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Russia's Polyus reports gold production decline in 2022, expects higher output in 2023

Kitco News

(Kitco News) - Polyus, Russia’s largest and a major gold producer globally, reported today that its total gold output in 2022 was 2,541 thousand ounces, down 6.5% compared to 2,717 thousand ounces produced in 2021.

The company said that the decrease in production was primarily driven by lower production of refined gold at Olimpiada due to temporary decline in grades in ore processed.

Polyus explained that management intentionally decided to downscale excavation volumes versus the initial mining calendar accounting for elevated risks of potential disruptions in supply chains for spare parts and mining equipment.

“This led to a delayed access to high-grade zones of the ore body,” the company noted in a statement.

Another reason for lower gold production in 2022 was an anticipated decrease in head grades at Blagodatnoye and Natalka.

Polyus expects gold production for the full year of 2023 to reside within the range of 2.8 — 2.9 million ounces.

The year-on-year increase in production is expected to be mainly driven by higher grades in ore processed at Olimpiada since Polyus will be mining rich gold-bearing zones of the Vostochny pit.

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 largest gold reserves with 104 million ounces of proven and probable gold reserves underpinning its strong growth profile.

The company’s principal operations are located in Krasnoyarsk Territory, Irkutsk Region, Magadan Region and the Republic of Sakha (Yakutia) and include 5 operating mines, alluvial operations and several advanced development projects.

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