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Polyus says its gold production to decline in 2021, expects investment decision on Sukhoi Log in 2022

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(Kitco News) - Polyus (LSE, MOEX - PLZL), the largest gold producer in Russia and fourth-largest gold mining company by production globally, today reiterated its production target for 2021 at ca. 2.7 million ounces of gold, which is 3% less compared to 2020 (2.77 million ounces).

The company said it anticipates that gold output will decrease this year compared to 2020, mainly due to a temporary decline in grades at Olimpiada. This decline is expected to be partially offset thanks to debottlenecking projects at Olimpiada, Natalka and Verninskoye.

In 2022, the company expects to produce ca. 2.8 million ounces of gold. The year-on-year increase in gold output will mainly be driven by Olimpiada, where it will reflect a partial recovery of grades as well as the completion of the throughput capacity expansion project to 15.0 million tonnes per annum.

In 2023, Polyus expects gold production to total ca. 2.9 million ounces. An increase in gold output is expected to reflect a further recovery of grades at Olimpiada, the first positive impacts of the throughput capacity expansion project at Kuranakh and a set of smaller scale initiatives.

The company added it is making progress with the development of its main greenfield project, Sukhoi Log. The project is currently in the Feasibility Study stage with plans to disclose key highlights of the study in 2022. A final investment decision on Sukhoi Log is expected to be made by the year-end 2022, Polyus noted.

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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