BAKU, Azerbaijan, Jan. 29
By Nargiz Sadikhova - Trend:
Polymetal International plc, which is a top-10 global gold producer and top-5 global silver producer with assets in Russia and Kazakhstan reiterates its current production guidance of 1.5 million ounces of gold equivalent (GE) for FY2021 and 1.6 million ounces of GE for FY2022, Trend reports citing the company.
Total Cash Costs (TCC) of the company in 2021 is expected to be in the range of $700-750 per GE ounces. The year-on-year TCC increase is expected to be driven by rouble and tenge appreciation compared to average 2020 levels, increasing domestic diesel fuel price driven by higher Brent oil prices, above-CPI wage inflation in the mining industry, the full-year impact of COVID-related measures.
The guidance remains contingent on the Rouble/Dollar and Tenge/Dollar exchange rates and Brent oil price, the company said.
The company’s capital expenditures in 2021 are expected to be approximately $560 million. A $75 million increase compared to the previous guidance is driven by:
- Limited availability and sharp increases in construction labor costs. This factor is driven by COVID-related travel restrictions with Central Asian countries, a traditional source of the majority of the construction workforce.
- Sharp increases in domestic diesel fuel and steel prices.
- Higher EUR/USD exchange rate (imported processing and mining equipment mainly sourced from the EU).
- Construction of on-site observatory facilities for personnel at remote sites.
Polymetal International plc is a top-10 global gold producer and top-5 global silver producer with assets in Russia and Kazakhstan listed on the London Stock Exchange, Moscow Stock Exchange, and Astana International Exchange. The company is a member of FTSE 100, FTSE Gold Mines, and MSCI Russia. Polymetal has a portfolio of nine producing gold and silver mines and an impressive pipeline of future growth projects.
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