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Key performance indicators

Financial KPIS Operating KPIS Sustainability KPIS
Revenue
+4% (US$m)
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Top-line indicator, heavily depends on commodity prices but also driven by delivery of production volumes.

In 2018, revenue increased by 4% over 2017 to US$ 1,882 million, primarily driven by gold equivalent (GE) production growth of 9%

Total cash cost
-1% (US$/GE oz)
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TCC for the full year were US$ 649/GE oz, down 1% year-on-year and just below the bottom of the range of the Group’s initial cost guidance of US$ 650-700/GE oz.

The depreciation of the Russian Rouble against the US dollar, combined with robust operating results (notably, improved performance at Mayskoye and the launch of Kyzyl) had a positive impact on cost levels, offsetting domestic inflation.

All-in sustaining cash cost
-4% (US$/GE oz)
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Our focus on high grade and low capital intensity ensures a low level of all-in sustaining cash costs (AISC).

AISC amounted to US$ 861/GE oz, also below the lower end of the Group’s cost guidance of US$ 875-925/GE oz, a decrease of 4% year-on-year.

Adjusted EBITDA
+5% (US$m)
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Adjusted EBITDA is a key measure of the Company’s operating performance and cash generation capacity (excluding impact of financing, depreciation and tax) and a key industry benchmark allowing to perform peer comparison.

Adjusted EBITDA increased by 5% over 2017 to US$ 780 million, mostly driven by higher production volumes and stable cost performance.

Free cash flow
+23% (US$m)
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A key indicator in any business. Generating a healthy free cash flow enables us to provide significant cash returns for shareholders.

Despite investments in the Amursk POX debottlenecking and Kyzyl projects over the course of 2018 as well as start-up working capital at Kyzyl, the Company continued to generate meaningful free cash flow that amounted to US$ 176 million.

Dividends declared
+9% (US$/share)
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Our aim is to deliver substantial dividends to our shareholders at all stages of both the commodity cycle and our investment cycle.

The total dividend declared for FY 2018 to US$ 223 million, or US$ 0.48 per share.

Capital expenditure
-10% (US$m)
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Capital expenditure was US$ 344 million, down 10% compared to 2017.

With the addition of loans that were extended to Nezhda and Prognoz before consolidation of these assets, capital expenditure comprised US$ 395 million (original guidance: US$ 400 million). The Group has successfully completed and launched the Kyzyl project ahead of the original schedule with cumulative project CapEx of US$ 319 million (original budget: US$ 325 million).

Underlying net income
+19% (US$m)
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Underlying net income is a comprehensive benchmark of our core profitability excluding foreign exchange gains/losses and impairments.

Underlying net earnings increased by 19% to US$ 447 million driven by EBITDA growth and lower depreciation and income tax expenses.

Gold equivalent production
+9% (Koz)
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FY2018 GE production of 1,562 Koz was up 9% year-on-year exceeding our original production guidance of 1,550 Koz.

Ore reserves
+15% (Moz)
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Both extending mine life through near-mine exploration and new discoveries from greenfield exploration contribute to the Company’s long-term growth prospects.

In 2018, Group Ore Reserves increased by 15% year-on-year and are now estimated at 24.0 Moz of gold equivalent (GE). The main drivers were the successful resource-to-reserve conversion at Mayskoye and the completion of a revised estimate at Nezhda following the Company’s consolidation of 100% ownership in the property.

Lost time injury frequency rate
-40% (LTIFR)
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Our commitment, above anything else, is to have no fatalities. Despite some improvements over previous years, we regrettably failed in that objective in 2017, with two fatalities, and it is clear we have more work to do in this area. Safety begins with preparation: anticipating incidents before they happen, and improving ongoing training to identify risks and respond appropriately when the unexpected happens.

Our LTIFR in Q4 stood at 0 (versus 0.18 in Q4 2017), which is an important achievement for the Company. At the same time, our full-year LTIFR decreased by 40% over 2017 with a total of 11 incidents recorded across the Group (16 incidents in 2017).

GHG emissions intensity
-7% (CO2 equivalent tonnes per 10 Kt of ore processed)
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Finding renewable energy sources is a priority if we are to lower our greenhouse gas (GHG) emissions and manage carbon emissions. Heat and electricity from our diesel generators, as well as our mining fleet operations, produce GHG emissions. The burning of natural gas and coal and the use of landfill also contribute to our GHG footprint. We measure and monitor our CO2 emissions using established international methodology.

To effectively manage our greenhouse gas emissions, we conduct an inventory assessment each year and report both direct and indirect emissions. In 2017, direct GHG emissions amounted to 281 Kt, compared to 268 Kt in 2016. In 2017, we introduced a number of measures to reduce GHG emissions, including converting all lighting to LED, and equipping diesel-powered generators with a heat recovery system. We also began to develop our Climate Management System.