Press releases

2021 Capital Markets Day and Corporate Update

PJSC Polyus (LSE, MOEX — PLZL) (“Polyus”, the “Company”), the largest gold producer in Russia, is today hosting a Capital Markets Day for investors and analysts. The event will be live streamed via webcast.

During the Capital Markets Day, Polyus’ senior management will provide an update on the Company’s existing operations and development projects, as well as discussing the Company’s financial performance and ESG priorities.

The presenting team will comprise:

  • Pavel Grachev, Chief Executive Officer
  • Mikhail Stiskin, Senior Vice President, Finance and Strategy
  • Vladimir Polin, Senior Vice President, Operations
  • Other members of the senior management team

Pavel Grachev, Chief Executive Officer of PJSC Polyus, commented:

Polyus continues to advance on its development projects and focus on improving efficiency of its operations. We identified new growth options at Olimpiada and Kuranakh, and proceed with the implementation of brownfield initiatives at Blagodatnoye and Natalka.

In addition, we are making progress with the development of our main greenfield project, Sukhoi Log, where we are currently in the Feasibility Study stage with plans to disclose key highlights of the study in 2022.

Besides that, we are implementing important ESG projects such as our switch to renewable electricity, to make sure that Polyus is a sustainable business managed in accordance with the best corporate governance standards and creating value for all our stakeholders.

2021-2023 Gold Production Guidance

  • Polyus reiterates its production target for 2021 at ca. 2.7 million ounces of gold. As highlighted previously, the Company 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.

2021-2023 Total Cash Cost Guidance

  • Polyus reiterates its cost guidance for 2021 and expects TCC to stay within the range of $425-$450 per ounce. The Company anticipates a gradual increase in TCC from 2020 levels, driven by inflationary factors, a temporary decline in head grades at Olimpiada, a decrease in the share of lower-cost flotation concentrate, and lower antimony by-product credit.
  • In 2022-2023, Polyus expects inflationary pressures to be partially offset due to the implementation of cost-containment initiatives across the group, including operational efficiency. In addition, Polyus anticipates a recovery in head grades at the Krasnoyarsk business unit in 2022-2023 will positively impact the groups’ cost performance.
  • As a result, the Company sets its total cash cost guidance at $425-$450 per ounce for 2022 and at $400-$450 per ounce for 2023. Polyus’ TCC guidance is presented in real US dollar terms and based on assumptions of a foreign exchange rate of 65 roubles per dollar and a gold price of $1,300 per ounce.

2021-2023 Capital Expenditure Guidance

  • Capex guidance for 2021 remains intact at $1.0-$1.1 billion.
  • In 2022 and 2023, capex is expected to stay within the range of $1.1-$1.2 billion and $1.0-1.1 billion, respectively.
  • An increase in capex relative to 2020 levels mainly reflects the inclusion of the Mill-5 construction project into the project pipeline alongside the ongoing development of Sukhoi Log (engineering studies and exploration) and the implementation of other operational and IT projects across the group.
  • The above-mentioned projections include Sukhoi Log’s preparation capital expenditure, which comprises of:
    • Pre-construction CAPEX — project team staffing, engineering and exploration activities in the amount of ca. $50-70 mln per year, and
    • Part of construction CAPEX — early start of internal infrastructure spending in aggregate amount of ca.US$200-300 mln for 2021-2023.
  • Capex guidance is presented in real US dollar terms and based on the assumption of a foreign exchange rate of 65 roubles per dollar.
2021 2022 2023
Production, moz Ca. 2.7 Ca. 2.8 Ca. 2.9
TCC, $/oz 425 — 450 425 — 450 400 — 450
Capex, $bln 1.0 — 1.1 1.1 — 1.2 1.0 — 1.1

Projects Update

Polyus’ mid-term priorities are related to the further debottlenecking of its existing operations as well as the development of Sukhoi Log.

  • Olimpiada
    • New expansion project: Polyus expects to increase the throughput capacity at the Olimpiada processing complex from current 14.3 million tonnes per annum to 15.0 million tonnes per annum by mid-2022. The project includes the upgrade of grinding, crushing, gravity and flotation circuits and a number of initiatives related to infrastructure development.
    • BIO upgrade: Polyus is currently evaluating additional options to improve BIO efficiency at Olimpiada. Potential enhancements include a cooling system upgrade, the installation of additional magnetic separator lines, the installation of four additional bio-reactors and the further automation of technological processes. These BIO upgrade initiatives are expected to ensure sufficient BIO capacity for the throughput expansion project to 15 million tonnes per annum.
  • Blagodatnoye
    • Mill-5 construction: according to the Feasibility Study, the construction project assumes a nominal processing capacity of 8.0 million tonnes per annum. This will bring the total throughput capacity at the Blagodatnoye complex to 17.0 million tonnes per annum. Polyus expects to launch Mill-5 in 2025.
  • Verninskoye
    • Expansion project: Polyus successfully completed the expansion of the Verninskoye Mill’s throughput capacity in the second quarter of 2021. The project, which was launched in the fourth quarter of 2019, was completed ahead of its initial schedule (the second half of 2021). The Mill has now reached its target hourly throughput rate of 450 t/h and is currently running at an annualized capacity of 3.5 million tonnes.
  • Kuranakh
    • New expansion project (Stage 4): Polyus expects to increase the throughput capacity at Kuranakh from current 6.1 million tonnes per annum to 7.5 million tonnes per annum in 2024. The project assumes an upgrade of the crushing and grinding circuit as well as the installation of additional agitation tanks and adsorption lines. In addition, Polyus will introduce a desorption line consisting of five regeneration columns.
  • Natalka
    • Further debottlenecking: Polyus is progressing with operational efficiency improvement initiatives aimed at expanding the throughput capacity of the Natalka Mill up to 12.5 million tonnes per annum in 2021-2022. In addition, the Company is focused on improving the recovery rate at Natalka and is currently calibrating a new flash flotation flowsheet.
  • Sukhoi Log
    • The Feasibility Study is currently ongoing, key highlights will be disclosed in 2022.
    • A final investment decision on Sukhoi Log is expected to be made by the year-end 2022.

The Capital Markets Day presentation is available to download from Polyus’ website:

The event webcast will start today at 12:00 pm BST / 14:00 MSK. To join the webcast, please visit


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).


Investor and Media contact

Victor Drozdov, Director Investor Relations
+7 (495) 641 33 77

Forward looking statement

This announcement may contain “forward-looking statements” concerning Polyus and/or Polyus group. Generally, the words “will”, “may”, “should”, “could”, “would”, “can”, “continue”, “opportunity”, “believes”, “expects”, “intends”, “anticipates”, “estimates” or similar expressions identify forward-looking statements. The forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Forward-looking statements include statements relating to future capital expenditures and business and management strategies and the expansion and growth of Polyus’ and/or Polyus group’s operations. Many of these risks and uncertainties relate to factors that are beyond Polyus’ and/or Polyus group’s ability to control or estimate precisely and therefore undue reliance should not be placed on such statements which speak only as at the date of this announcement. Polyus and/or any Polyus group company assumes no obligation in respect of, and does not intend to update, these forward-looking statements, except as required pursuant to applicable law.