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Russian gold giant Polyus becomes global leader by reserves

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(Kitco News) - Russian gold mining company Polyus (LSE, MOEX - PLZL) announced today that the company's total Proved and Probable ore reserves have increased 71% to 104 million ounces of gold as at 31 December 2020, compared to 61 million ounces of gold as at 31 December 2019.

This makes Polyus the largest gold mining company globally ranked by reserves. The second largest gold reserves holder, Newmont, reported 94.2 million ounces in reserves for 2020.

The company said that the updated estimate primarily reflects the inclusion of ore reserves for Sukhoi Log as well as additions at several operating mines, derived from a comprehensive drilling program across the company's asset portfolio launched in 2018.

The company's Measured, Indicated and Inferred mineral resources are estimated at 204 million ounces of gold, compared to 188 million ounces of gold as at 31 December 2019.

CEO Pavel Grachev commented, "Polyus is now confirmed to have the largest reserve base globally, with approximately 97% of these reserves attributable to our operating mines and our flagship greenfield project, Sukhoi Log, where we plan to complete the Bankable Feasibility Study and make a final investment decision on the project in 2022. This is further confirmation of the company's ability to maintain long-term sustainable gold production. We will proceed with exploration activities across the group aimed at expanding our resource base."

Polyus is the world's fourth-largest gold mining company by production volumes and the largest gold miner in terms of attributable gold ore reserves. The company demonstrates the lowest production costs among major global gold producers. Its principal operations are located in Siberia and the Russian Far East: Krasnoyarsk, Irkutsk and Magadan regions and the Republic of Sakha (Yakutia).

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