Polyus increases gold production

The largest gold producer in Russia, Polyus, has published another record quarterly report. Third-quarter production increased 16% year-over-year to 642,000 ounces.

Gold production in the first nine months of the year reached 1.58 Moz, an increase of 13%, and CEO Pavel Grachev said the company is confident it will meet its previously announced 2017 production guidance of 2.075-2.125 Moz.

During the quarter, the company operated at all of its mines, and ore volumes increased 45% to 9.92 million tonnes. Ore processing rose 12% to 7.3 million tonnes during the reporting quarter, and production capacity was complete or nearly complete, according to the company.

The company is also unique in the top-tier alluvial miners, contributing 116,000 ounces in the first nine months of the year.

Over the next two years, the company intends to dramatically increase production with the $ 2.2 billion Natalka mine, which was commissioned in September.

Polyus projects gold production of 2.8 million ounces in 2019, as by the end of next year, at the foot of Natalka, production will increase to 420-470 thousand ounces, and at least half a dozen drilling projects will begin.

Polyus boasts the second largest gold reserve in the world at 71 million ounces, and in July the company signed an agreement with the Russian conglomerate Rostets, which will eventually secure 100% ownership of the legendary Sukhoi Log field. Polyus argues that a feasibility study for the Sukhoi Log field in the far east of the country should be completed in three to four years.

Polyus, having exited Norilsk Nickel in 2006, returned to the London Stock Exchange in June, raising $ 879 million, offering a valuation of the company at $ 9 billion.