Q1 2021 production results

Polymetal reports solid production results for the first quarter ended March 31, 2021. 

“In Q1 2021, Polymetal delivered strong production, strong free cash flow, and steady progress across development projects”, said Vitaly Nesis, Group CEO of Polymetal. “COVID-related construction cost inflation remains a pressing concern despite gradual improvements in the epidemiological situation”.

HIGHLIGHTS

• No fatal accidents occurred among Group workforce and contractors in Q1 2021 (consistent with Q1 2020). Lost time injury frequency rate (LTIFR) among the Group’s employees stood at 0.25 (0.07 in Q1 2020) as there were seven lost-time accidents mostly related to falling or being hit by an object.

• Gold equivalent (“GE”) production in Q1 grew by 3% year-on-year (y-o-y) to 375 Koz. All-time highest quarterly production from Varvara and strong performance across other assets offset the planned grade-driven decline at Kyzyl.

• Revenue for the quarter increased by 20% y-o-y to US$ 593 million on the back of higher gold and silver prices. A traditional lag between silver concentrate production and sales at Dukat is expected to close in H2 2021 as well as a lag in gold sales primarily related to Dore from Kyzyl conсentrate.

• Net Debt decreased by US$ 29 million during the quarter to US$ 1.32 billion as Polymetal generated positive quarterly free cash flow despite seasonal inventory accumulation.

• Construction and development activities at Nezhda and POX-2 projects progressed on schedule even amid continued tightness in the construction contractor market and COVID-related cross-border travel restrictions. Nezhda is scheduled to achieve mechanical completion on September 1, 2021 and produce first concentrate on November 1, 2021.

• Polymetal confirms its 2021 production guidance of 1.5 Moz of GE. It also maintains the full-year cost guidance of US$ 700-750/GE oz for TCC and US$ 925-975/GE oz for AISC. The cost guidance remains contingent on the Russian rouble and Kazakh tenge exchange rate dynamics.

• The Company will host its annual Analyst & Investor Day including ESG presentation on 27 April 2021 in Moscow (for full details please refer to our website), where our mid-term GHG emission reduction targets will be announced.

OPERATING HIGHLIGHTS

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 120:1 Au/Ag conversion ratio (prior to Q2 2020, Polymetal used 80:1 Au/Ag ratio) and excluding base metals (previously were included). Historical comparative data restated accordingly.
(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 2020.
(5) LTIFR = lost time injury frequency rate per 200,000 hours worked among Polymetal employees.

PRODUCTION BY MINE

Notes: (1) Based on 120:1 Au/Ag conversion ratio (prior to Q2 2020, Polymetal used 80:1 Au/Ag ratio) and excluding base metals (previously were included). Historical comparative data restated accordingly.

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CONFERENCE CALL AND WEBCAST

The Company will hold a conference call and webcast on Thursday, 22 April 2021 at 12:00 London time (14:00 Moscow time).

To participate in the call, please dial:

From the UK:
+44 (0) 330 336 9126 (local access)
0800 358 6377 (toll free)

From the US:
+1 646 828 8143 (local access)
800 263 0877 (toll free)

From Russia:
+7 495 213 1767 (local access)
8 800 500 9283 (toll free)

To participate from other countries, please dial any of the local access numbers listed above.

Conference code: 1505703

To participate in the webcast follow the link: https://www.webcast-eqs.com/polymetal20210422.

Please be prepared to introduce yourself to the moderator or register.

A recording of the call will be available at +44 (0) 207 660 0134 (from the UK), +1 719 457 0820 (from the USA) and 8 10 800 2702 1012  (from Russia), access code 1505703, from 15:30 London time Thursday, 22 April, till 15:30 London time Thursday, 29 April 2021. Webcast replay will be available on Polymetal’s website (www.polymetalinternational.com) and at https://www.webcast-eqs.com/polymetal20210422.