Polyus reports its 2Q 2020 total gold output rose 1% y-o-y to 690 koz

2Q 2020 Highlights

  • Total gold output increased 16% to 690 thousand ounces compared to the previous quarter. Volumes of doré gold and total gold output remained largely flat year on year.
  • Volumes of ore mined amounted to 17,364 thousand tonnes, a 5% decrease on the previous quarter. On a year on year basis, volumes of ore mined rose by 11%.
  • Volumes of ore processed totalled 11,753 thousand tonnes, up 10% on the previous quarter. Year on year, volumes of ore processed rose by 8%.
  • Recovery rate stood at 83.4%, compared to 83.6% in the previous quarter.
  • Estimated gold sales amounted to $1,148 million, up 33% compared to the previous quarter, with an estimated weighted-average gold selling price of $1,723/oz.
  • As at 30 June 2020, the estimated net debt stood at $2,506 million, compared to $3,056 million as at the end of the previous quarter. These amounts include liabilities under cross currency and interest rate swaps related to RUB-denominated bank credit facilities and rouble bonds.

2Q 2020 Production Highlights
 Total gold output amounted to 690 thousand ounces, compared to 595 thousand ounces in the first quarter of 2020. This increase was driven by higher production volumes of refined gold at Olimpiada, Natalka and Blagodatnoye, as well as the start of the washing season at Alluvials and the recommencement of heap leaching operations at Kuranakh.
 Volumes of ore mined amounted to 17,364 thousand tonnes, down 5% on the previous quarter, driven by lower ore volumes mined at Blagodatnoye.
 Volumes of ore processed increased 10% quarter-on-quarter to 11,753 thousand tonnes, primarily due to the start of heap leaching operations at Kuranakh and higher processing volumes at Natalka.
 Flotation concentrate output amounted to 30 thousand tonnes, up 15% on the first quarter of 2020.
 Volumes of antimony in flotation concentrate decreased to 2.4 thousand tonnes, down from 2.7 thousand tonnes in the previous quarter.
 Volumes of gold in flotation concentrate decreased 29% quarter-on-quarter to 44.1 thousand ounces.

Pavel Grachev, Chief Executive Officer of PJSC Polyus, commented:

Polyus delivered another set of solid operational results amidst a challenging environment with the COVID-19 pandemic, with total gold output increasing 16% quarter-on-quarter to 690 thousand ounces.

In response to the health risks resulting from the COVID-19 pandemic, Polyus has introduced an extensive list of health and safety protocols to protect our employees. Polyus continues to assess all potential risks on a daily basis, as the health and wellbeing of our employees and their families remain the Company’s top priority.

The virus outbreak at our Krasnoyarsk operations has been successfully contained. As Polyus conducted a thorough analysis of an updated mining schedule at Olimpiada, we reiterate initial production guidance for 2020, and expect to achieve production of approximately 2.8 million ounces of gold for the full year.

Operationally, we remain well on track with the implementation of debottlenecking projects at Olimpiada and Verninskoye as well as further operational improvement initiatives at Natalka.

In addition, Polyus intends to provide the key findings of the Pre-Feasibility study along with the maiden estimate of Sukhoi Log P&P reserves over the course of the next few months.

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