Polymetal International plc

Performance indicators

2021: Revenue growth 1% to $2.89 billion

At the end of 2021, Polymetal earned $2.89 billion in revenue, which is about 1% more than a year earlier, when sales were measured at $2.86 billion. The net profit of the Russian mining company during this time decreased from $1.1 billion to $904 million. Such data were released in early April 2022.

Production at Polymetal in 2021 increased by 2% compared to 2020 and by 5% exceeded the initial production plan of 1.6 million ounces, amounting to 1,677 thousand ounces in gold equivalent. This was partly due to the shipment of concentrate reserves in Kyzyl, high concentrations in Dukat ore, and the start of production at Nezhdaninsky.

At the end of 2021, Polymetal earned $2.89 billion in revenue, which is about 1% more than a year earlier

Kyzyl made a key contribution to the company's production results: annual gold production in Kyzyl reached 360 thousand ounces, having decreased by 6% compared to last year against the background of a planned decrease in the content of processed ore to the level of average reserves.

Production at the Varvarinskoye field grew by 24% year-on-year to 197 thousand ounces of gold equivalent due to increased refining volumes, high ore content in the Komarovskoye field and increased extraction, which were achieved due to improved technological process. An increase in the efficiency of the enrichment plant - up to 2.2 million tons per year.

According to Polymetal estimates, the level of cash costs (TCC) for the full 2021 corresponds to the announced forecast of $700-750 per ounce of gold equivalent. Capital expenditures for the year exceeded the upper threshold of the forecast range of $675-725 million by approximately 5%. Total cash costs (AISC) also came in above the upper threshold of the original forecast range of $925-975 per ounce of gold equivalent by about 5%.

Over the year, net debt grew by $296 million, despite the fact that in 2021 Polymetal paid dividends in the amount of $632 million, the press release said. ^[1]

History

2024

Acquisition of the share of the power grid company serving the Nezhdaninskoye gold deposit

In August 2024, it became known that Polymetal became a co-owner of the power grid company Yuves LLC (Yuzhno-Verkhoyansk Energy Networks), which serves one of the largest gold ore deposits in Russia - Nezhdaninskoye. Polymetal acquired a 33% stake in Yuves LLC from the founder of the company Dmitry Silyutin, which is confirmed by changes made to the Unified State Register of Legal Entities (USRUL). Read more here

Polymetal sells business in Russia to Mangazea Plus group for $3.69 billion

In February 2024, it was announced that the Kazakh gold mining company Polymetal was selling its Russian business to the Mangazea Plus Group, valuing it at $3.69 billion.

This amount also includes dividends in the amount of $1.429 million before taxes, which the Russian JSC will pay in favor of Polymetal, and cash remuneration in the amount of $50 million.

Polymetal will direct the funds received from the transaction for the construction of the Irtysh MMC in Kazakhstan.

2023: Vitaly Nesis, Maxim Nazimok and Pavel Danilin leave Russian office due to sanctions against the company

On June 5, 2023 , Polymetal announced that its management was leaving the Russian unit due to sanctions against Polymetal. Chief Executive director Vitaly Nesis, Chief Financial Officer Maxim Nazimok and Vice President for Strategic Development Pavel Danilin will leave their positions.

Asset management of the enterprise in Russia is delegated to the heads of Polymetal JSC. Sergey Cherkashin has been appointed CEO of the company.

2012

OJSC Polymetal (Polymetal) is a leading company in the precious metals mining industry. For 2012, Polymetal is the largest producer of primary silver in Russia and the fifth in the world, one of the five largest gold miners in Russia.

Polymetal mines gold and silver and conducts geological exploration in four regions of Russia (Magadan and Sverdlovsk regions, Khabarovsk Territory and Chukotka), as well as in Kazakhstan.

The project portfolio includes 51 licenses with a total area of ​ ​ more than 10,000 square meters. km

The most promising deposit of the Company is Albazinskoye (Khabarovsk Krai), whose mineral resources are estimated at about 93 tons of gold in accordance with the JORC code. In April 2011, the first stage of the mining and processing complex was launched at the Albazinskoye field and the first concentrate was packed.

2011: 13.8 tons of gold and 538.1 tons of silver produced

In 2011, the company produced 13.8 tons of gold and 618.96 tons of silver, the plan for 2012 - 18.3-19.9 tons of gold, 675-739 tons of silver and 6-7 thousand tons of copper

In 2012, Polymetal produces gold and silver in three regions of Russia:

• Magadan Region - Dukat and Lunnoye fields (including the Arylakh satellite field),
• Khabarovsk Territory - Khakanzhinskoye field (including Yuryevskoye satellite field),
• Sverdlovsk region - Vorontsovskoye field.

Dukat and Lunnoye are silver mining enterprises with a significant volume of associated gold mining. Khakanjinskoye and Vorontsovskoye - gold ore deposits; silver is also mined at the Khakanjinskoye deposit. In Kazakhstan, Polymetal is developing the Varvarinskoye gold copper deposit.

The period of field operation ranges from ten to twenty years.

The company's strategy for production development up to 2012 is aimed at increasing efficiency and optimizing the activities of existing enterprises, forming a new generation of assets through the construction of new enterprises.

• Acquisition of Elmus Prospect Square (Republic of Karelia)
• Kutyn Field Acquisition (Khabarovsk Krai)
• Albazino Plant (Khabarovsk Krai)
• Signing a long-term agreement with FESCO to transport gold concentrate from the Mayskoye field to the Amur MMC.

2010

• Start of the second stage of OmZIF
• Obtaining a license for the Eastern flank of the Albazinsky ore field
• Inclusion of Polymetal in FTSE Gold Mines Index
• A year ahead of schedule received the first gold after re-launch at the Kubaki UVP factory

2009: Acquisition of Goltsovoye Field in Magadan Oblast

• Acquisition of Goltsovoye field in Magadan Oblast
• Obtaining a license for the exploration and extraction of ore gold and silver on Burgali Square in the Magadan Region
• Conducting active geological exploration and announcing the results of resource estimation at the Birkachan and Oroch fields in the Magadan Region
• Signing an agreement on the acquisition of gold silver deposits Sopka Kvartsevaya and Dalny in the Magadan Region
• Acquisition of Sopka Kvartsevaya gold and silver deposit in Magadan Oblast
• Inclusion of OJSC Polymetal shares in MSCI (Morgan Stanley Capital International) Russia index calculation
• Announcement of the results of the updated feasibility study for the development and estimation of reserves of the Albazino field
• Creation of the Management Board of OJSC Polymetal
• Completion of the placement of additional common shares by closed subscription
• Acquisition of Varvarinskoye gold deposit in Kazakhstan
• Acquisition of the Maiskoye gold deposit in Chukotka
• MICEX's Decision to Transfer Polymetal Shares to Tier 1 Quotation List A

2008

• Acquisition of the Kubak field in the Magadan Region and commencement of active geological exploration at the facility (Omolonskaya Gold Ore Company, OJSC)
• Start of Yuryevskoye field development in Khabarovsk Krai (Khakanzhinskoye field satellite)
• Transition to the final stage of medium-term growth projects to increase production capacity at Vorontsovskoye and Dukat fields
• Announcement of the results of the feasibility study for the development and estimation of reserves of the Albazino field
• Change of key shareholders of OJSC Polymetal, election of a new Board of Directors
• Acquisition of Degtyarskoye field in Sverdlovsk region

2007: Placement of 24.8% shares on MICEX, RTS and the London Stock Exchange

• In 2007, Polymetal made an initial public offering of 24.8% of shares in the form of ordinary shares and GDR on RTS and MICEX and the London Stock Exchange (LSE).
• Start of Albazino Development Project
• Start of Arylakh field development in Magadan region (Lunnoye field satellite)
• Completion of the audit of resources under the JORC Code at the Galkinsky block, Initial-2 and Albazino

2006

• Conclusion of the Strategic Alliance with the largest global gold mining corporation AngloGold Ashanti
• Acquisition of Albazino field in Khabarovsk Krai (Resources Albazino LLC)

2004

• Establishment of ZAO Polymetal Engineering

2003: Commissioning of MMC at Khakanjinskoye field

• Commissioning of MMC at Khakanzhinskoye field (Okhotsk Mining and Geological Company)

2002

• Commissioning of the MMC at the Dukat field after restoration and reconstruction of the gold recovery plant (ZAO Serebro Magadan)

2001

• Obtaining the first ton of gold at the Vorontsovskoye deposit factory (ZAO Gold of the Northern Urals)
• Commissioning of the mining and processing plant at the Lunnoye field in the Magadan Region (Silver Magadan CJSC)

1998-2000

OJSC Polymetal was founded in 1998 in St. Petersburg by the EAST group of companies. The main goal of the creation of OJSC Polymetal is to create in Russia a modern enterprise for the extraction of precious metals with the main principle from "geological exploration to ingot."

The Company independently carries out the whole range of work on the development of ore deposits - from geological exploration to operation. The Company has established its mining portfolio through greenfield ("from scratch") or radical reconstruction of non-operating enterprises, and today has solid experience in managing the full field development cycle, including engineering, construction and operation.

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