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Russian gold mining giant Polyus reports Q1 2021 production decline

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(Kitco News) - Polyus, the largest gold producer in Russia and a top 5 gold producer globally, announced Monday that its total gold output amounted to 592 thousand ounces in Q1 2021, compared to 710 thousand ounces in Q4 2020 and 595 thousand ounces in Q1 2020.

The company said that the decline in production compared to Q4 2020 was driven by a seasonal slowdown in production at Alluvials and lower refined gold volumes at Olimpiada, Blagodatnoye and Natalka.

According to Polyus, a decrease in refined gold volumes at Blagodatnoye and Natalka mainly reflects changes in gold in inventory at the refinery. Volumes of ore mined amounted to 16,639 thousand tonnes, down 4% on the previous quarter, reflecting lower ore volumes mined at Olimpiada and Natalka.

Volumes of ore processed increased 7% quarter-on-quarter to 11,126 thousand tonnes, primarily due to the higher processing volumes at Olimpiada, Blagodatnoye and Natalka.

Recovery rate decreased to 81.6%, compared to 83.9% in the previous quarter, driven by lower recoveries at Olimpiada, Blagodatnoye and Natalka.

Estimated gold sales amounted to $1,017 million, down 32% compared to the previous quarter, with an estimated weighted-average gold selling price of $1,788/oz (down 4% on the fourth quarter of 2020).

The company said that its production target for 2021 remains unchanged and stands at 2.7 million ounces of gold.

Polyus is the largest gold producer in Russia and a top 5 gold producer globally with one of the lowest cost profiles. The company also holds the world’s third largest gold reserves with 61 million ounces of proven and probable gold reserves underpinning its strong growth profile.

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