TIDMPLZL TIDM60GT
RNS Number : 2606I
PJSC Polyus
20 March 2018
Press Release 20 March 2018
PJSC Polyus
Capital Markets Day, Corporate Update
PJSC Polyus (LSE, MOEX - PLZL) ("Polyus", the "Company"), the
largest gold producer in Russia, is today hosting a Capital Markets
Day for investors and analysts in London.
At the event, Polyus will present its updated strategy for the
coming years, as well as an overview of the Company's current
financial and operational performance.
Presenters will include the Independent Directors and top
managers of Polyus:
-- Edward Dowling, Independent Board Chairman
-- Kent Potter, Independent Director
-- Pavel Grachev, Chief Executive Officer
-- Mikhail Stiskin, Senior Vice President, Finance and Strategy
-- Vladimir Polin, Senior Vice President, Operations
-- The Company's senior operational management
Commenting on the Capital Markets Day, CEO Pavel Grachev
said:
"Polyus is one of the largest publicly-listed gold producers
globally, and it is important for us to be available and fully
transparent for the global investment community. We are very glad
to be holding today's event at the London Stock Exchange, for the
first time in this format. We have a strong investment story to
present and are looking forward to sharing it with the market."
Production, Cost Guidance, Capex Update
-- Following the ramp-up of Natalka and the implementation of
debottlenecking initiatives at other operating assets, Polyus
reiterates its production guidance for 2018 at the level of
2.375-2.425 million ounces and 2.8 million ounces in 2019. The
Company expects to produce 2.8 million ounces in 2020.
-- In the coming years, the Company's flagship assets Olimpiada
and Blagodatnoye are expected to continue operating at the lowest
cash costs among Polyus' assets. Besides that, Polyus plans to
partially offset cost inflation via ongoing operational
improvements across all operating assets. As a result, the Company
sets its total cash cost guidance at below $425 per ounce for 2018
and below $450 per ounce for 2019 and 2020.
-- The Company's capex programme is expected to reach its peak
at about $850 million in 2018, reflecting the ongoing
debottlenecking of operations and the finalization of the Natalka
project. The Company expects capex to gradually decrease to about
$650 million in 2019 and $550 million in 2020. As previously
highlighted, the planned capex for 2018 includes $150 million of
capitalized operational and interest expenses related to
Natalka.
Projects Update
Polyus' mid-term priorities are related to the development and
debottlenecking of its main production assets, as well as the
ramp-up of Natalka and the development of Sukhoi Log.
-- Olimpiada
o Mills expansion: By the end of 2020, Polyus expects to
increase the throughput capacity at Olimpiada processing complex to
reach 13.4 million tonnes per annum. To achieve this, Polyus plans
to implement a complex set of small and medium-scale initiatives at
the major processing circuits, including ore feed optimization via
Mine-to-Mill technology, equipment modernization, introduction of
flash flotation technology, BIO modernization etc.
o Antimony project: Olimpiada's Vostochny pit has reserves of
high-content antimony ore. Polyus plans to start selling Au-Sb
flotation concentrate on the global market. By separating the
processing of low content and high content antimony ore, Polyus
plans to increase recovery at Olimpiada's Mill 2 and Mill 3.
-- Blagodatnoye
o Mill expansion (stage 2): By the end of 2019, the Mill's
capacity is expected to reach 9.0 million tonnes per annum. To
achieve this, Polyus plans the full roll-out of the Mine-to-Mill
technology, and modernization of grinding and gravitation/flotation
equipment.
-- Kuranakh
o Mill expansion (stage 3): By the end of 2019, the capacity of
the Mill is expected to reach 5.8 million tonnes per annum. The
project mainly consists of small-scale capex-light processing
circuit debottlenecking initiatives.
-- Natalka
o The entire processing flow sheet is fully operational.
o A 72-hour consecutive trial run was successfully carried out
in January 2018.
o Natalka operates in a ramp-up mode at above 50% of design
capacity, processing above 15 thousand tonnes of ore on a daily
basis
o Production is expected to be fully ramped-up in the second
half of 2018.
-- Sukhoi Log
o Scoping study to be completed by mid-2018.
o Mineral resources estimate is expected in the fourth quarter
of 2018.
o Updated mineral reserves number is expected in 2020.
o Pre-feasibility and feasibility studies to be completed by the
end of 2020.
The Capital Markets Day presentation is available for
downloading at Polyus' website www.polyus.com
A webcast of the event is available at
http://www.polyus.com/en/investors/capital-markets-day/
Polyus
Polyus is the largest gold producer in Russia and one of the top
10 gold miners globally with the lowest cost position. Based on its
2017 Ore Reserves and Mineral Resources, the Polyus group ranks
second by attributable gold reserves and gold resources among the
world's largest gold mining companies.
The Polyus group's principal operations are located in
Krasnoyarsk, Irkutsk and Magadan regions and the Sakha Republic
(Yakutia).
Enquiries
Investor contact
Victor Drozdov, Director Investor Relations
+7 (495) 641 33 77
drozdovvi@polyus.com
Media contact
Victoria Vasilyeva, Director Public Relations
+7 (495) 641 33 77
vasilevavs@polyus.com
Forward looking statements
This announcement may contain "forward-looking statements"
concerning Polyus and/or Polyus group. Generally, the words "will",
"may", "should", "could", "would", "can", "continue",
"opportunity", "believes", "expects", "intends", "anticipates",
"estimates" or similar expressions identify forward-looking
statements. The forward-looking statements involve risks and
uncertainties that could cause actual results to differ materially
from those expressed in the forward-looking statements.
Forward-looking statements include statements relating to future
capital expenditures and business and management strategies and the
expansion and growth of Polyus' and/or Polyus group's operations.
Many of these risks and uncertainties relate to factors that are
beyond Polyus' and/or Polyus group's ability to control or estimate
precisely and therefore undue reliance should not be placed on such
statements which speak only as at the date of this announcement.
Polyus and/or any Polyus group company assumes no obligation in
respect of, and does not intend to update, these forward-looking
statements, except as required pursuant to applicable law.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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(END) Dow Jones Newswires
March 20, 2018 04:50 ET (08:50 GMT)