, refined gold output
rose by 5% y-o-y to 1,291 koz.
The Group produced 497 koz of doré and slime gold in 3Q 2015,
which was 9% higher q-o-q, mainly resulting from the seasonal
upturn at Alluvials and higher processing volumes at Blagodatnoye.
During 9M 2015, gold production reached 1,323 koz, a 4% increase
y-o-y, reflecting higher output at all of the Group's mines.
Polyus Gold moved a total of 16.1 million cubic meters of rock
in 3Q 2015, a 14% increase over 2Q 2015. In 9M 2015, the amount of
rock moved totaled 48.1 million cubic meters. The average stripping
ratio increased by 8% q-o-q in 3Q and 24% y-o-y over 9M 2015, to
2.6 m(3) /t, owing to the extensive stripping works at Olimpiada.
Ore mining volumes were 8% lower q-o-q in 3Q and down 18% y-o-y in
9M 2015, to 16,085 kt, mainly due to the cutback at Olimpiada.
Processed ore volumes of 6,283 kt were up 3% q-o-q, mostly
driven by the outperformance at Blagodatnoye. In 9M 2015, the Group
processed a total of 18,368 kt of ore, 4% above the 9M 2014 level,
mostly resulting from an 11% y-o-y increase at Olimpiada.
Operating results by mine
Olimpiada
In 3Q 2015, doré gold output at Olimpiada was down 9% q-o-q to
186 koz, while refined gold production decreased by 4% q-o-q to 192
koz.
Large stripping works to cut back the pit continued at the mine,
and ore was mined only in the cutback area. Hence, the stripping
ratio remained high at 10.9 in 3Q but is set to normalize after the
cutback is completed.
Recoveries continued to climb, reaching 81.7%, the highest
quarterly average since 4Q 2008. A number of optimisation
initiatives have been implemented at the mills, including
additional processing of flotation tailings, improved operation of
the sorption unit and increased efficiency of the gravity
separation unit. Volumes of ore processed decreased by 7% in
comparison with 2Q 2015, mainly as a result of the planned
maintenance works at one of the Olimpiada mills.
(MORE TO FOLLOW) Dow Jones Newswires
October 22, 2015 03:33 ET (07:33 GMT)
The 9M 2015 performance was solid, with 572 koz of doré gold
(+6% y-o-y) and 555 koz of refined gold (+4% y-o-y) produced during
the period. The average recoveries remained on an upward trend,
increasing by 3.9 ppts y-o-y to 79.6%. The improvements at the
mills coupled with the use of one of the processing lines of the
Titimukhta mill allowed for an 11% y-o-y increase in treatment
volumes. The average grade in ore processed decreased by 10% y-o-y
due to the mining of lower grade ore during the time that stripping
works were ongoing at the mine.
Mining works and ore processing
3Q 2Q 1Q 4Q 3Q
2015 2015 Q-o-Q change 2015 2014 2014 Y-o-Y change 9M 2015 9M 2014 Y-o-Y change
--------------- ----- ----- ------------- ------ ------ ------ ------------- -------- -------- -------------
Total rock
moved, '000
m(3) 5,554 5,363 4% 5,845 6,609 6,602 -16% 16,761 17,513 -4%
--------------- ----- ----- ------------- ------ ------ ------ ------------- -------- -------- -------------
including
stripping 5,371 5,131 5% 5,584 6,568 6,374 -17% 16,087 15,330 5%
--------------- ----- ----- ------------- ------ ------ ------ ------------- -------- -------- -------------
Stripping
ratio,
m(3)/t 10.9 8.2 33% 7.9 59.2 10.3 6% 8.8 2.6 238%
--------------- ----- ----- ------------- ------ ------ ------ ------------- -------- -------- -------------
Ore mined, kt 495 624 -21% 703 111 617 -20% 1,822 5,895 -69%
--------------- ----- ----- ------------- ------ ------ ------ ------------- -------- -------- -------------
Average grade
in ore
mined, g/t 2.69 2.45 10% 2.71 2.75 3.03 -11% 2.61 3.70 -29%
--------------- ----- ----- ------------- ------ ------ ------ ------------- -------- -------- -------------
Ore
processed,
kt([4]) 2,312 2,499 -7% 2,263 2,140 2,187 6% 7,074 6,386 11%
--------------- ----- ----- ------------- ------ ------ ------ ------------- -------- -------- -------------
Average grade
in ore
processed,
g/t 3.08 3.34 -8% 3.36 3.62 3.59 -14% 3.26 3.64 -10%
--------------- ----- ----- ------------- ------ ------ ------ ------------- -------- -------- -------------
Recovery, % 81.7 79.2 2.5 ppts 77.9 76.4 75.6 6.1 ppts 79.6 75.7 3.9 ppts
--------------- ----- ----- ------------- ------ ------ ------ ------------- -------- -------- -------------
Doré
gold, koz 186 204 -9% 182 186 179 4% 572 540 6%
--------------- ----- ----- ------------- ------ ------ ------ ------------- -------- -------- -------------
Refined gold
production,
koz 192 201 -4% 162 182 189 2% 555 536 4%
--------------- ----- ----- ------------- ------ ------ ------ ------------- -------- -------- -------------
Operating results by mine
Blagodatnoye
The operational performance of Blagodatnoye in 3Q 2015 was
encouraging, as doré gold production hit a record high of 115 koz
for the quarter, up 21% q-o-q. Refined gold output advanced by 18%
q-o-q to 112 koz.
The reason behind the increase in gold production was a record
high volume of 2,003 kt in ore treated at the mill for the quarter,
up 25% q-o-q. Increased grinding throughput was one of the major
factors driving the gain in treated volumes. The boost in processed
volumes was supported by recoveries, which advanced 1.4 ppts q-o-q
to 88.3%, while grades remained flat q-o-q.
Doré gold output for 9M 2015 was up 4% y-o-y to 305 koz, and
refined gold production increased by 7% y-o-y to 298 koz.
Recoveries decreased slightly to 87.3%, while average grades
remained broadly stable. Despite a spike in 3Q 2015, ore processed
volumes in 9M 2015 rose only by 2% y-o-y to 5,529 kt, due to lower
volumes in 2Q 2015 caused by a stoppage for maintenance. The Group
continues to work on the project to expand the mill, which should
bring its capacity to 8 mtpa on a sustained basis.
Mining works and ore processing
3Q 2Q 1Q 4Q 3Q
2015 2015 Q-o-Q change 2015 2014 2014 Y-o-Y change 9M 2015 9M 2014 Y-o-Y change
----------------------- ----- ----- ------------ ----- ----- ----- ------------ ------- ------- ------------
Total rock moved,
'000 m(3) 4,304 4,324 0% 3,581 3,659 3,823 13% 12,209 11,036 11%
----------------------- ----- ----- ------------ ----- ----- ----- ------------ ------- ------- ------------
including stripping 3,634 3,561 2% 2,964 2,978 3,172 15% 10,159 9,050 12%
----------------------- ----- ----- ------------ ----- ----- ----- ------------ ------- ------- ------------
Stripping ratio,
m(3)/t 2.0 1.7 18% 1.7 1.6 1.8 11% 1.8 1.6 13%
----------------------- ----- ----- ------------ ----- ----- ----- ------------ ------- ------- ------------
Ore mined, kt 1,854 2,116 -12% 1,707 1,881 1,809 2% 5,677 5,511 3%
----------------------- ----- ----- ------------ ----- ----- ----- ------------ ------- ------- ------------
Average grade in ore
mined, g/t 2.00 2.01 0% 1.84 2.03 1.96 2% 1.96 1.99 -2%
----------------------- ----- ----- ------------ ----- ----- ----- ------------ ------- ------- ------------
Ore processed,
kt([5]) 2,003 1,607 25% 1,920 1,828 1,800 11% 5,529 5,423 2%
----------------------- ----- ----- ------------ ----- ----- ----- ------------ ------- ------- ------------
Average grade in ore
processed, g/t 2.04 2.03 0% 1.85 2.07 1.98 3% 1.97 1.92 3%
----------------------- ----- ----- ------------ ----- ----- ----- ------------ ------- ------- ------------
Recovery, % 88.3 86.9 1.4 ppts 86.5 88.3 88.5 -0.2 ppts 87.3 87.8 -0.5 ppts
----------------------- ----- ----- ------------ ----- ----- ----- ------------ ------- ------- ------------
Doré gold, koz 115 95 21% 95 109 101 14% 305 294 4%
----------------------- ----- ----- ------------ ----- ----- ----- ------------ ------- ------- ------------
Refined gold
production, koz 112 95 18% 92 115 95 18% 298 279 7%
----------------------- ----- ----- ------------ ----- ----- ----- ------------ ------- ------- ------------
Operating results by mine
Titimukhta
In 3Q 2015, doré gold output at Titimukhta dropped 7% q-o-q to
27 koz, while refined gold production remained flat q-o-q at 28
koz.
The overall volumes of rock moved decreased by 13% q-o-q from a
very high base of the previous quarter, leading to both lower
stripping volumes and a decrease in the amount of ore mined. On a
y-o-y basis, however, mined ore volumes grew 26%, while stripping
volumes decreased by 65%, and the stripping ratio declined by 74%
to 1.0.
Processed ore volumes were down 9% q-o-q to 405 kt, mostly as a
result of the planned maintenance works in September. Selective
processing initiatives continued to facilitate the treatment of
higher-grade ores, which resulted in the higher recovery rate.
Stable q-o-q grade of 2.3 g/t was achieved even with lower
processing volumes of high-grade material from the third-party
Veduga mine.
Grade stabilisation in the ore fed to the mill had a positive
impact on 9M 2015 gold output, as doré gold production increased by
21% y-o-y to 82 koz and refined gold output by 33% y-o-y to 85 koz.
Recoveries were up 3.2 ppts y-o-y to 87.3%, and the average grade
in the ore processed increased by 36% y-o-y to 2.3 g/t.
Mining works and ore processing
3Q 2Q 1Q 4Q 3Q
2015 2015 Q-o-Q change 2015 2014 2014 Y-o-Y change 9M 2015 9M 2014 Y-o-Y change
----------------------- ----- ----- ------------ ----- ----- ----- ------------ ------- ------- ------------
Total rock moved,
'000 m(3) 1,087 1,246 -13% 1,894 2,048 2,535 -57% 4,227 7,592 -44%
----------------------- ----- ----- ------------ ----- ----- ----- ------------ ------- ------- ------------
including stripping 806 892 -10% 1,661 1,841 2,312 -65% 3,359 6,984 -52%
----------------------- ----- ----- ------------ ----- ----- ----- ------------ ------- ------- ------------
Stripping ratio,
m(3)/t 1.0 0.9 11% 2.6 3.2 3.8 -74% 1.4 4.2 -67%
----------------------- ----- ----- ------------ ----- ----- ----- ------------ ------- ------- ------------
Ore mined, kt 774 973 -20% 641 570 612 26% 2,387 1,672 43%
----------------------- ----- ----- ------------ ----- ----- ----- ------------ ------- ------- ------------
Average grade in ore
(MORE TO FOLLOW) Dow Jones Newswires
October 22, 2015 03:33 ET (07:33 GMT)
mined, g/t 1.57 1.58 0% 1.60 1.60 1.64 -4% 1.58 1.68 -6%
----------------------- ----- ----- ------------ ----- ----- ----- ------------ ------- ------- ------------
Ore processed,
kt([6]) 405 446 -9% 394 516 571 -29% 1,245 1,462 -15%
----------------------- ----- ----- ------------ ----- ----- ----- ------------ ------- ------- ------------
incl. purchased ore
from
the Veduga mine, kt 35 62 -44% 34 89 46 -24% 131 160 -18%
----------------------- ----- ----- ------------ ----- ----- ----- ------------ ------- ------- ------------
Average grade in ore
processed, g/t 2.34 2.34 0% 2.31 2.26 1.78 31% 2.33 1.71 36%
----------------------- ----- ----- ------------ ----- ----- ----- ------------ ------- ------- ------------
Recovery, % 88.7 87.6 1.1 ppts 87.0 83.0 85.0 3.7 ppts 87.3 84.1 3.2 ppts
----------------------- ----- ----- ------------ ----- ----- ----- ------------ ------- ------- ------------
Doré gold, koz 27 29 -7% 26 32 28 -4% 82 68 21%
----------------------- ----- ----- ------------ ----- ----- ----- ------------ ------- ------- ------------
Refined gold
production, koz 28 28 0% 29 29 32 -13% 85 64 33%
----------------------- ----- ----- ------------ ----- ----- ----- ------------ ------- ------- ------------
Operating results by mine
Verninskoye
Verninskoye demonstrated a stable performance in 3Q 2015, with
doré gold output down 5% q-o-q to 42 koz and refined gold
production up 2% q-o-q to 43 koz.
All major operational indicators remained broadly flat q-o-q,
while recoveries stayed above the design parameter of 86%. The
improved (albeit planned) recovery level was achieved through
better operation of the sorption unit and commissioning of the new
gravity concentrate production unit in the middle of the year.
Processed ore volumes in 3Q remained almost unchanged q-o-q,
despite the planned maintenance works at the mill in September. The
initially scheduled maintenance period, however, was reduced due to
stricter control over the repair time.
As for the 9M 2015 performance, doré gold output increased by
12% y-o-y to 120 koz, driven primarily by a boost in recoveries,
which advanced 8.3 ppts y-o-y to 86.1%. As mining operations
progress in depth and the ratio of high-grade and low-grade ore is
changing, whereby the low-grade volume is falling, the overall
amount of ore mined decreased in 9M 2015 by 10% y-o-y, with
stripping volumes up 37% y-o-y.
Mining works and ore processing
3Q 2Q 1Q 4Q 3Q
2015 2015 Q-o-Q change 2015 2014 2014 Y-o-Y change 9M 2015 9M 2014 Y-o-Y change
-------------------- ----- ----- ------------ ----- ----- ----- ------------ ------- ------- ------------
Total rock moved,
'000 m(3) 1,540 1,515 2% 1,426 1,199 1,232 25% 4,482 3,711 21%
--------------------- ----- ----- ------------ ----- ----- ----- ------------ ------- ------- ------------
including stripping 1,143 1,121 2% 1,055 741 831 38% 3,319 2,423 37%
--------------------- ----- ----- ------------ ----- ----- ----- ------------ ------- ------- ------------
Stripping ratio,
m(3)/t 1.1 1.1 0% 1.1 0.6 0.8 38% 1.1 0.7 57%
--------------------- ----- ----- ------------ ----- ----- ----- ------------ ------- ------- ------------
Ore mined, kt 1,071 1,064 1% 1,003 1,238 1,082 -1% 3,139 3,478 -10%
--------------------- ----- ----- ------------ ----- ----- ----- ------------ ------- ------- ------------
Average grade in
ore mined, g/t 2.06 2.10 -2% 1.94 1.77 1.88 10% 2.04 1.94 5%
--------------------- ----- ----- ------------ ----- ----- ----- ------------ ------- ------- ------------
Ore processed, kt 581 600 -3% 458 607 529 10% 1,639 1,596 3%
--------------------- ----- ----- ------------ ----- ----- ----- ------------ ------- ------- ------------
Average grade in
ore processed, g/t 2.62 2.62 0% 2.70 2.72 2.78 -6% 2.64 2.73 -3%
--------------------- ----- ----- ------------ ----- ----- ----- ------------ ------- ------- ------------
Recovery, % 86.4 86.6 -0.2 ppts 85.0 83.7 78.7 7.7 ppts 86.1 77.8 8.3 ppts
--------------------- ----- ----- ------------ ----- ----- ----- ------------ ------- ------- ------------
Doré gold, koz 42 44 -5% 33 43 37 14% 120 107 12%
--------------------- ----- ----- ------------ ----- ----- ----- ------------ ------- ------- ------------
Refined gold
production, koz 43 42 2% 37 38 39 10% 122 108 13%
--------------------- ----- ----- ------------ ----- ----- ----- ------------ ------- ------- ------------
Operating results by mine
Alluvials
The third quarter is seasonally the strongest quarter for
Alluvials, which explains the q-o-q surge in gold output in 3Q
2015. Slime gold production was up 96% to 90 koz, while refined
gold output increased by 167% to 88 koz.
The average grade of the sands washed remained almost flat q-o-q
at 0.55 g/m(3), but was down 14% y-o-y due to a lower grade at
several production areas.
The 9M 2015 operational dynamics were negatively impacted by the
lower grade, while the amount of sands washed remained broadly flat
y-o-y. As a result, gold in slime output was down 13% to 136 koz,
while refined gold production decreased by 14% to 121 koz.
Sands washing
3Q 2Q 1Q 4Q 3Q
2015 2015 Q-o-Q change 2015 2014 2014 Y-o-Y change 9M 2015 9M 2014 Y-o-Y change
--------------------- ----- ----- ------------ ----- ----- ----- ------------ ------- ------- ------------
Sands washed, 000
m(3) 5,059 2,626 93% - 1,698 5,135 -1% 7,685 7,441 3%
-------------------- ----- ----- ------------ ----- ----- ----- ------------ ------- ------- ------------
Average grade,
g/m(3) 0.55 0.54 2% - 0.63 0.64 -14% 0.55 0.65 -15%
-------------------- ----- ----- ------------ ----- ----- ----- ------------ ------- ------- ------------
Gold in slime, koz 90 46 96% - 34 105 -14% 136 156 -13%
-------------------- ----- ----- ------------ ----- ----- ----- ------------ ------- ------- ------------
Refined gold
production, koz 88 33 167% - 50 104 -15% 121 140 -14%
-------------------- ----- ----- ------------ ----- ----- ----- ------------ ------- ------- ------------
Operating results by mine
Kuranakh
Kuranakh produced 37 koz of doré gold in 3Q 2015, a 5% decrease
from 2Q 2015. Refined gold from the mine surged by 33% q-o-q to 44
koz, reflecting refining of a sizable portion of doré gold from 2Q
2015.
Recoveries remained high at 89% in 3Q, supported by continued
effective ore blending, improved performance of the sorption unit,
as well as of the agitation tank and thickener. The average grades
were slightly down q-o-q, due to the lower grade in the ore
mined.
The mine demonstrated positive dynamics in 9M 2015 vs 9M 2014.
Both doré and refined gold rose to 110 koz, an increase of 7% and
9% y-o-y, respectively. With ore mined and processed volumes
remaining largely flat y-o-y, the major support for the higher gold
output came from improved recoveries, as well as the slightly
higher grades.
Testing of vat leaching (large scale pilot plant for heap
leaching) continued at the mine with 28 kt of ore with an average
grade of 0.9 g/t having been stacked during the quarter.
Mining works and ore processing
3Q 2Q 1Q 4Q 3Q
2015 2015 Q-o-Q change 2015 2014 2014 Y-o-Y change 9M 2015 9M 2014 Y-o-Y change
----------------------- ----- ----- ------------ ----- ----- ----- ------------ ------- ------- ------------
Total rock moved,
'000 m(3) 3,231 3,390 -5% 3,365 3,151 3,165 2% 9,986 9,386 6%
----------------------- ----- ----- ------------ ----- ----- ----- ------------ ------- ------- ------------
including stripping 2,664 2,829 -6% 2,821 2,581 2,598 3% 8,314 7,706 8%
----------------------- ----- ----- ------------ ----- ----- ----- ------------ ------- ------- ------------
Stripping ratio,
m(3)/t 2.6 2.8 -7% 2.9 2.6 2.6 0% 2.8 2.6 8%
----------------------- ----- ----- ------------ ----- ----- ----- ------------ ------- ------- ------------
Ore mined, kt 1,007 96 1% 963 1,002 1,010 0% 2,966 2,989 -1%
(MORE TO FOLLOW) Dow Jones Newswires
October 22, 2015 03:33 ET (07:33 GMT)
----------------------- ----- ----- ------------ ----- ----- ----- ------------ ------- ------- ------------
Average grade in ore
mined, g/t 1.30 1.36 -4% 1.28 1.26 1.22 7% 1.32 1.27 4%
----------------------- ----- ----- ------------ ----- ----- ----- ------------ ------- ------- ------------
Ore processed, kt 983 968 2% 930 950 967 2% 2,881 2,835 2%
----------------------- ----- ----- ------------ ----- ----- ----- ------------ ------- ------- ------------
Average grade in ore
processed, g/t 1.30 1.37 -5% 1.28 1.26 1.28 2% 1.32 1.29 2%
----------------------- ----- ----- ------------ ----- ----- ----- ------------ ------- ------- ------------
Recovery, % 89.1 89.2 -0.1 ppts 87.3 87.2 87.1 2.0 ppts 88.6 86.7 1.9 ppts
----------------------- ----- ----- ------------ ----- ----- ----- ------------ ------- ------- ------------
Doré gold, koz 37 39 -5% 33 34 35 6% 110 103 7%
----------------------- ----- ----- ------------ ----- ----- ----- ------------ ------- ------- ------------
Refined gold
production, koz 44 33 33% 33 36 34 29% 110 101 9%
----------------------- ----- ----- ------------ ----- ----- ----- ------------ ------- ------- ------------
Update on the development projects
During 3Q 2015, the Group progressed its key growth projects
in-line with its plans. Polyus Gold is on track with development of
its strategic growth projects at the Krasnoyarsk Business Unit,
including the reconfiguration of the Titimukhta Mill, expansion of
Blagodatnoye and heap leaching of the Blagodatnoye low-grade ore
stockpiles. The Group also started construction and installation
works at the Titimukhta Mill during the period and the launch of
the new production circuit is planned for summer 2016. As for the
Blagodatnoye expansion, the detailed design of the expanded
grinding and flotation stages was completed and equipment
contracting commenced. Top tier international engineering
consultancies have been engaged to assist Polyus Gold in executing
the heap leaching pre-feasibility study at Blagodatnoye. The study
is aimed at evaluating potential processing options and finding the
optimal operating parameters. Pilot plant installation is in
progress.
At Kuranakh, the Group continued with second stage testing of
the heap leaching technology with 28 kt of ore with an average
grade of 0.9 g/t having been stacked during the quarter.
At Verninskoye, Polyus Gold is actively exploring the
possibility of increasing the mill's processing capacity from 2.2
to 3.6-5.0 mtpa. The Group expects to finish the definitive study
of the Verninskoye expansion in 2016. Polyus is also actively
investigating the possibility of integrating its assets in the
region into a single hub.
At Natalka, the Group progressed further the process flowsheet
optimization studies and expects these to be completed by 1Q 2016.
Among other initiatives the team is focusing on the improvement of
blasting methods and ore grade control. The large scale pilot plant
program has been a priority and delivered positive results. The
program is designed to unlock potential flowsheet simplification
options and to date is progressing as per the schedule. The Group
continues to expect commissioning of the Natalka project in 2017.
Polyus' construction efforts at Natalka are largely focused on the
auxiliary facilities and on-site infrastructure. As of the end of
3Q 2015, there were 360 construction workers on site. During the
quarter, Polyus made good progress with the main crushed ore
conveyor tunnel construction with only 75 meters remaining.
According to the current schedule, the tunnel will be completed in
early November. Other areas of construction included the tailings
thickener, ore crushing and conveyor complex, 110 kV power line,
main stepdown substation, circulating pump and slurry pump
stations. The Group expects a substantial ramp-up of construction
activities from 2Q 2016 onwards.
Financial update
In 3Q 2015, the Group sold 521 koz of gold from continuing
operations, 12% above 3Q 2014 (466 koz) and a 27% increase over 2Q
2015 (409 koz).
The Group estimates its gold sales from continuing operations in
3Q 2015 will be approximately $593 million, a 2% decrease from 3Q
2014 ($603 million) but 22% above 2Q 2015 ($485 million). Gold
sales for 9M 2015 are expected to be $1,554 million, 1% below the
same period in 2014.
The estimated weighted-average gold selling price in 3Q 2015 was
$1,203/oz, a 7% decrease from 3Q 2014 ($1,293/oz) and 3% below 2Q
2015 ($1,245/oz).
As of 30 September 2015 the Group's estimated cash position was
$2,042 million (30 June 2015: $1,377 million) and its estimated net
debt position amounted to $115 million (30 June 2015: $375
million).
3Q 2015 (expected) 2Q Q-o-Q change 1Q 4Q 3Q Y-o-Y change 9M 2015 9M 2014 Y-o-Y change
2015 2015 2014 2014 (expected)
------------------- ------------------ ------ ------------ ------ ------ ------ ------------ ----------- ------- ------------
Gold sold, koz 521 409 27% 390 474 466 12% 1,320 1,218 8%
------------------- ------------------ ------ ------------ ------ ------ ------ ------------ ----------- ------- ------------
Gold sales, $ mln 593 485 22% 476 581 603 -2% 1,554 1,577 -1%
------------------- ------------------ ------ ------------ ------ ------ ------ ------------ ----------- ------- ------------
Weighted-average
gold selling
price (excl.
SPPP), $/oz 1,138 1,186 -4% 1,219 1,225 1,293 -12% 1,177 1,295 -9%
------------------- ------------------ ------ ------------ ------ ------ ------ ------------ ----------- ------- ------------
Weighted-average
gold selling
price (incl.
SPPP), $/oz 1,203 1,245 -3% 1,271 1,274 1,293 -7% 1,236 1,310 -6%
------------------- ------------------ ------ ------------ ------ ------ ------ ------------ ----------- ------- ------------
SPPP effect, $
mln 34 24 42% 20 23 11 209% 79 18 339%
------------------- ------------------ ------ ------------ ------ ------ ------ ------------ ----------- ------- ------------
Average LBMA
price, $/oz 1,124 1,192 -6% 1,218 1,201 1,282 -12% 1,178 1,288 -9%
------------------- ------------------ ------ ------------ ------ ------ ------ ------------ ----------- ------- ------------
Corporate update
On 2 September 2015, the Independent Committee of the Group's
Board of Directors noted the possible offer announced by Wandle
Holdings Limited and its wholly owned subsidiary Sacturino Limited
to acquire all of the issued and to be issued share capital of the
Company not already held by Wandle for $2.97 per share in cash
under Rule 2.4 of the City Code on Takeovers and Mergers (the
"Code").
On 30 September 2015, the Independent Committee of the Group's
Board of Directors noted the Rule 2.7 announcement released by
Wandle Holdings Limited and its wholly owned subsidiary Sacturino
Limited to acquire all of the issued and to be issued share capital
of Polyus not already held by Wandle for $2.97 per share in cash.
The Independent Committee firmly believes that the Offer materially
undervalues the Company and its prospects, and therefore is not
capable of being recommended from a value perspective. The
Independent Committee has advised shareholders other than Wandle to
take no further action at this stage, and to wait for the
Independent Committee to provide its formal views on the Offer.
On 13 October 2015, subsequent to the end of 3Q 2015, the Offer
document was posted to the shareholders of Polyus Gold
International and became publicly available.
Conference call information
Polyus Gold will host an analyst conference call today at 3 pm
London time to present and discuss the 3Q and 9M 2015 operating
results.
To join the conference call, please dial:
UK toll free 0808 237 0060
UK International +44 (0) 20 3426 2886
USA toll free 1877 841 4559
Russia toll free 8108 00206 85011
A replay of the conference call will be available from 5 pm
London time on 22 October 2015, for the duration of 30 days.
To access the replay, please dial:
UK toll free: 0808 237 0026
UK International: +44 (0) 20 3426 2807
Russia toll free 495 660 4512
USA toll-free 1866 535 8030
Access number: 663589#
Enquiries:
Investor contact
Sergey Krivokhizhin, Director Investor Relations
+44 (0) 203 713 4290 ir@polyusgold.com
Media contact
Artem Gorbachev, Press Secretary
+44 (0) 203 713 4290 gorbachevav@polyusgold.com
Forward looking statements
(MORE TO FOLLOW) Dow Jones Newswires
October 22, 2015 03:33 ET (07:33 GMT)
Grafico Azioni Polyus Gold (LSE:PGIL)
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Da Mag 2024 a Giu 2024
Grafico Azioni Polyus Gold (LSE:PGIL)
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Da Giu 2023 a Giu 2024
