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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Polymetal International Plc | LSE:POLY | London | Ordinary Share | JE00B6T5S470 | ORD NPV |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 215.00 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Apr 2019 to Apr 2024
TIDMPOLY
RNS Number : 6572T
Polymetal International PLC
16 October 2017
Release time IMMEDIATE Date 16 October 2017
Polymetal International plc
Q3 2017 production results
Polymetal International plc (LSE, MOEX: POLY; ADR: AUCOY) (together with its subsidiaries - "Polymetal", the "Company", or the "Group") is pleased to report the Group's production results for the third quarter and nine months ended September 30, 2017.
HIGHLIGHTS
-- In Q3 2017, Polymetal achieved a record production of 470 Koz of gold equivalent (GE), which represents a 26% increase over the previous year. The increase was driven by strong contributions from the fully ramped up Svetloye heap leach operation (Okhotsk hub) and Mayskoye oxide ore processing. Albazino and Varvara also achieved record quarterly production levels.
-- In the first nine months of 2017, the Company produced 1,028 Koz of GE, a 15% increase over the previous year and in line with the FY2017 production plan of 1.4 Moz of GE.
-- Q3 gold output increased 38% year-on-year to 370 Koz. Silver production declined 7% year-on-year to 7.4 Moz due to the planned grade decline at the Dukat underground mine.
-- Q3 sales amounted to US$ 546 million, up 17% over the previous year as gold sales jumped 50% on the back of higher output and prices. The timing gap between silver production and sales is expected to be fully closed in Q4 2017.
-- At Kyzyl, construction is progressing on schedule. During the quarter, all major processing equipment has been installed with external electrical infrastructure now fully operational. Construction activities are now focused on finalising the tailings storage facility. The project remains on track to produce its first concentrate in Q3 2018.
-- During the quarter, the Company generated free cash flow which was used to pay US$ 60 million in interim dividends (US$ 0.14 per share) and a US$ 20 million consideration for a stake increase in the Nezhda gold property. The Company will continue to generate free cash flow in the fourth quarter. Net debt increased marginally from US$ 1,583 million as of June 30 to US$ 1,599 million as of September 30, 2017.
-- The Company is on track to meet its FY2017 production guidance of 1.4 Moz of GE at TCC of US$ 600-650/GE oz and AISC of US$ 775-825/GE oz. Cost guidance remains contingent on the Rouble/Dollar exchange rate dynamic that has a significant effect on the Group's Rouble-denominated operating costs.
-- Polymetal re-confirms its production guidance for FY2018 at 1.55 Moz of GE and for FY2019 at 1.7 Moz of GE.
-- Polymetal will be hosting an Analyst and Investor Day on November 13 in London to provide an update on key development projects.
"Our operational performance in the third quarter was very robust and the Company remains on track to meet its annual production and cost guidance", said Vitaly Nesis, Group CEO of Polymetal, commenting on the results. "Meanwhile, Kyzyl continues to advance towards first concentrate production in less than a year's time".
Hot Features
Premium
3 months ended Sep 30, % change 9 months ended Sep 30, % change(1)
------------------------- -------------- ------------------------- -----------------
2017 2016 2017 2016
------------ ----------- -------------- ------------- ---------- -----------------
Waste mined, Mt 29.7 23.9 +24% 84.7 58.1 +46%
Underground development, km 30.0 24.6 +22% 83.9 68.3 +23%
Ore mined, Kt 3,066 3,462 -11% 9,657 9,194 +5%
Open-pit 1,975 2,405 -18% 6,377 6,448 -1%
Underground 1,091 1,057 +3% 3,279 2,746 +19%
Ore processed, Kt 3,725 3,306 +13% 10,011 8,593 +13%
Production
Gold, Koz 370 268 +38% 759 606 +25%
Silver, Moz 7.4 8.0 -7% 20.2 22.2 -9%
Copper, Kt 0.9 0.3 +193% 1.9 1.3 +50%
Zinc, Kt 1.3 1.3 +1% 3.6 2.0 +77%
Gold equivalent, Koz(2) 470 372 +26% 1,028 894 +15%
Sales
Gold, Koz 363 242 +50% 742 561 +32%
Silver, Moz 5.8 8.3 -31% 18.2 21.3 -15%
Copper, Kt 0.8 0.3 +139% 1.3 0.4 +189%
Zinc, Kt 1.2 1.4 -11% 3.5 1.5 +123%
Revenue, US$m(3) 546 466 +17% 1,229 1,059 +16%
Net debt, US$m(4) 1,599 1,583 +1% 1,599 1,329 +20%
Safety(5)
LTIFR 0.11 0.20 -45% 0.14 0.19 -22%
Fatalities 0 0 0% 1 2 -50%
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 1:80 Ag/Au, 5:1 Cu/Au and 2:1 Zn/Au conversion ratios.
(3) Calculated based on the unaudited consolidated management accounts. Concentrate sales
are recorded based on forward prices for the expected dates of final settlement and concentrate
revenue is presented net of refining and treatment charges.
(4) Non-IFRS measure based on unaudited consolidated management accounts. Net debt equals
to current and non-current borrowings less cash and cash equivalents and includes the liability
for dividend payable. Comparative information is presented for 30 June 2017 (for the 3 months
period) and 31 December 2016 (for the 9 months period).
(5) LTIFR = lost time injury frequency rate per 200,000 hours worked.
PRODUCTION BY MINE
3 months ended Sep 30, % change 9 months ended Sep 30, %
change(1)
------------------------- --------- ------------------------- -----------
2017 2016 2017 2016
------------ ----------- --------- ------------- ---------- -----------
GOLD EQ. (KOZ) (2)
Dukat 83 93 -11% 241 280 -14%
Albazino-Amursk 89 72 +24% 197 190 +4%
Mayskoye 81 47 +70% 90 68 +31%
Omolon 45 41 +10% 139 108 +28%
Voro 30 36 -18% 89 93 -4%
Varvara 33 22 +52% 88 57 +55%
Okhotsk 97 49 +100% 147 79 +87%
Kapan 12 12 +2% 37 18 +103%
-------------------- ------------ ----------- --------- ------------- ---------- -----------
TOTAL 470 372 +26% 1,028 894 +15%
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 1:80 Ag/Au, 5:1 Cu/Au and 2:1 Zn/Au conversion ratios.
CONFERENCE CALL AND WEBCAST
Polymetal will hold a conference call and webcast on Monday, October 16 at 13:00 London time (15:00 Moscow time).
To participate in the call, please dial:
8 10 800 204 140 11 access code 33335091# (free from Russia), or
+44 20 3367 9461 (free from the UK), or
1 855 402 7761 (free from the US), or
Any of the above numbers (from outside the UK, the US and Russia) or follow the link: http://www.audio-webcast.com/cgi-bin/visitors.ssp?fn=visitor&id=4995.
Please be prepared to introduce yourself to the moderator or register.
The webcast replay will be available on Polymetal's website (www.polymetalinternational.com) and at http://www.audio-webcast.com/cgi-bin/visitors.ssp?fn=visitor&id=4995. A recording of the call will be available immediately after the call at +44 20 3367 9460 (from within the UK), 1 877 642 3018 (from within the US) and +7 495 745 79 48 (from within Russia), access code 311079#, from 15:00 Moscow time on Monday, October 16 and until 15:00 Moscow time on Monday, October 23, 2017.
Enquiries
Media Investor Relations
------------------ ------------------ ----------------------------------------------------
FTI Consulting +44 20 3727 1000 Polymetal ir@polymetalinternational.com
Leonid Fink Evgenia Onuschenko +44 20 7016 9505 (UK)
Viktor Pomichal Maryana Nesis
Michael Vasiliev +7 812 334 3666 (Russia)
------------------ ------------------ -------------------- ------------------------------
Joint Corporate Brokers
-------------------------------------- ----------------------------------------------------
Morgan Stanley
Sam McLennan
Richard Brown +44 20 7425 8000
Panmure Gordon RBC Europe Limited
Adam James Tristan Lovegrove
Tom Salvesen +44 20 7886 2500 Marcus Jackson +44 20 7653 4000
------------------ ------------------ -------------------- ------------------------------
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", "INTS", "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
DUKAT OPERATIONS
3 months ended Sep 30, % change 9 months ended Sep 30, % change
------------------------- --------- ------------------------- ---------
2017 2016 2017 2016
------------ ----------- --------- ------------ ----------- ---------
MINING
Dukat
Underground development, m 8,710 8,928 -2% 24,923 26,514 -6%
Ore mined (underground), Kt 395 409 -4% 1,211 1,211 +0%
Goltsovoye
Underground development, m 1,834 1,449 +27% 5,098 4,712 +8%
Ore mined (underground), Kt 51 48 +6% 143 141 +1%
Lunnoye + Arylakh
Underground development, m 2,045 1,407 +45% 5,847 3,952 +48%
Ore mined (underground), Kt 134 104 +29% 419 314 +33%
Perevalnoye
Underground development, m 1,002 - NA 2,259 - NA
Nachalny-2
Waste mined, Kt 197 - NA 273 - NA
Ore mined (open pit), Kt 32 - NA 48 - NA
Terem
Underground development, m 711 - NA 1,169 - NA
Ore mined (underground), Kt 6 - NA 11 - NA
TOTAL HUB
Waste mined, Kt 197 - NA 273 - NA
Underground development, m 14,302 11,784 +21% 39,296 35,178 +12%
Ore mined, Kt
Open-pit 32 - NA 48 - NA
Underground 586 561 +4% 1,785 1,667 +7%
PROCESSING
Dukat
Ore processed, Kt 496 474 +5% 1,463 1,458 +0%
Grade
Gold, g/t 0.4 0.7 -42% 0.4 0.6 -29%
Silver, g/t 329 386 -15% 323 374 -14%
Recovery(1)
Gold 87.9% 87.1% +1% 86.2% 86.3% -0%
Silver 89.1% 85.6% +4% 88.6% 85.2% +4%
Production
Gold, Koz 5.9 9.2 -35% 17.7 23.9 -26%
Silver, Moz 4.6 4.9 -7% 13.2 14.8 +14%
Lunnoye
Ore processed, Kt 118 107 +10% 346 325 +7%
Grade
Gold, g/t 1.2 1.4 -12% 1.3 1.5 -18%
Silver, g/t 360 465 -23% 363 463 -22%
Recovery(1)
Gold 91.3% 91.9% -1% 91.1% 92.4% -1%
Silver 93.3% 91.0% +3% 92.6% 92.0% +1%
Production
Gold, Koz 4.3 4.5 -5% 12.7 15.2 -16%
Silver, Moz 1.3 1.5 -12% 3.7 4.5 -18%
TOTAL PRODUCTION
Gold, Koz 10.2 13.6 -25% 30.4 39.1 -22%
Silver, Moz 5.8 6.4 -8% 16.8 19.3 -13%
Note: (1) Technological recovery, includes gold and silver within work-in-progress inventory (concentrate, precipitate)
Q3 silver production at the Dukat hub decreased 8% to 5.8 Moz year-on-year as higher processing volumes and improved recoveries failed to offset declining grades. Grade declines are partially attributable to lower cut-off-grades which take into account lower mining costs, lower treatment charges and higher recoveries.
Ores from Dukat satellite deposits, Nachalny-2 and Terem, were introduced to the feed at the Omsukchan concentrator as the Goltsovoye mine is winding down. First ore from the polymetallic Perevalnoye deposit is expected to enter processing in Q4 2017.
At Lunnoye record amounts of ore were mined and processed as stoping commenced at the new Zone 5 vein. Lower silver grade is mostly attributable to depletion of high-grade portion of the Zone 7 vein.
ALBAZINO-AMURSK
3 months ended Sep 30, % change 9 months ended Sep 30, % change
------------------------- --------- ------------------------- ---------
2017 2016 2017 2016
------------ ----------- --------- ------------ ----------- ---------
MINING
Waste mined, Kt 5,235 5,226 +0% 14,624 13,845 +6%
Underground development, m 2,125 1,447 +47% 5,610 4,379 +28%
Ore mined, Kt 475 482 -1% 1,467 1,367 +7%
Open-pit 387 409 -6% 1,217 1,163 +5%
Underground 89 72 +23% 250 205 +22%
PROCESSING
Albazino concentrator
Ore processed, Kt 436 409 +7% 1,291 1,239 +4%
Gold grade, g/t 4.9 5.1 -5% 4.8 5.1 -5%
Gold recovery(1) 88.3% 88.0% +0% 87.5% 87.0% +1%
Concentrate produced, Kt 34.3 34.2 +0% 105.8 102.8 +3%
Concentrate gold grade, g/t 54.5 53.6 +2% 51.5 53.2 -3%
Gold in concentrate, Koz(2) 60.1 58.9 +2% 175.2 175.8 -0%
Amursk POX
Concentrate processed, Kt 47.3 43.9 +8% 113.5 117.1 -3%
Gold grade, g/t 62.1 53.3 +17% 58.2 52.1 +12%
Recovery 96.2% 94.1% +2% 96.1% 94.1% +2%
Gold produced, Koz(3) 89.2 71.9 +24% 197.3 189.9 +4%
TOTAL PRODUCTION
Gold, Koz 89.2 71.9 +24% 197.3 189.9 +4%
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 completion of downstream processing at the Amursk POX
(3) 1H 2016 now includes gold produced from the third-party concentrate, previously accounted in Mayskoye production
At Albazino/Amursk, gold production in the third quarter of 2017 increased 24% year-on-year to 89.2 Koz, making up for the 7-week maintenance and retrofit shutdown in Q2 2017.
The increase was mainly driven by the improvement of gold recovery levels at the Amursk Pox by 2% on the back of the water treatment and heat exchange section upgrades, as well as significantly higher grades in 3(rd) -party concentrates.
At the Albazino underground mine productivity continued to improve with the completion of the transition to partially consolidated backfill in primary stopes.
The debottlenecking project at the Amursk POX is on schedule with structural steel installation complete and all processing and auxiliary equipment on site.
OMOLON OPERATIONS
3 months ended Sep 30, % change 9 months ended Sep 30, % change
------------------------- --------- ------------------------- ---------
2017 2016 2017 2016
------------ ----------- --------- ------------ ----------- ---------
MINING
Sopka
Waste mined, Kt 1,960 - NA 4,290 - NA
Ore mined (open pit), Kt 160 - NA 224 - NA
Tsokol
Underground development, m 962 1,022 -6% 2,859 2,954 -3%
Ore mined (underground), Kt 46 41 +10% 106 70 +52%
Birkachan
Waste mined, Kt - 792 -100% - 2,174 -100%
Underground development, m 1,060 869 +22% 3,408 1,574 +117%
Ore mined, Kt 29 253 -89% 83 616 -86%
Open-pit - 230 -100% - 589 -100%
Underground 29 23 +26% 83 27 +209%
Oroch
Waste mined, Kt - 1,178 -100% 109 4,085 -97%
Ore mined (open pit), Kt - 282 -100% 81 691 -88%
Olcha
Waste mined, Kt - 288 -100% 184 288 -36%
Underground development, m 968 - NA 2,294 - NA
Ore mined (open pit), Kt - 40 -100% 73 40 +80%
TOTAL HUB
Waste mined, Kt 1,960 2,257 -13% 4,583 6,546 -30%
Underground development, m 2,990 1,891 +58% 8,561 4,528 +89%
Ore mined, Kt 234 617 -62% 567 1,417 -60%
Open-pit 160 553 -71% 378 1,320 -71%
Underground 74 64 +16% 190 97 +95%
PROCESSING
Birkachan Heap Leach
Ore stacked, Kt 241 - NA 362 - NA
Gold grade, g/t 1.3 - NA 1.3 - NA
Gold production, Koz 3.4 - NA 3.4 - NA
Kubaka Mill
Ore processed, Kt 217 212 +2% 646 629 +3%
Grade
Gold, g/t 4.8 4.3 +12% 5.8 4.6 +26%
Silver, g/t 156 182 -15% 104 110 -6%
Recovery(1)
Gold 92.6% 92.5% +0% 93.7% 90.7% +3%
Silver 86.8% 91.3% -5% 84.5% 86.2% -2%
Gold production, Koz 29.1 27.4 +6% 113.4 85.7 +32%
Silver production, Moz 1.0 1.1 -6% 1.7 1.8 -4%
TOTAL PRODUCTION
Gold, Koz 32.5 27.4 +19% 116.8 85.7 +36%
Silver, Moz 1.0 1.1 -6% 1.7 1.8 -4%
Note: (1) Technological recovery, includes gold and silver within work-in-progress inventory
In Q3, Omolon delivered a solid set of results with a 19% increase in gold production year-on-year. Gold grade in ore processed improved 12% to 4.8 g/t year-on-year as ore volumes from Tsokol and Birkachan underground mines continued to increase.
At Sopka, open-pit mining is proceeding ahead of schedule with 160 Kt of ore mined in Q3 to be transported to the Kubaka mill in Q1 2018.
MAYSKOYE
3 months ended Sep 30, % change 9 months ended Sep 30, % change
------------------------- --------- ------------------------- ---------
2017 2016 2017 2016
------------ ----------- --------- ------------ ----------- ---------
MINING
Waste mined, Kt 1,477 - NA 4,049 - NA
Underground development, m 4,792 4,800 -0% 14,396 14,832 -3%
Ore mined, Kt 228 213 +7% 766 502 +53%
Open-pit 65 - NA 208 - NA
Underground 163 213 -23% 558 502 +11%
PROCESSING
Flotation
Flotation
Ore processed, Kt 218 214 +2% 581 541 +7%
Gold grade, g/t 4.7 5.1 -8% 5.5 5.4 +1%
Gold recovery(1) 87.0% 87.1% -0% 87.4% 87.6% -0%
Concentrate produced, Kt 17.6 18.7 -6% 47.7 51.6 -8%
Gold in concentrate, Koz(2) 28.6 30.3 -6% 86.8 82.6 +5%
Concentrate sold, Kt 39.3 29.7 +32% 39.3 29.7 +32%
Payable gold in concentrate sold, Koz 67.1 43.2 +55% 67.1 43.2 +55%
Leaching
Ore processed, Kt 3 - NA 67 - NA
Gold grade, g/t 10.1 - NA 9.9 - NA
Recovery NM - NA 51.6% - NA
Gold in carbon, Koz(3) 4.1 - NA 12.1 - NA
Gold produced, Koz 11.3 - NA 11.3 - NA
Amursk POX
Concentrate processed, Kt 0.9 2.0 -55% 6.1 13.7 -55%
Gold grade, g/t 46.9 51.9 -10% 49.5 54.8 -10%
Recovery 96.2% 94.0% +2% 96.2% 94.0% +2%
Gold produced, Koz(4) 2.1 4.1 -49% 11.1 25.0 -56%
TOTAL PRODUCTION
Gold, Koz 80.5 47.2 +70% 89.5 68.2 +31%
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 internal downstream processing to saleable metal product
(3) Work in progress. For information only; not considered as gold produced and therefore not reflected in the table representing total production
(4) 2016 now excludes gold produced from the third-party concentrate, which is accounted in Albazino/Amursk production
In the third quarter, gold production at Mayskoye totalled 80.5 Koz, a 70% increase from the prior year period as most of Mayskoye concentrate was de-stockpiled, while the capacity of the Amursk POX plant has been taken up by third-party material.
After low CIL recoveries in Q2 at the crown pillar project, additional metallurgical testing was carried out during Q3. As a result, future oxide ore processing will be through a combined float-leach circuit with flotation removing the bulk of preg-robbing organic carbon. This circuit will commence operation in May 2018 and in the meantime, the processing plant will treat sulphide ore. Open-pit mining will be slowed-down during the winter months.
VARVARA
3 months ended Sep 30, % change 9 months ended Sep 30, % change
------------------------- --------- ------------------------- ---------
2017 2016 2017 2016
------------ ----------- --------- ----------- ------------ ---------
MINING
Varvara
Waste mined, Kt 1,471 4,866 -70% 8,130 14,320 -43%
Ore mined, Kt 192 701 -73% 1,070 1,937 -45%
Komarovskoye
Waste mined, Kt 3,821 1,050 +264% 9,081 1,050 +765%
Ore mined, Kt 463 65 +614% 1,363 65 NM
PROCESSING
Flotation
Ore processed, Kt 103 1 NM 191 355 -46%
Grade
Gold, g/t 2.1 3.6 -42% 2.2 1.3 +70%
Copper 0.71% 0.29% +141% 0.66% 0.33% +97%
Recovery(1)
Gold 69.4% 75.0% -7% 65.0% 70.2% -7%
Copper 87.2% 75.0% +16% 80.7% 72.6% +11%
Production
Gold (in concentrate), Koz 3.9 0.5 +771% 7.2 7.0 +3%
Copper (in concentrate), Kt 596 20 +2881% 998 836 +19%
Toll-treated ore processed, Kt(2) 28 - NA 91 - NA
Leaching
Ore processed, Kt 731 731 +0% 2,140 1,954 +10%
Gold grade, g/t 1.2 1.1 +11% 1.3 0.9 +41%
Gold recovery(1) 84.0% 82.1% +2% 82.1% 78.0% +5%
Gold production (in dore), Koz 25.8 21.0 +23% 75.8 45.8 +66%
Total ore processed, Kt 862 732 +18% 2,422 2,310 +5%
TOTAL PRODUCTION
Gold, Koz 29.7 21.4 +39% 83.0 52.8 +57%
Copper, Kt 596 20 +2881% 998 836 +19%
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.
In the third quarter, Varvara delivered a 39% increase in gold production compared to the previous year thanks to the quick ramp-up in ore railed from Komar. The successful streamlining of Komar ore logistics prompted the decision to shift more mining and processing volumes from Varvara to Komar.
The results of a significant in-fill and step-out drilling campaign at Komar together with the updated cost estimates based on the recent performance yielded positive results. An updated reserve estimate was prepared by Polymetal under JORC standards, adding 535 Koz of gold with stable grades of 1.8 g/t. The upgraded estimate represents a significant increase over the previous estimate with a 60% increase in tonnage and a 57% increase in gold content, further extending the Varvara hub mine life by 3 years, until 2032.
The Company now plans to mine, transport by rail and process approximately 2Mt of Komar ore per year at the Varvara processing plant, which constitutes a substantial increase over the 1Mt that was first envisaged at the time of the acquisition.
VORO
3 months ended Sep 30, % change 9 months ended Sep 30, % change
------------------------- --------- ------------------------- ---------
2017 2016 2017 2016
------------ ----------- --------- ------------ ----------- ---------
MINING
Voro
Waste mined, Kt 2,643 2,679 -1% 7,700 7,993 -4%
Ore mined, Kt 337 353 -4% 1,159 986 +18%
PROCESSING
Voro Heap Leach
Ore stacked, Kt 123 232 -47% 302 295 +2%
Gold grade, g/t 1.1 1.7 -35% 1.2 1.6 -26%
Gold production, Koz 5.9 6.7 -13% 11.6 12.2 -5%
Voro CIP
Ore processed, Kt 254 252 +1% 752 750 +0%
Gold grade, g/t 4.1 4.3 -3% 4.2 4.3 -3%
Gold recovery(1) 79.2% 78.3% +1% 80.8% 78.4% +3%
Gold production, Koz 23.8 29.4 -19% 76.5 80.2 -5%
TOTAL PRODUCTION
Gold, Koz 29.7 36.1 -18% 88.1 92.4 -5%
Note: (1) Technological recovery, includes gold within work-in-progress inventory
Q3 gold production at Voro decreased 18% over 2016 to 29.7 Koz, primarily driven by anticipated lower head grades at both the HL and CIP operations.
Processing volumes and recovery levels at the CIP plant during the quarter remained relatively unchanged over the previous year.
Oxide ore is nearing depletion, while production at the CIP plant is expected to remain stable in mid-term.
OKHOTSK OPERATIONS
3 months ended Sep 30, % change 9 months ended Sep 30, % change
------------------------- --------- ------------------------- ---------
2017 2016 2017 2016
------------ ----------- --------- ------------ ----------- ---------
MINING
Avlayakan
Underground development, m 1,271 1,107 +15% 3,738 3,438 +9%
Ore mined (underground), Kt 30 34 -11% 98 94 +4%
Svetloye
Waste mined, Kt 66 259 -75% 321 764 -58%
Ore mined (open pit), Kt 339 324 +5% 935 976 -4%
TOTAL HUB
Waste mined, Kt 66 259 -75% 321 764 -58%
Underground development, m 1,271 1,107 +15% 3,738 3,438 +9%
Ore mined, Kt 369 357 +3% 1,032 1,070 -4%
Open-pit 339 324 +5% 935 976 -4%
Underground 30 34 -11% 98 94 +4%
PROCESSING
Khakanja
Ore processed, Kt 161 157 +3% 467 466 +0%
Grade
Gold, g/t 7.7 6.2 +23% 3.6 3.8 -4%
Silver, g/t 121 94 +29% 107 76 +41%
Recovery(1)
Gold 97% 96% +1% 97% 95% +2%
Silver 81% 83% -2% 77% 77% -1%
Gold production, Koz 33.9 29.2 +16% 48.8 53.2 -8%
Silver production, Moz 0.5 0.4 +23% 1.2 0.9 +36%
Svetloye Heap Leach
Ore stacked, Kt 455 401 +13% 921 401 +129%
Gold grade, g/t 4.8 3.7 +27% 4.6 3.7 +23%
Gold production, Koz 57.3 14.7 +290% 83.7 14.7 +470%
TOTAL PRODUCTION
Gold, Koz 91.2 43.9 +108% 132.5 67.9 +95%
Silver, Moz 0.5 0.4 +24% 1.2 0.9 +37%
Note: (1) Technological recovery, includes gold and silver within work-in-progress inventory (precipitate)
At Okhotsk, gold production in Q3 jumped more than two-fold over the previous year, as the Svetloye heap leach operation continued to enjoy positive grade reconciliation. In addition, a record 135 Kt of Avlayakan ore was shipped to Okhotsk during the summer navigation period.
Silver production grew 24% to 0.5 Moz as 3(rd) party ore with higher silver grades was introduced to the feed at the Khakanja plant.
Avlayakan's life-of-mine has been extended to H2 2018 on the back of positive down-dip exploration results earlier this year.
KAPAN
3 months ended Sep 30, % change 9 months ended Sep 30, % change
------------------------- --------- ------------------------- ---------
2017 2016(1) 2017 2016(1)
---------- ------------- --------- ----------- ------------ ---------
MINING
Kapan
Underground development, m 4,548 3,537 +29% 12,270 5,938 +107%
Ore mined (underground), Kt 149 112 +33% 399 181 +120%
PROCESSING
Ore processed, Kt 143 116 +23% 389 180 +116%
Grade
Gold, g/t 2.0 2.3 -15% 2.3 2.3 -3%
Silver, g/t 35 47 -27% 41 46 -11%
Copper, % 0.27% 0.31% -14% 0.29% 0.30% -3%
Zinc, % 1.32% 1.59% -17% 1.32% 1.56% -15%
Recovery
Gold 84.6% 85.8% -1% 84.9% 85.2% -0%
Silver 81.6% 83.8% -3% 83.3% 83.9% -1%
Copper 92.5% 91.7% +1% 91.7% 91.9% -0%
Zinc 91.4% 91.4% +0% 90.3% 91.3% -1%
TOTAL PRODUCTION
Gold, Koz 6.7 6.5 +4% 21.1 9.9 +113%
Silver, Moz 0.1 0.1 -11% 0.4 0.2 +97%
Copper, Kt 0.3 0.3 +8% 0.9 0.4 +111%
Zinc, Kt 1.3 1.3 +1% 3.6 2.0 +77%
Note: (1) Since the acquisition date (28 April 2016)
During the third quarter, Kapan delivered 6.7 Koz of gold, up 4% year-on-year driven by increased processing volumes on the back of ongoing improvement measures to debottleneck the underground mine. In August, the Kapan concentrator achieved a new throughput record, processing 51 Kt of ore in a single month.
At Lichkvaz, preparatory activities for underground mining are currently underway, and are aimed at widening the underground tunnels for consecutive underground and stope development in 2018.
KYZYL PROJECT
3 months ended Sep 30, % change 9 months ended Sep 30, % change
------------------------- --------- ------------------------- ---------
2017 2016 2017 2016
------------- ---------- --------- ------------ ----------- ---------
MINING
Bakyrchik
Waste mined, Kt 12,784 7,521 +70% 35,962 13,616 +164%
In the third quarter, stripping volumes at Kyzyl increased 70% over the previous year to 12,784 Kt as the preparation of the open-pit is underway. All mining activities are proceeding in line with the schedule to produce first ore in March of 2018.
Installation of all major processing equipment has been finalised with the bulk of construction activities now focused on the tailings storage facility. All external electrical infrastructure (substation, power lines, switchboxes) is now operational and the project remains on track to deliver its first concentrate in Q3 2018.
This information is provided by RNS
The company news service from the London Stock Exchange
END
DRLFFLSIMFWSEIS
(END) Dow Jones Newswires
October 16, 2017 02:00 ET (06:00 GMT)
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