Page 140 - RusRPTDec20

q/q at $130mn compared with $127mn in the previous quarter. Polyus reiterated its full-year capex guidance (not including capitalized stripping) at $700-750mn at a $/RUBrate of 60. Adjusted for the current exchange rate and assuming 60% of capex is in rubles, we calculate Polyus's capex (excluding capitalized stripping) at $630-675mn. Our total capex estimate for 2020 including capitalized stripping is unchanged at around $800mn. Despite an expected concentrate inventory release in 4Q20, Polyus guides there to be a buildup in working capital, because the inventory release will be offset by a buildup in receivables for concentrate. At the spot gold price and current $/RUBrate, Polyus is trading at a 2021 EV/EBITDA of 7.7 and 2021 FCF yield of 7%.
Polyus Gold​ connected Natalka to Ust-Omchug-Omchak high-voltage line. ​Interfax reported. The company was successfully connected to the new 220kV high-voltage line. CapEx for construction (excluding VAT) amounted to about Rb10bn (c$126mn), of which Polyus received cRb6.5bn (c$83mn) in the form of state subsidies in 2016-19. Earlier this year, Polyus signed a five-year electricity supply agreement with the regional hydro-generating company Kolymaenergo. Currently, the needs of the Natalka GOK are 90% provided with energy from renewable sources.
Polymetal​ held a capital markets day on November 9. The focus of the event was on the company’s key projects – timelines were confirmed. The company also hiked its CapEx guidance for 2020-22 and estimate on COVID-19 related costs.
Mayskoe deposit successfully emerged from the COVID outbreak now with less than 10 active cases. All mining and processing activities continued as normal
Olcha (Omolon hub) returned to production in September after a 5-week closure due to COVID
Additional COVID-related costs are estimated at c$4mn per month or $30/oz produced – up from the $3mn per month estimate in end-October
Development plans and schedule for Nezhda are unchanged with full ramp-up planned in 2Q22
POX-2 construction schedule is unchanged with full ramp-up planned in 4Q23
The conceptual project schedule for Veduga project was kept unchanged with investment decision still planned for 4Q21 and full ramp-up if approved in 2Q25
140 ​RUSSIA Country Report​ December 2020 www.intellinews.com