Polymetal International plc (POLY) 
Polymetal: Q2 2020 production results 
 
23-Jul-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         23 July 2020 
 
Polymetal International plc 
 
Q2 2020 production results 
 
  Polymetal reports strong production results for the second quarter and the 
           six months ended June 30, 2020. 
 
    "Q2 saw a continued steady performance of the Group", said Vitaly Nesis, 
   Group CEO of Polymetal. "We have been taking a range of measures aimed at 
 protecting our employees and contractors in light of the COVID-19 pandemic, 
 while allowing our operations and projects to proceed without interruptions 
           or delays to date". 
 
           HIGHLIGHTS 
 
? There were no fatal accidents during the first half of the year within 
Polymetal and the Company's contractors. LTIFR for the period improved by 
70% year-on-year (y-o-y) to 0.07 as only four minor injuries were 
recorded. 
 
? The Company's Q2 gold equivalent ("GE") production (based on 120:1 Au/Ag 
ratio[1]) increased by 2% y-o-y to 358 Koz driven by a strong performance 
at Kyzyl which compensated for the planned decline at Svetloye. GE output 
for H1 stood at 723 Koz, an increase of 4% y-o-y. 
 
? Revenue for Q2 increased by 30% y-o-y to reach US$ 641 million on the 
back of higher gold prices and sales volumes. H1 revenue amounted to US$ 
1,135 million, up 20% y-o-y. There was a lag between gold production and 
sales due to Varvara concentrate sales, which is expected to close in H2 
2020. 
 
? Polymetal generated significant free cash flow in the reporting period. 
Net debt was largely unchanged relative to Q1 2020 at US$ 1.69 billion, 
while the Company paid US$ 197 million of final dividends for FY 2019 or 
US$ 0.42 per share. As in previous years, free cash flow generation will 
be weighted towards the second half of the year on the back of seasonal 
working capital drawdown. 
 
? Construction and development activities at Nezhda and POX-2 progressed 
on schedule. COVID-related restrictions and cautionary measures have not 
slowed down execution progress of these projects. 
 
? The Company confirms its full-year 2020 production guidance of 1.5 Moz 
of GE. It also for now maintains its cost guidance, as depreciation of the 
Russia Rouble and Kazakh Tenge is currently counterbalanced by 
COVID-related costs. However, TCC, AISC and CapEx guidance will be updated 
along with H1 financial results on August 26. 
 
           COVID-19 UPDATE 
 
           Health and safety 
 
? No material COVID-19 outbreaks have so far occurred at our operations. 
Multiple employees tested positive for the virus with the vast majority of 
confirmed cases occurring during intra-shift breaks away from mines or 
during mandatory observatory period. 
 
? Health and safety of our employees and other people is our top priority. 
Strict precautionary procedures are maintained at all production sites 
despite gradual relaxation of state quarantine requirements in Russia. The 
procedures include daily temperature checks, regular medical surveillance 
and 14-day isolation of new shifts with COVID tests performed twice - 
first upon arrival and then before allowing to proceed to work on-site. 
Polymetal has organised isolated accommodation space for placement of 
potentially infected employees, enhanced hygiene protection in public 
spaces and increased control over disinfection and sterilisation measures. 
Adequate medical supplies are in place at all locations. 
 
? Personnel at off-site offices in Russia who report to work are tested on 
a rolling 2-week basis. Personal meetings and business trips are limited. 
Management offices in Kazakhstan continue to work remotely. 
 
           Business continuity 
 
? Russian regions are relaxing lockdown measures in respect of retail and 
other activities. The scope and pace, however, vary across regions. In 
Kazakhstan, a new quarantine was introduced from the 5th of July after the 
country had started experiencing the second wave of infections. Continuous 
operations and strategic industrial companies (including Polymetal) in 
both countries are allowed to continue operating at regular capacity. 
 
? In both countries, Polymetal has had no interruptions either in 
production or supply chain. The vast majority of operating consumables and 
spares are sourced domestically and from China. 
 
? Sales and refining activities remain unaffected. Refineries in Russia 
and Kazakhstan continue to operate normally. 
 
           Assistance to communities 
 
? Polymetal continued to provide financial support to all regions of 
operations in Russia and Kazakhstan in order to prevent the spread of the 
COVID-19 pandemic. The Company has been purchasing critical medical 
equipment such as mobile X-Ray and anesthetic-respiratory machines, oxygen 
concentrators, ventilators, ultrasound machines, pulse oximeters, personal 
protection gear and other medical supplies for 25 regional and municipal 
hospitals, and volunteers. The total amount of donations in H1 amounted to 
RUB 129 million (US$ 1.8 million). 
 
? Polymetal remains committed to supporting local communities and 
investing in their health and safety especially during the pandemic. The 
Company will maintain its assistance to medical and dedicated volunteer 
institutions at all levels. 
 
             3 months ended      %     6 months ended      % 
                June 30,      change1     June 30,      change1 
 
              2020     2019             2020     2019 
 
Waste         39.2     40.0     -2%     79.1     77.6     +2% 
mined, Mt 
Underground   23.2     26.1    -11%     46.4     54.3    -15% 
development 
, km 
Ore mined,    4.1      4.3      -5%     8.1      8.6      -6% 
Mt 
Open-pit      3.1      3.3      -6%     6.0      6.5      -7% 
Underground   1.0      1.0      -1%     2.0      2.1      -2% 
Ore           4.3      4.1      +4%     7.8      7.6      +3% 
processed, 
Mt 
Average GE    3.8      3.5      +8%     4.0      3.7      +7% 
grade 
processed, 
g/t 
Production 
Gold, Koz     318      302      +5%     642      602      +7% 
Silver, Moz   4.9      6.0     -19%     9.8      11.0    -11% 
Gold          358      352      +2%     723      694      +4% 
equivalent, 
Koz2 
Sales 
Gold, Koz     324      314      +3%     595      604      -2% 
Silver, Moz   5.2      5.6      -8%     9.9      10.3     -4% 
Revenue,      641      492     +30%    1,135     946     +20% 
US$m3 
Net debt,    1,690    1,661     +2%    1,690    1,479    +14% 
US$m4 
Safety5 
LTIFR         0.08     0.22    -64%     0.07     0.23    -70% 
Fatalities     0        1                0        2 
      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 (Polymetal 
           previously used 80:1 Au/Ag ratio) and excluding base 
        metals (previously were included). Comparative data for 
                                     2019 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 31 March 2020 (for the three months period) and 31 
                     December 2019 (for the six months period). 
 
        (5) LTIFR = lost time injury frequency rate per 200,000 
                                                  hours worked. 
 
           PRODUCTION BY MINE 
 
                3 months ended     %     6 months ended     % 
                   June 30,                 June 30, 
 
                                 change                   change 
                 2020     2019            2020     2019 
 
GOLD EQ. 
(KOZ)1 
Kyzyl            104       81     +28%    213      159     +33% 
Albazino          62       55     +13%    140      136     +2% 
Dukat             52       55     -6%     104      108     -4% 
Omolon            46       43     +7%      88       95     -8% 
Varvara           41       36     +14%     84       70     +21% 
Svetloye          31       52     -41%     52       61     -15% 
Voro              22       29     -24%     42       56     -25% 
Mayskoye          1        -       NA      1        5      -79% 
TOTAL            358      352     +2%     723      691     +5% 
(continuing 
operations) 
Kapan             -        -       NA      -        3     -100% 
TOTAL            358      352     +2%     723      694     +4% 
(including 
 
discontinued 
operations) 
 
 Notes: (1) Based on 120:1 Au/Ag conversion ratio (Polymetal previously used 
     80:1 Au/Ag ratio) and excluding base metals (previously were included). 
           Comparative data for 2019 restated accordingly. 
 
           CONFERENCE CALL AND WEBCAST 
 
 Polymetal will hold a conference call and webcast on Thursday, 23 July 2020 
           at 12:00 London time (14:00 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: 
 
           +1 646 828 8143 (local access) 
 
           800 263 0877 (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: 3221219 
 
           To participate in the webcast follow the link: 
           https://webcasts.eqs.com/polymetal20200723 [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 3221219, from 17:30 Moscow time Thursday, 23 July, till 17:30 Moscow 
time Thursday, 30 July 2020. Webcast replay will be available on Polymetal's 
           website (www.polymetalinternational.com [2]) and at 
           https://webcasts.eqs.com/polymetal20200723 [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 
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Foster 
 
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Richard 
Brown 
 
Panmure 
Gordon 
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             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      %     6 months ended      % 
                  June 30,       chang      June 30,       chang 
                                   e                         e 
               2020      2019            2020      2019 
MINING 
Waste mined,   18.8      16.5    +14%    38.0      32.3    +18% 
Mt 
Ore mined       518       511     +1%    1,041     1,033    +1% 
(open-pit), 
Kt 
 
PROCESSING 
Ore             481       512     -6%    1,006      988     +2 
processed, 
Kt 
Gold grade,     8.5       6.6    +29%     8.3       6.7    +23% 
g/t 
Gold           87.2%     87.8%    -1%    87.2%     87.3%    -0% 
recovery 
Concentrate    37.3      28.5    +31%    73.0      58.3    +25% 
produced, Kt 
Concentrate    97.4      104.2    -7%    99.3      100.0    -1% 
gold grade, 
g/t 
Gold in         117       96     +22%     233       187    +24% 
concentrate, 
Koz1 
 
Concentrate    26.4      17.3    +52%    47.3      36.9    +28% 
shipped, Kt 
Payable gold    51        40     +25%     92        91      +1% 
shipped, Koz 
 
Veduga ore      31         -      NA       -         -      NA 
toll 
processed, 
Kt2 
 
Amursk POX 
Concentrate     13        12      +8%     29        20     +44% 
processed, 
Kt 
Gold grade,    149.2     128.9   +16%    141.8     124.7   +14% 
g/t 
Gold           91.8%     93.4%    -2%    91.8%     93.8%    -2% 
recovery 
Gold            54        41     +31%     121       68     +77% 
produced, 
Koz 
 
TOTAL 
PRODUCTION 
Gold, Koz       104       81     +28%     213       159    +33% 
 
         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 Q2, grade in ore mined at Kyzyl continued to normalize down towards the 
      reserve average with current grade in ore mined closely reconciling to 
          reserve averages. Waste volumes continued to increase as equipment 
         productivity was positively impacted by the introduction of a quick 
  turn-round system for both trucks and excavators (so called Hot Seat shift 
           change). 
 
Grade processed jumped 29% y-o-y to 8.5 g/t due to the impact of accumulated 
    ore stockpiles, which made gold production grow by 28% y-o-y to 104 Koz. 
 
        High gold grades and high carbon grades in ore processed complicated 
flowsheet management and led to a 1 percentage point decrease in recovery at 
the concentrator. Amursk POX recovery also slipped as a concerted effort was 
    made to divert as much concentrate as possible to the POX in the wake of 
           COVID disruptions in China. 
 
           ALBAZINO 
 
               3 months ended      %     6 months ended      % 
                  June 30,       chang      June 30,       chang 
                                   e                         e 
               2020      2019            2020      2019 
MINING 
Waste mined,    5.1       5.6     -9%     9.9      11.1    -11% 
Mt 
Underground     3.1       2.6    +22%     6.2       4.9    +27% 
development, 
km 
Ore mined,      464       545    -15%     981      1,026    -4% 
Kt 
Open-pit        295       404    -27%     655       766    -14% 
Underground     169       141    +19%     325       259    +25% 
 
PROCESSING 
Albazino 
concentrator 
Ore             446       431     +3%     891       856     +4% 
processed, 
Kt 
Gold grade,     4.8       4.0    +21%     4.6       4.2    +10% 
g/t 
Gold           86.5%     86.9%    -0%    86.0%     85.2%    +1% 
recovery1 
Concentrate    36.8      33.7     +9%    72.7      69.3     +5% 
produced, Kt 
Concentrate    50.0      44.1    +13%    49.1      44.3    +11% 
gold grade, 
g/t 
Gold in         59        48     +24%     115       99     +16% 
concentrate, 
Koz2 
 
Amursk POX 
Concentrate     40        38      +6%     86        91      -5% 
processed, 
Kt 
Gold grade,    51.6      48.0     +7%    52.6      50.1     +5% 
g/t 
Gold           96.5%     93.4%    +3%    96.5%     94.5%    +2% 
recovery 
Gold            62        55     +13%     139       136     +2% 
produced, 
Koz 
 
TOTAL 
PRODUCTION 
Gold, Koz       62        55     +13%     139       136     +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 after Dore production at the Amursk POX. 
 
 At Albazino, quarterly gold production was up 13% y-o-y to 62 Koz driven by 
  gold grade increase of 21%, which was attributable to processing of higher 
           grade ore from the deeper levels of Anfisa pit. 
 
 Open-pit mining was limited during the quarter as Anfisa pit was undergoing 
  the wall push back to enhance its stability. Underground mine productivity 
      increased due to continued underground development at Olga. Stoping at 
           Ekaterina-2 commenced. 
 
           AMURSK POX 
 
               3 months ended     %      6 months ended     % 
                  June 30,      change      June 30,      change 
               2020     2019             2020     2019 
Concentrate     53       50      +7%     115       111     +4% 
processed, 
Kt 
Albazino        38       36      +7%      79       81      -2% 
Kyzyl           13       12      +8%      29       20      +44% 
Veduga          1         1      +11%     3         6      -48% 
Other1          0         0      -89%     3         4      -8% 
Gold          94.2%     93.4%    +1%    94.2%     94.3%    -0% 
recovery 
Average gold   75.6     67.7     +12%    75.2     63.7     +18% 
grade, g/t 
Average       13.5%     12.6%    +7%    13.9%     12.6%    +10% 
sulphur 
grade 
Total gold     116       96      +20%    260       205     +27% 
produced2, 
Koz 
Albazino        51       50      +4%     111       116     -4% 
Kyzyl           54       41      +31%    121       68      +77% 
Veduga          4         3      +33%     19       16      +16% 
Other1          6         2     +163%     10        4     +119% 
 
          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. 
 
   Quarterly gold production at the Amursk POX increased by 20% y-o-y to 116 
     Koz on the back of higher concentrate grade from Kyzyl and Albazino and 
           larger volumes of concentrate processed. 
 
  In Q2, the plant underwent a planned 15-day maintenance shutdown. No major 
           issues were identified. 
 
           DUKAT OPERATIONS 
 
               3 months ended      %     6 months ended      % 
                  June 30,       chang      June 30,       chang 
                                   e                         e 
               2020      2019            2020      2019 
 
MINING 
Underground    10.9      14.9    -26%    22.2      30.0    -26% 
development, 
km 
Ore mined,      545       649    -16%    1,084     1,252   -13% 
Kt 
 
PROCESSING 
Omsukchan 
concentrator 
Ore             496       516     -4%    1,009     1,029    -2% 
processed, 
Kt 
Grade 
Gold, g/t       0.6       0.5    +18%     0.5       0.5     +0% 
Silver, g/t     273       306    -11%     280       295     -5% 
Recovery1 
Gold           85.1%     85.3%    -0%    84.8%     85.7%    -1% 
Silver         87.4%     86.6%    +1%    86.6%     86.9%    -0% 
Production 
Gold, Koz        8         7     +14%     14        14      -1% 
Silver, Moz     3.7       4.3    -14%     7.7       8.3     -7% 
 
Lunnoye 
plant 
Ore             116       117     -0%     232       232     -0% 
processed, 
Kt 
Grade 
Gold, g/t       1.4       1.3     +4%     1.5       1.4     +4% 
Silver, g/t     278       264     +5%     273       266     +3% 
Recovery1 
Gold           91.8%     85.1%    +8%    91.2%     85.7%    +6% 
Silver         92.8%     90.1%    +3%    92.1%     90.1%    +2% 
Production 
Gold, Koz        5         4      +7%     10         9      +7% 
Silver, Moz     1.0       0.9     +6%     1.9       1.8     +3% 
 
TOTAL 
PRODUCTION 
Gold, Koz       13        11     +11%     24        24      +2% 
Silver, Moz     4.7       5.3    -11%     9.5      10.1     -5% 
 
          Notes: (1) Technological recovery, includes gold and silver within 
           work-in-progress inventory. 
 
    At Dukat, Q2 silver production contracted by 11% y-o-y to 4.7 Moz on the 
 back of planned decline in silver grade at the Omsukchan concentrator. Gold 
   production for the quarter was up 11% supported by gold-rich ore from the 
           underground Arylakh mine. 
 
    Better recoveries at Lunnoye plant were driven by separate processing of 
    Arylakh and Lunnoye ores as well as lower carbon content in Lunnoye ore. 
 
           Underground development meters declined materially following the 
           decommissioning of the Goltsovoye underground mine. 
 
OMOLON OPERATIONS 
 
               3 months ended      %     6 months ended      % 
                  June 30,       chang      June 30,       chang 
                                   e                         e 
               2020      2019            2020      2019 
 
MINING 
Waste mined,    1.1       1.9    -40%     2.0       3.2    -36% 
Mt 
Underground     3.7       3.3    +10%     7.0       6.5     +7% 
development, 
Km 
Ore mined,      763       730     +5%    1,564     1,378   +14% 
Kt 
Open-pit        642       625     +3%    1,331     1,159   +15% 
Underground     121       105    +16%     234       220     +6% 
 
PROCESSING 
Kubaka Mill 
Ore             220       208     +6%     433       428     +1% 
processed, 
Kt 
Grade 
Gold, g/t       6.6       5.0    +31%     6.7       6.5     +4% 
Silver, g/t     26        125    -80%     20        72     -73% 
Recovery1 
Gold           94.3%     97.1%    -3%    93.2%     95.5%    -2% 
Silver         69.5%     88.8%   -22%    74.3%     79.1%    -6% 
Gold            41        35     +18%     83        86      -4% 
production, 
Koz 
Silver          0.1       0.7    -83%     0.2       0.8    -77% 
production, 
Moz 
 
Birkachan 
Heap Leach 
Ore stacked,    707       493    +44%     707       546    +29% 
Kt 
Gold grade,     2.3       1.2    +95%     2.3       1.2    +95% 
g/t 
Gold             3         2     +68%      3         2     +68% 
production, 
Koz 
 
TOTAL 
PRODUCTION 
Gold, Koz       45        37     +21%     86        88      -3% 
Silver, Moz     0.1       0.7    -82%     0.2       0.8    -76% 
 
           Note: (1) Technological recovery, includes gold and silver within 
           work-in-progress inventory. 
 
  At Omolon, gold output for the quarter jumped by 21% y-o-y to 45 Koz while 
     silver production was down by 82% to 0.1 Moz as Kubaka mill switched to 
 processing gold-rich ore from Yolochka and Birkachan underground at the CIP 
           circuit from treating Sopka ore with higher silver content at the 
 Merrill-Crowe circuit. Heap leach production also positively contributed to 
  the total output on the back of stacking of larger volumes of higher-grade 
           ore stockpiles. 
 
      At Birkachan, underground productivity is gaining pace, while open-pit 
           mining is planned to be completed by the end of 2020. 
 
           VARVARA 
 
              3 months ended     %      6 months ended      % 
                 June 30,      change      June 30,       chang 
                                                            e 
              2020      2019            2020      2019 
 
MINING 
Waste         10.1      11.6    -12%    20.3      22.7    -11% 
mined, Mt 
Ore mined,     702      977     -28%    1,484     1,938   -23% 
Kt 
 
PROCESSING 
Leaching 
Ore            796      784     +2%     1,530     1,535    -0% 
processed, 
Kt 
Gold grade,    1.5      1.4     +4%      1.5       1.4     +3% 
g/t 
Gold          89.1%    87.7%    +2%     88.1%     86.5%    +2% 
recovery1 
Gold           32        34     -6%      67        65      +2% 
production 
(in dore), 
Koz 
 
Flotation 
Ore            188      130     +44%     317       277    +14% 
processed, 
Kt 
Grade 
Gold, g/t      2.6      1.1    +139%     2.8       1.1    +155% 
Copper        0.34%    0.52%    -34%    0.33%     0.55%   -39% 
Recovery1 
Gold          87.2%    88.7%    -2%     86.5%     83.7%    +3% 
Copper        85.7%    90.8%    -6%     84.9%     91.4%    -7% 
Production 
Gold (in        9        2     +372%     18         4     +292% 
concentrate 
), Koz 
Copper (in     0.5      0.6     -17%     0.8       1.3    -38% 
concentrate 
), Kt 
 
Veduga ore      -        31    -100%     30        63     -53% 
toll 
processed, 
Kt2 
 
Total ore      984      945     +4%     1,876     1,875    +0% 
processed, 
Kt 
 
TOTAL 
PRODUCTION 
Gold, Koz      41        36     +14%     84        70     +21% 
Copper, Kt     0.5      0.6     -17%     0.8       1.3    -38% 
 
           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 delivered strong gold production y-o-y increase of 14% to 41 Koz in 
           Q2 and 21% to 84 Koz in H1 driven by larger volumes of high-grade 
           third-party ore in the flotation circuit. 
 
 The leaching circuit Q2 production was down 6% y-o-y due to accumulation of 
           work-in-progress as of the end of the quarter. 
 
   In Q2, high-grade Veduga feed was redirected to the Kyzyl flotation plant 
           which is more suitable for refractory gold ore. 
 
In 2020, all mining at Varvara open pit will be focused on waste for the new 
           TSF construction. 
 
           MAYSKOYE 
 
               3 months ended      %     6 months ended      % 
                  June 30,       chang      June 30,       chang 
                                   e                         e 
               2020      2019            2020      2019 
MINING 
Waste mined,    0.6       1.4    -55%     1.7       2.6    -34% 
Mt 
Underground     5.5       5.3     +4%    11.0      10.8     +2% 
development, 
km 
Ore mined,      306       220    +39%     567       438    +29% 
Kt 
Open-pit        108       70     +54%     186       134    +39% 
Underground     197       150    +32%     380       305    +25% 
 
PROCESSING 
Ore             230       207    +11%     458       426     +8% 
processed, 
Kt 
Gold grade,     6.7       6.6     +2%     6.2       6.1     +2% 
g/t 
Gold           84.4%     69.9%   +21%    87.5%     76.5%   +14% 
recovery 
Gold in         37        25     +48%     76        59     +29% 
concentrate, 
Koz2 
 
Gold             -         -      NA       0         -      NA 
produced in 
dore from 
concentrate 
(POX), Koz 
Gold             1         -      NA       1         5     -86% 
produced in 
dore from 
carbon, Koz3 
 
Payable gold     -         -      NA       -         -      NA 
in 
concentrate 
shipped to 
offtakers, 
Koz 
 
TOTAL 
PRODUCTION 
Gold, Koz        1         -      NA       1         5     -79% 
 
           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, gold in concentrate increased by 48% y-o-y to 37 Koz as higher 
volumes of sulphide ore with better recoveries were introduced into the feed 
    and certain adjustments to the flowsheet were applied (grinding fineness 
     increase and larger volumes of collectors) to further improve recovery. 
 
     Stripping volumes fell while ore mined spiked as the open-pit mining is 
           approaching completion. 
 
           SVETLOYE 
 
              3 months ended     %      6 months ended      % 
                 June 30,      change      June 30,       chang 
                                                            e 
              2020      2019            2020      2019 
 
MINING 
Waste          0.9      0.4    +127%     1.6       0.8    +104% 
mined, Mt 
Ore mined      561      453     +24%     907       867     +5% 
(open pit), 
Kt 
 
PROCESSING 
Ore            317      414     -23%     626       598     +5% 
stacked, Kt 
Gold grade,    3.7      3.5     +4%      4.0       4.0     +2% 
g/t 
Gold           31        52     -41%     52        61     -15% 
production, 
Koz 
 
TOTAL 
PRODUCTION 
Gold, Koz      31        52     -41%     52        61     -15% 
 
  At Svetloye, gold production for the quarter decreased by 41% to 31 Koz on 
  the back of lower stacking volumes impacted by maintenance shutdown of the 
  ore crushing complex (moved from Q1) and high ore acidity of freshly mined 
           ore, which required much higher rates of limestone addition. 
 
  Waste and ore mined jumped driven by growing productivity at the Emmy pit. 
 
VORO 
 
              3 months ended     %      6 months ended      % 
                 June 30,      change      June 30,       chang 
                                                            e 
              2020      2019            2020      2019 
 
MINING 
Waste           -       0.4    -100%      -        0.8    -100% 
mined, Mt 
Ore mined,     65       210     -69%     106       479    -78% 
Kt 
 
PROCESSING 
Voro CIP 
Ore            260      270     -4%      529       519     +2% 
processed, 
Kt 
Gold grade,    2.2      3.5     -37%     2.2       3.5    -37% 
g/t 
Gold          82.5%    85.7%    -4%     82.3%     86.3%    -5% 
recovery1 
Gold           18        23     -19%     36        45     -20% 
production, 
Koz 
 
Voro Heap 
Leach 
Ore           22.2       -       NA      22         -      NA 
stacked, Kt 
Gold grade,    0.9       -       NA      0.9        -      NA 
g/t 
Gold            4        6      -41%      6        11     -46% 
production, 
Koz 
 
TOTAL 
PRODUCTION 
Gold, Koz      22        29     -24%     42        56     -25% 
 
     Note: (1) Technological recovery, includes gold within work-in-progress 
           inventory. 
 
         At Voro, H1 production declined by 25% y-o-y as open-pit mining was 
     completed in January and the CIP plant turned to processing lower-grade 
           stockpiles 
 
At the heap leach facility the remaining part of the oxidised stockpiled ore 
           was stacked in Q2. 
 
           DEVELOPMENT UPDATE 
 
At Nezhda, construction has been progressing on schedule. SAG and ball mills 
 have been installed. Installation of flotation cells, gravity concentration 
           equipment and concentrate thickeners is in progress. 
 
  Mining at the property proceeded according to plan. Widespread presence of 
           ice lenses in the upper benches of open pit 2 required additional 
           pre-stripping to ensure stable pit walls. 
 
    UVES LLC, an independent grid management company, funded by Far East and 
 Arctic Development Fund and Credit Bank of Moscow, has started construction 
         of the grid power line and substation for Nezhda with total cost of 
        approximately US$ 86 million, net of VAT. Following the construction 
        completion scheduled for Q2 2022, the facility will be leased out to 
           Polymetal on pre-agreed terms. 
 
           At POX-2, the autoclave arrived on site on the 21st of July. The 
    installation of the vessel is now ongoing and planned to be completed on 
   schedule by early August. The construction of the oxygen plant is also in 
           progress. The new concentrate storage area has been completed and 
       commissioned thus clearing the space for the construction on the site 
           previously occupied by the old concentrate storage. 
 
           SUSTAINABILITY, HEALTH AND SAFETY 
 
     In H1, there were no fatalities either among Polymetal employees or the 
 ?ompany's contractors. Our LTIFR stood at 0.08 for the 2nd quarter and 0.07 
 for the first half of the year (-64% and -70% y-o-y respectively) as only 4 
    minor work-related incident were recorded across the Group as of 30 June 
           2020. 
 
    Polymetal remains committed to maintaining zero fatalities and improving 
other health and safety metrics among our employees as well as our suppliers 
           and contractors. 
 
=--------------------------------------------------------------------------- 
 
    [1] Following consistent change of the market price ratio, Polymetal has 
decided to use gold/silver ratio of 120:1 (previously 80:1) for presentation 
   of its gold equivalent production data and guidance. Simultaneously, base 
   metal by-products have been excluded from gold equivalent production data 
   and guidance due to insignificance. The new ratio is applied from 1 April 
  2020. Comparative data for previous periods has been restated accordingly. 
 
ISIN:          JE00B6T5S470 
Category Code: MSCH 
TIDM:          POLY 
Sequence No.:  77426 
EQS News ID:   1099855 
 
End of Announcement EQS News Service 
 
 
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(END) Dow Jones Newswires

July 23, 2020 02:00 ET (06:00 GMT)

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