Page 141 - RusRPTDec20

2020-25 guidance was maintained at 1.5/1.5/1.6/1.7/1.7/1.75mn oz of GE with 2025 production figure dependent of the Board’s approval of Veduga project
CapEx guidance was updated with CapEx for 2020 hiked by 13.6% to $540mn, while 2021-2022 CapEx was hiked by 8.7% and 6.6% to $485mn and $400mn, respectively. The bulk of increase came from stay-in-business CapEx. CapEx guidance for 2023-25 was kept unchanged at $410mn, $445mn and $365mn, respectively
The increased CapEx guidance is mainly due to increased Veduga CapEx (the total CapEx estimate was hiked by 12.5% to $450mn) and higher than previously expected COVID-19 related costs
The increase in stay-in-business CapEx is the result of an acceleration in pre-stripping, which may pave the way for reserve increases at some assets: Komar, Mayskoye and Albazino
Management said if the current $/Rb exchange rate remains, there is high chance of the company hitting the bottom of its guidance range in 2020 or even slightly below. In 2021, TCC and AISC is likely to be flat y/y
Polymetal​ Kyzyl ore reserves increased by 25% to 10.3moz of gold​. This follows the initial reserve estimate at East Bakyrchik of 2.2moz of gold. According to the company’s press release, open-pit reserves rose 9% to 4.3Moz of gold contained at an average grade of 4.9g/t, while underground reserves were increased by 40% to 6.0moz at an average grade of 5.8g/t. Kyzyl’s total ore reserves now stand at 59.3mt of ore with an average grade of 5.4g/t, containing 10.3moz of gold (up 25% since the estimate at end-2019). East Bakyrchik has added 5 years to Kyzyl’s total life-of-mine (2050), while life-of-mine for the open pit has risen 6 years (to 2036). As such, the new mining schedule assumes an increase in the capacity of the Kyzyl processing plant from 2.0mt to 2.2mt in 2022.
Polymetal​ has purchased a 22.5% stake in Chesterfield Resources for $2.8mn​. The company noted that, according to an internal assessment, the project has good potential for detecting copper mineralisation. Moreover, investment into a junior company is in line with the company’s strategy. Chesterfield Resources is to remain independent after the deal, while Polymetal would provide the company with expertise and the required financing.
● Steel
141 ​RUSSIA Country Report​ December 2020 www.intellinews.com