PJSC Polyus (“Polyus” or the “Company”) today releases its 1Q 2020 operating results for the period ending 31 March 2020.
1Q 2020 Highlights
Total gold output in the first quarter of 2020 amounted to 595 thousand ounces, compared to 804 thousand ounces in the fourth quarter of 2019. The decrease reflects a seasonal slowdown in production at Alluvials and lower refined gold volumes at Olimpiada, Blagodatnoye, Natalka and Kuranakh. At Olimpiada, Blagodatnoye and Natalka, a decrease in refined gold volumes mainly reflects changes in gold in inventory at the refinery.
Doré volumes totalled 660 thousand ounces, down 8% on the previous quarter. This decline is mainly attributable to decreased doré gold production at Olimpiada and Natalka as well as a seasonal downscale
of production at the alluvial operations.
Volumes of ore mined amounted to 18,226 thousand tonnes, down 4% on the previous quarter, primarily driven by lower ore volumes mined at Olimpiada.
Volumes of ore processed decreased 7% to 10,698 thousand tonnes, compared to the previous quarter, primarily driven by lower processing volumes at Natalka, Olimpiada and Blagodatnoye.
Recovery rate rose to 83.6%, compared to 83.2% in the fourth quarter of 2019, reflecting higher recoveries at Olimpiada and Blagodatnoye.
Flotation concentrate output amounted to 26 thousand tonnes, down 22% on the fourth quarter 2019, comprising 8 thousand tonnes of merchant gold containing flotation concentrate and 18 thousand tonnes of antimony-rich flotation concentrate.
Volumes of antimony in flotation concentrate declined by 45% compared to the fourth quarter, to 2.7 thousand tonnes, reflecting a temporarily decline in volumes of antimony-rich ore in processing at the Mill
Volumes of gold in flotation concentrate decreased 26% on the previous quarter, to 61.9 thousand ounces.
As at 31 March 2020, the estimated net debt stood at $3,060 million, compared to $3,253 million as at the end of the previous quarter and $3,555 million as 31 March 2019. These amounts include the liabilities under cross currency and interest rate swaps related to RUB-denominated bank credit
facilities and rouble bonds.
Pavel Grachev, Chief Executive Officer of PJSC Polyus, commented:
“In the face of the threat of COVID-19, the health and wellbeing of our employees and their families remain our top priority. We are taking action to protect our workers and to contribute to measures
taken by the government to prevent the spread of the virus in the regions of our presence. While the Company’s operations remain uninterrupted, we continue to assess any potential risks on a daily basis.
We have also asked employees at our Moscow headquarters and a number of other offices to work from home until further notice.
Operationally, we have had a solid quarter, with total gold output of 595 thousand ounces almost flat year-on-year. The Company continues to progress with its development projects across its asset portfolio. In addition, we are finalizing feasibility studies on a number of new brownfield projects and will provide a detailed overview of those later in 2020.
At our main greenfield project, Sukhoi Log, we are proceeding with the in-fill drilling programme, and the Pre-Feasibility study is nearing completion.”