Polyus reports gold production up 36% to 1.45Moz

Russia’s Polyus, the world’s 5th  largest gold producer, announced today that its total gold output increased 36% and amounted to 1,448 thousand ounces in H1 2023 compared to 1,068 thousand ounces in H1 2022.

The company said this growth was driven by higher grades in ore mined at Olimpiada as Polyus conducted mining activities at high-grade areas of the Vostochny pit as well as an increase in refined gold production at Blagodatnoye, driven by higher head grades.

The group’s total cash costs (TCC) for the first half of 2023 decreased 8% year-on-year to $400 per ounce compared to $435 per ounce in the first half of 2022, mainly due to higher head grades at Olimpiada and Blagodatnoye as well as the resumption of sales of antimony-rich flotation concentrate.

The company’s revenue for the reporting period increased 29% year-on-year and amounted to $2,386 million, primarily due to an increase in gold sales volumes and a higher average realized refined gold price compared to the first half of 2022.

Adjusted EBITDA for the reporting period amounted to $1,687 million, up 37% compared to $1,229 million in the first half of 2022, driven by growth in gold sales volumes and lower TCC on a per ounce basis during the first half of 2023.

Polyus also reported profit for the period of $558 million (H1 2022: profit of $1,376 million) and adjusted net profit of $1,053 million (H1 2022: adjusted net profit of $792 million), while net cash flow from operations increased 52% to $1,068 million.

The company reiterated its production guidance for 2023 within the range of 2.8 — 2.9 million ounces. However, Polyus now expects total cash costs for the full year of 2023 to stay within the range of $475-$525 per ounce, compared to the previous estimate of $500-$550 per ounce.

Polyus is the largest gold producer in Russia and a top 5 gold producer globally with one of the lowest cost profiles. The company also holds the world’s largest gold reserves with 97 million ounces of proven and probable gold reserves underpinning its strong growth profile.

The company’s principal operations are located in Krasnoyarsk Territory, Irkutsk Region, Magadan Region and the Republic of Sakha (Yakutia) and include 5 operating mines, alluvial operations and several advanced development projects.

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