Polymetal International plc (POLY)
Polymetal: Q3 2023 production results
31-Oct-2023 / 07:31 MSK
The issuer is solely responsible for the content of this announcement.
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Release time IMMEDIATE AIX, MOEX: POLY
Date 31 October 2023
Polymetal International plc Q3 2023 production results
Polymetal International plc reports production results for the
third quarter ended September 30, 2023.
"In Q3, we returned to positive cash flow generation after
seasonal working capital release and a decline in previously
accumulated gold bullion. We continue to work on further release of
unsold inventories and production in line with the guidance", said
Vitaly Nesis, Group CEO of Polymetal International plc.
HIGHLIGHTS
-- There have been no fatal accidents during the first nine
months of 2023 among Polymetal's workforce andcontractors (similar
to 9M 2022). Lost time injury frequency rate (LTIFR) stood on par
with 9M 2022 at 0.09. Ninelost-time accidents mostly related to
falling or hit by an object were recorded during 9M 2023 (none in
Kazakhstan)with two of them in Q3.
-- In Q3, gold equivalent production ("GE") grew by 12%
year-on-year (y-o-y) to 508 Koz driven by increaseswithin Russian
operations (Urals, Mayskoye and Dukat).
-- GE output for the first nine months of 2023 was up by 6%
y-o-y to 1,272 Koz, including 340 Koz inKazakhstan and 932 Koz in
Russia.
-- Concentrate inventories at Kyzyl and inventories in Russia
have been unwound materially during Q3. TheCompany recorded a
materially lower sales-production gap versus the previous quarter.
Sales volumes for the firstnine months of 2023 amounted to 1.1 Moz
of GE. New challenges facing sales from Russia include sale of
silverbullion (instead of concentrate) and significant tightening
of concentrate exports regulations.
-- Revenue for the reporting quarter and nine months increased
by 17% and 22% y-o-y to USUSD 834 and USUSD 2,149million
respectively on the back of sales volumes recovery and higher metal
prices.
-- EBITDA for the first nine months of 2023 reached USUSD 995
million representing a margin of 46% (USUSD 301million in
Kazakhstan, USUSD 694 million in Russia). A y-o-y increase of 60%
is attributable to revenue growth andexchange rate driven operating
costs decrease in Russia.
-- Net Debt decreased by 10% quarter-on-quarter and stood at
USUSD 2.33 billion (USUSD 0.12 billion inKazakhstan and USUSD 2.21
billion in Russia) as the Company generated positive free cash flow
supported by seasonalfactor and inventories release, as well as
enjoyed lower costs and lower value of Rouble-denominated debt due
tofavorable exchange rate movements.
-- Polymetal is on track to meet its full-year production
guidance of 1.7 Moz of GE (1.2 Moz in Russia and500 Koz in
Kazakhstan). TCC and AISC guidance of USUSD 950-1,000/GE oz and
USUSD 1,300-1,400/GE oz respectively is alsomaintained. The
estimate remains contingent on the RUB/USD and KZT/USD exchange
rates which have a significanteffect on the Group's local currency
denominated operating costs.
HIGHLIGHTS
3 months ended September 30, % 9 months ended September 30, %
2023 2022 change 2023 2022 change
PRODUCTION (Koz of GE) 1
Kazakhstan 127 133 -5% 340 377 -10%
Kyzyl 84 82 +2% 212 217 -2%
Varvara 43 51 -16% 128 160 -20%
Russia 381 321 +19% 932 821 +14%
TOTAL 508 454 +12% 1,272 1,198 +6%
SALES (Koz of GE)
Kazakhstan 110 108 +2% 310 347 -11%
Russia2 336 321 +5% 826 641 +29%
TOTAL 446 429 +4% 1,136 988 +15%
REVENUE3 (USUSDm)
Kazakhstan 209 181 +15% 602 624 -4%
Russia 626 533 +17% 1,547 1,138 +36%
TOTAL 834 714 +17% 2,149 1,762 +22%
EBITDA3 (USUSDm)
Kazakhstan 101 93 +9% 301 354 -15%
Russia 335 101 +232% 694 266 +161%
TOTAL 436 194 +125% 995 620 +60%
NET DEBT4 (USUSDm)
Kazakhstan 120 201 -41% 120 277 -57%
Russia 2,206 2,389 -8% 2,206 2,117 +4%
TOTAL 2,326 2,590 -10% 2,326 2,393 -3%
SAFETY
LTIFR5 (Employees) 0.06 0.11 -47% 0.09 0.09 -0%
Fatalities 0 0 NA 0 0 NA
Notes:
(1) Based on 80:1 Au/Ag conversion ratio and excluding base metals. Discrepancies in calculations are due to rounding.
Mayskoye production reporting approach was amended to record production as soon as the ownership title for gold is
transferred to a buyer at the mine site's concentrate storage facility. Previous periods were restated accordingly.
(2) Excluding ounces at Mayskoye, which ownership title has already been transferred to a buyer, but not shipped.
(3) Calculated based on the unaudited consolidated management accounts.
(4) Non-IFRS measure based on unaudited consolidated management accounts. Comparative information is presented for 30
June 2023 (for
the three months period) and 31 December 2022 (for the nine months period).
(5) LTIFR = lost time injury frequency rate per 200,000 hours worked. Company employees only are taken into account.
CONFERENCE CALL AND WEBCAST
The Company will hold a webcast on Tuesday, 31 October 2023, at
10:00 London time (16:00 Astana time).
To participate in the webcast, please register using the
following link:
https://event.on24.com/wcc/r/4380844/257261F9AB918B8B717A3B0CE97CFDA4.
Webcast details will be sent to you via email after
registration.
Enquiries
Investor Relations
Polymetal International plc ir@polymetalinternational.com
Evgeny Monakhov +44 20 7887 1475 (UK)
Kirill Kuznetsov +7 7172 47 66 55 (Kazakhstan)
Media
Polymetal International plc media@polymetal.kz
Ainur Baigozha +7 7172 47 66 55 (Kazakhstan)
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 September 30, 9 months ended September 30,
% change % change
2023 2022 2023 2022
MINING
Waste mined, Mt 21.5 20.6 +4% 60.2 62.3 -3%
Ore mined (open pit), Kt 644 558 +15% 1,808 1,689 +7%
PROCESSING
Ore processed, Kt 640 565 +13% 1,833 1,651 +11%
Gold grade, g/t 4.7 5.6 -17% 4.9 5.1 -3%
Gold recovery 88.8% 89.2% -0% 88.8% 88.7% +0%
Concentrate produced, Kt 28.4 28.9 -2% 89.9 78.3 +15%
Concentrate gold grade, g/t 93.9 98.4 -5% 89.6 95.0 -6%
Gold in concentrate, Koz1 86 92 -7% 259 239 +8%
Concentrate shipped, Kt 15 16 -1% 34 42 -20%
Payable gold shipped, Koz 28 30 -6% 62 78 -21%
Amursk POX
Concentrate processed, Kt 19 14 +33% 47 35 +34%
Gold grade, g/t 108.0 136.8 -21% 113.6 134.0 -15%
Gold produced, Koz 56 52 +7% 150 139 +8%
TOTAL PRODUCTION
Gold, Koz 84 82 +2% 212 217 -2%
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 Q3, Kyzyl produced 84 Koz of gold representing a 2% y-o-y
increase. The planned decrease in gold grade versus the high base
of 2022, hence lower concentrate production, was compensated by
larger volumes of processed concentrate at Amursk POX after
implementation of certain technological solutions.
Concentrate sales are stabilising after the drop in H1 recording
relatively stable y-o-y dynamics in Q3.
The mining and processing volumes have been growing throughout
the year to align with the earlier announced concentrator capacity
extension (2.4 Mtpa).
VARVARA
3 months ended 9 months ended September
30, %
September 30, % change
change
2023 2022 2023 2022
MINING
Waste mined, Mt 10.4 10.8 -4% 31.9 32.1 -1%
Ore mined (open pit), Kt 676 963 -30% 2,200 3,032 -27%
PROCESSING
Leaching
Ore processed, Kt 787 823 -4% 2,332 2,421 -4%
Gold grade, g/t 1.4 1.7 -19% 1.4 1.7 -16%
Gold recovery1 89.9% 91.0% -1% 89.3% 90.6% -1%
Gold production (in dore), Koz 32 41 -21% 99 128 -23%
Flotation
Ore processed, Kt 193 197 -2% 569 567 +0%
Gold grade, g/t 2.5 2.9 -14% 2.3 2.8 -18%
Recovery1 87.1% 86.4% +1% 86.8% 89.4% -3%
Gold in concentrate, Koz 10 10 +7% 29 32 -7%
TOTAL PRODUCTION
Gold, Koz 43 51 -16% 128 160 -20%
Note:
(1) Technological recovery, includes gold and copper within work-in-progress inventory. Does not include toll-treated
ore.
Varvara production continued to be impacted by a planned
decrease in Komar ore grade at the leaching circuit and lower share
of high-grade third-party feed at the flotation circuit.
SUSTAINABILITY, HEALTH AND SAFETY
There were no fatal accidents during the first nine months of
2023 among Polymetal's workforce and contractors (consistent with
9M 2022). Lost time injury frequency rate (LTIFR) among the Group's
employees decreased by 52% y-o-y to 0.06 in Q3 (0.12 in Q3 2022)
and remained flat at 0.09 in 9M 2023. During the reporting quarter,
three lost-time injuries were recorded at Polymetal's sites (all in
Russia): two among employees and one among contractor workers. All
were classified as minor (fall and jamming) and were followed by
proper investigations aimed at improving the safety of
workplaces.
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Dissemination of a Regulatory Announcement, transmitted by EQS
Group. The issuer is solely responsible for the content of this
announcement.
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ISIN: JE00B6T5S470
Category Code: UPD
TIDM: POLY
LEI Code: 213800JKJ5HJWYS4GR61
OAM Categories: 3.1. Additional regulated information required to be disclosed under the laws of a Member State
Sequence No.: 281486
EQS News ID: 1760937
End of Announcement EQS News Service
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(END) Dow Jones Newswires
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