POLYUS TRADING UPDATE FOR THE THIRD QUARTER OF 2021
28 October, 2021
PJSC Polyus ("Polyus" or the "Company") today releases its 3Q 2021 operating results for the period ending 30 September 2021.
3Q 2021 HIGHLIGHTS
- Total gold output increased by 15% quarter-on-quarter to 770 thousand ounces. This increase was driven by higher production volumes of refined gold across almost all deposits.
- Volumes of ore mined amounted to 16,827 thousand tonnes, a moderate decrease on the previous quarter. On a year-on-year basis, volumes of ore mined declined by 8%, driven by lower mining activities at Olimpiada and Verninskoye due to intensified stripping activities.
- Volumes of ore processed totalled 12,722 thousand tonnes, up 5% on the previous quarter. Year-on-year, volumes of ore processed rose by 4%, primarily due to higher processing volumes at Olimpiada, Natalka and Verninskoye.
- Recovery rate increased to 83.0%, compared to 82.6% in the previous quarter.
- Estimated gold sales amounted to $1,383 million, up 12% compared to the previous quarter, with an estimated weighted-average gold selling price of $1,787/oz, a 2% decline on the second quarter of 2021.
- As at 30 September 2021, the estimated net debt stood at $1,950 million, compared to $2,366 million as at the end of the previous quarter.
9M 2021 HIGHLIGHTS
- Total gold output amounted to 2,033 thousand ounces, compared to 2,056 thousand ounces in the prior-year period, representing a 1% decline year-on-year. Volumes of doré gold totalled 2,072 thousand ounces, down 3% compared to the same period in the previous year.
- Volumes of ore processed increased 4% to 36,017 thousand tonnes, reflecting the improved performance at Olimpiada, Natalka and Verninskoye mainly due to the implementation of throughput capacity expansion projects.
- Recovery rate stood at 82.4%, down 1.3 ppts from the prior-year period, primarily driven by a decline in recoveries at Olimpiada and Blagodatnoye.
- Estimated gold sales increased 5% year-on-year to $3,630 million, with an estimated weighted-average gold selling price of $1,797/oz (9M 2020: $1,755/oz).
3Q'21 | 2Q'21 | Q-o-Q | 1Q'21 | 4Q'20 | 3Q'20 | Y-o-Y | 9M'21 | 9M'20 | Y-o-Y | ||
Olimpiada | 281.6 | 269.9 | 4% | 242.4 | 268.0 | 254.8 | 11% | 793.9 | 733.8 | 8% | |
Blagodatnoye | 108.5 | 117.4 | -8% | 92.4 | 117.4 | 118.3 | -8% | 318.3 | 338.0 | -6% | |
Natalka | 133.6 | 125.3 | 7% | 115.1 | 132.7 | 117.4 | 14% | 374.0 | 322.8 | 16% | |
Verninskoye | 83.0 | 77.6 | 7% | 64.8 | 67.4 | 68.6 | 21% | 225.4 | 206.0 | 9% | |
Kuranakh | 65.3 | 56.0 | 17% | 54.3 | 64.2 | 66.5 | -2% | 175.6 | 174.5 | 1% | |
Alluvials | 91.0 | 25.2 | n/a | - | 38.0 | 75.5 | 20% | 116.2 | 105.3 | 10% | |
Refined gold, koz | 763.0 | 671.4 | 14% | 569.0 | 687.7 | 701.1 | 9% | 2,003.4 | 1,880.4 | 7% | |
Flotation concentrate production, t | 3,547 | 159 | n/a | 11,671 | 7,323 | 23,219 | -85% | 15,377 | 79,427 | -81% | |
Antimony in flotation concentrate, t | 602 | 0 | n/a | 1,919 | 1,837 | 3,950 | -85% | 2,521 | 9,121 | -72% | |
Gold in flotation concentrate, koz | 7.0 | 0.1 | n/a | 22.7 | 22.0 | 70.0 | -90% | 29.8 | 176.0 | -83% | |
Gold payable in concentrate, koz | 5.4 | 0.0 | n/a | 17.4 | 17.2 | 55.5 | -90% | 22.8 | 136.4 | -83% | |
Total gold output, koz | 770.0 | 671.5 | 15% | 591.7 | 709.7 | 771.1 | 0% | 2,033.2 | 2,056.4 | -1% | |
Rock moved, km³ | 35,729 | 33,120 | 8% | 31,587 | 30,741 | 32,210 | 11% | 100,436 | 93,493 | 7% | |
Stripping ratio, m³/t | 1.7 | 1.5 | 13% | 1.5 | 1.4 | 1.4 | 21% | 1.6 | 1.3 | 23% | |
Rock moved, kt | 92,306 | 85,191 | 8% | 81,290 | 78,706 | 82,535 | 12% | 258,787 | 239,723 | 8% | |
Stripping ratio, t/t | 4.5 | 4.0 | 13% | 3.9 | 3.5 | 3.5 | 29% | 4.1 | 3.5 | 17% | |
Ore mined, kt | 16,827 | 17,027 | -1% | 16,639 | 17,301 | 18,265 | -8% | 50,493 | 53,854 | -6% | |
Ore processed, kt | 12,722 | 12,169 | 5% | 11,126 | 10,438 | 12,224 | 4% | 36,017 | 34,675 | 4% | |
Recovery rate, % | 83.0% | 82.6% | 0.4ppts | 81.6% | 83.9% | 84.1% | -1.1ppts | 82.4% | 83.7% | -1.3ppts | |
Total doré & slime gold output, koz | 764.2 | 693.4 | 10% | 614.7 | 660.7 | 770.2 | -1% | 2,072.3 | 2,142.8 | -3% | |
"Pavel Grachev, Chief Executive Officer of PJSC Polyus, commented:
ESG UPDATE
Q3 Highlights
- LTIFR1 of 0.18 YTD (9M 2020 - 0.08, 6M 2021 - 0.18). Zero fatalities at our operations during Q3.
- Automotive Accident Rate (AARk) at 0.15 (9M 2020 - 0.18, 6M 2021 - 0.18).
- Coronavirus: production assets remain unimpacted and operate without interruption. Thorough COVID-19 protocols remain in place. Employee vaccination program has resulted in immunity levels of over 70% among workers.
COVID response update
- Vaccination program for employees and contractors continues at all Polyus production sites. At Olimpiada, Blagodatnoye and Verninskoye the vaccination rates are close to 90%.
- Preventive measures remain in place at all operations and offices, including enhanced medical screening, social distancing, provision of personal protective equipment and regular disinfection of all communal areas.
- All shift employees and contractors are tested for COVID-19 and quarantined in observation facilities prior to transfer to Polyus' sites.
Environment and Climate
- Verninskoye operation has been certified under the International Cyanide Management Code.
- Scheduled site safety audits of tailings storage and other hydraulic facilities were carried out at Olimpiada, Blagodatnoye and Alluvials. Corporate guidelines on identifying and assessing business risks related to tailings storage facilities and other hydraulic facilities have been developed. Procurement procedures were launched for a hydraulic facility remote monitoring system software.
- Polyus won Minex ESG award by Russian Mining Forum for the Water management campaign.
Health & Safety
- Transportation safety management system audit was launched at Irkutsk branch of Polyus Logistics.
- A comprehensive HSE audit was held at Alluvials and Polyus Verninskoye.
- Polyus has published its Supplier Code of Conduct containing guidelines for its suppliers and contractors regarding key areas of sustainable development and ESG.
Local communities
- Polyus donated new medical equipment to the Russian Federal Medical and Biological Agency (FMBA) for a hospital in the Krasnoyarsk region that specializes in treating patients with infectious diseases.
- Winners of the regional theatre award, 'Polyus. Golden Season' were announced.
Employees
- 106 employees have graduated from the corporate Talent Pool development program.
- Career guidance events were held for students of 20 schools in the Krasnoyarsk Territory, as part of a pilot school project aimed at increasing the flow of applicants to study professions relevant to Polyus. 785 high school students took part in the events.
- A call center was launched for candidates applying to jobs at Polyus Krasnoyarsk, Polyus Logistics, Polyus Stroy, Polyus Project, MFC Polyus.
- A dashboard system was launched to monitor the level of operational competence of working personnel.
- Several environmental trips were organized as part of Polyus' volunteer activities.
1 Based on a 200,000 work hours' factor.
ESG Ratings and indices
- For the second year in a row, Polyus was awarded 2nd place in ESG communications among Russian companies according to a poll by Institutional Investor.
- Polyus has been included in the top-10 of ESG Ranking of Russian companies by rating agency RAEX for the first time.
- Polyus' current ESG ratings:
- S&P Global CSA - 54
-
CDP - Climate Change: C; Water Security: C o Sustainalytics ESG Risk Rating - 26.8
o MSCI ESG - A.
Olimpiada
3Q 2021 Highlights
- Volumes of rock moved totalled 37,062 thousand tonnes, up 20% on the previous quarter.
- Recovery rate rose to 84.6%, up from 83.8% in the previous quarter.
- Total gold output amounted to 289 thousand ounces.
Gold output
Doré gold output stood at 293 thousand ounces in the third quarter of
2021, up 5% compared to the previous quarter, driven by higher processing volumes and higher recovery rate. Total gold output (refined and concentrate) rose by 7% compared to the previous quarter, to 289 thousand ounces. On a year-on-year basis, doré gold output declined by 8%, while total gold production was down 11%.
Mining works
Rock moved volumes totalled 37,062 thousand tonnes (13,713 km³), up 20% on the second quarter of 2021 as the completion of simultaneous operations within two stages of the Vostochny pit led to improved mining equipment performance. Following the completion of rich-ore mining from the bottom part of the third stage, Polyus intensified stripping activities at the fourth stage of the Vostochny pit, substantially reducing ore mining activities at Vostochny pit. At the same time, in line with a mine plan, Polyus increased mining works at the Zapadny pit, which partially offset the decline in ore mined. As a result, volumes of ore mined temporarily decreased to 1,799 thousand tonnes, down 42% from the previous quarter, while grades in ore mined decreased to 2.43 g/t.
Ore processing
Volumes of ore processed totalled 4,009 thousand tonnes, up 10% compared to the previous quarter. This increase reflects Mill No. 1 and Mill No. 3 undergoing planned maintenance in the second quarter. Average grades in ore processed remained flat quarter-on-quarter, at 3.03 g/t. The recovery rate rose further to 84.6%, up 0.8 ppts compared to the second quarter of 2021. This increase reflects the launch of the Vertimill grinding unit, which enhanced flotation concentrate properties. It was further supported by improved mineralogical characteristics of the ore feed, with the higher share of ore coming from the Zapadny pit.
During the third quarter of 2021, the Company has proceeded with a throughput capacity expansion project at Olimpiada, aimed at increasing capacity to 15.0 million tonnes per annum. Polyus continued to improve the efficiency of BIO complex, including introduction of a second magnetic separation line and ongoing calibration of the flowsheet. This resulted in improved performance of the BIO units, with daily throughput reaching record high in September.
Mining works and ore processing
3Q'21 | 2Q'21 | Q-o-Q | 1Q'21 | 4Q'20 | 3Q'20 | Y-o-Y | 9M'21 | 9M'20 | Y-o-Y | |
Rock moved, km³ | 13,713 | 11,368 | 21% | 10,849 | 11,073 | 11,165 | 23% | 35,930 | 32,817 | 9% |
incl. stripping, km³ | 13,060 | 10,249 | 27% | 9,657 | 9,711 | 9,661 | 35% | 32,966 | 28,283 | 17% |
Stripping ratio, m³/t | 7.3 | 3.3 | n/a | 2.9 | 2.6 | 2.3 | n/a | 4.0 | 2.3 | 74% |
Rock moved, kt | 37,062 | 30,764 | 20% | 29,372 | 29,979 | 30,236 | 23% | 97,198 | 88,878 | 9% |
incl. stripping, kt | 35,263 | 27,672 | 27% | 26,082 | 26,220 | 26,083 | 35% | 89,017 | 76,364 | 17% |
Stripping ratio, t/t | 19.6 | 8.9 | n/a | 7.9 | 7.0 | 6.3 | n/a | 10.9 | 6.1 | 79% |
Ore mined, kt | 1,799 | 3,092 | -42% | 3,290 | 3,759 | 4,153 | -57% | 8,181 | 12,514 | -35% |
Average grade in ore mined, g/t | 2.43 | 3.24 | -25% | 3.08 | 2.94 | 3.30 | -26% | 3.00 | 3.25 | -8% |
Ore processed, kt | 4,009 | 3,648 | 10% | 3,668 | 3,249 | 3,757 | 7% | 11,325 | 10,799 | 5% |
Average grade in ore processed, g/t | 3.03 | 3.03 | 0% | 3.02 | 3.34 | 3.56 | -15% | 3.03 | 3.42 | -11% |
Recovery, % | 84.6% | 83.8% | 0.8ppts | 82.5% | 84.9% | 86.1% | -1.5ppts | 83.6% | 85.5% | -1.9ppts |
Doré gold, koz | 293.0 | 279.5 | 5% | 271.8 | 281.4 | 319.2 | -8% | 844.3 | 947.9 | -11% |
Refined gold output, koz | 281.6 | 269.9 | 4% | 242.4 | 268.0 | 254.8 | 11% | 793.9 | 733.8 | 8% |
Flotation concentrate production, t | 3,547 | 159 | n/a | 11,671 | 7,323 | 23,219 | -85% | 15,377 | 79,427 | -81% |
Antimony in flotation concentrate, t | 602 | 0 | n/a | 1,919 | 1,837 | 3,950 | -85% | 2,521 | 9,121 | -72% |
Gold contained in concentrate, koz | 7.0 | 0.1 | n/a | 22.7 | 22.0 | 70.0 | -90% | 29.8 | 176.0 | -83% |
Total gold output, koz | 288.6 | 270.0 | 7% | 265.1 | 290.0 | 324.8 | -11% | 823.7 | 909.8 | -9% |
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Polyus Gold International Limited published this content on 28 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 October 2021 06:30:04 UTC.
