Polymetal International plc (POLY)
Polymetal: Q2 2021 production results
27-Jul-2021 / 09:00 MSK
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
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Release time IMMEDIATE LSE, MOEX, AIX: POLY / ADR: AUCOY
Date 27 July 2021 Polymetal International plc Q2 2021 production results
Polymetal reports solid production results for the second
quarter and the six months ended June 30, 2021.
"In Q2, Polymetal delivered steady results. All producing mines
made budget targets while mechanical completion and start of
commissioning at Nezhda represented a key development milestone",
said Vitaly Nesis, Group CEO of Polymetal.
HIGHLIGHTS ? There were no fatal accidents during the first half
of the year (consistent with H1 2020) among Polymetal's
workforce and the Company's contractors. Unfortunately, on July
18 a drilling contractor lost his life at the Saum
open-pit mine, part of Voro operations. We send our condolences
to the family and friends of our colleague. ? The Company's Q2 gold
equivalent ("GE") production decreased by 6% y-o-y to 339 Koz due
to the planned grade
declines at Kyzyl and Albazino. GE output for H1 was 714 Koz, a
1% decrease y-o-y. ? Russia and Kazakhstan have entered the third
wave of the COVID pandemic with record numbers of infections
and
deaths from the virus. At Polymetal, the epidemiological
situation remains well controlled with less than fifty
presently active cases, none at operating sites. COVID-related
transportation restrictions have led to a material
increase of Kyzyl concentrate in storage and transit to China
and prompted the management to accelerate seasonal
summer purchasing campaign across the portfolio. These factors
drove a significant increase in working capital
levels, which should normalise by the year-end. ? Revenue for
the quarter was up 6% y-o-y and reached USUSD 681 million on the
back of higher metal prices. H1 revenue
increased by 12% y-o-y to USUSD 1,274 million. Net debt
increased by USUSD 0.5 billion for the quarter to USUSD 1.83
billion due to record final dividend payment of USUSD 0.4
billion and working capital build-up. ? Construction and
development activities at Nezhda and POX-2 projects progressed on
schedule amid continued
tightness in the construction contractor market and
COVID-related cross-border travel restrictions. Nezhda achieved
mechanical completion of the key equipment. The project is on
track to produce first concentrate in early November
in line with the schedule. ? Following the latest review by
Vigeo Eris, a global leader in ESG assessments, data, research and
analytics,
Polymetal's ESG overall score improved to 69 (out of 100),
corresponding to the Advanced level of performance and
placing Polymetal on the 2nd place among 43 industry peers[1]. ?
Polymetal confirms its 2021 production guidance of 1.5 Moz of GE
and maintains the full-year cost guidance of USUSD
700-750/GE oz for TCC and USUSD 925-975/GE oz for AISC. The cost
guidance remains contingent on the Russian rouble
and Kazakh tenge exchange rate dynamics. The Company notes the
continuous macro and COVID-related pressures
affecting its capital expenditures. The Company continues to
prioritize timely project execution and to incur
additional costs to avoid project schedule slippage. ?
OPERATING HIGHLIGHTS
3 months ended June 30, 6 months ended June 30,
% change1 % change1
2021 2020 2021 2020
Waste mined, Mt 52.5 39.2 +34% 98.0 79.1 +24%
Underground development, km 23.3 23.2 +0% 46.3 46.4 -0%
Ore mined, Mt 3.8 4.1 -8% 7.5 8.0 -6%
Open-pit 2.8 3.0 -7% 5.6 5.9 -6%
Underground 0.9 1.0 -9% 1.9 2.0 -5%
Ore processed, Mt 4.0 4.3 -7% 7.6 7.8 -3%
Average GE grade processed, g/t 3.5 3.8 -9% 3.6 4.0 -9%
Production
Gold, Koz 299 318 -6% 635 642 -1%
Silver, Moz 4.8 4.9 -1% 9.4 9.8 -4%
Gold equivalent, Koz2 339 358 -6% 714 723 -1%
Sales
Gold, Koz 315 324 -3% 595 595 +0%
Silver, Moz 4.3 5.2 -18% 8.0 9.9 -19%
Revenue, USUSDm3 681 641 +6% 1,274 1,135 +12%
Net debt, USUSDm4 1,827 1,321 +38% 1,827 1,351 +35%
LTIFR5 0.10 0.08 +25% 0.17 0.07 +143%
Fatalities 0 0 NA 0 0 NA
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 and excluding base metals. Comparative data for 2020 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
March 2021 (for the three months period) and 31 December 2020 (for the six months period).
(5) LTIFR = lost time injury frequency rate per 200,000 hours worked.
PRODUCTION BY MINE
3 months ended June 30, % 6 months ended June 30, %
2021 2020 change 2021 2020 change
GOLD EQ. (KOZ)1
Kyzyl 93 104 -10% 182 213 -14%
Varvara 51 41 +23% 110 84 +31%
Dukat 50 52 -3% 98 104 -5%
Omolon 50 46 +9% 96 88 +10%
Albazino 46 62 -26% 123 140 -12%
Svetloye 26 31 -15% 53 52 +2%
Voro 18 22 -17% 40 42 -5%
Mayskoye 4 1 NM 10 1 NM
TOTAL 339 358 -6% 714 723 -1%
Notes: (1) Based on 120:1 Au/Ag conversion ratio and excluding
base metals. Comparative data for 2020 restated accordingly.
CONFERENCE CALL AND WEBCAST
The Company will hold a conference call and webcast on Tuesday,
27 July 2021 at 12:00 London time (14:00 Moscow time).
To participate in the call, please dial:
From the UK:
+44 203 984 9844 (local access)
+44 800 011 9129 (toll free)
From the US:
+1 718 866 4614 (local access)
+1 888 686 3653 (toll free)
From Russia:
+7 495 283 9858 (local access)
To participate from other countries, please dial any of the
local access numbers listed above.
Conference code: 785872
To participate in the webcast follow the link:
https://mm.closir.com/slides?id=785872.
Please be prepared to introduce yourself to the moderator or
register.
A recording of the call will be available at the same numbers
and webcast link listed above within an hour after the call and
until 3 August 2021.
About Polymetal
Polymetal International plc (together with its subsidiaries -
"Polymetal", the "Company", or the "Group") is a top-10 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.
Enquiries
Media Investor Relations
Polymetal ir@polymetalinternational.com
FTI Consulting
Evgeny Monakhov +44 20 7887 1475 (UK)
Leonid Fink +44 20 3727 1000
Timofey Kulakov
Viktor Pomichal
Kirill Kuznetsov +7 812 334 3666 (Russia)
Joint Corporate Brokers
Morgan Stanley & Co. International plc +44 20 7425 8000
Andrew Foster
RBC Europe Limited
Richard Brown
Marcus Jackson +44 20 7653 4000
Panmure Gordon Jamil Miah
John Prior
+44 20 7886 2500
Rupert Dearden
Forward-looking statements
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.
KYZYL
3 months ended June 30, 6 months ended June 30,
% change % change
2021 2020 2021 2020
MINING
Waste mined, Mt 20.6 18.8 +10% 40.9 38.0 +7%
Ore mined (open-pit), Kt 542 518 +5% 1,098 1,041 +5%
PROCESSING
Ore processed, Kt 569 481 +18% 1,133 1,006 +13%
Gold grade, g/t 6.5 8.5 -24% 6.2 8.3 -25%
Gold recovery 89.9% 87.2% +3% 89.4% 87.2% +2%
Concentrate produced, Kt 34.2 37.3 -8% 69.3 73.0 -5%
Concentrate gold grade, g/t 97.0 97.4 -0% 90.9 99.3 -8%
Gold in concentrate, Koz1 107 117 -9% 202 233 -13%
Concentrate shipped, Kt 21.4 26.4 -19% 48.4 47.3 +2%
Payable gold shipped, Koz 40 51 -21% 86 92 -6%
Amursk POX
Concentrate processed, Kt 13 13 +1% 25 29 -13%
Gold grade, g/t 130.8 149.2 -12% 133.9 141.8 -6%
Gold recovery 90.2% 91.8% -2% 91.3% 91.8% -1%
Gold produced, Koz 53 54 -0% 96 121 -20%
TOTAL PRODUCTION
Gold, Koz 93 104 -10% 182 213 -14%
Note: (1) For information only; not considered as gold produced
and therefore not reflected in the table representing total
production. It will be included in total production upon shipment
to off-taker or dore production at Amursk POX.
(2) To be further processed at Amursk POX.
In Q2, the Kyzyl concentrator set a quarterly throughput record
(second in a row) and also achieved the record recovery following
full commissioning of the expanded dewatering section. Grade
processed, as expected, declined y-o-y towards the open-pit reserve
average. The planned grade decline will continue to impact
production at Kyzyl throughout 2021 and will be only partially
offset by higher throughput and improved recoveries.
A 10% increase in open-pit rock moved was achieved without new
equipment thanks to productivity improvements driven by reduction
in truck and excavator downtime.
Delivery of Kyzyl concentrate to ?hina was disrupted given the
anti-COVID precautionary measures at seaports and railway crossings
which have resulted in substantial rail car and ship deficit as
well as lengthening round-trip times. Polymetal is switching from
bulk (boxcar) to container shipping to accelerate cycle times and
expects the sales/ production gap to close by year-end.
ALBAZINO
3 months ended June 30, 6 months ended June 30,
% change % change
2021 2020 2021 2020
MINING
Waste mined, Mt 5.6 5.1 +10% 10.7 9.9 +8%
Underground development, km 3.9 3.1 +24% 7.1 6.2 +15%
Ore mined, Kt 455 464 -2% 949 981 -3%
Open-pit 268 295 -9% 576 655 -12%
Underground 187 169 +11% 373 325 +15%
PROCESSING
Albazino concentrator
Ore processed, Kt 444 446 -0% 871 891 -2%
Gold grade, g/t 4.0 4.8 -16% 4.1 4.6 -11%
Gold recovery1 88.4% 86.5% +2% 88.6% 86.0% +3%
Concentrate produced, Kt 33.7 36.8 -8% 66.5 72.7 -9%
Concentrate gold grade, g/t 46.7 50.0 -7% 48.1 49.1 -2%
Gold in concentrate, Koz2 51 59 -14% 103 115 -10%
Amursk POX
Concentrate processed, Kt 34 40 -15% 82 86 -4%
Gold grade, g/t 47.1 51.6 -9% 50.4 52.6 -4%
Gold recovery 96.3% 96.5% -0% 96.4% 96.5% -0%
Gold produced, Koz 46 62 -26% 123 139 -12%
TOTAL PRODUCTION
Gold, Koz 46 62 -26% 123 139 -12%
Notes: (1) To concentrate.
(2) For information only; not considered as gold produced and
therefore not reflected in the table representing total production.
Included in total production after Dore production at the Amursk
POX.
In H1, Albazino recorded a 12% decrease in production as the
Anfisa high-grade open pit is nearing full depletion. The ramp-up
of stoping at the Ekaterina-2 underground mine only partially
compensates for this development. The new open pit, Farida, with
lower grades, drove a 10% increase in waste volumes.
Recovery at the concentrator improved by 2 p.p. and 3 p.p. in Q2
and H1 2021 respectively as feedstock mix shifted to ores from
deeper underground levels.
Construction at the Kutyn heap leach project is in full swing
with final construction permits in place and contractors fully
mobilized on site.
MAYSKOYE
3 months ended June 30, 6 months ended June 30,
% change % change
2021 2020 2021 2020
MINING
Waste mined, Mt 1.0 0.6 +63% 2.0 1.7 +16%
Underground development, km 4.7 5.5 -14% 9.8 11.0 -11%
Ore mined, Kt 197 306 -36% 388 567 -32%
Open-pit 38 108 -64% 51 186 -73%
Underground 158 197 -20% 336 380 -12%
PROCESSING
Ore processed, Kt 218 230 -5% 435 458 -5%
Gold grade, g/t 5.7 6.7 -15% 6.0 6.2 -4%
Gold recovery 92.0% 84.4% +9% 92.3% 87.5% +5%
Gold in concentrate, Koz2 37 37 -1% 77 76 +2%
Gold produced in dore from concentrate (POX), Koz 4 - NM 5 - NM
Gold produced in dore from carbon, Koz3 - 1 NM 5 1 NM
TOTAL PRODUCTION
Gold, Koz 4 1 NM 10 1 NM
Notes: (1) To concentrate.
(2) For information only; not considered as gold produced and
therefore not reflected in the table representing total production.
Included in total production upon sale to off-taker or dore
production at Amursk POX.
(3) Gold produced from carbon at Amursk POX.
At Mayskoye, in Q2 2021 the plant only processed sulphide ore
while in Q2 2020 oxidised material from the open pit was also part
of the feed. Thus, the grades and recoveries are not comparable
y-o-y. The Company started processing oxidised ore in July
2021.
Underground mine electrification project is running on schedule.
Conveyor installation has commenced with first ore deliveries to
the surface expected in Q2 2022.
AMURSK POX
3 months ended June 30, 6 months ended June 30,
% change % change
2021 2020 2021 2020
Concentrate processed, Kt 50 53 -7% 110 115 -4%
Albazino 33 38 -14% 77 79 -2%
Kyzyl 13 13 +1% 25 29 -13%
Mayskoye 2 - NA 3 - NA
Veduga - 1 -100% 4 3 +38%
Other1 1 0 NA 1 3 -73%
Gold recovery 93.0% 94.2% -1% 94.0% 94.2% -0%
Average gold grade, g/t 69.8 75.6 -8% 69.7 75.2 -7%
Average sulphur grade 14.1% 13.5% +4% 13.8% 13.9% -1%
Total gold produced2, Koz 103 116 -11% 224 261 -14%
Albazino 45 51 -13% 112 111 +1%
Kyzyl 53 54 -0% 96 121 -20%
Mayskoye 4 - NA 5 0 NA
Veduga - 4 -100% 9 19 -49%
Other1 1 6 -86% 1 10 -91%
Notes: (1) Purchased concentrates which are included in
reportable production in the Albazino segment.
(2) For information only. Already accounted for in production at
operating mines.
POX quarterly output was down due to lower production from
Albazino concentrate and a 1 p.p. decrease in POX recovery on the
back of the increased share of more metallurgically challenging
material from Kyzyl.
A planned three-week autoclave maintenance shutdown in April
went smoothly and identified no material issues.
VARVARA
3 months ended June 30, 6 months ended June 30,
% change % change
2021 2020 2021 2020
MINING
Waste mined, Mt 10.0 10.1 -1% 19.5 20.3 -4%
Ore mined, Kt 850 702 +21% 1,906 1,484 +28%
PROCESSING
Leaching
Ore processed, Kt 794 796 -0% 1,558 1,530 +2%
Gold grade, g/t 1.7 1.5 +11% 1.7 1.5 +12%
Gold recovery1 89.9% 89.1% +1% 88.2% 88.1% +0%
Gold production (in dore), Koz 38 32 +19% 84.4 66.8 +26%
Flotation
Ore processed, Kt 185 188 -1% 375 317 +19%
Gold grade, g/t 2.8 2.6 +9% 2.7 2.8 -4%
Recovery1 83.9% 87.2% -4% 84.3% 86.5% -3%
Gold in concentrate, Koz 12 9 +41% 26 18 +47%
Total ore processed, Kt 979 984 -0% 1,933 1,876 +3%
TOTAL PRODUCTION
Gold, Koz 51 41 +23% 110 84 +31%
Note: (1) Technological recovery, includes gold and copper
within work-in-progress inventory. Does not include toll-treated
ore.
(2) To be further processed at Amursk POX.
Q2 gold production at Varvara was up 23% y-o-y driven by higher
grade leach ore from Komar and grade increase in third-party
material at flotation circuit. Gold recovery from low copper grade
ore improved to 89.9% after leaching circuit expansion increased
residence time.
DUKAT OPERATIONS
3 months ended June 30, 6 months ended June 30,
% change % change
2021 2020 2021 2020
MINING
Waste mined, Mt 0.7 - NA 1.1 - NA
Underground development, km 11.1 10.9 +1% 22.8 22.2 +3%
Ore mined, Kt 638 545 +17% 1,283 1,084 +18%
Open-pit 119 - NA 223 - NA
Underground 518 545 -5% 1,060 1,084 -2%
PROCESSING
Omsukchan concentrator
Ore processed, Kt 508 496 +3% 1,021 1,009 +1%
Grade
Gold, g/t 0.6 0.6 -6% 0.5 0.5 -3%
Silver, g/t 257 273 -6% 255 280 -9%
Recovery1
Gold 87.1% 85.1% +2% 85.3% 84.8% +1%
Silver 87.6% 87.4% +0% 87.2% 86.6% +1%
Production
Gold, Koz 8 8 -1% 14 14 -0%
Silver, Moz 3.6 3.7 -4% 7.1 7.7 -7%
Lunnoye plant
Ore processed, Kt 122 116 +5% 237 232 +2%
Grade
Gold, g/t 1.6 1.4 +15% 1.6 1.5 +7%
Silver, g/t 219 278 -21% 235 273 -14%
Recovery1
Gold 90.0% 91.8% -2% 90.8% 91.2% -0%
Silver 93.2% 92.8% +0% 92.6% 92.1% +1%
Production
Gold, Koz 6 5 +17% 11 10 +9%
Silver, Moz 0.8 1.0 -17% 1.6 1.9 -12%
TOTAL PRODUCTION
Gold, Koz 13 13 +6% 25 24 +3%
Silver, Moz 4.4 4.7 -6% 8.8 9.5 -8%
Notes: (1) Technological recovery, includes gold and silver
within work-in-progress inventory.
Dukat continues to experience planned grade decline, which
resulted in a y-o-y production decrease. Ore mined was higher y-o-y
as open-pit mining recommenced in Q1.
Primorskoye satellite underground mine produced first ore from
development with first deliveries of high-grade direct shipment
material to third-party smelters expected in Q3. OMOLON
OPERATIONS
3 months ended June 30, 6 months ended June 30,
% change % change
2021 2020 2021 2020
MINING
Waste mined, Mt 1.3 1.1 +13% 1.6 2.0 -23%
Underground development, Km 3.0 3.7 -19% 5.7 7.0 -19%
Ore mined, Kt 113 763 -85% 186 1,564 -88%
Open-pit 34 642 -95% 34 1,331 -97%
Underground 78 121 -35% 151 234 -35%
PROCESSING
Kubaka Mill
Ore processed, Kt 217 220 -1% 429 433 -1%
Grade
Gold, g/t 6.5 6.6 -1% 6.7 6.7 -1%
Silver, g/t 64 26 +150% 44 20 +122%
Recovery1
Gold 95.0% 94.3% +1% 93.9% 93.2% +1%
Silver 81.0% 69.5% +17% 79.5% 74.3% +7%
Gold production, Koz 43 41 +6% 88 83 +7%
Silver production, Moz 0.3 0.1 +177% 0.5 0.2 +144%
Birkachan Heap Leach
Ore stacked, Kt 308 707 -56% 353 707 -50%
Gold grade, g/t 1.3 2.3 -44% 1.2 2.3 -45%
Gold production, Koz 4 3 +7% 4 3 +24%
TOTAL PRODUCTION
Gold, Koz 47 45 +6% 93 86 +8%
Silver, Moz 0.3 0.1 +171% 0.5 0.2 +141%
Note: (1) Technological recovery, includes gold and silver
within work-in-progress inventory.
In Q2, the Merrill-Crowe circuit at Kubaka plant was re-launched
after a shut-down in 2020 as sufficient volumes of high silver
grade material became available.
Grade at Birkachan heap leach decreased due to the higher base
in 2020 when higher-grade stockpiled ore was processed. Stacking
was lower with the crusher focused on re-handling of previously
stacked ore.
Ore mining was down as Olcha open pit and underground mines as
well as Birkachan open pit have been depleted. A new open pit mine
at Burgali, 110 km from the processing plant, produced first
ore.
The commissioning of the 2.5 MWh solar power plant commenced in
July. The dry tailings storage facility achieved mechanical
completion and is on track to enter production by the end of
2021.
SVETLOYE
3 months ended June 30, 6 months ended June 30,
% change % change
2021 2020 2021 2020
MINING
Waste mined, Mt 1.1 0.9 +22% 1.8 1.6 +9%
Ore mined (open pit), Kt 536 561 -4% 926 907 +2%
PROCESSING
Ore stacked, Kt 366 317 +16% 648 626 +4%
Gold grade, g/t 2.8 3.7 -24% 3.7 4.0 -9%
Gold production, Koz 26 31 -15% 53 52 +2%
TOTAL PRODUCTION
Gold, Koz 26 31 -15% 53 52 +2%
Quarterly gold production at Svetloye contracted y-o-y on the
back of the planned decline in grade. Stacking increase is
attributable to the low base of Q2 2020 when stacking volumes were
impacted by maintenance shutdown of the ore crushing complex.
Waste mined jumped as mining started at the new Lyudmila
pit.
VORO
3 months ended June 30, 6 months ended June 30,
% change % change
2021 2020 2021 2020
MINING
Waste mined, Mt 3.0 - NA 3.6 - NA
Ore mined, Kt 57 - NA 68 - NA
PROCESSING
CIP
Ore processed, Kt 262 260 +1% 522 529 -1%
Gold grade, g/t 1.9 2.2 -17% 2.0 2.2 -8%
Gold recovery1 84.6% 82.5% +3% 84.2% 82.3% +2%
Gold production, Koz 16 18 -11% 36 36 -0%
Heap Leach
Ore stacked, Kt - 22 -100% - 22 -100%
Gold grade, g/t - 0.9 -100% - 0.9 -100%
Gold production, Koz 2 4 -53% 4 6 -38%
TOTAL PRODUCTION
Gold, Koz 18 22 -18% 40 42 -6%
Note: (1) Technological recovery, includes gold within
work-in-progress inventory.
Gold production at Voro continued to drift lower as the plant
processed predominantly low-grade historical stockpiles. Recovery
for the reporting quarter and H1 improved by 3 p.p. and 2 p.p.
y-o-y respectively as oxidized ore from Saum was introduced to the
feed.
At the Voro flotation plant, the foundations for equipment and
steel framework for the concentrator building were completed. SAG
and ball mills have been installed. The project is 50%
completed.
NEZHDA
3 months ended June 30, 6 months ended June 30,
% change % change
2021 2020 2021 2020
MINING
Waste mined, Mt 5.6 - NA 11.0 - NA
Ore mined, Kt 365 - NA 710 - NA
Construction and mining activities proceeded on schedule.
Mechanical completion of key equipment, including SAG and ball
mills, was achieved. Cold commissioning of individual equipment
items is in progress with multiple representatives of international
suppliers on site.
Construction of the dry-stack tailings storage facility is
nearing completion. The project is on track to produce first
concentrate on November 1, 2021.
POX-2
Construction progressed on schedule. In Q2, the large-sized
equipment of oxygen station was installed. Equipment foundation
construction at the POX building is being finalized. Downstream
circuit metal framework construction was completed.
The Suez straits crisis lead to multiple delays in shipment of
key equipment from Europe. The management is evaluating alternative
options of ensuring the timely arrival of items on the critical
path, including booking single-cargo vessels at increased cost.
SUSTAINABILITY, HEALTH AND SAFETY
There were no fatal accidents during the first half of the year
(consistent with H1 2020) among Polymetal's workforce and the
Company's contractors. We regret to report that on July 18 a
drilling contractor lost his life at the Saum open-pit mine, part
of Voro operations. We send our condolences to the family and
friends of our colleague. The incident is currently under
investigation to understand the root cause of the accident to
prevent any recurrence.
LTIFR among the Group's employees in Q2 2021 stood at 0.10, in
comparison with 0.08 in Q2 2020, while for the first half of 2021
LTIFR was 0.17 vs 0.07 a year earlier. There were three incidents
among employees during the quarter and no incidents with contractor
workers. During H1 2021, there were ten lost-time injuries in total
vs four cases during H1 2020.
In Q2, Vigeo Eiris (part of Moody's ESG solutions), a global
leader in ESG assessments, data, research and analytics , raised
Polymetal's overall ESG score from 48 to 69 (out of 100) which
corresponds with the Advanced level, the highest on the company's
ranking scale. The new score places Polymetal on the second place
out of 43 in the Mining & Metals sector and 22nd place in the
global ranking universe (4,939 companies). For more information
visit vigeo-eiris.com.
The reporting quarter was also marked with a couple of other
external recognitions, which confirms our success as a responsible
company: Polymetal took the 7th place in Russia's 30 most
eco-friendly companies rating and the 2nd place among metals and
mining companies in Russia by Forbes.
COVID-19 UPDATE
Epidemiological situation in the Company remains under control.
Number of active cases increased q-o-q as Russia and Kazakhstan
entered the third wave of the pandemic. As of the date of this
press release, there are less than 50 active cases of the disease
in Polymetal, none of which observed at production sites.
Operations and development projects continue undisrupted. All
precautionary measures, including extensive testing and observatory
periods, are maintained at all sites.
Multiple regions introduced requirements for mandatory
vaccination within certain industries (hospitality, transportation
services). Continuously operating industries (including mining) are
currently not targeted. Polymetal continues to facilitate
non-obligatory vaccination among employees by organizing
vaccination at local hospitals or establishing vaccination points
on site.
The Company estimates COVID-related cash expenses at
approximately USUSD 5 million per month with the majority recorded
as operating costs. This translates into roughly USUSD 35 per GE
ounce in AISC.
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[1] For more information visit vigeo-eiris.com.
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ISIN: JE00B6T5S470
Category Code: MSCH
TIDM: POLY
LEI Code: 213800JKJ5HJWYS4GR61
Sequence No.: 118521
EQS News ID: 1221796
End of Announcement EQS News Service
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(END) Dow Jones Newswires
July 27, 2021 02:00 ET (06:00 GMT)
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