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2021-10-26

Polymetal: Q3 2021 production results

Polymetal International plc (POLY)
Polymetal: Q3 2021 production results

26-Oct-2021 / 09:00 MSK
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.


 

 

Release time

 

IMMEDIATE                                                          LSE, MOEX, AIX: POLY / ADR: AUCOY

Date

26 October 2021

 

Polymetal International plc

Q3 2021 production results

Polymetal reports solid production results for the third quarter of 2021.

 

"Start of production at Nezhda capped a solid Q3 performance. Polymetal's portfolio of mines delivered results in line with the budget with the company firmly on track to meet its full-year production guidance", said Vitaly Nesis, Group CEO of Polymetal.

HIGHLIGHTS

  • There have been no fatal accidents during the first nine months of 2021 among Polymetal's workforce (similar to 9M 2020). As reported previously, on July 18 a drilling contractor lost his life at the Saum open-pit mine. Accident response details can be found in the Health & Safety section of this announcement. There were no lost-time injuries in Q3.
  • Q3 gold equivalent ("GE") production decreased by 8% y-o-y to 437 Koz as results reverted to the mean from the all-time quarterly production record set in Q3 2020. GE output for nine months was down by 4% to 1,151 Koz driven by planned grade declines at Kyzyl, Svetloye and Voro.
  • Russia is going through the fourth wave of the COVID pandemic with multiple daily highs set recently for both new cases and deaths. At Polymetal, the number of active cases rose to 72 as of the date of this press release. The epidemiological situation remains under control with operations and projects continuing undisrupted despite several localised outbreaks.
  • COVID-related transportation restrictions at railway and seaports in China persist. However, the Company successfully shortened concentrate transit times by switching from bulk (boxcar) to container shipping. The lag between sales and production as well as excess working capital decreased significantly and are expected to be eliminated by the year-end.
  • Revenue for the quarter declined by 7% y-o-y to US$ 819 million driven by lower gold and silver prices. 9M revenue reached US$ 2,093 million, up 4% y-o-y. Net debt marginally increased for the quarter to US$ 1.90 billion as the Company generated substantial free cash flows and paid an interim dividend of US$ 0.2 billion (45 cents per share).
  • Nezhda produced first concentrate on October 16, two weeks ahead of the previously announced target date (November 1st). The Company expects to reach the plant's nameplate capacity and full design recovery by April 2022. POX-2 construction is progressing on schedule. All heavy equipment arrived on site and has been installed.
  • In October, Polymetal received an ESG Risk Rating of 15.9[1] and was assessed by Sustainalytics to be at low risk of experiencing material financial impact from ESG factors. This is an improvement from the prior year rating of 20.3 (medium risk). Polymetal is now ranked by Sustainalytics within top 3 precious metals companies globally.
  • The Company is on track to meet its full-year 2021 production guidance of 1,500 GE Koz. TCC and AISC guidance of US$ 750-800/GE oz and US$ 875-925/GE oz respectively is maintained. The cost guidance remains contingent on the RUB/USD and KZT/USD exchange rates.
  • Polymetal will host its Analyst & Investor Day on November 8 in the format of a video webcast and conference call. The management will provide updates on mid-term production and CAPEX guidance as well as on the key development projects.

 

OPERATING HIGHLIGHTS

 

 

3 months ended Sep 30,

% change1

9 months ended Sep 30,

% change1

 

2021

2020

2021

2020

 

 

 

 

 

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