Polyus delivers record production in Q3

JOHANNESBURG (miningweekly.com) – Russia’s largest gold producer Polyus has achieved another record quarter, with production rising 16% year-on-year to 642 000 oz during the three months to September 30.

“The third quarter of 2017 marked yet another quarter of operational improvements and a constant drive to discover the full potential of our assets,” said CEO Pavel Grachev.

The increased output was attributed to the strong performance of the Olimpiada, Verninskoye and Kuranakh operations following expansion initiatives at the company’s core assets that had resulted in an increase in volumes of ore processed.

Gold output for the nine months to September 30 reached 1.58-million ounces, an increase of 13% year-on-year, which left the company confident of meeting its full-year production guidance of 2.07-million to 2.12-million ounces.

During the quarter to September 30, Polyus sold 578 000 oz of gold, up 10% year-on-year, with the value of gold sales increasing 5% year-on-year to $734-million at an estimated weighted-average gold selling price of $1 279/oz.

Gold sales for the nine months to September 30 reached $1.95-billion, with the average selling price of $1 269/oz.

“[The achievements are] a reflection of progress achieved at our brownfield [operations] as most of our development initiatives are either completed or entering the final stages of completion,” said Grachev.

Polyus is also progressing the ramp-up of its main greenfield project, the Natalka mine, in Serbia, which is expected to reach full production by the end of 2018.

The hot commissioning of the Natalka plant, which has the capacity to process ten-million tonnes a year, has been completed.

Natalka will provide between 420 000 oz/y and 470 000 oz/y of additional production and support Polyus’ targeted increase in overall gold production to about 2.8-million ounces by 2019.