Page 193 - RusRPTMay21

electricity generation increased 10% y/y to 31.2bn kWh while heat generation grew 19% y/y to 16.8mn GCal, driven by commissioning/decommissioning, the colder weather y/y and an economic recovery. Supply companies’ volumes increased 7.7% y/y, while electricity exports gained 100.7% y/y along with the 23.4% y/y rise in imports. Export/import operations were driven by the colder weather and lower water inflows. In terms of the RAS results, revenues increased 2.4x to RUB20.3bn vs. the 3.4x growth of gross profit driven by the increases in electricity trading volumes and prices, while net income decreased 46.5% y/y to RUB3.8bn due to the positive FX one-off in 1Q20 creating an elevated base. At the same time, InterRAO Electricity Generation Company, the largest and core subsidiary of the company, reported net income growth of 12.5% y/y.
9.2.11 Metallurgy & mining corporate news
● Gold & Diamonds
Polymetal released 1Q21 Operating Results. The company posted relatively
modest results due to sluggish market conditions.
· Gold sales declined by 27% to 280koz, but rose 3% y/y
· Gold equivalent production grew 4.7% q/q and 3% y/y to 375koz,
due to all-time highest quarterly production from Varvara and strong performance across other assets, which offset the planned grade-driven decline at Kyzyl
· Silver sales fell 29% q/q and 21% y/y to 3.7koz.
· Revenue was down 30% q/q to $593mn, although up 20% y/y on
the back of higher gold and silver prices
· Polymetal confirmed its 2021 production guidance of 1.5moz of
GE. It also maintained full-year cost guidance of $700-750/oz of
GE for TCC and $925-975/oz оf GE for AISC
· Net Debt decreased by $29mn q/q to $1.32bn, as Polymetal
generated positive quarterly free cash flow despite, seasonal
accumulation of inventory
· Construction and development activities at Nezhda and POX-2
projects are progressing on schedule. Nezhda is scheduled to achieve mechanical completion on 1 September and produce the first concentrate on 1 November
Leading Russian gold miner Polymetal laid out ambitious plans to reduce its carbon footprint by spending $1.1bn in capex from 2021-30 at a capital markets day for investors on April 27.
Management increased its 2022-25 capex guidance by a uarter to $400mn and said its expectation is that industry costs will rise over the next five years as companies move to improve their environmental,
193 RUSSIA Country Report May 2021 www.intellinews.com