Polymetal International plc (POLY) 
Polymetal: Q3 2023 production results 
31-Oct-2023 / 07:31 MSK 
The issuer is solely responsible for the content of this announcement. 
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Release time  IMMEDIATE                             AIX, MOEX: POLY 
 
Date          31 October 2023 
 

Polymetal International plc Q3 2023 production results

Polymetal International plc reports production results for the third quarter ended September 30, 2023.

"In Q3, we returned to positive cash flow generation after seasonal working capital release and a decline in previously accumulated gold bullion. We continue to work on further release of unsold inventories and production in line with the guidance", said Vitaly Nesis, Group CEO of Polymetal International plc.

HIGHLIGHTS

-- There have been no fatal accidents during the first nine months of 2023 among Polymetal's workforce andcontractors (similar to 9M 2022). Lost time injury frequency rate (LTIFR) stood on par with 9M 2022 at 0.09. Ninelost-time accidents mostly related to falling or hit by an object were recorded during 9M 2023 (none in Kazakhstan)with two of them in Q3.

-- In Q3, gold equivalent production ("GE") grew by 12% year-on-year (y-o-y) to 508 Koz driven by increaseswithin Russian operations (Urals, Mayskoye and Dukat).

-- GE output for the first nine months of 2023 was up by 6% y-o-y to 1,272 Koz, including 340 Koz inKazakhstan and 932 Koz in Russia.

-- Concentrate inventories at Kyzyl and inventories in Russia have been unwound materially during Q3. TheCompany recorded a materially lower sales-production gap versus the previous quarter. Sales volumes for the firstnine months of 2023 amounted to 1.1 Moz of GE. New challenges facing sales from Russia include sale of silverbullion (instead of concentrate) and significant tightening of concentrate exports regulations.

-- Revenue for the reporting quarter and nine months increased by 17% and 22% y-o-y to USUSD 834 and USUSD 2,149million respectively on the back of sales volumes recovery and higher metal prices.

-- EBITDA for the first nine months of 2023 reached USUSD 995 million representing a margin of 46% (USUSD 301million in Kazakhstan, USUSD 694 million in Russia). A y-o-y increase of 60% is attributable to revenue growth andexchange rate driven operating costs decrease in Russia.

-- Net Debt decreased by 10% quarter-on-quarter and stood at USUSD 2.33 billion (USUSD 0.12 billion inKazakhstan and USUSD 2.21 billion in Russia) as the Company generated positive free cash flow supported by seasonalfactor and inventories release, as well as enjoyed lower costs and lower value of Rouble-denominated debt due tofavorable exchange rate movements.

-- Polymetal is on track to meet its full-year production guidance of 1.7 Moz of GE (1.2 Moz in Russia and500 Koz in Kazakhstan). TCC and AISC guidance of USUSD 950-1,000/GE oz and USUSD 1,300-1,400/GE oz respectively is alsomaintained. The estimate remains contingent on the RUB/USD and KZT/USD exchange rates which have a significanteffect on the Group's local currency denominated operating costs.

HIGHLIGHTS

                           3 months ended September 30, %                9 months ended September 30,  % 
                          2023           2022           change           2023           2022           change 
 
PRODUCTION (Koz of GE) 1 
Kazakhstan                127            133            -5%              340            377            -10% 
Kyzyl                     84             82             +2%              212            217            -2% 
Varvara                   43             51             -16%             128            160            -20% 
 
Russia                    381            321            +19%             932            821            +14% 
 
TOTAL                     508            454            +12%             1,272          1,198          +6% 
 
SALES (Koz of GE) 
Kazakhstan                110            108            +2%              310            347            -11% 
 
Russia2                   336            321            +5%              826            641            +29% 
 
TOTAL                     446            429            +4%              1,136          988            +15% 
 
REVENUE3 (USUSDm) 
Kazakhstan                209            181            +15%             602            624            -4% 
 
Russia                    626            533            +17%             1,547          1,138          +36% 
 
TOTAL                     834            714            +17%             2,149          1,762          +22% 
 
EBITDA3 (USUSDm) 
Kazakhstan                101            93             +9%              301            354            -15% 
 
Russia                    335            101            +232%            694            266            +161% 
 
TOTAL                     436            194            +125%            995            620            +60% 
 
NET DEBT4 (USUSDm) 
Kazakhstan                120            201            -41%             120            277            -57% 
 
Russia                    2,206          2,389          -8%              2,206          2,117          +4% 
 
TOTAL                     2,326          2,590          -10%             2,326          2,393          -3% 
 
SAFETY 
LTIFR5 (Employees)        0.06           0.11           -47%             0.09           0.09           -0% 
Fatalities                0              0              NA               0              0              NA 
Notes: 
(1) Based on 80:1 Au/Ag conversion ratio and excluding base metals. Discrepancies in calculations are due to rounding. 
Mayskoye production reporting approach was amended to record production as soon as the ownership title for gold is 
transferred to a buyer at the mine site's concentrate storage facility. Previous periods were restated accordingly. 
(2) Excluding ounces at Mayskoye, which ownership title has already been transferred to a buyer, but not shipped. 
(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 2023 (for 
the three months period) and 31 December 2022 (for the nine months period). 
(5) LTIFR = lost time injury frequency rate per 200,000 hours worked. Company employees only are taken into account. 

CONFERENCE CALL AND WEBCAST

The Company will hold a webcast on Tuesday, 31 October 2023, at 10:00 London time (16:00 Astana time).

To participate in the webcast, please register using the following link:

https://event.on24.com/wcc/r/4380844/257261F9AB918B8B717A3B0CE97CFDA4.

Webcast details will be sent to you via email after registration.

Enquiries

Investor Relations 
Polymetal International plc ir@polymetalinternational.com 
Evgeny Monakhov             +44 20 7887 1475 (UK) 
Kirill Kuznetsov            +7 7172 47 66 55 (Kazakhstan) 
 
Media 
Polymetal International plc media@polymetal.kz 
Ainur Baigozha              +7 7172 47 66 55 (Kazakhstan) 

FORWARD-LOOKING STATEMENTS

This release may include statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements speak only as at the date of this release. These forward-looking statements can be identified by the use of forward-looking terminology, including the words "targets", "believes", "expects", "aims", "intends", "will", "may", "anticipates", "would", "could" or "should" or similar expressions or, in each case their negative or other variations or by discussion of strategies, plans, objectives, goals, future events or intentions. These forward-looking statements all include matters that are not historical facts. By their nature, such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the company's control that could cause the actual results, performance or achievements of the company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the company's present and future business strategies and the environment in which the company will operate in the future. Forward-looking statements are not guarantees of future performance. There are many factors that could cause the company's actual results, performance or achievements to differ materially from those expressed in such forward-looking statements. The company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in the company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based.

KYZYL

                             3 months ended September 30,            9 months ended September 30, 
                                                          % change                                 % change 
                            2023           2022                      2023           2022 
MINING 
Waste mined, Mt             21.5           20.6           +4%        60.2           62.3           -3% 
Ore mined (open pit), Kt    644            558            +15%       1,808          1,689          +7% 
 
PROCESSING 
Ore processed, Kt           640            565            +13%       1,833          1,651          +11% 
Gold grade, g/t             4.7            5.6            -17%       4.9            5.1            -3% 
Gold recovery               88.8%          89.2%          -0%        88.8%          88.7%          +0% 
Concentrate produced, Kt    28.4           28.9           -2%        89.9           78.3           +15% 
Concentrate gold grade, g/t 93.9           98.4           -5%        89.6           95.0           -6% 
Gold in concentrate, Koz1   86             92             -7%        259            239            +8% 
 
Concentrate shipped, Kt     15             16             -1%        34             42             -20% 
Payable gold shipped, Koz   28             30             -6%        62             78             -21% 
 
Amursk POX 
Concentrate processed, Kt   19             14             +33%       47             35             +34% 
Gold grade, g/t             108.0          136.8          -21%       113.6          134.0          -15% 
Gold produced, Koz          56             52             +7%        150            139            +8% 
 
TOTAL PRODUCTION 
Gold, Koz                   84             82             +2%        212            217            -2% 
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. 

In Q3, Kyzyl produced 84 Koz of gold representing a 2% y-o-y increase. The planned decrease in gold grade versus the high base of 2022, hence lower concentrate production, was compensated by larger volumes of processed concentrate at Amursk POX after implementation of certain technological solutions.

Concentrate sales are stabilising after the drop in H1 recording relatively stable y-o-y dynamics in Q3.

The mining and processing volumes have been growing throughout the year to align with the earlier announced concentrator capacity extension (2.4 Mtpa).

VARVARA

                                                 3 months ended                9 months ended September 
                                                                               30,                         % 
                                                September 30,   % change 
                                                                                                           change 
                                                2023    2022                   2023          2022 
MINING 
Waste mined, Mt                                 10.4    10.8    -4%            31.9          32.1          -1% 
Ore mined (open pit), Kt                        676     963     -30%           2,200         3,032         -27% 
 
PROCESSING 
Leaching 
Ore processed, Kt                               787     823     -4%            2,332         2,421         -4% 
Gold grade, g/t                                 1.4     1.7     -19%           1.4           1.7           -16% 
Gold recovery1                                  89.9%   91.0%   -1%            89.3%         90.6%         -1% 
Gold production (in dore), Koz                  32      41      -21%           99            128           -23% 
 
Flotation 
Ore processed, Kt                               193     197     -2%            569           567           +0% 
Gold grade, g/t                                 2.5     2.9     -14%           2.3           2.8           -18% 
Recovery1                                       87.1%   86.4%   +1%            86.8%         89.4%         -3% 
Gold in concentrate, Koz                        10      10      +7%            29            32            -7% 
 
TOTAL PRODUCTION 
Gold, Koz                                       43      51      -16%           128           160           -20% 
Note: 
(1) Technological recovery, includes gold and copper within work-in-progress inventory. Does not include toll-treated 
ore. 

Varvara production continued to be impacted by a planned decrease in Komar ore grade at the leaching circuit and lower share of high-grade third-party feed at the flotation circuit.

SUSTAINABILITY, HEALTH AND SAFETY

There were no fatal accidents during the first nine months of 2023 among Polymetal's workforce and contractors (consistent with 9M 2022). Lost time injury frequency rate (LTIFR) among the Group's employees decreased by 52% y-o-y to 0.06 in Q3 (0.12 in Q3 2022) and remained flat at 0.09 in 9M 2023. During the reporting quarter, three lost-time injuries were recorded at Polymetal's sites (all in Russia): two among employees and one among contractor workers. All were classified as minor (fall and jamming) and were followed by proper investigations aimed at improving the safety of workplaces.

----------------------------------------------------------------------------------------------------------------------- Dissemination of a Regulatory Announcement, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement.

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ISIN:           JE00B6T5S470 
Category Code:  UPD 
TIDM:           POLY 
LEI Code:       213800JKJ5HJWYS4GR61 
OAM Categories: 3.1. Additional regulated information required to be disclosed under the laws of a Member State 
Sequence No.:   281486 
EQS News ID:    1760937 
 
End of Announcement  EQS News Service 
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October 31, 2023 00:31 ET (04:31 GMT)

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