PRESS RELEASE

from Polymetal International Plc (isin : JE00B6T5S470)

Polymetal: Q3 2023 production results

Polymetal International plc (POLY)
Polymetal: Q3 2023 production results

31-Oct-2023 / 07:31 MSK
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Release time

IMMEDIATE                           

AIX, MOEX: POLY
 

Date

31 October 2023

 

 

 

Polymetal International plc

Q3 2023 production results

Polymetal International plc reports production results for the third quarter ended September 30, 2023.

“In Q3, we returned to positive cash flow generation after seasonal working capital release and a decline in previously accumulated gold bullion. We continue to work on further release of unsold inventories and production in line with the guidance”, said Vitaly Nesis, Group CEO of Polymetal International plc.

HIGHLIGHTS

  • There have been no fatal accidents during the first nine months of 2023 among Polymetal’s workforce and contractors (similar to 9M 2022). Lost time injury frequency rate (LTIFR) stood on par with 9M 2022 at 0.09. Nine lost-time accidents mostly related to falling or hit by an object were recorded during 9M 2023 (none in Kazakhstan) with two of them in Q3.
  • In Q3, gold equivalent production (“GE”) grew by 12% year-on-year (y-o-y) to 508 Koz driven by increases within Russian operations (Urals, Mayskoye and Dukat).
  • GE output for the first nine months of 2023 was up by 6% y-o-y to 1,272 Koz, including 340 Koz in Kazakhstan and 932 Koz in Russia.
  • Concentrate inventories at Kyzyl and inventories in Russia have been unwound materially during Q3. The Company recorded a materially lower sales-production gap versus the previous quarter. Sales volumes for the first nine months of 2023 amounted to 1.1 Moz of GE. New challenges facing sales from Russia include sale of silver bullion (instead of concentrate) and significant tightening of concentrate exports regulations.
  • Revenue for the reporting quarter and nine months increased by 17% and 22% y-o-y to US$ 834 and US$ 2,149 million respectively on the back of sales volumes recovery and higher metal prices.
  • EBITDA for the first nine months of 2023 reached US$ 995 million representing a margin of 46% (US$ 301 million in Kazakhstan, US$ 694 million in Russia). A y-o-y increase of 60% is attributable to revenue growth and exchange rate driven operating costs decrease in Russia.
  • Net Debt decreased by 10% quarter-on-quarter and stood at US$ 2.33 billion (US$ 0.12 billion in Kazakhstan and US$ 2.21 billion in Russia) as the Company generated positive free cash flow supported by seasonal factor and inventories release, as well as enjoyed lower costs and lower value of Rouble-denominated debt due to favorable exchange rate movements.
  • Polymetal is on track to meet its full-year production guidance of 1.7 Moz of GE (1.2 Moz in Russia and 500 Koz in Kazakhstan). TCC and AISC guidance of US$ 950-1,000/GE oz and US$ 1,300-1,400/GE oz respectively is also maintained. The estimate remains contingent on the RUB/USD and KZT/USD exchange rates which have a significant effect on the Group’s local currency denominated operating costs.

HIGHLIGHTS

 

 3 months ended September 30,

%

change

9 months ended September 30,

%

change

 

2023

2022

2023

2022

 

 

 

 

 

 

 

PRODUCTION (Koz of GE) 1

 

 

 

 

 

 

Kazakhstan

127

133

-5%

340

377

-10%

Kyzyl

84

82

+2%

212

217

-2%

Varvara

43

51

-16%

128

160

-20%

 

 

 

 

 

 

 

Russia

381

321

+19%

932

821

+14%

 

 

 

 

 

 

 

TOTAL

508

454

+12%

1,272

1,198

+6%

 

 

 

 

 

 

 

SALES (Koz of GE)

 

 

 

 

 

 

Kazakhstan

110

108

+2%

310

347

-11%

 

 

 

 

 

 

 

Russia2

336

321

+5%

826

641

+29%

 

 

 

 

 

 

 

TOTAL

446

429

+4%

1,136

988

+15%

 

 

 

 

 

 

 

REVENUE3 (US$m)

 

 

 

 

 

 

Kazakhstan

209

181

+15%

602

624

-4%

 

 

 

 

 

 

 

Russia

626

533

+17%

1,547

1,138

+36%

 

 

 

 

 

 

 

TOTAL

834

714

+17%

2,149

1,762

+22%

 

 

 

 

 

 

 

EBITDA3 (US$m)

 

 

 

 

 

 

Kazakhstan

101

93

+9%

301

354

-15%

 

 

 

 

 

 

 

Russia

335

101

+232%

694

266

+161%

 

 

 

 

 

 

 

TOTAL

436

194

+125%

995

620

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