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

Notes:
(1) % changes can be different from zero even when absolute numbers are unchanged because of rounding. Likewise, % changes can be equal to zero when absolute numbers differ due to the same reason. This note applies to all tables in this release.
(2) Based on 80:1 Au/Ag conversion ratio and excluding base metals. Discrepancies in calculations are due to rounding.
(3) Calculated based on the unaudited consolidated management accounts.
(4) Non-IFRS measure based on unaudited consolidated management accounts. Comparative information is presented for 31 December 2022.
(5) LTIFR = lost time injury frequency rate per 200,000 hours worked. Company employees only are taken into account.
(6) DIS – days lost due to work-related injuries. Company employees only are taken into account.

PRODUCTION BY MINE

Notes:
(1) Based on 80:1 Au/Ag conversion ratio and excluding base metals. Discrepancies in calculations are due to rounding.

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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.