27.01.2015
For immediate release
Polyus Gold International Limited
Trading update for Q4 and the full year 2014
Polyus Gold International Limited (LSE - PGIL, MICEX-RTS - PGIL, "PGIL", "Polyus Gold" or the "Group"), the largest gold producer in Russia, today releases its operating results for Q4 and the full year 2014.
Q4 2014 Highlights
-
Total gold production in Q4 2014 amounted to 460 thousand ounces, down 7% q-o-q as a result of seasonally lower output at Alluvials
-
Continued improvement of recoveries at Olimpiada and Verninskoye, which rose 0.8 ppts to 76.4% and 5.0 ppts to 83.7% respectively
-
Estimated quarterly gold sales of $583 million (Q3 2014: $603 million)
FY 2014 Highlights
-
The actual annual total gold production of 1,696 thousand ounces, up 3% y-o-y, was in line with the updated output guidance of 1,680-1,720 thousand ounces for FY 2014
-
Verninskoye reached its nameplate throughput capacity of 2.2 mtpa and significantly improved recoveries (+8.6 ppts y-o-y to 79.4%), leading to a 64% surge in gold output
-
Estimated annual gold sales of $2,160 million (FY 2013: $2,329 million)
-
Expected cash position of $1,475 million and estimated net debt position of $340 million as of 31 December 2014 after the payment of a special dividend in the amount of $500 mln
-
Guidance of 1.63-1.71 million ounces of total gold production for FY 2015
Pavel Grachev, Chief Executive Officer of Polyus Gold, commented:
"I am pleased to report another strong set of results as the Group is placing its focus on the maximum operational delivery from its core assets.
Polyus Gold met its increased annual production guidance having delivered a 3% growth in gold output year-on-year. The increase was mainly a result of improved recovery rates and higher processing volumes at Olimpiada and Verninskoye, which was partially offset by a reduction in gold production at Titimukhta and idling of some high-cost units of alluvial deposits. Blagodatnoye and Kuranakh continued to perform steadily.
Despite continued decline in the gold price (-8% compared to 2013), which resulted in a 7% decrease in estimated gold sales, the Group's financial position remains robust with expected cash position of $1,475 million and estimated net debt of $340 million at the end of 2014 after the Group paid out to its shareholders a special dividend in the amount of $500 mln.
The Group's gold production in 2015 is currently expected to be in the range of 1.63-1.71 million ounces."
Conference call information
Polyus Gold will host an analyst conference call today at 2 pm London time to present and discuss the Q4 and FY 2014 operating results.
To join the conference call, please dial:
UK toll free 0808 237 0038
UK International +44 (0) 20 3426 2845
USA toll free 1877 841 4559
Russia toll free 8108 00206 85011
A replay of the conference call will be available from 4 pm London time on January 27 2015, for the duration of 30 days.
To access the replay, please dial:
UK toll free: 0808 237 0026
UK International: +44 (0) 20 3426 2807
Access number: 653957#
Enquiries:
Investor contact
Sergey Krivokhizhin, Director Investor Relations
+44 (0) 203 585 35 37 [email protected]
Media contact
Sergey Lavrinenko, Director Communications
+44 (0) 203 585 35 37 [email protected]
Forward looking statements
This announcement may contain "forward-looking statements" concerning PGIL. Generally, the words "will", "may", "should", "could", "would", "can", "continue", "opportunity", "believes", "expects", "intends", "anticipates", "estimates" or similar expressions identify forward-looking statements. The forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Forward-looking statements include statements relating to future capital expenditures and business and management strategies and the expansion and growth of PGIL's operations. Many of these risks and uncertainties relate to actors that are beyond PGIL's ability to control or estimate precisely and therefore undue reliance should not be placed on such statements which speak only as at the date of this announcement. PGIL assumes no obligation in respect of, and does not intend to update, these forward-looking statements, except as required pursuant to applicable law.
Link to full announcement