Polymetal International plc (POLY) 
Polymetal: Q4 and full year 2019 production results 
 
23-Jan-2020 / 10:00 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         23 January 2020 
 
Polymetal International plc 
 
Q4 and full year 2019 production results 
 
Polymetal International plc reports strong production results for the fourth 
           quarter and twelve months ended December 31, 2019. 
 
 "A strong Q4 allowed Polymetal to exceed both original and updated guidance 
     for the eighth year in a row. Robust production and positive gold price 
  dynamics drove strong free cash flow generation", said Vitaly Nesis, Group 
    CEO of Polymetal. "Stable operating performance should ensure steady and 
   significant dividend flow while planned progress with execution of Nezhda 
     and POX-2 projects will enable us to resume production growth in 2022". 
 
           HIGHLIGHTS 
 
? The Company's FY2019 gold equivalent ("GE") production amounted to 1,614 
Koz, an increase of 3% over 2018 and 4% above the original production 
guidance of 1.55 Moz. A strong contribution from Kyzyl more than 
compensated for disposals against the backdrop of stable results from the 
rest of the portfolio. Production from continuing operations grew by 14% 
year-on-year to 1,609 Koz GE. 
 
? Safety performance in 2019 deteriorated both in terms of frequency of 
lost-time injuries and the number of fatalities. Management expects the 
Board to consider and approve significant safety-related changes to the 
remuneration structure for all levels of the Company management together 
with a comprehensive action plan focused on impacting the behavior and 
attitudes of the employees. Our goal remains zero fatalities. 
 
? Q4 GE output was 383 Koz, 15% below Q4 2018 production from continuing 
operations, mainly as a result of limited throughput at the POX plant in 
the reporting quarter due to scheduled downtime which was part of the 
POX-2 project activities. 
 
? Gold production for the full year was up 8% while silver output 
contracted by 15% on the back of asset disposals and planned grade decline 
at Dukat. 
 
? Full-year revenue jumped by 19% to reach US$ 2.2 billion on the back of 
higher volumes and metal prices. Q4 revenue increased by 1% to US$ 643 
million as lower volumes were offset by increasing prices. 
 
? The Company expects full-year costs to be close to the top of the range 
of its cost guidance of US$ 600-650/GE oz for Total Cash Costs ("TCC") and 
US$ 800-850/GE oz for All-in Sustaining Cash Costs ("AISC"). The main 
factors driving this guidance are: stronger Rouble, higher royalties 
driven by higher metal prices, and higher domestic diesel prices. 
 
? In Q4, Polymetal generated strong free cash flow resulting in Net Debt 
reduction to US$ 1.48 billion as at the end of 2019. The Company expects 
Net Debt/EBITDA ratio to be lower than the target level of 1.5x. 
 
           2020 OUTLOOK 
 
? The Company reiterates its current production guidance of 1.6 Moz of GE 
for each of FY2020 and 2021. 
 
? TCC in 2020 is expected to be in the range of US$ 650-700/GE oz while 
AISC is expected to average US$ 850-900/GE oz. The expected increase over 
2019 cost levels is driven by the current appreciation of the Russian 
rouble and increased domestic diesel fuel price, as well as increased 
royalties on the back of continued strong gold and silver price 
performance. The guidance remains contingent on the Rouble/Dollar exchange 
rate and Brent oil price. 
 
? Capital expenditures in 2020 are expected to be approximately US$ 475 
million. The US$ 50 million increase compared to the previous estimate is 
driven by accelerated pre-stripping at Nezhda, several environmentally 
driven investments, as well as stronger Rouble. 
 
             3 months ended      %     12 months ended     % 
                Dec 311,      change2     Dec 311,      change2 
              2019     2018             2019     2018 
 
Waste         39.7     32.2    +23%    158.6    126.7    +25% 
mined, Mt 
Underground   25.6     33.2    -23%    105.8    130.0    -19% 
development 
, km 
Ore mined,    4.2      3.8     +11%     17.2     14.0    +23% 
Mt 
Open-pit      3.1      2.6     +19%     13.0     9.3     +40% 
Underground   1.1      1.1      -6%     4.2      4.7     -10% 
Ore           3.5      3.7      -6%     15.0     15.2     -1% 
processed, 
Mt 
Production 
Gold, Koz     312      414     -25%    1,316    1,216     +8% 
Silver, Moz   5.2      5.9     -11%     21.6     25.3    -15% 
Copper, Kt    0.5      1.3     -66%     2.5      3.9     -37% 
Gold          383      497     -23%    1,614    1,562     +3% 
equivalent, 
Koz3 
Sales 
Gold, Koz     374      432     -13%    1,366    1,198    +14% 
Silver, Moz   5.7      8.3     -31%     22.1     25.7    -14% 
Copper, Kt    0.8      1.4     -42%     2.8      3.3     -15% 
Revenue,      643      634      +1%    2,245    1,882    +19% 
US$m4 
Net debt,    1,479    1,702    -13%    1,479    1,518     -3% 
US$m5 
Safety 
LTIFR6        0.18      0       NA      0.19     0.09    +111% 
Fatalities     0        0       NA       2        1      +100% 
                  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 September 2019 (for the three months period) and 
               31 December 2018 (for the twelve months period). 
 
        (6) LTIFR = lost time injury frequency rate per 200,000 
                                                  hours worked. 
 
           PRODUCTION BY MINE 
 
                    3 months       %        12 months       % 
 
                 ended Dec 31,   change   ended Dec 31,   change 
                  2019    2018            2019     2018 
 
GOLD EQ. (KOZ)1 
Kyzyl              90      86     +4%     343       96     257% 
Dukat              70      75     -7%     302      306     -1% 
Albazino-Amursk    30      67     -55%    241      308     -22% 
Omolon             57      58     -3%     205      195      5% 
Varvara            35      39     -9%     149      142      5% 
Mayskoye           52      70     -25%    129      117     10% 
Svetloye           27      23     14%     134      136     -1% 
Voro               22      29     -23%    107      107     -1% 
TOTAL             383      448    -15%   1,609    1,407    +14% 
(continuing 
operations) 
Okhotsk            -       35      NA      -       104      NA 
Kapan              -       13      NA      5        51     -90% 
TOTAL             383      497    -23%   1,614    1,562    +3% 
(including 
discontinued 
operations) 
 
  Notes: (1) Based on 1:80 Ag/Au, 5:1 Cu/Au and 2:1 Zn/Au conversion ratios. 
 
           CONFERENCE CALL AND WEBCAST 
 
 The company will hold a conference call and webcast on Thursday, 23 January 
           2020 at 11:00 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: 9191693 
 
           To participate in the webcast follow the link: 
 https://webcasts.eqs.com/polymetal20200123. 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 9191693, from 17:30 Moscow time Thursday, 23 
  January, till 17:30 Moscow time Thursday, 30 January, 2020. Webcast replay 
    will be available on Polymetal's website (www.polymetalinternational.com 
           [1]) and at https://webcasts.eqs.com/polymetal20200123. 
 
           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 
 
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 
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     %     12 months ended     % 
                  Dec 31,       chang       Dec 31,       chang 
                                  e                         e 
               2019      2018           2019      2018 
MINING 
Waste mined,   17.6      16.1    +9%    67.5      60.9    +11% 
Mt 
Ore mined       440      416     +6%    2,000     1,249   +60% 
(open-pit), 
Kt 
Gold grade,                              7.4       5.5    +33% 
g/t 
 
PROCESSING 
Ore             510      478     +7%    2,000      914    +119% 
processed, 
Kt 
Gold grade,     7.6      6.6    +16%     7.1       5.7    +26% 
g/t 
Gold           88.0%    85.5%    +3%    87.8%     81.5%    +8% 
recovery 
Concentrate     35        34     +3%     125       56     +124% 
produced, Kt 
Concentrate    98.6      79.4   +24%    100.8     74.8    +35% 
gold grade, 
g/t 
Gold in        110.3     86.4   +28%    403.6     133.6   +202% 
concentrate, 
Koz1 
 
Concentrate    13.5      40.0   -66%    67.6      45.4    +49% 
shipped, Kt 
Payable gold   28.0      79.3   -65%    155.0     89.3    +74% 
shipped, Koz 
 
Amursk POX 
Concentrate     16        2      NM      52         2      NM 
processed, 
Kt 
Gold grade,    134.1    127.0    +6%    128.1     127.0    +1% 
g/t 
Gold           91.4%    95.5%    -4%    92.4%     95.5%    -3% 
recovery 
Gold           62.0      7.0     NM     188.4      7.0     NM 
produced, 
Koz 
 
TOTAL 
PRODUCTION 
Gold, Koz      90.0      86.3    +4%    343.5     96.3    +257% 
 
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. 
 
        In Q4 and FY2019, Kyzyl outperformed budget on throughput, grade and 
    production. Management expects the average grade to decrease to open-pit 
 reserve average in 2020 as the mining will shift to deeper levels with more 
           uniform distribution of gold in ore. 
 
Concentrator throughput reached the nameplate capacity of 2 Mtpa vs 1.8 Mtpa 
  design capacity. The Company intends to push the throughput further to 2.1 
           Mtpa level by H2 2020. 
 
  The recovery rates at Amursk POX remained stable quarter-on-quarter though 
   it decreased in comparison with the previous year as starting from Q3 the 
     Company increased the share of gold contained in low-carbon concentrate 
  processed at Amursk POX in response to noticeable tightening of markets in 
           China. 
 
 In the reporting quarter, Polymetal completed a FS-level technical study to 
re-optimize the open pit and updated Ore Reserves estimate. The new estimate 
   comprises 8.5 Moz of gold at an average grade of 6.3 g/t. This represents 
1.5 Moz increase in gold contained in comparison with the reserves as at the 
 end of 2018, mostly in open pit. Total life of mine extended by eight years 
           to 2047 with open-pit mining ending in 2031. 
 
           DUKAT OPERATIONS 
 
             3 months ended Dec    %     12 months ended     % 
                     31,         chang       Dec 31,       chang 
                                   e                         e 
               2019      2018            2019      2018 
 
MINING 
 
Underground    14.5      15.0     -3%    59.5      59.6     -0% 
development, 
km 
Ore mined,      620       595     +4%    2,515     2,426    +4% 
Kt 
Grade 
Gold, g/t                                 0.6       0.5    +12% 
Silver, g/t                               278       286     -3% 
 
PROCESSING 
Omsukchan 
concentrator 
Ore             523       500     +5%    2,058     1,995    +3% 
processed, 
Kt 
Grade 
Gold, g/t       0.4       0.5    -16%     0.5       0.5     -8% 
Silver, g/t     266       288     -8%     285       297     -4% 
Recovery1 
Gold           83.8%     86.7%    -3%    85.6%     86.7%    -1% 
Silver         84.6%     88.0%    -4%    86.3%     88.2%    -2% 
Production 
Gold, Koz       5.8       7.0    -18%    27.4      29.5     -7% 
Silver, Moz     3.7       4.0     -8%    15.8      16.4     -4% 
 
Lunnoye 
plant 
Ore             113       116     -2%     461       463     -0% 
processed, 
Kt 
Grade 
Gold, g/t       1.4       1.5     -7%     1.4       1.3     +5% 
Silver, g/t     251       318    -21%     256       327    -22% 
Recovery1 
Gold           83.9%     84.2%    -0%    86.7%     85.1%    +2% 
Silver         92.9%     91.7%    +1%    91.8%     91.3%    +1% 
Production 
Gold, Koz       4.0       4.6    -12%    18.0      16.7     +8% 
Silver, Moz     0.8       1.1    -24%     3.5       4.4    -20% 
TOTAL 
PRODUCTION 
Gold, Koz       9.8      11.5    -15%    45.4      46.2     -2% 
Silver, Moz     4.5       5.1    -11%    19.3      20.8     -7% 
 
           Note: (1) Technological recovery, includes gold and silver within 
           work-in-progress inventory. 
 
        At Dukat, quarterly silver and gold production were down 11% and 15% 
year-on-year respectively. The decline was primarily driven by the Omsukchan 
 concentrator processing larger volumes of lower-grade ore as well as a fall 
  in recoveries due to processing of material from Goltsovoye crown pillars. 
Mining at Goltsovoye was completed and the operation has been transferred to 
   care and maintenance. Grades at Lunnoye plant also decreased in line with 
           the budget on the back of depletion of higher-grade Zone 9. 
 
           ALBAZINO-AMURSK 
 
             3 months ended Dec    %     12 months ended     % 
                     31,         chang       Dec 31,       chang 
                                   e                         e 
               2019      2018            2019      2018 
MINING 
Waste mined,    4.5       5.4    -17%    21.2      21.3     -1% 
Mt 
Underground     3.1       2.3    +32%    10.8       9.2    +17% 
development, 
Km 
Ore mined,      536       412    +30%    2,133     1,784   +20% 
Kt 
Open-pit        370       317    +17%    1,555     1,379   +13% 
Underground     166       95     +74%     578       405    +43% 
Gold grade,                               4.0       5.2    -22% 
g/t 
Open-pit                                  3.9       5.2    -25% 
Underground                               4.4       5.0    -12% 
PROCESSING 
Albazino 
concentrator 
Ore             433       432     +0%    1,736     1,724    +1% 
processed, 
Kt 
Gold grade,     5.1       5.6     -9%     4.6       5.3    -13% 
g/t 
Gold           88.4%     86.2%    +3%    86.6%     85.7%    +1% 
recovery1 
Concentrate    37.9      37.4     +1%    143.9     143.1    +1% 
produced, Kt 
Concentrate    50.8      55.2     -8%    47.7      54.5    -12% 
gold grade, 
g/t 
Gold in        61.8      66.4     -7%    220.8     250.7   -12% 
concentrate, 
Koz2 
 
Amursk POX 
Concentrate     24        39     -38%     159       170     -6% 
processed, 
Kt 
Gold grade,    55.5      55.2     +0%    51.2      56.9    -10% 
g/t 
Gold           96.5%     96.2%    +0%    95.4%     96.7%    -1% 
recovery 
Gold           30.0      67.5    -55%    241.1     307.9   -22% 
produced, 
Koz 
TOTAL 
PRODUCTION 
Gold, Koz      30.0      67.5    -55%    241.1     307.9   -22% 
 
           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, FY2019 performance was affected by processing of lower grade 
  ore from Ekaterina-1 open pit. As a result, both quarterly and yearly gold 
        in concentrate volumes were down 7% and 12%, respectively. Mining at 
 Ekaterina-1 was completed in August and the increased volume of underground 
     ore from Ekaterina-2 positively contributed to quarter-on-quarter grade 
   dynamics. The recovery rate increased in Q4 year-on-year as processing of 
           near-surface partial oxidized ore from Ekaterina-2 pit ended. 
 
  The total gold output for the full year amounted to 241 Koz, a 22% decline 
  year-on-year. Apart from decrease in production from Albazino concentrate, 
   this was driven by lower volumes of third-party feed processed at the POX 
           plant. In October, the plant underwent a planned 3-week shutdown. 
 
           AMURSK POX 
 
             3 months ended Dec    %     12 months ended     % 
                     31,         chang       Dec 31,       chang 
                                   e                         e 
               2019      2018            2019      2018 
Concentrate     41        45     -10%     211       176    +20% 
processed, 
Kt 
Albazino        20        31     -37%     142       147     -3% 
Mayskoye         0         4     -97%      0         5     -97% 
Kyzyl           16         2      NM      52         2      NM 
Other1           4         8     -44%     17        23     -26% 
Gold           93.3%     96.1%    -3%    94.1%     96.7%    -3% 
recovery 
Average gold   87.2      58.1    +50%    70.1      57.5    +22% 
grade, g/t 
Average        17.0%     14.5%   +17%    13.4%     10.0%   +35% 
sulphur 
grade 
Total gold     92.0      74.5    +24%    429.5     314.9   +36% 
produced2, 
Koz 
Albazino       29.6      53.7    -45%    208.1     256.4   -19% 
Kyzyl          62.0       7.0     NM     188.4      7.0     NM 
Other1          0.4      13.8    -97%    33.0      51.5    -36% 
 
          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. 
 
    Gold production at the Amursk POX increased by 24% in Q4 and 36% in 2019 
  year-on-year driven by the introduction of high-grade Kyzyl concentrate to 
the feed. The output from Veduga concentrate amounted to 28 Koz for the full 
           year. 
 
    The 3% year-on-year decline in recovery is attributable to processing of 
    large volumes of Kyzyl concentrate starting from Q2. In Q4, the recovery 
         rate slightly contracted in comparison with the previous quarter as 
          different mixes were tested to include optimal quantities of Kyzyl 
           concentrate with relatively high carbon content. 
 
           OMOLON OPERATIONS 
 
               3 months ended     %      12 months ended    % 
                  Dec 31,       change       Dec 31,       chan 
                                                            ge 
               2019      2018            2019      2018 
 
MINING 
Waste mined,    1.8      1.5     +19%     7.0       6.1    +14% 
Mt 
Underground     3.0      3.2     -5%     12.9      12.9    +0% 
development, 
Km 
Ore mined,      790      356      NM     2,973     1,014    NM 
Kt 
Open-pit        673      227      NM     2,522      627     NM 
Underground     117      129     -9%      451       387    +17% 
Grade 
Gold, g/t                                 3.0       5.0    -40% 
Silver, g/t                               18        74     -76% 
 
PROCESSING 
Kubaka Mill 
Ore             222      220     +1%      834       862    -3% 
processed, 
Kt 
Grade 
Gold, g/t       6.5      8.2     -21%     6.4       5.7    +13% 
Silver, g/t     108       37    +194%     95        98     -3% 
Recovery1 
Gold           95.2%    95.7%    -1%     95.5%     95.5%   -0% 
Silver         77.3%    75.4%    +3%     79.0%     86.4%   -9% 
Gold           45.2      52.9    -14%    164.3     152.7   +8% 
production, 
Koz 
Silver          0.7      0.2    +221%     2.1       2.3    -10% 
production, 
Moz 
 
Birkachan 
Heap Leach 
Ore stacked,     -        39    -100%     897       997    -10% 
Kt 
Gold grade,      -       1.1    -100%     1.2       1.1    +5% 
g/t 
Gold            3.0      3.0     +1%     14.1      12.9    +9% 
production, 
Koz 
 
TOTAL 
PRODUCTION 
Gold, Koz      48.3      55.8    -14%    178.4     165.5   +8% 
Silver, Moz     0.7      0.2    +221%     2.1       2.3    -10% 
 
           Note: (1) Technological recovery, includes gold and silver within 
           work-in-progress inventory 
 
At Omolon, gold production in Q4 was down 14% while silver production was up 
       three-fold year-on-year driven by processing of stockpiled Oroch ore. 
 
  In Q4, there was no heap leach stacking and the gold was produced from the 
           feed stacked in the previous quarters. 
 
    Full-year gold production increased by 8% year-on-year to 178 Koz as the 
 Kubaka mill processed larger volumes of higher grade ore from Birkachan and 
           Olcha underground. 
 
     Silver grade in ore mined for the full year declined drastically due to 
 Sopka full depletion, while Birkachan open pit was recommenced and Yolochka 
           launched in 2019. 
 
           VARVARA 
 
            3 months ended Dec    %   12 months ended Dec    % 
                    31,         chang         31,          chang 
                                  e                          e 
              2019      2018             2019      2018 
 
MINING 
Waste         11.2       6.8    +64%     45.4      28.7    +58% 
mined, Mt 
Ore mined,     991       864    +15%    3,943      3,139   +26% 
Kt 
Grade 
Gold, g/t                                1.3        1.3     -2% 
Copper,                                 0.30%      0.59%   -50% 
float ore, 
% 
 
PROCESSING 
Leaching 
Ore            723       755     -4%    2,991      3,079    -3% 
processed, 
Kt 
Gold grade,    1.4       1.4     -1%     1.5        1.4     +5% 
g/t 
Gold          86.6%     89.1%    -3%    86.8%      88.1%    -1% 
recovery1 
Gold          26.7      29.7    -10%    123.4      118.2    +4% 
production 
(in dore), 
Koz 
 
Flotation 
Ore            148       159     -7%     559        456    +23% 
processed, 
Kt 
Grade 
Gold, g/t      2.3       1.5    +49%     1.5        1.4     +5% 
Copper        0.37%     0.67%   -45%    0.49%      0.59%   -18% 
Recovery1 
Gold          77.8%     78.5%    -1%    69.5%      72.5%    -4% 
Copper        87.0%     92.5%    -6%    90.5%      92.2%    -2% 
Production 
Gold (in       6.1       4.3    +41%     13.3      11.7    +14% 
concentrate 
), Koz 
Copper (in     0.5       0.9    -51%     2.3        2.4     -4% 
concentrate 
), Kt 
 
Veduga ore     14        22     -35%     113        108     +4% 
toll 
processed, 
Kt2 
 
Total ore      885       936     -5%    3,663      3,642    +1% 
processed, 
Kt 
 
          3 months ended Dec     %    12 months ended Dec    % 
                 31,           chang          31,           chan 
                                 e                           ge 
           2019        2018             2019       2018 
 
TOTAL 
PRODUCT 
ION 
Gold,      32.8        34.0     -4%    136.7       129.9    +5% 
Koz 
Copper,     0.5        0.9     -51%     2.3         2.4     -4% 
Kt 
 
           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. 
 
At Varvara, full-year gold output increased by 5% to reach 137 Koz driven by 
           higher mining and railing volumes at Komar. 
 
    Quarterly production was down 4% on the back of introduction of ore with 
   lower grade and recovery from Komar into feed at the leaching circuit. In 
the meantime, gold production in concentrate at the flotation circuit was up 
        41% as the concentrator was processing higher grade third party ore. 
 
           MAYSKOYE 
 
               3 months ended     %     12 months ended     % 
                  Dec 31,       change      Dec 31,       change 
               2019     2018             2019     2018 
MINING 
Waste mined,   1.4       1.4     -3%     5.4       5.0     +8% 
Mt 
Underground    5.0       6.4     -22%    20.5     23.9     -14% 
development, 
km 
Ore mined,     175       239     -27%    813      1,005    -19% 
Kt 
Open-pit        3        91      -97%    178       372     -52% 
Underground    172       148     +16%    635       633     +0% 
Gold grade,                              6.1       6.4     -5% 
g/t 
Open-pit                                 7.0       8.0     -13% 
Underground                              5.9       5.5     +7% 
 
PROCESSING 
Ore            220       221     -1%     878       861     +2% 
processed, 
Kt 
Gold grade,    5.8       5.9     -2%     6.1       7.1     -14% 
g/t 
Gold          90.3%     85.2%    +6%    82.1%     79.1%    +4% 
recovery 
Gold in        36.8     35.6     +3%    131.6     119.8    +10% 
concentrate, 
Koz2 
 
Gold            -        6.7    -100%     -        7.4    -100% 
produced in 
dore from 
concentrate 
(POX), Koz 
Gold           8.2      23.5     -65%    14.2     24.6     -42% 
produced in 
dore from 
carbon, Koz3 
 
Payable gold   44.2     39.6     +12%   114.5     84.9     +35% 
in 
concentrate 
shipped to 
off-takers, 
Koz 
 
TOTAL 
PRODUCTION 
Gold, Koz      52.4     69.8     -25%   128.7     116.9    +10% 
 
           Notes: (1) To concentrate 
 
 (2) For information only; not considered as gold produced and therefore not 
     reflected in the table representing total production. Included in total 
          production upon sale to off-taker or dore production at Amursk POX 
 
           (3) Gold produced from carbon at Voro and Amursk POX 
 
        In Q4, the Mayskoye plant was processing sulfide ore only, hence the 
production was positively impacted by higher recoveries. Gold in concentrate 
        produced during the quarter increased by 3%, while full-year gold in 
 concentrate produced was up 10%. Full-year gold production totaled 129 Koz, 
           a 10% increase over 2018. 
 
SVETLOYE 
 
           3 months ended Dec   %     12 months ended   % change 
                   31,         chan       Dec 31, 
                                ge 
             2019      2018           2019      2018 
 
MINING 
Waste         0.3       0.2    +42%    1.4       0.7     +111% 
mined, Mt 
Ore mined     300       339    -11%   1,573     1,317     +19% 
(open 
pit), Kt 
Gold                                   3.8       3.8      +0% 
grade, g/t 
 
PROCESSING 
Ore           333       234    +42%   1,301     1,378     -6% 
stacked, 
Kt 
Gold          3.2       3.5    -9%     3.8       3.7      +2% 
grade, g/t 
Gold                                  80.7%     80.7%     +0% 
recovery 
 
TOTAL 
PRODUCTION 
Gold, Koz    26.5      23.3    +14%   133.5     135.3     -1% 
 
   At Svetloye, quarterly production grew by 14% year-on-year on the back of 
    higher stacking volumes following extension of the stacking season until 
   December due to poor weather conditions in the first nine months of 2019. 
 
           VORO 
 
            3 months ended Dec    %   12 months ended Dec    % 
                    31,         chang         31,          chang 
                                  e                          e 
              2019      2018             2019      2018 
 
MINING 
 
Waste          0.2       0.6    -71%     1.3        3.4    -60% 
mined, Mt 
Ore mined,     285       371    -23%     946       1,150   -18% 
Kt 
Gold grade 
Primary,                                 3.2        3.5     -9% 
g/t 
Oxidised,                                1.6        3.2    -51% 
g/t 
 
PROCESSING 
Voro CIP 
Ore            267       251     +6%    1,050      1,003    +5% 
processed, 
Kt 
Gold grade,    2.9       3.7    -22%     3.5        3.9    -10% 
g/t 
Gold          85.4%     81.8%    +4%    86.3%      81.0%    +7% 
recovery1 
Gold          19.9      26.6    -25%     91.2      98.8     -8% 
production, 
Koz 
 
Voro Heap 
Leach 
Ore            29         -      NA       87        62     +42% 
stacked, Kt 
Gold grade,    1.1        -      NA      1.3        1.4     -7% 
g/t 
Gold                                    76.6%      73.2%    +5% 
recovery 
Gold           2.0       1.8     +8%     14.6       7.6    +93% 
production, 
Koz 
 
TOTAL 
PRODUCTION 
Gold, Koz     21.8      28.4    -23%    105.9      106.4    -0% 
 
     Note: (1) Technological recovery, includes gold within work-in-progress 
           inventory 
 
Open-pit mining at Voro is completed. The technical studies to determine the 
feasibility of underground mining are under way and expected to be finalized 
           in Q1 2021. 
 
    The company is currently preparing the initial Ore Reserves estimate for 
        Saum and Pescherny satellite deposits with the results of both to be 
    presented in Q2 2020. Mining of oxide ore at Saum will start in 2020 for 
           processing at Voro CIP circuit. 
 
           DEVELOPMENT UPDATE 
 
     At Nezhda, mining and construction proceeded according to schedule. The 
     concentrator building was fully winterized, equipment installation will 
  start in January. Construction of foundations for flotation and thickening 
    sections is under way, tails thickener foundation completed. The haulage 
   road between the mine and the concentrator was built, the construction of 
           the two bridges on this road continues. 
 
       At POX-2, detailed engineering and contracting is ongoing. In Q4, the 
 front-end section of the water treatment plant was contracted (conventional 
  filters from Coralina Engineering, South Africa and reverse osmosis system 
 from Hydrotech, Russia). The autoclave foundation was completed. The vessel 
  to carry the autoclave from the port of Antwerp to the mouth of Amur river 
           was chartered and expected to sail in late July. 
 
           SUSTAINABILITY, HEALTH AND SAFETY 
 
  In Q4, Polymetal had five work-related incidents, which include four minor 
injuries and one severe injury. No fatalities occurred in the second half of 
 the year. Overall LTIFR in 2019 amounted to 0.19 (versus 0.09 in 2018). The 
        increase was driven by minor incidents of slipping and tripping that 
           occurred on site. 
 
     Safety remains a top priority for Polymetal and we continue focusing on 
       further improvements across health and safety metrics and target zero 
       fatalities in relation to our employees and contractors on our sites. 
 
         In line with the Company's continued emphasis on sustainability and 
   corporate social responsibility, management expects the Board to consider 
 and approve the following changes to safety-related CEO and relevant senior 
           managements' KPIs for 2020: 
 
? Switch from LTIFR to days lost due to work-related injuries (Disability) 
as a Health and Safety KPI while penalty factor of up to 50% of the annual 
bonus earned for non-safety-related KPIs in case of fatal/severe accidents 
remains unchanged. 
 
? Inclusion of long-term disabilities and fatalities occurring at our 
contractors into KPI calculation (a 50% penalty factor in case of 
fatalities/severe injuries will also be applied). 
 
? Introduction of an additional ESG KPI in the Group CEO bonus structure 
with a total weight of 10%. 
 
       According to the updated remuneration structure, the share of the two 
   sustainability related KPIs (health & safety and ESG) in the annual bonus 
           structure will constitute 35%. 
 
  All the changes will be cascaded down to the operational management level. 
 
PERSONNEL 
 
  Dmitry Galchuk (35) succeeded Mikhail Yegorov (60) as Managing Director of 
Dukat effective from January 1, 2020. Dmitry joined Polymetal in 2011 as the 
  Chief Engineer at Lunnoye and was most recently the head of Lunnoye plant. 
           He graduated from Norilsk Industrial Institute with the degree in 
           Underground mining. 
 
ISIN:          JE00B6T5S470 
Category Code: MSCH 
TIDM:          POLY 
Sequence No.:  42113 
EQS News ID:   959171 
 
End of Announcement EQS News Service 
 
 
1: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=fba23058f293f3f9cfdc07655fbfef2c&application_id=959171&site_id=vwd&application_name=news 
 

(END) Dow Jones Newswires

January 23, 2020 02:00 ET (07:00 GMT)

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