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
l plc
Marcus
Jackson
Andrew
Foster
Jamil
Miah
Richard
Brown
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 % 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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