Page 179 - RusRPTSept21

· Ex-Dividend day is set for 9 September
· Net debt reached $1,827mn - up 35% h/h – implying Net
debt/Adjusted EBITDA ratio below 2.5x
· Polymetal is on track to meet its 2021 production guidance of
1.5moz of gold equivalent. The company maintains its 2021 guidance range of $700-750/GE oz and $925-975/GE oz for TCC and AISC, respectively
· Meanwhile, Polymetal revised its FY21 CapEx guidance to $675-725mn (previously $560mn). The guidance for 2022-2025 will be updated during the Company’s capital markets day in November 2021.
· BoD also approved accelerated development of open-pit at Progroz. First payable concentrate production is expected in 3Q23. The annual mine capacity will amount to 250kt of ore with average grade of approximately 600g/t silver
· Total TCC were $712/GE oz for 1H21 up 12% y/y due to above-CPI inflation in the mining industry and full-period impact of
COVID-related costs as well as planned decline in grades processed at Kyzyl and Albazino
● Steel
Novolipetsk Mining Kombinat (NLMK) reported two explosions and a fire in an oxygen distribution workshop at the company’s Lipetsk plant, Interfax reported on 9 August. According to reports, the initial explosion in the oxygen distribution workshop led to a fire in the building that was later contained, but not before resulting in a second explosion. No casualties were reported, and the company suspended operations at its Nr2 converter workshop in response to the incident. The process of restoring the oxygen distribution workshop’s systems should take no longer than two days. The company stated that the accident and its aftermath should not affect NLMK’s operations, and we believe the accident will not affect NLMK’s operational or financial results.
Russian metals major Novolipetsk Mining Kombinat (NLMK) announced multiple cuts in steel offers for August, BCS Global Markets wrote on August 6. Previously NLMK's peers MMK and Severstal also announced price cuts for August.
As reported by bne IntelliNews, since the second half of 2020 NLMK and other metals majors such Severstal and MMK have posted strong operational results, were re-rated by the analysts and appeared
179 RUSSIA Country Report September 2021 www.intellinews.com