Polymetal: Q1 2023 production results

Polymetal International plc

Q1 2023 production results

Polymetal reports production results for the first quarter ended March 31, 2023.

“Q1 saw continued metal inventory release and positive revenue dynamics. Management is optimistic that the unwinding of saleable inventory will be substantially completed by the end of Q2 2023. Quarterly production was in line with our plan and we confirm our full-year guidance of 1.7 Moz of GE”, said Vitaly Nesis, Group CEO of Polymetal.

HIGHLIGHTS

• No fatal accidents occurred among the Group’s workforce and contractors in Q1 2023 (consistent with Q1 2022). Lost time injury frequency rate (LTIFR) among the Group’s employees decreased by 10% year-on-year (y-o-y) to 0.09. During Q1 2023, one medium-severity incident and two minor incidents were recorded.
• Q1 gold equivalent (“GE”) production decreased by 5% y-o-y to 345 Koz. Increases at Nezhda and Albazino (Kutyn) were offset by grade-driven production slump at Dukat as well as the build-up of concentrate inventory at Kyzyl and Varvara.
• Revenue for the quarter was up by 19% y-o-y to US$ 733 million as sales channels stabilized, with reduction in stockpiles taking full advantage of higher gold prices.
• Net Debt was broadly flat during the quarter as the release of inventory was offset by traditional seasonal payments for winter road deliveries, fuel supplies, and annual bonuses.
• The Company now expects POX-2 start-up in H2 2024 (previously Q2 2024). Urals flotation and Prognoz (ore mining) are on track to launch in Q2 2023.
• Polymetal reiterates its 2023 production guidance of 1.7 Moz of GE, and also maintains the full-year cost guidance of US$ 950-1,000/GE oz for TCC and US$ 1,300-1,400/GE oz for AISC. The cost guidance remains contingent on the Russian rouble and Kazakh tenge exchange rate dynamics.

OPERATING HIGHLIGHTS

PRODUCTION BY MINE

CONFERENCE CALL AND WEBCAST

The Group’s management will discuss the Q1 2023 production results and the proposed re-domiciliation during the Analyst and Investor Briefing on Wednesday, 10 May, 2023, at 10:00 BST (12:00 Moscow time, 15:00 Astana time) at the etc.venues, 8 Fenchurch Pl, London EC3M 4PB. To join the webcast please follow the link:

https://event.on24.com/wcc/r/4215044/57F84C60B29C3706B85933B505CAF446.

Enquiries

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