Polyus increased production forecast

MINEX FORUM | August 11, 2017 | Views: 29

PJSC Polyus («Polyus» or the «Company»), the largest gold producer in Russia, today releases its 2Q 2017 and 1H 2017 Operating results for the period ending 30th June 2017.

1H 2017 Highlights

  • Total gold output increased 12% y-o-y to 938 koz driven by higher production volumes at Olimpiada and Verninskoye
  • Volumes of ore mined increased 29% y-o-y to 17,8 mt as a result of mining volumes growth at Olimpiada, Kuranakh and commencement of full-scale mining activity at Natalka.
  • Volumes of ore processed increased 5% y-o-y to 13,6 mt with throughput capacity expansion projects at Company’s core assets either being completed or entering the second stage of implementation.
  • Gold sales amounted to $1,217 million (up 14% y-o-y) with the average selling price (incl. the impact from the Strategic Price Protection Programme (SPPP)) of $1,263/oz, 2% above the LBMA spot price.
  • Net debt decreased to $3,084 million from $3,128 million as of the end of 1Q 2017 and $3,241 million as of the end of 2016.

2Q 2017 Highlights

  • Total gold output increased 7% y-o-y to 488 koz (up 8% q-o-q).
  • Volumes of ore mined increased 33% y-o-y to 9,2 mt (up 7% q-o-q).
  • Volumes of ore processed rose 6% y-o-y to 7,0 mt (up 4% q-o-q) with higher volumes of ore treated at Olimpiada, Blagodatnoye, Verninskoye and Kuranakh.
  • Volumes of ore mined increased 57% y-o-y to 9.1 mt (up 33% q-o-q).
  • Quarterly gold sales amounted to $617 million (up 9% y-o-y) with the average selling price (incl. the impact from the SPPP) of $1,268/oz, 1% above the LBMA spot price.

Polyus revised their production guidance for 2018—2019. “With the majority of our brownfield development projects scheduled for completion in 2017—2018 and production at Natalka expected to be commissioned by the end of 2017, Polyus now expects total gold output to further increase to 2,35—2.40 million ounces in 2018 and to 2,80 million ounces in 2019″, Pavel Grachev, CEO of PJSC Polyus, commented.

 

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