Polymetal International plc (POLY)
Polymetal: Q3 2020 production results
22-Oct-2020 / 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 22 October 2020
Polymetal International plc
Q3 2020 production results
Polymetal reports strong production results for the third quarter of 2020.
"In Q3 the Group continued to exceed production budget and generated massive
cash flows on the back of a seasonal release of working capital", said
Vitaly Nesis, Group CEO of Polymetal. "We remain vigilant and focused to
protect our employees, contractors, and local communities as the COVID-19
pandemic remains a crucial risk for Polymetal".
HIGHLIGHTS
? There were no fatal accidents during the first nine months of 2020
either at Polymetal or at the Company's contractors. LTIFR among the
Group's employees for the period stood at 0.10, a decrease of 47%
year-on-year (y-o-y). There were 8 minor incidents in total in comparison
with 15 incidents during 9M 2019.
? The Company's Q3 gold equivalent ("GE") production increased by 7% y-o-y
to 477 Koz of GE driven by strong contributions from Omolon, Varvara, and
Kyzyl. GE output for 9M 2020 months reached 1,200 Koz, an increase of 5%
y-o-y.
? Q3 revenue jumped by 35% y-o-y to reach US$ 884 million on the back of
higher gold and silver prices as well as increased sales volumes. 9M
revenue amounted to US$ 2,019 million, up 26% y-o-y. The lag between gold
production and sales, mainly at Varvara and Kyzyl, is expected to close in
Q4 2020.
? Polymetal generated record quarterly free cash flow in Q3. Net debt was
down by US$ 80 million to US$ 1.61 billion, even as the Company paid US$
189 million of interim dividends (US$ 0.40 per share, a two-fold increase
year-on-year).
? Construction and development activities at Nezhda and POX-2 progressed
on schedule. COVID-related restrictions, precautionary measures and cases
of the disease on site have not slowed down project execution.
? The Company is on track to meet its full-year 2020 production guidance
of 1,500 Koz GE with COVID-related risks remaining the key source of
uncertainty. TCC and AISC guidance of US$ 650-700/GE oz and US$ 850-900/GE
oz respectively is also maintained.
? Production guidance for 2021 and 2022 of 1,500 Koz and 1,600 Koz GE
respectively is reiterated.
?
COVID-19 UPDATE
? There were 112 active cases of COVID-19 as at 20.10.2020 across the
Group. Strict precautionary procedures, previously implemented, including
14-day mandatory isolation of new shifts and limitations on meetings and
travel, are maintained at all production sites and offices. These
restrictions are expected to continue at least into Q2 2021.
? Mayskoye suffered a C-19 outbreak in September. All infected persons and
their contacts were transferred to observatory facilities or hospitals.
Currently 18 people remain isolated on site and 8 are in hospital with 1
person in a serious condition. All mining and processing activities
continued at regular pace.
? In September, Olcha underground and open pit (part of Omolon hub)
returned to production after a 5-week stoppage caused by the COVID-19
outbreak. All people infected (approximately 50) have recovered. The
stoppage is not expected to result in any production or cost downgrades.
? Russia is undergoing a second wave of the pandemic with daily infections
above the previous peak levels seen in May. Some regions partially
re-introduced restrictive measures. Kazakhstan lifted most of the
quarantine restrictions in August following significant drops in the
number of infected and intensive care admissions. The infection rates
remain stable so far.
? At the same time, governments have relaxed a number of cross-border
travel restrictions allowing flights between Russia, Kazakhstan and
Belarus to resume. This has facilitated bringing Kazakh employees to Dukat
and Mayskoye.
? Polymetal continues to provide varied financial and operational support
to healthcare facilities across all regions of its presence with US$ 2.9
million spent so far in 2020. The main areas of assistance include
purchasing PPE, medical supplies, and specialized diagnostic equipment.
? The Company estimates additional COVID-related cash expenses at
approximately US$ 3 million per month with the bulk recorded as operating
costs. This translates into approximately US$ 20 per GE ounce produced in
Q3.
COVID-19 STATISTICS AS OF 20.10.2020
Employees Russia Kazakhstan Group
Tests administered 17,491 8,108 25,599
C-19 positive tests 390 222 612
Active cases 99 13 112
In hospital 29 0 29
OPERATING HIGHLIGHTS
3 months ended % 9 months ended %
Sep 30, change1 Sep 30, change1
2020 2019 2020 2019
Waste 43.8 41.3 +6% 122.8 118.9 +3%
mined, Mt
Underground 21.0 25.9 -19% 67.4 80.2 -16%
development
, km
Ore mined, 4.2 4.5 -7% 12.2 13.0 -6%
Mt
Open-pit 3.1 3.4 -10% 9.1 9.9 -8%
Underground 1.1 1.1 +2% 3.1 3.1 -0%
Ore 4.0 3.9 +2% 11.8 11.5 +3%
processed,
Mt
Average GE 3.8 3.9 -2% 3.9 3.8 +3%
grade
processed,
g/t
Production
Gold, Koz 438 402 +9% 1,080 1,005 +8%
Silver, Moz 4.6 5.4 -13% 14.4 16.4 -12%
Gold 477 447 +7% 1,200 1,141 +5%
equivalent,
Koz2
Sales
Gold, Koz 410 388 +6% 1,005 992 +1%
Silver, Moz 4.2 6.1 -31% 14.1 16.4 -14%
Revenue, 884 656 +35% 2,019 1,602 +26%
US$m3
Net debt, 1,610 1,690 -5% 1,610 1,479 +9%
US$m4
Safety5
LTIFR 0.15 0.11 +36% 0.10 0.19 -47%
Fatalities 0 0 NA 0 2 -100%
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 120:1 Au/Ag conversion ratio (prior to Q2
2020, Polymetal used 80:1 Au/Ag ratio) and excluding base
metals (previously were included). Historical comparative
data restated accordingly.
(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 June 2020 (for the three months period) and 31
December 2019 (for the nine months period).
(5) LTIFR = lost time injury frequency rate per 200,000
hours worked.
PRODUCTION BY MINE
3 months ended % 9 months ended %
Sep 30, Sep 30,
change change
2020 2019 2020 2019
GOLD EQ.
(KOZ)1
Kyzyl 102 94 +8% 314 253 +24%
Mayskoye 77 72 +7% 78 76 +2%
Albazino 65 75 -13% 204 211 -3%
Omolon 65 47 +40% 153 142 +8%
Dukat 48 51 -7% 152 159 -5%
Varvara 46 34 +35% 130 104 +25%
Svetloye 39 46 -15% 91 107 -15%
Voro 35 28 +24% 77 84 -9%
TOTAL 477 447 +7% 1,200 1,138 +6%
(continuing
operations)
Kapan - - NA - 3 -100%
TOTAL 477 447 +7% 1,200 1,141 +5%
(including
discontinued
operations)
Notes: (1) Based on 120:1 Au/Ag conversion ratio (prior to Q2 2020,
Polymetal used 80:1 Au/Ag ratio) and excluding base metals (previously were
included). Historical comparative data restated accordingly.
CONFERENCE CALL AND WEBCAST
Polymetal will hold a conference call and webcast on Thursday, 22 October
2020 at 11:00 London time (13:00 Moscow time).
To participate in the call, please dial:
From the UK:
+44 330 336 9125 (local access)
0800 358 6377 (toll free)
From the US:
+1 929 477 0324 (local access)
800 289 0571 (toll free)
From Russia:
+7 495 213 1767 (local access)
8 800 500 9283 (toll free)
To participate from other countries, please dial any of the local access
numbers listed above.
Conference code: 9476909
To participate in the webcast follow the link:
https://webcasts.eqs.com/polymetal20201022 [1].
Please be prepared to introduce yourself to the moderator or register.
A recording of the call will be available at +44 207 660 0134 (from the UK),
+1 719 457 0820 (from the USA) and 8 10 800 2702 1012 (from Russia), access
code 9476909, from 16:30 Moscow time Thursday, 22 October, till 16:30 Moscow
time Thursday, 29 October 2020. Webcast replay will be available on
Polymetal website (www.polymetalinternational.com [2]) and at
https://webcasts.eqs.com/polymetal20201022 [1].
About Polymetal
Polymetal International plc (together with its subsidiaries - "Polymetal",
the "Company", or the "Group") is a top-10 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
Co. Limited
Internationa
l plc
Marcus
Jackson
Andrew
Foster
Jamil
Miah
Richard
Brown
Panmure
Gordon
+44 20 7886
2500
Daniel
Norman
John Prior
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 Sep % 9 months ended Sep %
30, chang 30, chang
e e
2020 2019 2020 2019
MINING
Waste mined, 20.0 17.5 +14% 58.0 49.9 +16%
Mt
Ore mined 513 527 -3% 1,555 1,560 -0%
(open-pit),
Kt
PROCESSING
Ore 509 502 +1% 1,515 1,490 +2%
processed,
Kt
Gold grade, 7.4 7.5 -1% 8.0 7.0 +14%
g/t
Gold 89.0% 88.3% +1% 87.8% 87.7% +0%
recovery
Concentrate 37.2 31.4 +18% 110.2 89.7 +23%
produced, Kt
Concentrate 90.6 104.8 -14% 96.4 101.7 -5%
gold grade,
g/t
Gold in 108.2 105.9 +2% 341.3 293.3 +16%
concentrate,
Koz1
Concentrate 21.1 17.2 +22% 68.3 54.2 +26%
shipped, Kt
Payable gold 40 36 +11% 132 127 +4%
shipped, Koz
Veduga ore - - NA 31 - NA
toll
processed,
Kt2
Amursk POX
Concentrate 15 15 -3% 44 35 +24%
processed,
Kt
Gold grade, 147.8 125.9 +17% 143.8 125.3 +15%
g/t
Gold 92.6% 91.7% +1% 92.1% 92.9% -1%
recovery
Gold 62 58 +6% 183 126 +44%
produced,
Koz
TOTAL
PRODUCTION
Gold, Koz 102 94 +8% 314 253 +24%
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.
Kyzyl production for Q3 increased by 8% y-o-y to 102 Koz on the back of
higher grades in the open pit. Grades will continue to normalize towards
reserve average (6.7 g/t) as mining progresses to lower levels where small
high-grade lenses are significantly less usual.
Recoveries at the concentrator improved by 1 percentage point thanks to
continuous optimization of reclaim water quality. Investment in additional
thickening and drying capacity is expected to enable stable recoveries
despite the introduction of higher-carbon, more refractory ore in 2021.
MAYSKOYE
3 months ended % 9 months ended Sep %
Sep 30, change 30, chan
ge
2020 2019 2020 2019
MINING
Waste mined, 0.6 1.4 -55% 2.3 4.0 -41%
Mt
Underground 4.9 4.7 +3% 15.9 15.5 +2%
development,
km
Ore mined, 289 199 +45% 855 638 +34%
Kt
Open-pit 91 41 +123% 278 175 +59%
Underground 197 159 +24% 578 463 +25%
PROCESSING
Ore 225 232 -3% 683 658 +4%
processed,
Kt
Gold grade, 7.9 6.3 +24% 6.8 6.2 +9%
g/t
Gold 70.9% 84.7% -16% 81.1% 79.5% +2%
recovery
Gold in 29 36 -21% 104 95 +10%
concentrate,
Koz2
Gold 2 1 +42% 3 6 -55%
produced in
dore from
carbon, Koz3
Payable gold 75 70 +6% 75 70 +6%
in
concentrate
shipped to
offtakers,
Koz
TOTAL
PRODUCTION
Gold, Koz 77 72 +7% 78 76 +2%
Notes: (1) To concentrate.
(2) For information only; not considered as gold produced and therefore not
reflected in the table representing total production. Included in total
production upon sale to off-taker or dore production at Amursk POX.
(3) Gold produced from carbon at Amursk POX.
At Mayskoye, larger volumes of oxide ore were processed in Q3 compared to
the previous year which resulted in higher grades and lower recoveries.
The Company decided to continue open-pit mining through another pushback at
Zone 1. The management believes that the pushback will create substantial
value in the current gold price environment. In addition, open-pit ore
tonnage will reduce risks at the underground mine where development for the
new material handling system (electric conveyor replacing diesel trucks) has
started.
Shipment of concentrate to China has commenced in August. Chinese off-take
market remains strong with substantial demand from new customers.
ALBAZINO
3 months ended Sep % 9 months ended Sep %
30, chang 30, chang
e e
2020 2019 2020 2019
MINING
Waste mined, 5.2 5.7 -8% 15.1 16.8 -10%
Mt
Underground 2.5 2.9 -12% 8.7 7.7 +13%
development,
km
Ore mined, 421 571 -26% 1,401 1,596 -12%
Kt
Open-pit 249 418 -40% 905 1,184 -24%
Underground 172 153 +12% 497 412 +21%
PROCESSING
Albazino
concentrator
Ore 429 447 -4% 1,320 1,303 +1%
processed,
Kt
Gold grade, 4.7 4.8 -4% 4.6 4.4 +5%
g/t
Gold 88.4% 86.9% +2% 86.8% 85.9% +1%
recovery1
Concentrate 34.9 36.8 -5% 107.6 106.0 +2%
produced, Kt
Concentrate 50.3 51.0 -1% 49.5 46.6 +6%
gold grade,
g/t
Gold in 56 60 -6% 171 159 +8%
concentrate,
Koz2
Amursk POX
Concentrate 41 45 -9% 126 135 -6%
processed,
Kt
Gold grade, 49.2 51.2 -4% 51.5 50.5 +2%
g/t
Gold 96.5% 96.5% -0% 96.5% 95.2% +1%
recovery
Gold 65 75 -13% 204 211 -3%
produced,
Koz
TOTAL
PRODUCTION
Gold, Koz 65 75 -13% 204 211 -3%
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, quarterly gold production was down 13% y-o-y to 65 Koz driven
by lower grade and throughput. The Anfisa open pit, long the mainstay of ore
production, is nearing its depletion in early 2022.
Gold recovery at the concentrator improved by 2 p.p. y-o-y as the operating
team tweaked the reagent addition rates to cope with higher quantities of
complex ore from Ekaterina-2.
Underground development declined significantly due to challenging
geotechnical conditions at deeper levels of the Olga underground mine.
Permanent downgrade to underground mine productivity led to the decision to
cancel plans to double the size of the underground mine. Production
shortfall will be compensated largely by the recently approved Kutyn heap
leach project. Kutyn will be developed as part of the Albazino hub with
first gold pour expected in Q2 2023.
AMURSK POX
3 months ended % 9 months ended %
Sep 30, change Sep 30, change
2020 2019 2020 2019
Concentrate 56 60 -7% 170 171 -0%
processed,
Kt
Albazino 40 41 -3% 119 122 -3%
Kyzyl 15 15 -3% 44 35 +24%
Veduga - 3 -100% 3 9 -67%
Other1 1 - NA 4 4 +17%
Gold 94.5% 94.3% +0% 94.3% 94.3% -0%
recovery
Average gold 75.5 70.3 +7% 75.3 66.0 +14%
grade, g/t
Average 14.4% 12.5% +15% 14.1% 12.8% +10%
sulphur
grade
Total gold 127 133 -5% 387 338 +15%
produced2,
Koz
Albazino 65 62 +3% 176 178 -2%
Kyzyl 62 58 +6% 183 126 +44%
Veduga - 12 -100% 19 28 -33%
Other1 0 0 -3% 10 5 +112%
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.
Gold production for the quarter at the Amursk POX decreased by 5% y-o-y to
127 Koz due to the absence of concentrate from Veduga ore.
The facility successfully underwent a regular 2-week maintenance shutdown in
early October.
OMOLON OPERATIONS
3 months ended Sep % 9 months ended Sep %
30, chang 30, chang
e e
2020 2019 2020 2019
MINING
Waste mined, 0.7 1.9 -63% 2.8 5.1 -46%
Mt
Underground 3.1 3.3 -7% 10.0 9.9 +2%
development,
Km
Ore mined, 607 805 -25% 2,171 2,183 -1%
Kt
Open-pit 497 690 -28% 1,828 1,849 -1%
Underground 110 115 -4% 344 334 +3%
PROCESSING
Kubaka Mill
Ore 214 184 +16% 648 612 +6%
processed,
Kt
Grade
Gold, g/t 7.1 6.0 +19% 6.9 6.3 +8%
Silver, g/t 28 132 -79% 22 90 -75%
Recovery1
Gold 95.0% 95.8% -1% 93.8% 95.5% -2%
Silver 73.0% 80.8% -10% 73.8% 79.5% -7%
Gold 49 33 +49% 132 119 +10%
production,
Koz
Silver 0.1 0.6 -76% 0.3 1.4 -76%
production,
Moz
Birkachan
Heap Leach
Ore stacked, 411 350 +17% 1,118 897 +25%
Kt
Gold grade, 1.6 1.2 +33% 2.0 1.2 +71%
g/t
Gold 15 9 +67% 18 11 +67%
production,
Koz
TOTAL
PRODUCTION
Gold, Koz 64 42 +53% 150 130 +15%
Silver, Moz 0.2 0.6 -70% 0.4 1.4 -74%
Note: (1) Technological recovery, includes gold and silver within
work-in-progress inventory.
At Omolon, gold output for the quarter jumped by 53% y-o-y while silver
production was down 70%. Kubaka mill processed gold-rich ore from Birkachan
underground and Yolochka through the CIP circuit as opposed to Sopka ore
with higher silver content though the Merrill-Crowe circuit in 2019. Heap
leach production positively contributed to the total output on the back of
stacking of larger volumes of higher-grade ore stockpiles.
Open-pit mining was down as Birkachan and Olcha pits are nearing end of
mining in Q4 2020. Preparations have started to commence open-pit mining at
the new satellite deposit, Burgali, in Q2 2021.
DUKAT OPERATIONS
3 months ended Sep % 9 months ended Sep %
30, chang 30, chang
e e
2020 2019 2020 2019
MINING
Underground 10.6 15.0 -30% 32.8 45.0 -27%
development,
km
Ore mined, 614 642 -4% 1,698 1,894 -10%
Kt
PROCESSING
Omsukchan
concentrator
Ore 493 506 -3% 1,502 1,535 -2%
processed,
Kt
Grade
Gold, g/t 0.5 0.5 -3% 0.5 0.5 -1%
Silver, g/t 258 282 -9% 273 291 -6%
Recovery1
Gold 84.7% 86.7% -2% 84.8% 86.1% -1%
Silver 86.6% 86.8% -0% 86.6% 86.8% -0%
Production
Gold, Koz 7 7 -5% 21 22 -2%
Silver, Moz 3.5 3.9 -9% 11.2 12.1 -8%
Lunnoye
plant
Ore 116 116 +0% 348 348 +0%
processed,
Kt
Grade
Gold, g/t 1.3 1.4 -5% 1.4 1.4 +1%
Silver, g/t 265 241 +10% 271 258 +5%
Recovery1
Gold 88.3% 91.4% -3% 90.3% 87.6% +3%
Silver 93.1% 94.5% -1% 92.4% 91.5% +1%
Production
Gold, Koz 4 5 -9% 14 14 +2%
Silver, Moz 0.9 0.9 +4% 2.8 2.7 +3%
TOTAL
PRODUCTION
Gold, Koz 11 12 -6% 35 36 -1%
Silver, Moz 4.4 4.7 -7% 13.9 14.8 -6%
Notes: (1) Technological recovery, includes gold and silver within
work-in-progress inventory.
At Dukat, silver grade decreased y-o-y resulting in production being down by
7% to 4.4 Moz. At the same time, the mine exceeded the budget grade on the
back of lower than expected dilution enabled by expanding usage of smaller
equipment and narrower mining widths.
Underground development volumes declined materially following the
decommissioning of the Goltsovoye underground mine.
In response to material silver price growth, lower-grade areas at Dukat will
be systematically re-evaluated to identify potentially economic stopes which
were left behind in the period of lower silver prices.
VARVARA
3 months ended % 9 months ended Sep %
Sep 30, change 30, chang
e
2020 2019 2020 2019
MINING
Waste 10.1 11.4 -12% 30.3 34.1 -11%
mined, Mt
Ore mined, 725 1,014 -29% 2,209 2,953 -25%
Kt
PROCESSING
Leaching
Ore 773 733 +6% 2,303 2,268 +2%
processed,
Kt
Gold grade, 1.4 1.6 -12% 1.4 1.5 -2%
g/t
Gold 88.1% 87.4% +1% 88.1% 86.8% +1%
recovery1
Gold 32 31 +1% 99 97 +2%
production
(in dore),
Koz
Flotation
Ore 176 134 +31% 493 411 +20%
processed,
Kt
Grade
Gold, g/t 3.2 1.3 +139% 3.0 1.2 +150%
Copper 0.33% 0.49% -33% 0.33% 0.53% -37%
Recovery1
Gold 88.7% 69.5% +28% 87.4% 78.4% +11%
Copper 84.2% 91.3% -8% 84.6% 91.4% -7%
Production
Gold (in 14 3 +418% 32 7 +340%
concentrate
), Koz
Copper (in 0.5 0.6 -10% 1.3 1.8 -29%
concentrate
), Kt
Veduga ore - 35 -100% 30 98 -70%
toll
processed,
Kt2
Total ore 949 902 +5% 2,825 2,778 +2%
processed,
Kt
TOTAL
PRODUCTION
Gold, Koz 46 34 +35% 130 104 +25%
Copper, Kt 0.5 0.6 -10% 1.3 1.8 -29%
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.
Varvara demonstrated strong gold production y-o-y increase of 35% to 46 Koz
in Q3 and 25% to 130 Koz in 9M driven by larger volumes of high-grade
third-party ore through the flotation circuit and better recoveries
attributable to the flow sheet improvements.
Average gold grade in ore processed at the leaching circuit was down 12%
y-o-y on the back of planned decrease of gold grade at Komar.
SVETLOYE
3 months ended % 9 months ended Sep %
Sep 30, change 30, chang
e
2020 2019 2020 2019
MINING
Waste 0.7 0.3 +115% 2.3 1.1 +108%
mined, Mt
Ore mined 547 406 +35% 1,454 1,273 +14%
(open pit),
Kt
PROCESSING
Ore 395 369 +7% 1,021 968 +5%
stacked, Kt
Gold grade, 4.0 4.1 -4% 4.0 4.0 -0%
g/t
Gold 39 46 -15% 91 107 -15%
production,
Koz
TOTAL
PRODUCTION
Gold, Koz 39 46 -15% 91 107 -15%
At Svetloye, quarterly gold production decreased by 15% y-o-y to 39 Koz as
larger volumes of ore from the Emmy pit with lower recoveries and slower
kinetics were stacked.
VORO
3 months ended % 9 months ended Sep %
Sep 30, change 30, chang
e
2020 2019 2020 2019
MINING
Waste - 0.4 -100% - 1.2 -100%
mined, Mt
Ore mined, 132 181 -27% 239 661 -64%
Kt
PROCESSING
Voro CIP
Ore 257 264 -3% 786 783 +0%
processed,
Kt
Gold grade, 2.0 4.0 -50% 2.1 3.7 -42%
g/t
Gold 83.2% 87.0% -4% 82.6% 86.6% -5%
recovery1
Gold 27 26 +1% 63 71 -12%
production,
Koz
Voro Heap
Leach
Ore - 58 -100% 22.2 58 -62%
stacked, Kt
Gold grade, - 1.4 -100% 0.9 1.4 -35%
g/t
Gold 8 2 +410% 14 13 +10%
production,
Koz
TOTAL
PRODUCTION
Gold, Koz 35 28 +24% 77 84 -9%
Note: (1) Technological recovery, includes gold within work-in-progress
inventory.
In Q3, Voro saw an increase in production of 24% y-o-y to 35 Koz due to
work-in-progress release at both CIP and heap leach facilities. Production
from the current operations was down y-o-y as CIP turned to processing
lower-grade stockpiles after mining was completed in 2020.
DEVELOPMENT UPDATE
At Nezhda, mining and construction activities have been progressing on
schedule. Installation of flotation and gravity concentration equipment is
completed. New boiler house was commissioned with permanent heating
established in all buildings including the concentrator. ROM ore crusher and
crushed ore reclaim feeders installed. The installation of pylons for the
external grid power line commenced. Ore mining started.
3 months ended Sep 30, % 9 months ended Sep 30, %
ch ch
an an
ge ge
2020 2019 2020 2019
MINING
Waste 4.7 - NA 4.7 - NA
mined,
Mt
Ore 200 - NA 200 - NA
mined,
Kt
POX-2 development proceeds on schedule. Construction is currently focused on
POX and oxygen station buildings. The autoclave vessel has been successfully
installed on its foundation in August. Oxygen plant has been delivered on
site. Construction of downstream areas (CIL, desorption/electrolysis)
commenced.
At Veduga, ore mining ceased in October with focus shifting to building the
exploration decline and pre-stripping ahead of the potential approval of the
project in 2021.
SUSTAINABILITY, HEALTH AND SAFETY
There were no fatal accidents during 9M 2020 within Polymetal and the
Company's contractors. LTIFR for the reporting quarter grew by 36% y-o-y to
0.15 as 4 minor incidents were recorded in comparison with 3 minor incidents
in Q3 2019. During the first 9 months of 2020 there were 8 minor
work-related incidents in total, LTIFR stood at 0.10, a decrease of 47%
y-o-y.
In Q3, the Company's leadership in ESG was reaffirmed by FTSE Rusell which
maintained Polymetal as a constituent of FTSE4Good Index Series with 4.4
score (out of possible 5) and 92 percentile. Polymetal was also awarded Best
Communication of ESG by IR Magazine.
ISIN: JE00B6T5S470
Category Code: MSCH
TIDM: POLY
Sequence No.: 86343
EQS News ID: 1142340
End of Announcement EQS News Service
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(END) Dow Jones Newswires
October 22, 2020 02:00 ET (06:00 GMT)
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