This release may include statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements speak only as at the date of this release. These forward-looking statements can be identified by the use of forward-looking terminology, including the words "targets", "believes", "expects", "aims", "intends", "will", "may", "anticipates", "would", "could" or "should" or similar expressions or, in each case their negative or other variations or by discussion of strategies, plans, objectives, goals, future events or intentions. These forward-looking statements all include matters that are not historical facts. By their nature, such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the company's control that could cause the actual results, performance or achievements of the company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the company's present and future business strategies and the environment in which the company will operate in the future. Forward-looking statements are not guarantees of future performance. There are many factors that could cause the company's actual results, performance or achievements to differ materially from those expressed in such forward-looking statements. The company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in the company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based.

KYZYL 


                            3 months ended Sep 30,           9 months ended Sep 
                                                    % change 30,                   % change 
                            2021        2020                 2021       2020 
MINING 
Waste mined, Mt             21.2        20.0        +6%      62.0       58.0       +7% 
Ore mined (open-pit), Kt    574         513         +12%     1,672      1,555      +8% 
 
PROCESSING 
Ore processed, Kt           550         509         +8%      1,683      1,515      +11% 
Gold grade, g/t             6.1         7.4         -18%     6.2        8.0        -23% 
Gold recovery               88.4%       89.0%       -1%      89.1%      87.8%      +1% 
Concentrate produced, Kt    28.9        37.2        -22%     98.1       110.2      -11% 
Concentrate gold grade, g/t 102.3       90.6        +13%     94.3       96.4       -2% 
Gold in concentrate, Koz1   95          108         -12%     297        341        -13% 
 
Concentrate shipped, Kt     9.7         21.1        -54%     58.1       68.3       -15% 
Payable gold shipped, Koz   18          40          -55%     104        132        -21% 
 
Amursk POX 
Concentrate processed, Kt   19          15          +28%     44         44         +1% 
Gold grade, g/t             133.8       147.8       -9%      133.9      143.8      -7% 
Gold recovery               93.1%       92.6%       +1%      92.1%      92.1%      +0% 
Gold produced, Koz          74          62          +19%     170        183        -7% 
 
TOTAL PRODUCTION 
Gold, Koz                   91          102         -10%     274        314        -13%

Note: (1) For information only; not considered as gold produced and therefore not reflected in the table representing total production. It will be included in total production upon shipment to off-taker or dore production at Amursk POX.

(2) To be further processed at Amursk POX.

In Q3, gold production at Kyzyl continued to be impacted by the planned grade decline towards the reserve average. The impact was partially compensated by increase in throughput with the concentrator currently running at the upper limit of tailings disposal license. As a result, quarterly output decreased by 10% y-o-y to 91 Koz.

Concentrate shipments to China experienced disruptions related to acute rail car and ship deficit due to Chinese anti-COVID precautionary measures at seaports and railway crossings. The Company expects the sales/production gap to close fully by year-end. ALBAZINO 


                            3 months ended Sep 30,           9 months ended Sep 
                                                    % change 30,                   % change 
                            2021        2020                 2021       2020 
MINING 
Waste mined, Mt             5.7         5.2         +8%      16.3       15.1       +8% 
incl. Kutyn                 0.5         -           NA       0.5        NA         - 
Underground development, km 4.5         2.5         +79%     11.7       8.7        +34% 
Ore mined, Kt               581         421         +38%     1,530      1,401      +9% 
Open-pit                    382         249         +53%     958        905        +6% 
Underground                 199         172         +16%     572        497        +15% 
 
PROCESSING 
Albazino concentrator 
Ore processed, Kt           458         429         +7%      1,329      1,320      +1% 
Gold grade, g/t             4.3         4.7         -8%      4.2        4.6        -10% 
Gold recovery1              89.4%       88.4%       +1%      88.8%      86.8%      +2% 
Concentrate produced, Kt    37.6        34.9        +8%      104.1      107.6      -3% 
Concentrate gold grade, g/t 46.7        50.3        -7%      47.6       49.5       -4% 
Gold in concentrate, Koz2   56.6        56.5        +0%      159.3      171.2      -7% 
 
Amursk POX 
Concentrate processed, Kt   42.1        40.8        +3%      124.5      126.5      -2% 
Gold grade, g/t             50.1        49.2        +2%      50.3       51.5       -2% 
Gold recovery               96.4%       96.5%       -0%      96.4%      96.5%      -0% 
Gold produced, Koz          67          65          +3%      189        204        -7% 
 
TOTAL PRODUCTION 
Gold, Koz                   67          65          +3%      189        204        -7%

Notes: (1) To concentrate.

(2) For information only; not considered as gold produced and therefore not reflected in the table representing total production. Included in total production after Dore production at the Amursk POX.

At Albazino, grade eroded y-o-y as the high-grade Anfisa pit approaches full depletion. Persistently challenging geotechnical conditions in the underground mine led to increased dilution and losses. The action plan to shift to sublevel caving has been developed with the goal to achieve transition at deep levels by the end of 2022. The management believes unit mining costs and productivity can be improved with the new mining method while mining losses and grades can be maintained at current levels.

Waste and mining volumes were higher y-o-y on the back of Farida open pit development. Underground development almost doubled due to ramping-up Ekaterina and Anfisa underground mines.

Grade decline has been fully compensated by increasing throughput to record levels and improving recoveries. Overall quarterly gold production at the Albazino-Amursk hub increased by 3% to 67 Koz due to processing of higher-grade third-party concentrate at the Amursk POX.

At Kutyn heap leach project, pre-stripping has started following the receipt of final development permits.

AMURSK POX 


                          3 months ended Sep 30,           9 months ended Sep 
                                                  % change 30,                   % change 
                          2021        2020                 2021       2020 
Concentrate processed, Kt 61          56          +10%     171        170        +1% 
    Albazino              39          40          -2%      116        119        -2% 
    Kyzyl                 19          15          +28%     44         44         +1% 
    Mayskoye              -           -           NA       3          -          NA 
    Veduga                            -           NA       4          3          +38% 
    Other1                3           1           +232%    4          4          -6% 
Gold recovery             94.6%       94.5%       +0%      94.2%      94.3%      -0% 
Average gold grade, g/t   76.3        75.5        +1%      72.0       75.3       -4% 
Average sulphur grade     13.8%       14.4%       -4%      13.8%      14.1%      -2% 
Total gold produced2, Koz 140         129         +9%      364        390        -7% 
    Kyzyl                 74          62          +19%     170        183        -7% 
    Albazino              59          65          -9%      171        176        -3% 
    Veduga                1           -           NA       11         19         -43% 
    Mayskoye              0           -           NA       5          0          NM 
    Other1                7           0           NA       8          10         -25%

Notes: (1) Purchased concentrates which are included in reportable production in the Albazino segment.

(2) For information only. Already accounted for in production at operating mines.

POX quarterly output was up y-o-y due to higher volumes of Kyzyl and third-party high-grade concentrate in the feedstock.

A planned two-week autoclave maintenance shutdown in October went smoothly and has not identified any material issues.

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October 26, 2021 03:24 ET (07:24 GMT)