Polymetal reports strong production results for the third quarter of 2020


·      There were no fatal accidents during the first nine months of 2020 either at Polymetal or at the Company’s contractors. LTIFR among the Group’s employees for the period stood at 0.10, a decrease of 47% year-on-year (y-o-y). There were 8 minor incidents in total in comparison with 15 incidents during 9M 2019.

·      The Company’s Q3 gold equivalent (“GE”) production increased by 7% y-o-y to 477 Koz of GE driven by strong contributions from Omolon, Varvara, and Kyzyl. GE output for 9M 2020 months reached 1,200 Koz, an increase of 5% y-o-y.

·      Q3 revenue jumped by 35% y-o-y to reach US$ 884 million on the back of higher gold and silver prices as well as increased sales volumes. 9M revenue amounted to US$ 2,019 million, up 26% y-o-y. The lag between gold production and sales, mainly at Varvara and Kyzyl, is expected to close in Q4 2020.

·      Polymetal generated record quarterly free cash flow in Q3. Net debt was down by US$ 80 million to US$ 1.61 billion, even as the Company paid US$ 189 million of interim dividends (US$ 0.40 per share, a two-fold increase year-on-year).

·      Construction and development activities at Nezhda and POX-2 progressed on schedule. COVID-related restrictions, precautionary measures and cases of the disease on site have not slowed down project execution.

·      The Company is on track to meet its full-year 2020 production guidance of 1,500 Koz GE with COVID-related risks remaining the key source of uncertainty. TCC and AISC guidance of US$ 650-700/GE oz and US$ 850-900/GE oz respectively is also maintained.

·      Production guidance for 2021 and 2022 of 1,500 Koz and 1,600 Koz GE respectively is reiterated.


·      There were 112 active cases of COVID-19 as at 20.10.2020 across the Group. Strict precautionary procedures, previously implemented, including 14-day mandatory isolation of new shifts and limitations on meetings and travel, are maintained at all production sites and offices. These restrictions are expected to continue at least into Q2 2021.

·      Mayskoye suffered a C-19 outbreak in September. All infected persons and their contacts were transferred to observatory facilities or hospitals. Currently 18 people remain isolated on site and 8 are in hospital with 1 person in a serious condition. All mining and processing activities continued at regular pace.

·      In September, Olcha underground and open pit (part of Omolon hub) returned to production after a 5-week stoppage caused by the COVID-19 outbreak. All people infected (approximately 50) have recovered. The stoppage is not expected to result in any production or cost downgrades.

·      Russia is undergoing a second wave of the pandemic with daily infections above the previous peak levels seen in May. Some regions partially re-introduced restrictive measures. Kazakhstan lifted most of the quarantine restrictions in August following significant drops in the number of infected and intensive care admissions. The infection rates remain stable so far.

·      At the same time, governments have relaxed a number of cross-border travel restrictions allowing flights between Russia, Kazakhstan and Belarus to resume. This has facilitated bringing Kazakh employees to Dukat and Mayskoye.

·      Polymetal continues to provide varied financial and operational support to healthcare facilities across all regions of its presence with US$ 2.9 million spent so far in 2020. The main areas of assistance include purchasing PPE, medical supplies, and specialized diagnostic equipment.

·      The Company estimates additional COVID-related cash expenses at approximately US$ 3 million per month with the bulk recorded as operating costs. This translates into approximately US$ 20 per GE ounce produced in Q3.


Tests administered17,4918,10825,599
C-19 positive tests390222612
Active cases9913112
In hospital29029

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.

To keep up to date with Mines and Metals, subscribe to our free email newsletters, covering rich mining intelligence and news, that will be delivered straight to your inbox.

(Visited 39 times, 1 visits today)
error: Content is protected !!
Copy link