Polymetal International plc (POLY) Polymetal: Q1 2023 production
results 10-May-2023 / 09:01 MSK
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Release time IMMEDIATE LSE, MOEX, AIX: POLY
ADR: AUCOY
Date 10 May 2023
Polymetal International plc Q1 2023 production results
Polymetal reports production results for the first quarter ended
March 31, 2023.
"Q1 saw continued metal inventory release and positive revenue
dynamics. Management is optimistic that the unwinding of saleable
inventory will be substantially completed by the end of Q2 2023.
Quarterly production was in line with our plan and we confirm our
full-year guidance of 1.7 Moz of GE", said Vitaly Nesis, Group CEO
of Polymetal.
HIGHLIGHTS
-- No fatal accidents occurred among the Group's workforce and
contractors in Q1 2023 (consistent with Q12022). Lost time injury
frequency rate (LTIFR) among the Group's employees decreased by 10%
year-on-year (y-o-y) to0.09. During Q1 2023, one medium-severity
incident and two minor incidents were recorded.
-- Q1 gold equivalent ("GE") production decreased by 5% y-o-y to
345 Koz. Increases at Nezhda and Albazino(Kutyn) were offset by
grade-driven production slump at Dukat as well as the build-up of
concentrate inventory atKyzyl and Varvara.
-- Revenue for the quarter was up by 19% y-o-y to USUSD 733
million as sales channels stabilized, withreduction in stockpiles
taking full advantage of higher gold prices.
-- Net Debt was broadly flat during the quarter as the release
of inventory was offset by traditionalseasonal payments for winter
road deliveries, fuel supplies, and annual bonuses.
-- The Company now expects POX-2 start-up in H2 2024 (previously
Q2 2024). Urals flotation and Prognoz (oremining) are on track to
launch in Q2 2023.
-- Polymetal reiterates its 2023 production guidance of 1.7 Moz
of GE, and also maintains the full-year costguidance of USUSD
950-1,000/GE oz for TCC and USUSD 1,300-1,400/GE oz for AISC. The
cost guidance remains contingent onthe Russian rouble and Kazakh
tenge exchange rate dynamics.
OPERATING HIGHLIGHTS
3 months ended Mar 31,
% change1
2023 2022
Waste mined, Mt 44.1 55.0 -20%
Underground development, km 23.8 23.9 -0%
Ore mined, Mt 3.4 4.3 -21%
Open-pit 2.4 3.3 -28%
Underground 1.0 1.0 +1%
Ore processed, Mt 4.5 4.1 +11%
Average GE grade processed, g/t 3.2 3.5 -7%
Production
Gold, Koz* 296 306 -3%
Silver, Moz 3.9 4.5 -13%
Gold equivalent, Koz2 345 362 -5%
Sales
Gold, Koz 318 268 +19%
Silver, Moz 6.4 4.4 +48%
Revenue, USUSDm3 733 616 +19%
Net debt, USUSDm4 2,428 2,393 +1%
Safety
LTIFR (Employees)5 0.09 0.10 -10%
Fatalities 0 0 NA
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 80:1 Au/Ag conversion ratio and excluding base metals. Discrepancies in calculations are due to rounding.
(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
December 2022.
(5) LTIFR = lost time injury frequency rate per 200,000 hours worked. Company employees only are taken into account.
(6) DIS - days lost due to work-related injuries. Company employees only are taken into account.
PRODUCTION BY MINE
3 months ended Mar 31, %
2023 2022 change
GOLD EQ. (KOZ)1
Kazakhstan 115 139 -17%
Kyzyl 71 82 -13%
Varvara 44 57 -23%
Russia 229 223 +3%
Albazino 65 56 +16%
Dukat 50 66 -25%
Omolon 46 40 +17%
Nezhda 36 20 +79%
Svetloye 18 19 -3%
Voro 13 20 -23%
Mayskoye 1 3 -69%
TOTAL 345 362 -5%
Notes: (1) Based on 80:1 Au/Ag conversion ratio and excluding base metals. Discrepancies in calculations are due to
rounding.
CONFERENCE CALL AND WEBCAST
The Group's management will discuss the Q1 2023 production
results and the proposed re-domiciliation during the Analyst and
Investor Briefing on Wednesday, 10 May, 2023, at 10:00 BST (12:00
Moscow time, 15:00 Astana time) at the etc.venues, 8 Fenchurch Pl,
London EC3M 4PB. To join the webcast please follow the link:
https://event.on24.com/wcc/r/4215044/57F84C60B29C3706B85933B505CAF446.
Enquiries
Investor Relations
Polymetal ir@polymetalinternational.com
Evgeny Monakhov +44 20 7887 1475 (UK)
+7 812 334 3666 (Russia)
Kirill Kuznetsov
+7 717 261 0222 (Kazakhstan)
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 Mar 31,
% change
2023 2022
MINING
Waste mined, Mt 20.0 20.7 -3%
Ore mined (open-pit), Kt 518 584 -11%
PROCESSING
Ore processed, Kt 560 551 +2%
Gold grade, g/t 5.2 4.8 +9%
Gold recovery 88.5% 87.7% +1%
Concentrate produced, Kt 30.0 24.8 +21%
Concentrate gold grade, g/t 86.7 91.6 -5%
Gold in concentrate, Koz1 84 73 +14%
Concentrate shipped, Kt 8.8 10.8 -19%
Payable gold shipped, Koz 16 20 -19%
Amursk POX
Concentrate processed, Kt 14 14 +7%
Gold grade, g/t 125.4 132.6 -5%
Gold recovery 93.6% 94.6% -1%
Gold produced, Koz 55 62 -11%
TOTAL PRODUCTION
Gold, Koz 71 82 -13%
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.
At Kyzyl, reported gold production for the quarter was down by
13% y-o-y to 71 Koz due to persistent railway congestion in
eastward direction. As a result, concentrate shipments to both
Amursk POX and China have been delayed. The management is
evaluating alternative shipment routes and approaches, including
trucking, to resolve the backlog.
Meanwhile, gold in concentrate increased by 14% on the back of
improvements in grade, throughput, and recovery. The Company
expects the annual throughput of the concentrator to reach 2.4 Mtpa
this year.
VARVARA
3 months ended Mar 31,
% change
2023 2022
MINING
Waste mined, Mt 10.6 11.0 -3%
Ore mined, Kt 782 957 -18%
PROCESSING
Leaching
Ore processed, Kt 768 769 -0%
Gold grade, g/t 1.4 1.7 -14%
Gold recovery1 89.1% 89.6% -1%
Gold production (in dore), Koz 34 45 -24%
Flotation
Ore processed, Kt 189 179 +6%
Gold grade, g/t 2.2 2.8 -23%
Recovery1 85.1% 88.5% -4%
Gold in concentrate, Koz 10 11 -17%
TOTAL PRODUCTION
Gold, Koz 44 57 -23%
Note:
(1) Technological recovery, includes gold and copper within work-in-progress inventory. Does not include toll-treated
ore.
At Varvara, Q1 gold production contracted by 23% y-o-y to 44 Koz
on the back of the planned decline in Komar ore grade as well as
substantial work-in-progress release in Q1 2022. At the flotation
circuit, the output was also down driven by a lower share of
high-grade third-party feed.
ALBAZINO
3 months ended Mar 31,
% change
2023 2022
MINING
Waste mined, Mt 7.3 7.2 +1%
Underground development, km 4.3 4.6 -7%
Ore mined, Kt 634 772 -18%
Open-pit 437 569 -23%
Underground 197 203 -3%
PROCESSING
Albazino concentrator
Ore processed, Kt 441 453 -3%
Gold grade, g/t 3.1 3.2 -5%
Gold recovery1 83.5% 86.7% -4%
Concentrate produced, Kt 33.0 32.3 +2%
Concentrate gold grade, g/t 34.8 39.0 -11%
Gold in concentrate, Koz2 38 41 -7%
Kutyn Heap Leach
Ore stacked, Kt 380 - NA
Gold grade, g/t 2.5 - NA
Gold production, Koz 24 - NA
Amursk POX
Concentrate processed, Kt 36.9 43.2 -15%
Gold grade, g/t 33.3 44.3 -25%
Gold recovery 96.5% 96.5% +0%
Gold produced, Koz 41 56 -27%
TOTAL PRODUCTION
Gold, Koz 65 56 +16%
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, gold production increased by 16% y-o-y to 65 Koz
driven by the contribution from Kutyn Heap Leach launched in the
late Q3 2022. Gold production from Albazino concentrate at Amursk
POX alone fell by 27% y-o-y as the high-grade Anfisa open pit was
fully depleted in H2 2022 resulting in the scheduled grade
decline.
Open-pit ore mined decreased as planned due to the completion of
mining at Anfisa and Ekaterina-2.
DUKAT OPERATIONS
3 months ended Mar 31,
% change
2023 2022
MINING
Waste mined, Mt 0.5 0.9 -45%
Underground development, km 11.0 11.6 -5%
Ore mined, Kt 598 633 -6%
Open-pit 68 107 -36%
Underground 530 527 +1%
PROCESSING
Omsukchan concentrator
Ore processed, Kt 491 515 -5%
Grade
Gold, g/t 0.3 0.7 -50%
Silver, g/t 201 249 -19%
Recovery1
Gold 82.6% 83.7% -1%
Silver 85.9% 84.9% +1%
Production
Gold, Koz 4 9 -53%
Silver, Moz 2.6 3.4 -23%
Lunnoye plant
Ore processed, Kt 119 115 +4%
Grade
Gold, g/t 1.5 1.9 -23%
Silver, g/t 170 185 -8%
Recovery1
Gold 91.5% 91.5% +0%
Silver 92.9% 92.7% +0%
Production
Gold, Koz 5 6 -20%
Silver, Moz 0.6 0.7 -6%
TOTAL PRODUCTION
Gold, Koz 9 15 -39%
Silver, Moz 3.2 4.0 -20%
Notes:
(1) Technological recovery, includes gold and silver within work-in-progress inventory.
Silver and gold production at Dukat decreased driven by
declining grades after the high-grade open pit was fully depleted.
There was no reported production from Primorskoye in the quarter,
ore shipment will recommence following the start of sea navigation
in June.
OMOLON
3 months ended Mar 31,
% change
2023 2022
MINING
Waste mined, Mt 1.7 1.8 -5%
Underground development, Km 2.8 3.0 -7%
Ore mined, Kt 218 104 +110%
Open-pit 86 - NA
Underground 133 104 +27%
PROCESSING
Kubaka Mill
Ore processed, Kt 213 212 +1%
Grade
Gold, g/t 6.7 5.8 +16%
Silver, g/t 19 24 -21%
Recovery1
Gold 93.7% 92.9% +1%
Silver 77.6% 75.8% +2%
Gold production, Koz 43 37 +17%
Silver production, Moz 0.1 0.1 -15%
Birkachan Heap Leach
Ore stacked, Kt 55 - NA
Gold grade, g/t 1.1 - NA
Gold production, Koz 2 1 +37%
TOTAL PRODUCTION
Gold, Koz 45 38 +18%
Silver, Moz 0.1 0.1 -14%
Note:
(1) Technological recovery, includes gold and silver within work-in-progress inventory.
In Q1, gold production at Omolon grew by 18% y-o-y to 45 Koz on
the back of the increased share of higher-grade ore from the
Burgali open pit in the Kubaka mill's feed.
First ore from the Burgali underground is expected in Q2.
Underground mining at Tsokol was completed. Underground workings
will be flooded in line with a pre-approved reclamation plan.
NEZHDA
3 months ended Mar 31,
% change
2023 2022
MINING
Waste mined, Mt 0.6 4.9 -87%
Ore mined, Kt 137 604 -77%
PROCESSING
Ore processed, Kt 511 484 +5%
Grade
Gold, g/t 3.1 3.7 -17%
Silver, g/t 33.8 30.5 +11%
Recovery1
Gold 70.6% 73.2% -4%
Silver 79.9% 74.7% +7%
Gold in concentrate, Koz 36 42 -14%
Silver in concentrate, Moz 0.5 0.4 +27%
Concentrate shipped, Kt 23 1 NM
Payable gold in concentrate, Koz 24 16 +51%
Payable silver in concentrate, Moz 0.5 0.2 +93%
Gold produced in dore, Koz 6 1 NM
TOTAL PRODUCTION
Gold, Koz 31 17 +77%
Silver, Moz 0.5 0.2 +93%
Notes:
(1) Includes concentrate produced and stockpiled for future sale, and excludes low-grade material. Expected 90% gold
payable ratio is applied.
At Nezhda, gold grade and recovery declined as processing
focused on previously stockpiled oxidised ore and mining was halted
for almost entire quarter to reduce costs.
However, total production of gold grew by 77% y-o-y to 31 Koz
due to larger volumes of concentrate shipped to off-takers and
processed at POX. Dore from gravity and low-carbon flotation
concentrates was produced in-house at Dukat, Voro, and Amursk
POX.
SVETLOYE
3 months ended Mar 31,
% change
2023 2022
MINING
Waste mined, Mt 1.7 1.6 +4%
Ore mined (open pit), Kt 199 369 -46%
PROCESSING
Ore stacked, Kt 312 312 -0%
Gold grade, g/t 2.6 1.9 +38%
Gold production, Koz 18 19 -3%
TOTAL PRODUCTION
Gold, Koz 18 19 -3%
At Svetloye, gold production marginally decreased y-o-y and
stood at 18 Koz. Average grade at the heap leach was substantially
higher relative to the low base of Q1 2022, when stacking of
stockpiled low-grade ore from the depleted Lyudmila main pit took
place.
VORO
3 months ended Mar
31, % change
2023 2022
MINING
Waste mined, Mt 1.7 3.4 -50%
Ore mined, Kt 151 76 +99%
PROCESSING
CIP
Ore processed, Kt 262 246 +6%
Gold grade, g/t 1.9 2.1 -9%
Gold recovery1 78.5% 85.7% -8%
Gold production, Koz 11.9 18 -34%
Heap Leach
Gold production, Koz 1 1 +11%
TOTAL PRODUCTION
Gold, Koz 13 19 -35%
Note:
(1) Technological recovery, includes gold within work-in-progress inventory.
Voro recorded a 35% y-o-y decline in production on the back of
decreasing volumes of the higher-grade Pesherny ore in the CIP
feed, while its lower recovery also depressed the average recovery
at the CIP plant.
Ore mining at Pesherny accelerated in anticipation of the launch
of the Voro flotation plant which is scheduled for June 2023. Wet
commissioning at Voro flotation has already commenced.
MAYSKOYE
3 months ended Mar
31, % change
2023 2022
MINING
Waste mined, Mt - 1.0 -100%
Underground development, km 5.7 4.7 +21%
Ore mined, Kt 162 195 -17%
Open-pit - 13 -100%
Underground 162 183 -11%
PROCESSING
Ore processed, Kt 226 230 -1%
Gold grade, g/t 5.2 5.6 -8%
Gold recovery1 92.0% 90.8% +1%
Gold in concentrate, Koz2 35 38 -8%
Amursk POX
Gold produced in dore from concentrate, Koz - 2 -100%
Gold produced in dore from carbon, Koz3 1 1 -28%
TOTAL PRODUCTION
Gold, Koz 1 3 -69%
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 produced inQ1 recorded a y-o-y
decrease due to processing of larger volumes of lower grade
stockpiles. The Company expects production to normalise over the
course of 2023.
The expansion of the scope of sanctions to include additional
materials and equipment under the tenth EU/UK sanctions package is
expected to have an adverse impact on the Mayskoye backfill
project. The estimated start-up will likely be delayed for up to 9
months from the initial plan of Q3 2024, as some critical items
will need to be re-sourced from Asia.
AMURSK POX
3 months ended Mar 31,
% change
2023 2022
Concentrate processed, Kt 54 58 -7%
Albazino 37 43 -15%
Kyzyl 14 14 +7%
Nezhda 3 - NA
Gold recovery 94.6% 95.5% -1%
Average gold grade, g/t 58.7 64.9 -10%
Average sulphur grade 15.5% 13.5% +15%
Total gold produced1, Koz 99 120 -18%
Kyzyl 55 62 -11%
Albazino 41 56 -27%
Nezhda 3 1 +127%
Mayskoye - 2 NM
Notes:
(1) For information only. Already accounted for in production at operating mines.
The decrease in POX production was attributable to the grade
decline in feedstock sourced from Kyzyl and Albazino. The Company
increased the volume of Nezhda concentrate processed, which
resulted in a minor decrease in recovery rate.
At POX-2, construction and installation works at the intensive
cyanidation section and other parts of the downstream circuit were
completed. Section commissioning is underway; start-up is expected
in Q2 2023. The construction of metal frameworks for technological
equipment in the High Bay steam conditioning section is nearing
completion. The installation of piping and equipment in the CIL
section continues.
All construction and installation works at the oxygen station
are expected to be completed by the end of May together with the
start the complex commissioning.
The Company now expects POX-2 start-up in H2 2024 (previously Q2
2024) as more time is required to findreplacements for sanctioned
equipment in China.
SUSTAINABILITY, HEALTH AND SAFETY
No fatal accidents occurred among the Group's workforce and
contractors in Q1 2023. Lost time injury frequency rate (LTIFR)
among the Group's employees stood at 0.09 (0.10 in Q1 2022),
representing a 10% y-o-y decline, with three incidents recorded
(three in Q1 2022) related to hit by an object, falling rock,
slipping and tripping while walking resulting in minor lost-time
injuries. Additionally, one lost-time injury (person hit by an
object) took place among contractors working on site, classified as
minor (three in Q1 2022).
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Dissemination of a Regulatory Announcement, transmitted by EQS
Group. The issuer is solely responsible for the content of this
announcement.
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ISIN: JE00B6T5S470
Category Code: UPD
TIDM: POLY
LEI Code: 213800JKJ5HJWYS4GR61
OAM Categories: 3.1. Additional regulated information required to be disclosed under the laws of a Member State
Sequence No.: 242496
EQS News ID: 1628639
End of Announcement EQS News Service
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May 10, 2023 02:01 ET (06:01 GMT)
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