Polyus Backs 2021 Production Target Despite 1Q Fall -- Commodity Comment

Polyus PJSC on Monday reported a fall in gold production for the first quarter of the year compared with the previous quarter, but backed its full-year guidance. Here's what the Russian gold miner had to say:

On gold production:

"Total gold output amounted to 591,700 ounces, compared to 709,700 ounces in the fourth quarter of 2020. This decline was driven by a seasonal slowdown in production at Alluvials and lower refined gold volumes at Olimpiada, Blagodatnoye and Natalka."

"At Blagodatnoye and Natalka, a decrease in refined gold volumes mainly reflects changes in gold in inventory at the refinery."

On ore mined:

"Volumes of ore mined amounted to 16.6 million tons, down 4% on the previous quarter, reflecting lower ore volumes mined at Olimpiada and Natalka."

On gold output:

"On a year-on-year basis, both dore gold output and total gold output at Olimpiada decreased by 16% and 4% respectively, primarily driven by lower grades in ore processed."

"On a year-on-year basis, both dore gold output and refined gold output at Blagodatnoye declined by 11%."

"On a year-on-year basis, dore gold output and refined gold output at Natalka increased by 19% and 21%, respectively."

"On a year on year basis, dore gold output at Kuranakh increased 2%."

On gold sales:

"Estimated gold sales amounted to $1,017 million, down 32% compared to the previous quarter, with an estimated weighted-average gold selling price of $1,788 per ounce (down 4% on the fourth quarter of 2020)."

On production target:

"Our production target for this year remains unchanged and stands at 2.7 million ounces of gold."

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(END) Dow Jones Newswires

April 26, 2021 05:46 ET (09:46 GMT)

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