Polymetal: Q2 2023 production results

Polymetal International plc

Q2 2023 production results

Polymetal International plc reports production results for the second quarter ended June 30, 2023.

“Q2 saw a set of solid production results supporting our full-year production guidance of 1.7 Moz of GE. The company continued to experience logistical disruptions of concentrate shipments. Management is working on establishing new transportation routes to resolve this issue by Q4 2023”, said Vitaly Nesis, Group CEO of Polymetal International plc.

HIGHLIGHTS

• No fatal accidents occurred among the Group’s workforce and contractors in H1 2023 (consistent with H1 2022). Lost time injury frequency rate (LTIFR) among the Group’s employees stood at 0.11 (0.08 in H1 2022), as there were seven lost-time accidents mostly related to falling or being hit by an object, with none of them within Kazakhstan operations.
• Q2 gold equivalent production (“GE”) grew by 22% year-on-year (y-o-y) to 423 Koz driven by increases within Russian operations (Nezhda and Albazino).
• GE output for H1 was up by 3% y-o-y to 764 Koz, including 213 Koz in Kazakhstan and 551 Koz in Russia, due to the same factors as above. Polymetal reiterates its full-year production guidance of 1.7 Moz of GE (1.2 Moz in Russia and 500 Koz in Kazakhstan).
• The Company recorded a sales-production gap in Q2, notably for Kyzyl, which was a result of the persistent railway issues at the eastward direction. It is expected to be closed by the year end as the Company is gradually switching to alternative transportation routes.
• Revenue for the reporting quarter and six months increased by 34% and 25% y-o-y to US$ 581 and US$ 1,315 million respectively on the back of sales volumes recovery in Russia and higher metal prices.
• Net Debt reached US$ 2.59 billion (US$ 0.2 billion in Kazakhstan and US$2.39 billion in Russia) on the back of sanctions-related sales disruptions in the Russian business.

HIGHLIGHTS