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Q3 2019 production results

24 October 2019

Polymetal reports solid production results for the third quarter and nine months ended September 30, 2019.

“Continued strong performance at Kyzyl is driving our production dynamics. We now expect to exceed our full-year production guidance”, said Vitaly Nesis, Group CEO of Polymetal.

HIGHLIGHTS

  • In Q3, the Company’s gold equivalent (“GE”) production grew by 7% year-on-year to 476 Koz driven by Kyzyl contributing 94 Koz. Following the successful completion of several improvement projects, Kyzyl concentrator achieved steady-state throughput of 2.0 Mtpa, 11% above the original design.

  • Quarterly gold production gained 13% while silver output contracted by 20% on the back of 2018 asset disposals and planned grade decline at Dukat.

  • GE production for the first nine months of 2019 increased 16% to 1,232 Koz. Polymetal is likely to exceed its full-year production guidance of 1,550 Koz by up to 50 Koz.

  • Q3 revenue increased by 43% to US$ 656 million on the back of higher sales volumes and prices. The seasonal gap between production and sales has been closed.

  • The Company notes cost increases from royalties driven by commodity prices yet maintains its cost guidance for 2019: TCC of US$ 600-650/GE oz and AISC of US$ 800-850/GE oz.

  • Net Debt of US$ 1.7 billion as of 30 September 2019 remained largely unchanged compared to 30 June 2019. The Company generated significant free cash flow and paid a regular semi-annual dividend of US$ 94 million (US$ 0.20 per share).

  • Construction and development activities at the Nezhda and the POX-2 projects continued on schedule.

  • In Q3, Polymetal had its ESG ratings upgraded – MSCI ESG Ratings score improved from BBB to A, and ISS-Oekom Corporate Rating was raised to C+. Furthermore, the Company was reaffirmed as a member of the Dow Jones Sustainability Index and FTSE4Good Index Series.

 

3 months ended Sep 301,

% change2

9 months ended Sep 301,

% change2

 

2019

2018

2019

2018

 

 

 

 

 

 

 

Waste mined, Mt

41.3

33.6

+23%

118.9

94.5

+26%

Underground development, km

25.9

31.2

-17%

80.2

96.8

-17%

Ore mined, Mt

4.5

3.6

+22%

13.0

10.2

+28%

Open-pit

3.4

2.5

+36%

9.9

6.7

+48%

Underground

1.1

1.2

-7%

3.1

3.5

-11%

Ore processed, Mt

3.9

4.4

-12%

11.5

11.4

+1%

Production

 

 

 

 

 

 

Gold, Koz

402

356

+13%

1,005

801

+25%

Silver, Moz

5.4

6.7

-20%

16.4

19.4

-16%

Copper, Kt

0.6

0.9

-36%

2.0

2.5

-21%

Gold equivalent, Koz3

476

447

+7%

1,232

1,066

+16%

Sales

 

 

 

 

 

 

Gold, Koz

388

321

+21%

992

766

+30%

Silver, Moz

6.1

5.3

+15%

16.4

17.4

-6%

Copper, Kt

1.0

0.5

+109%

2.0

1.9

+5%

Revenue, US$m4

656

459

+43%

1,602

1,248

+28%

Net debt, US$m5

1,702

1,700

+0%

1,702

1,518

+12%

Safety

 

 

 

 

 

 

LTIFR6

0.11

0.07

+57%

0.15

0.19

+46%

Fatalities

0

0

NA

2

1

+1

Notes:     (1) Including discontinued operations.
               (2) % 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.
                (3) Based on 1:80 Ag/Au, 5:1 Cu/Au, 2:1 Pb/Au and 2:1 Zn/Au conversion ratios.
                (4) Calculated based on the unaudited consolidated management accounts.
(5) Non-IFRS measure based on unaudited consolidated management accounts. Comparative information is presented for 30 June 2019 (for the three months period) and 31 December 2018 (for the nine months period).
                (6) LTIFR = lost time injury frequency rate per 200,000 hours worked.

PRODUCTION BY MINE

 

3 months

ended Sep 30,

%

change

9 months

ended Sep 30,

%

change

 

2019

2018

2019

2018

 

 

 

 

 

 

 

GOLD EQ. (KOZ)1

 

 

 

 

 

 

Kyzyl

94

10

NM

253

10

NM

Dukat

75

77

-2%

233

231

+1%

Albazino-Amursk

75

88

-15%

211

241

-12%

Omolon

49

50

-3%

148

136

+8%

Mayskoye

72

47

+52%

76

47

+62%

Varvara

37

37

-1%

113

103

+10%

Voro

28

23

+20%

85

78

+9%

Svetloye

46

59

-22%

107

112

-4%

TOTAL (continuing operations)

476

392

+21%

1,227

959

+28%

Okhotsk

-

44

NA

-

68

NA

Kapan

-

11

NA

5

38

NA

TOTAL (including discontinued operations)

476

447

+7%

1,232

1,066

+16%

Notes:     (1) Based on 1:80 Ag/Au, 5:1 Cu/Au, 2:1 Pb/Au and 2:1 Zn/Au conversion ratios.

Download full version in PDF

Conference call and webcast

Polymetal will release the Group’s Q3 Production results on Thursday, October 24.

The company will hold a conference call and webcast on Thursday, 24 October 2019 at 12:00 London time (14:00 Moscow time).

To participate in the call, please dial:

From the UK:
44 330 336 9411 (local access)
0800 279 7204 (toll free)

From the US:
1 929 477 0324 (local access)
800 458 4121 (toll free)

From Russia:
7 495 646 9190 (local access)
8 10 8002 867 5011 (toll free)

To participate from other countries, please dial any of the local access numbers listed above.
Conference code: 2360288

To participate in the webcast follow the link: https://webcasts.eqs.com/polymetal20191024. Please be prepared to introduce yourself to the moderator or register.

A recording of the call will be available immediately after the call at +44 20 7660 0134 (from the UK), +1 719 457 0820 (from the USA) and 8 10 8002 702 1012 (from Russia), access code 2360288, from 17:30 Moscow time Thursday, 24 October, till 17:30 Moscow time Thursday, 31 October, 2019.
Webcast replay will be available on Polymetal’s website (www.polymetalinternational.com) and at https://webcasts.eqs.com/polymetal20191024.

Back to press releases

Polymetal International plc (LSE, MOEX: POLY, AIX: POLY, ADR: AUCOY) (together with its subsidiaries — “Polymetal”, the “Company”, or the “Group”) is a top-20 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.
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.
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Tel. +44.20.7887.1475

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