GV Gold и Правительство Республики Саха (Якутия) подписали соглашение о сотрудничестве 14.12.2018 GV Gold и Правительство Республики Саха (Якутия) подписали соглашение о сотрудничестве
Соглашение подписано в рамках выставки «Дни Дальнего Востока», проходящей в Москве 13-15 декабря.

Name:  GV Gold and Government of Republic of Sakha (Yakutia) Signed the Cooperation Agreement
Detail text: 

GV Gold (Vysochaishy, PJSC) and the Government of the Republic of Sakha (Yakutia) signed the agreement on long-term cooperation in the area of social and economic development.

The agreement is signed by GV Gold CEO German Pikhoya and the Head of the Republic of Sakha (Yakutia) Aysen Nikolaev within the framework of the “Far East Days” exhibition which took place in Moscow on December 13-15.

In the course of the meeting, the parties discussed the results of the Company’s activity within the Republic of Sakha (Yakutia) in the Oimyakon and Aldan Areas as well as the trends for further cooperation aimed at development of the economics, preservation of the environment, growth of the employment and welfare of the population in the region at the optimum utilization of the GV Gold’s production potential.

Company Profile

GV Gold (Vysochaishy, PJSC) is one of largest and fastest growing Russian gold mining companies. It develops open pit deposits and washes gold at the country’s largest alluvial deposit. In 2017, the Company produced 225 koz of gold, becoming the 7th largest gold miner in Russia. In 2018, the Company expects to produce 280-300 koz.

Its key operating assets are located in the Irkutsk Region and the Republic of Sakha (Yakutia). The Company operates four mines with a total capacity of 8 Mtpa of ore and holds 20 mining and exploration licenses. GV Gold boasts an extensive resource base, with JORC reserves and resources estimated at 4.4 Moz and 7.0 Moz, respectively.

The Company adheres to high corporate governance standards and has a transparent ownership structure, with BlackRock among its shareholders (17.99%).

For further information, please visit http://gvgold.ru


13.12.2018 Совет директоров GV Gold дал рекомендацию по выплате дивидендов за 9 месяцев 2018 года

Совет директоров ПАО «Высочайший»дал рекомендацию внеочередному собранию акционеров (ВОСА) выплатить промежуточные дивиденды по результатам 9 месяцев 2018 года

Name:  GV GOLD BOARD OF DIRECTORS RECOMMENDS DIVIDEND FOR 9m 2018
Detail text: 

The Board of Directors of GV Gold (Vysochaishy, PJSC), together with its subsidiaries ("GV Gold", "Vysochaishy" or the "Company"), one of the largest and fastest growing gold producers in Russia, has recommended the dividends for 9m 2018 totalling RUB 1,9 B.

The Board’s recommendation is subject to approval at an Extraordinary General Meeting of shareholders (EGM) scheduled for 28 December 2018.

Company profile

GV Gold (Vysochaishy, PJSC) is one of largest and fastest growing Russian gold mining companies. It develops open pit deposits and washes gold at the country’s largest alluvial deposit. In 2017, the Company produced 225 koz of gold, becoming the 7th largest gold miner in Russia. In 2018, the Company expects to produce 280-300 koz of gold.

Its key operating assets are located in the Irkutsk Region and the Republic of Sakha (Yakutia). The Company operates four mines with a total capacity of 8 mtpa of ore and holds 20 mining and exploration licenses. GV Gold boasts an extensive resource base, with JORC reserves and resources estimated at 4.4 moz and 7.0 moz, respectively.

The Company adheres to high corporate governance standards and has a transparent ownership structure, with BlackRock among its shareholders (17.99%).

For further information, please visit http://gvgold.ru


06.12.2018 GV Gold подписал экспортный договор с Societe Generale на 100 млн долл. США
5 декабря 2018 года ПАО «Высочайший» (GV Gold) и Группа Societe Generale подписали договор на поставку аффинированного золота на условиях авансирования на сумму 100 млн долл. США. Срок договора — 3 года. Name:  GV Gold Signed the Export Contract with Societe Generale for USD 100 M
Detail text: 

On December 05, 2018, GV Gold (Vysochaishy, PJSC) and Societe Generale Group signed the refined gold supply agreement for the amount of USD 100 M on the advance payment terms. The agreement is valid for 3 years. 

 In accordance with the terms of the deal, the Company receives the funds immediately and supplies the precious metal to the Bank on the monthly basis (c. 3 koz a month). Settlements for the supplied refined gold shall be performed based on the LBMA morning fixing with no gold price hedging provided for.

The funds shall be used for the GV Gold Group’s credit exposure reduction and the investment program implementation.

 Company profile

 GV Gold (Vysochaishy, PJSC) is one of largest and fastest growing Russian gold mining companies. It develops open pit deposits and washes gold at the country’s largest alluvial deposit. In 2017, the Company produced 225 koz of gold, becoming the 7th largest gold miner in Russia. In 2018, the Company expects to produce 280-300 koz of gold.

 Its key operating assets are located in the Irkutsk Region and the Republic of Sakha (Yakutia). The Company operates four mines with a total capacity of 8 mtpa of ore and holds 20 mining and exploration licenses. GV Gold boasts an extensive resource base, with JORC reserves and resources estimated at 4.4 moz and 7.0 moz, respectively.

 The Company adheres to high corporate governance standards and has a transparent ownership structure, with BlackRock among its shareholders (17.99%).

 For further information, please visit http://gvgold.ru


Preivew text: 

On December 05, 2018, GV Gold (Vysochaishy, PJSC) and Societe Generale Group signed the refined gold supply agreement for the amount of USD 100 M on the advance payment terms. The agreement is valid for 3 years. 


30.11.2018 GV Gold досрочно заплатил за Светловское рудное поле

Компания досрочно внесла разовый платеж за пользование недрами в размере 697,444 млн рублей.

Name:  GV Gold Paid for Svetlovskoye Ore Field Ahead of Schedule
Detail text: 

GV Gold (Vysochaishy, PJSC) obtained the license granting the right to use the subsurface plot of the Svetlovskoye Ore Field located in the Bodaibo Area. The Company made a one-off payment for the subsurface exploitation in the amount of RUB 697.444 million ahead of the schedule.

The Svetlovskoye Ore Field’s total prognostic resources of the P1 category are estimated at 61 t, of the P2 category – at 59 t. The average grade is c. 2g/t. The site has an area of 40 km2. The license is valid for 25 years.

In 2019, GV Gold plans to commence the large scale exploration for further appraisal of the asset, drafting of the cutoff grade estimation report and registration of the reserves on the state balance.

Company profile

GV Gold (Vysochaishy, PJSC) is one of largest and fastest growing Russian gold mining companies. It develops open pit deposits and washes gold at the country’s largest alluvial deposit. In 2017, the Company produced 225 koz of gold, becoming the 7th largest gold miner in Russia. In 2018, the Company expects to produce 280-300 koz of gold.

Its key operating assets are located in the Irkutsk Region and the Republic of Sakha (Yakutia). The Company operates four mines with a total capacity of 8 mtpa of ore and holds 20 mining and exploration licenses. GV Gold boasts an extensive resource base, with JORC reserves and resources estimated at 4.4 moz and 7.0 moz, respectively.

The Company adheres to high corporate governance standards and has a transparent ownership structure, with BlackRock among its shareholders (17.99%).

For further information, please visit http://gvgold.ru


 



16.11.2018 GV Gold получит субсидию для развития Тарынского ГОКа
Строительство новой ВЛ 35 кВ «Нера-Ольчан» - «ЗИФ» позволит обеспечить бесперебойное электроснабжение действующего предприятия, его дальнейшее развитие, Name:  GV Gold will get the Subsidy for Taryn Mine Power Line Construction
Detail text: 

The Chairman of the Government of the Russian Federation Dmitry Medvedev signed a directive on provision of the subsidy funds for  new power line “Nera-Olchan” – “Plant” construction within the framework of establishment of Taryn Mine infrastructure in the Oimyakon Area of the Republic of Sakha (Yakutia).

 A resolution on distribution of the federal budget funds for the new 90 km power line construction was made as the meeting of a subcommittee for implementation of investment projects in the Far East and the Baikal Region of the government committee for the social and economic development. GV Gold will get the funding in the amount of RUB 638 million. The funding will be provided within the framework of redistribution of the funds as the result of replacement of the infrastructural facility for the construction of which the infrastructural state subsidy has been provided. The investor (GV Gold) requested to retarget the funds allocated for reconstruction of a motor road for construction of the high voltage power line VL-35 kV and the step-down substation 35/6 kV.

 Taryn Mine was launched in September 2017. Processing capacities of the mill total 700 kt of ore p.a. The mine power supply is currently effected with two power lines “Nera-Nelkan” and “Nera-Drazhny”, constructed in 1952 and 1986. Owing to a significant wear of the lines, power shutdowns, undervoltages and overvoltages take place at the Mine resulting in the downtime of the mill.

Construction of the new high voltage power line VL 35 kV “Nera-Olchan” – “Mill” will allow to provide an uninterrupted power supply of the acting enterprise, its further development, including construction of the second stage of the mine, will promote a ramp up of the production capacities from 700 to 1,900 kt of ore p.a. and will allow to create more than 100 jobs by 2022-2023.                                       

Company Profile

GV Gold (Vysochaishy, PJSC) is one of largest and fastest growing Russian gold mining companies. It develops open pit deposits and washes gold at the country’s largest alluvial deposit. In 2017, the Company produced 225 koz of gold, becoming the 7th largest gold miner in Russia. In 2018, the Company expects to produce 280-300 koz.

Its key operating assets are located in the Irkutsk Region and the Republic of Sakha (Yakutia). The Company operates four mines with a total capacity of 8 mtpa of ore and holds 20 mining and exploration licenses. GV Gold boasts an extensive resource base, with JORC reserves and resources estimated at 4.4 moz and 7.0 moz, respectively.

The Company adheres to high corporate governance standards and has a transparent ownership structure, with BlackRock among its shareholders (17.99%).

For further information, please visit http://gvgold.ru


15.11.2018 GV Gold начнет геологоразведку Светловского рудного поля
Общие прогнозные ресурсы участка «Светловское рудное поле» категории Р1 составляют 61 т, прогнозные ресурсы категории Р2 — 59 т. Name:  GV Gold Will Commence the Svetlovskoye Ore Field Exploration
Detail text: 

On October 30, 2018, GV Gold (Vysochaishy, PJSC) won the bidding for the geological surveying, exploration and production of gold from the hardrock deposits within the Svetlovskoye ore field. The Company’s bid for the asset totaled RUB 697,444,000 at the starting bid of RUB 69,053,000.

 The P1 category prognostic resources of the Svetlovskoye ore field totaled 61 t, the P2 category resources - 59 t. The average grade is c. 2 g/t. The license site area is 40 sq.km. The license is valid for 25 years.

The Svetlovskoye ore field is located in the Bodaibo Area of the Irkutsk Region – the area where GV Gold traditionally operates. The distance to the Vysochaishy Mine is 80 km along the existing road or 45 km – in case of a new road construction. The northwestern ore field’s part borders on the nearest settlement of Svetly, connected with Kropotkin with the IV category motor road (47 km long). There is a high voltage power line LEP-110 kV of the Mamakan Hydropower Station at Svetly.

The Svetlovskoye ore field is a part of the Tunguss ore cluster hosting the Sukhoi Log, Verninskoye, Nevskoye and Ozhereliye deposits. In 2019, GV Gold plans to commence the large scale exploration aimed at further appraisal of the asset, development of the cut-off grade estimation report and registration of the reserves on the state balance.                                          

Company Profile

GV Gold (Vysochaishy, PJSC) is one of largest and fastest growing Russian gold mining companies. It develops open pit deposits and washes gold at the country’s largest alluvial deposit. In 2017, the Company produced 225 koz of gold, becoming the 7th largest gold miner in Russia. In 2018, the Company expects to produce 280-300 koz.

Its key operating assets are located in the Irkutsk Region and the Republic of Sakha (Yakutia). The Company operates four mines with a total capacity of 8 mtpa of ore and holds 20 mining and exploration licenses. GV Gold boasts an extensive resource base, with JORC reserves and resources estimated at 4.4 moz and 7.0 moz, respectively.

The Company adheres to high corporate governance standards and has a transparent ownership structure, with BlackRock among its shareholders (17.99%).

For further information, please visit http://gvgold.ru


07.11.2018 GV Gold выиграл аукцион на участок «Светловское рудное поле»
Ресурсы по категории P1+P2 оцениваются в 120 тонн золота Name:  GV Gold won bidding for the ‘Svetlovskoye Ore Field’ site
Detail text: 

On 30th October 2018 GV Gold (PJSC ‘Vysochaishy’) won bidding for the geological study, exploration and extraction of gold from the hardrock (ore) deposits at the ‘Svetlovskoye Ore Field’ site, located in the Bodaibo area of the Irkutsk Region.

P1 Category of resources of the ‘Svetlovskoye Ore Field’ site amount to 61 tonnes and the P2 Category of resources total 59 tonnes.

Company profile

GV Gold (Vysochaishy, PJSC) is one of largest and fastest growing Russian gold mining companies. It develops open pit deposits and washes gold at the country’s largest alluvial deposit. In 2017, the Company produced 225 koz of gold, becoming the 7th largest gold miner in Russia. GV Gold boasts an extensive resource base, with JORC reserves and resources estimated at 4.4 moz and 7.0 moz, respectively.

Its key operating assets are located in the Irkutsk Region and the Republic of Sakha (Yakutia). The Company operates six mines with a total capacity of 8 mtpa of ore and holds 20 mining and exploration licences.

The Company adheres to high corporate governance standards and has a transparent ownership structure, with BlackRock among its shareholders (17.99%).

For further information, please visit http://gvgold.ru

18.10.2018 Производственные результаты GV Gold за 3 квартал и 9 месяцев 2018 года

ПАО «Высочайший» (GV Gold), совместно с дочерними предприятиями (далее именуемое «GV Gold», «Высочайший» или «Компания»), публикует производственные результаты за 3 квартал 2018 года и 9 месяцев, закончившиеся 30 сентября 2018 года.

Name:  GV Gold Operational Results for Q3 and 9M 2018
Detail text: 

GV Gold (Vysochaishy, PJSC), together with its subsidiaries ("GV Gold", "Vysochaishy" or "the Company"), published its operational results for Q3 2018 and 9M 2018 ended 30 September 2018.  

Q3 2018 Highlights

  • In Q3 2018 the Company ramped up gold production by 50% y-o-y to 92.5 koz, incl. gold contained in concentrate. The Taryn and Ugakhan Mines, together with higher gold production across other assets of the Company, served as the main drivers of the y-o-y gold production growth.

  • On a q-o-q basis, gold production increased by 27%, driven by the gold production ramp-up in Taryn and Aldan.

  • Volumes of ore mined in Q3 2018 totaled 1,595 kt, up 58% y-o-y, resulting from scheduled mining at the Ugakhan Mine and the output ramp up at the Taryn Mine.

  • Volumes of ore processed rose 38% y-o-y and totaled 2,229 kt, which is associated with the commissioning of new plants at the Ugakhan Mine and the Taryn Mine.

  • Q3 2018 sales of refined gold and concentrate gold are estimated at USD 96 million, up 34% y-o-y and up 19% q-o-q. 

9M 2018 Highlights

  • In 9M 2018, the Company’s gold production increased to 220.3 koz having reached GV Gold’s annual gold production of 2017. Gold output grew by 64% y-o-y as the result of commissioning of production at the Drazhnoye and Ugakhan deposits in 2017, the ramping up of production at Vysochaishy Mine and at the Bolshoy Kuranakh placer deposit.

  • Practically two-fold growth of the volumes of ore mined totaling 5,234 kt (+88%). Such growth is associated with the mining operations at the new mines commissioned last year.

  • An increase in the volumes of ore processed at the Taryn Mine and Ugakhan Mine is the key driver of the respective index of the whole Company. As a result, in the reporting period, the volumes of ore processed grew by 52% to 5,764 kt.

  • The Ugakhan Mine, one of the company’s main development projects, transited into full-scale production. The tonnage of ore processed at the plant totaled 1,872 kt, which corresponded to 100% of the plant’s design capacity (7,920 t/h).

  •  In 9M 2018, the average refined gold selling price remained at the same level as in 9M 2017 and was USD 1,266 /oz.

  • Sales of refined gold and gold concentrate are estimated at USD 241 million, up 55% y-o-y.1  

  •  As of 30 September 2018, the Company’s net debt is estimated at USD 177 million2, having remained at the same level as at the end of 2017.


2018 Guidance

  • The Company has confirmed its production plan for 2018 and expects to produce 280-300 koz. 

Statement from CEO German Pikhoya:

“In 9M 2018, we presented strong operational results. The tonnage of gold produced reached 220.3 koz – as compared to the previous year, each and all assets reflected the gold production ramp up, both quarterly and year-to-date.

“The growth is driven by our strategic projects launched last year. At one of GV Gold’s main development projects - the Ugakhan deposit, the mine started full-scale operation. In terms of the ore throughput tonnages, the plant reached its desired targets and we are taking further steps to improve its operational performance. Another strategic project – the Taryn Mine, continues to demonstrate high operational results – 34.4 koz in Q3 2018, which significantly exceeded the results of the respective periods of previous years.

“I’d like to draw attention to the fact, that in 9M 2018 we produced the same tonnage of gold as we produced over the whole previous year. In the last quarter of the year, we intend to show similarly strong results in order to reach our 2018 targets”.

Health and Safety

The Company carries on undertaking activities to improve the corporate OHS culture, including personal safety.

In Q3 2018, the lost time injury frequency rate (LTIFR)3 totaled 0.21 as compared to 0.14 in the previous quarter. In 9M 2018, the LTIFR totaled 0.17, having improved by 50% y-o-y (in the respective period of the previous year it totaled 0.34).  

LTIFR

          Q3  2018       Q2 2018
     9М 2018      9М 2017      2017
 LTIFR      0.21      0.14      0.17      0.34      0.28

In the reporting period, the Company continued a development and staged introduction of the corporate OHS management standards: “Road Traffic Safety” and “Prompt Notification on Accidents, Incidents and Consequences Thereof”.  

Consolidated Operational Results

In 9M 2018, GV Gold’s production totaled 220.3 koz, including 25.4 koz of gold contained in the Taryn Mine. This index grew by 64% y-o-y as the result of the gold production ramp-up at all production facilities of the Company. Consequently, in 9M 2018, the Company produced a tonnage of gold equivalent to the Company’s annual gold production in 2017. On a q-o-q basis, the gold production increased by 50% due to the seasonal reason of the production in Taryn and Aldan, and totaled 92.5 koz, incl. gold in concentrate.

An increase in the volumes of ore mined (+88% in 9M 2018 and +58% in Q3 2018) is a result of operations at the new mines which were commissioned last year: Taryn Mine and Ugakhan Mine.

With the two newly commissioned plants, GV Gold’s processing capacities grew to about 8 Mt/a. As a result, in 9M 2018, the ore throughput totaled 5,764 kt (+52% y-o-y), in Q3 2018 – 2,229 kt (+38% y-o-y) at the growth of the average grade to 1.36 g/t and 1.39 g/t, respectively. The average recovery rate of 9M 2018 was 86.8%. 

GV Gold Operational Highlights

   Q3 2018 Q3 2017  Y-o-Y    Q2 2018     Q-o-Q   9M 2018   
9M 2017    Y-o-Y 
Rock moved, kt
10,399 13,291      -22% 10,904      -5% 30,983 29,540      5%
Stripping, kt 8,805    12,281      -28% 9,060      -3% 25,749 26,758      -4%
Ore mined, kt
1,595  1,010        58% 1,843        -13% 5,234    2,782      88%
Stripping ratio, t/t
5.5 12.2      -55% 4.9      12% 4.9 9.6      -49%
Ore processed, t
2,229 1,616      38% 1,787      25% 5,764  3,803      52%
Average grade in ore processed, g/t 1.39 1.37      8% 1.41      5% 1.36 1.28      6%
Recovery, %
87.2 86.7  0,5 p.p. 89.6  -2,4 p.p   86.8  86.0    0.8 p.p
Refined gold production, koz
80.3 56.7      42%  63.2      27% 194.9   128.5      52%
Gold contained in concentrate, koz 12.2 5.0      144%  9.4      30%     25.4   6.1  316%
Total gold production, koz. 92.5  61.7      50%   72,6      27%   220.3   134.6    64%

Refined Gold Production by Mine, koz 


   Q3 2018       Q3 2017   Y-o-Y    Q2 2018      Q-o-Q     9M 2018     9M 2017   Y-o-Y 
Golets Vysochaishy
    32.1      31.0 4%      34.4      -7%      101.2      95.6      6%
Marakan     2.2      2.1      5%      1.6      38%      3.8      3.4      12%
Ugakhan     15.2      -      -      10.8      41%      37.8      -      -
Taryn
    22.2      17.1 30%      10.9      104%      38.0      18.3      108%
Bolshoy Kuranakh (placer operations)     8.6      6.5 32%      5.5      56%      14.1      11.2       26% 
 Gold production, koz    80.3    56.7 42%      63.2      27%   194.9   128.5      52%
 Gold contained in concentrate, koz    12.2      5.0  144%      9.4      30%    25.4      6.1      316%
 Total gold production, koz.    92.5     61.7   50%      72.6      27%   220.3   134.6      64%

Operational Results by Mine


Irkutsk Business Unit

Golets Vysochaishy

In Q3 2018, the Golets Vysochaishy Mine’s gold production totaled 32.1 koz, which is below Q2 2018 output owing to average grade decreasing, but up 4% y-o-y. On the y-o-y basis, in 9M 2018 the Company’s gold production increased by 6% and totaled 101.2 koz due to higher throughput and recoveries.

The deposit continued active exploration intended for the Vysochaishy Mine’s LOM extension. In Q3 2018, the mine carried on implementing a program for detailed exploration of the flanks and deeper levels of the deposit. By the middle of 2019 a new cutoff grade estimation report and a calculation of reserves will be prepared for the Golets Vysochaishy deposit.

Vysochaishy Mine Operational Results

       Q3 2018   Q3 2017  Y-o-Y    Q2    Q-o-Q       9M 2018
     9M 2017
 Y-o-Y 
Rock moved, kt
    1,897      4,395       -57%      2,915      -35% 9,573  13,384        -28%
Stripping, kt     1,555        3,946      -61%      2,373        -34% 8,089    11,662       -31%
Ore mined, kt     342      449       -24%      542       -37%      1,484      1,722      -14% 
Stripping ratio, t/t     4.6      4.4       3%      4.4      4%      5.5      4.4      25%
 Ore processed, t     1,117       1,065      5%      1,083      3%      3,243      3,146       3%
Average grade in ore processed, g/t     1.03      1.21         -15%      1.14      -10%      1.15      1.17        -2%
Recovery, %
    84.2       78.6   5.6 p.p      84.5   0.3 p.p      83,2      80.8      2.4 p.p
Refined gold production, koz
    31.1       30.2      3%      33.6       -7%      99.5  94.2        6%
Sands washed, k m3     51.3         49.1       4%      28.8      78%      80.0      79.4      1%
Average grade, g/m3     0.87      0.70         24%      0.90       -3%      0.73       0.72       1%
Refined gold production, koz     0.9      0.8       13%      0.8       13%      1.7      1.4      21%
Total gold production, koz      32.1      31.0      4%      34.4        -7% 101.2       95.6      6%


Marakan

 In 9M 2018, the mine produced 3.8 koz, up 12% y-o-y. Such growth is associated with higher ore throughput (+14%) and higher average grade (+6%). 

Marakan Mine Operational Results

       Q3 2018          Q3  2017  Y-o-Y       Q2  2018 Q-o-Q        9M 2018
     9M 2017
Y-o-Y   
     Rock moved, kt     402      472      -15%      464      -13%      934      1,225       -24%
     Stripping, kt     354      429      -17%      421      -16%      843      1,145      -26%
     Ore mined, kt     48      43      12%      43      11%      91      80      14%
     Stripping ratio, t/t     7.4      10.0      -26%      9.8      -25%      9,3      14.3      -35%
Ore processed, t
    49      43     15%    
        41      20%      90      79      14%
 Average grade in ore processed, g/t     1.97      1.95      1%      1.67      18%      1.84          1.73      6%
    Recovery, %     75.8      81.2 -5.4 p.p.      75.0 0,8 p.p        78.0      80.6   -2.6 p.p
Refined gold production, koz
    2.2      2.1      5%      1.6     38%      3.8      3.4      12%


Ugakhan

The Mine attained its desired ore throughput (2.6 Mt) and moved into full-scale operation. In 9M 2019, the Ugakhan Mine gold production totaled 37.8 koz, in Q3 2018 — 15.2 koz.  

In order to improve the quality of feed ore, the Ugakhan Mine launched two mobile ore crushing and grading complexes for crushing ore and reporting back to the grinding department. As a result, in Q3 2018, the recovery rate was 73.6%.


I

n order to improve operational efficiency even further, the Ugakhan Mine launched the mine fleet dispatching program. On top of this, the mine acquired composite rubber-metal lining for the mills to improve the performance of the grinding equipment. 

Ugakhan Mine Operational Results 


  Q3  2018   Q3  2017  Y-o-Y     Q2 2018        Q-o-Q        9M 2018
     9M2017
        Y-o-Y 
     Rock moved, kt      4,371  -  -      4 025      9% 12,258  -  -
     Stripping, kt      3,467  -  -      3 073      13%      9,267  -  -
     Ore mined, kt     904  -  -      952      -5%      2,991  -  -
     Stripping ratio, t/t     3.8  -  -      3.2      19%      3.1  -  -
     Ore processed, t     741  257 188%      496      49%      1,872       257      629%
Average grade in ore processed, g/t
    0.87  -  -      0.99      -12%     0.93     -  -
Recovery, %
    73.6  -  -      68.4   5.2 p.p.      67.5  -  -
 Refined gold production, koz     15.2   -  -      10.8       41%      37.8  -  -

Taryn Business Unit

Taryn


After the project was launched in the summer of 2017 and first reached its desired targets, the Taryn Mine has been showing persistently high operational results. In Q3 2018, the mine produced a record-breaking 34.4 koz, including 12.2 koz of gold contained in concentrate. 

In 9M 2018, the gold production totaled 63.4 koz, which was to a large extent associated with a significant growth of ore throughput (to 558 kt) and higher grades of processed ore (up to 3.97 g/t). In the reported period, the mine launched a mobile ore crushing and grading complex for crushing ore and reporting back to the mill. This step was taken within the framework of the mill’s operational efficiency improvement program.

Mineral resource base expansion is still a strategic objective of the Taryn Mine, the achievement of which would impact the Company’s decision in regard to the feasibility of construction of the second stage of the Taryn Mine. This summer, the Drazhnoye deposit license area follow-up exploration program was launched. The drilling program will be complete by the end of November 2018, and the new cutoff grade estimation report will be drafted by the mid-2019.

Taryn Mine Operational Results


       Q3  2018         Q3 2017 Y-o-Y   Q2 2018   Q-o-Q        9M 2018
     9M 2017
 Y-o-Y 
Rock moved, kt     3,730      1,906      96% 3,499      7%      8,218 4,890      68%
Stripping, kt     3,429      1,732      98%      3,193      7%      7,550      4,536      66%
Ore mined, kt     301      174      73%      306      -2%      668      354      89%
Stripping ratio, t/t     11.4      10.0      15%      10.4      9%      11.3      12.8      -12%
Ore processed, t     322      252      28%      166      93%      558      322      74%
Average grade in ore processed, g/t     3.72      3.04      22%      4.34      -14%      3.97      2.78      43%
Recovery (end-to-end), %       89.3      89.8   -0,5 p.p.      87.3  2.0 p.p.      88.8 63.8  25,0 p.p.  
Refined gold production, koz     22.2      17.1      30%      10.9      104%      38.0      18.3      108%
Gold contained in concentrate, koz     12.2      5.0      144%      9.4      30%      25.4      6.1      316%
Total gold production, koz.     34.4      22.1      56%      20.2      70%      63.4      24.4      160%


Aldan Business Unit

Bolshoy Kuranakh

As of 30 September 2018, the Bolshoy Kuranakh deposit, located in the Aldan Area of the Republic of Sakha (Yakutia), produced 14.1 koz of gold, up 26% y-o-y. Such growth is associated with a 29% higher average grade in the sands.

Aldan Business Unit Operational Results


       Q3  2018         Q3  2017 Y-o-Y              Q2 2018 Q-o-Q        9M 2018
     9M 2017
Y-o-Y
Sands washed, k m3
    1,434      1,301      10%      814      76%      2,248      2,296      -2%
Average grade, mg/m3
    191      157      22%      203      -6%      196      152      29%
Refined gold production, koz      8.6      6.5      32%      5,5      56%      14.1      11.2      26%


Consolidated Financial Results

In 9M 2018, the Company’s gold sales totaled 194 koz, up 56% y-o-y. In Q3 2018, gold sales grew by 44% y-o-y and by 26% q-o-q.

In 9M 2018, the refined gold and the gold concentrate sales are estimated at USD 241 million, up 55% y-o-y. In the reported period, the average gold selling price remained at the same level as in 9M 2017.

As of 30 September 2018, the Company’s net debt is estimated at USD 177 million, compared to USD 176 million as of the end of 2017.

Consolidated Financial Results 

   Q3 2018  Q3 2017 Y-o-Y  Q2 2018
Q-o-Q  9M 2018
 9M 2017
Y-o-Y
 Total gold sales, koz  81  56  44%  64  26%  194  124  56%
 Refined gold sold, koz  78  56  39%  58  35%  185  124  49%
 Gold contained in concentrate, koz  3  -  -  6  -55%  9  -  -
Average gold selling price, USD/oz
 1,202  1,278  -6%  1,294 -7%   1,266  1,257  1%
Total gold sales, million USD
 96  72  34%  80  19%  241  156  55%
Refined gold sales, million USD
 94  72  31%  75  25%  234  156 50% 
Gold contained in concentrate, million USD
 2  -  -  5  -69%  7  -  -
 Net debt, million USD  177  151  17%  177  0%  177  151  17%

Corporate and Organisational Development

 GV Gold continues to introduce structural changes aimed at improving operational framework, as well as further improvement of the transparency and efficiency of corporate management.

The Extraordinary General Shareholders Meeting, which took place on September 29, decided in favour of payment of dividends for H1 2018 totaling RUB 1,020 million, which is equal to 30% of EBITDA in accordance with the consolidated IFRS financials.  .


Contacts

Investor Relations

Vasily Migunov, Deputy CEO for IR and Capital Markets

+ 7 495 287 88 40

vvm@gvgold.ru

Press Office

Tatiana Demyanova, Deputy CEO for Public Relations

+ 7 495 287 88 40

dtv@gvgold.ru

ЕМ

Denis Denisov

+7 495 363 28 49

denisov@em-comms.com


Forward Looking Statements

This release may contain “forward-looking statements” regarding GV Gold (Vysochaishy, PJSC) and (or) its subsidiaries. The words “will”, “can”, “must”, “should”, “will continue”, “possibility”, “believes”, “expects”, “intends”, “plans”, “estimates” and other similar phrases are largely indicators of forward-looking statements. Forward-looking statements contain elements of risk and uncertainty, as a result of which actual results can differ dramatically from the figures listed in the forward-looking statements. Forward-looking statements contain statements regarding future capital expenditures, strategies for business operations and management, as well as development and expansion of GV Gold (Vysochaishy, PJSC) and (or) its subsidiaries. Many of those risks and uncertainties pertain to factors that cannot be controlled or quantified by GV Gold (Vysochaishy, PJSC) and (or) its subsidiaries, so the content of the statements should not be treated as definitive because it is provided strictly as at the date of the statement. GV Gold (Vysochaishy, PJSC) and (or) any of its subsidiaries does not make any commitment and does not plan to provide updates to the forward-looking statements, except where required by applicable law.


[1] Unaudited figures from consolidated management reports.

[2] The item is based on preliminary data from consolidated management reports. In respect to the Company, "Net debt" means the aggregate of the following amounts as at the end of each reporting period:

a) outstanding principal amount of the debt;

b) outstanding principal amount of bonds, promissory notes, debt instruments and other securities of similar nature;

c) principal amount of financial leases;

d) fixed or minimum amount of the premium
payable at redemption of the securities listed in the subparagraph b) above.

[3] LTIFR per
200,000 work-hours





Preivew text: 

GV Gold (Vysochaishy, PJSC), together with its subsidiaries ("GV Gold", "Vysochaishy" or "the Company"), published its operational results for Q3 2018 and 9M 2018 ended 30 September 2018.


01.10.2018 GV Gold выплатит 1 млрд руб. дивидендов за I полугодие 2018 года
Name:  GV Gold Will Pay RUB 1 Billion of Dividends for H1 2018
Detail text: 

GV Gold (Vysochaishy, PJSC), one of largest and fastest growing Russian gold mining companies, will pay the dividends in the amount of RUB 18.551942 per share following the results of H1 2018.

The decision was made at the Extraordinary General Shareholders Meeting, which took place on September 29, 2018. The amount of payable dividends totals RUB 1,020 million, which corresponds to 30% of the Company’s EBITDA for H1 2018

Company Information

GV Gold (Vysochaishy, PJSC) is one of largest and fastest growing Russian gold mining companies. It develops open pit deposits and washes gold at the country’s largest alluvial deposit. In 2017, the Company produced 225 koz of gold, becoming the 7th largest gold miner in Russia. In 2018, the Company expects to produce 280 - 300 koz of gold.

Its key operating assets are located in the Irkutsk Region and the Republic of Sakha (Yakutia). The Company operates four mines with a total capacity of 8 Mtpa of ore and holds 20 mining and exploration licenses. GV Gold boasts an extensive resource base, with JORC reserves and resources estimated at 4.4 Moz and 7.0 Moz, respectively.

The Company adheres to high corporate governance standards and has a transparent ownership structure, with BlackRock among its shareholders (17.99%).

For further information, please visit http://gvgold.ru


Preivew text: 

28.08.2018 Совет директоров GV Gold дал рекомендацию по выплате дивидендов за I полугодие 2018 года
Объем дивидендных выплат может составить 1 020 млн. руб.  Name:  GV GOLD BOARD OF DIRECTORS RECOMMENDS DIVIDEND FOR 1H 2018
Detail text: 

The Board of Directors of GV Gold (Vysochaishy, PJSC), together with its subsidiaries ("GV Gold", "Vysochaishy" or the "Company"), one of the largest and fastest growing gold producers in Russia, has recommended a dividend for 1H 2018 of RUB 18.551942 per share.

 The proposed dividend payment would total RUB 1,020 million, or 30% of the Company’s EBITDA for the first half of 2018. The Board’s recommendation is subject to approval at an Extraordinary General Meeting of shareholders (EGM) scheduled for 29 September 2018.

 Company profile

GV Gold (Vysochaishy, PJSC) is one of largest and fastest growing Russian gold mining companies. It develops open pit deposits and washes gold at the country’s largest alluvial deposit. In 2017, the Company produced 225 koz of gold, becoming the 7th largest gold miner in Russia. GV Gold boasts an extensive resource base, with JORC reserves and resources estimated at 4.4 moz and 7.0 moz, respectively.

Its key operating assets are located in the Irkutsk Region and the Republic of Sakha (Yakutia). The Company operates six mines with a total capacity of 8 mtpa of ore and holds 20 mining and exploration licences.

The Company adheres to high corporate governance standards and has a transparent ownership structure, with BlackRock among its shareholders (17.99%).

For further information, please visit http://gvgold.ru


Preivew text:  The proposed dividend payment would total RUB 1,020 million

27.08.2018 Финансовые результаты GV Gold за первое полугодие 2018 года
ПАО «Высочайший» (GV Gold), совместно с дочерними предприятиями (далее именуемое «GV Gold», «Высочайший» или «Компания»), публикует консолидированные неаудированные финансовые результаты за первое полугодие 2018 года. Name:  GV Gold Financial Results for H1 2018
Detail text: 

GV Gold (Vysochaishy, PJSC), together with its subsidiaries ("GV Gold", "Vysochaishy" or the "Company"), one of the largest and fastest growing gold producers in Russia, announces its unaudited consolidated financial results for the six months ended 30 June 2018 (H1 2018).

Financial Highlights

  • Total gold sales increased by 66% y-o-y to 113 koz, including 5 koz of gold contained in gravity and flotation concentrate.
  • Revenue totaled USD 146 million, up 74% y-o-y.

  • The average refined gold selling price increased by 7% y-o-y to USD 1,323 per ounce

  • Тotal cash cost (TCC)[1] rose from USD 568 per ounce to USD 658 per ounce, primarily due to the commissioning of the Taryn and Ugakhan Mines, higher production costs, and lower average grades in ore processed at the Vysochaishy Mine.

  •  All-in sustaining cost (AISC)[2] was USD 793 per ounce, up 9% y-o-y, mainly as a result of the increase in TCC.

  • Adjusted EBITDA[3] increased by 74% to USD 57 million, as higher costs were fully mitigated by stronger gold sales and improvements to operational efficiency. The adjusted EBITDA margin was 39%.

  • Operating profit increased by 52% to USD 43 million.

  • Net profit totaled USD 19 million (compared to USD 21 million in H1 2017). The decrease y-o-y was due to the effect of FX losses.

  • Net debt[4] totaled USD 177 million as of 30 June 2018. Leverage remains stable, with an LTM Net Debt/EBITDA ratio of 1.3x at the end of the reporting period and a comfortable repayment schedule.

Operational Highlights

  • Total gold output amounted to 128 koz in H1 2018, up 76% y-o-y, as a result of the commissioning of new production capacities at the Drazhnoye and Ugakhan deposits in 2017 and the ramp-up of output at existing assets of the Irkutsk and Aldan business units

  • The new capacities led to a substantial expansion of the Company’s mining and processing volumes by 105% and 62%, respectively.

GV Gold CEO German Pikhoya said:

“In H1 2018, the Company delivered strong operational and financial performance, driven by the successful implementation of strategic initiatives and consistent efforts to establish GV Gold as a major Russian gold producer. The Company continued to deliver against previous growth guidance. As a result, revenue increased by 74% y-o-y to USD 146 million – the highest half-year result in the Company’s history.

EBITDA also grew significantly in H1 2018, increasing by 66% y-o-y to USD 57 million. Expected cost increases were partially offset by operational improvements at the Company’s production assets. The EBITDA margin remained stable at 39%.

It is important to note that the Company traditionally pursues a balanced financial policy. In H1 2018, the Net Debt/EBITDA ratio remained at a comfortable 1.3x. Given that the Company has passed the peak of its capital investments, this creates additional opportunities going forward to achieve the desired balance between targeted investments in future growth and the profits that shareholders require.

Strong operational performance, coupled with further implementation of strategic projects, form a solid foundation for the Company to achieve its operational and financial objectives for the year.”

Key Financial Results for the Six Months Ended 30 June 2018 

    H1 2018     H1 2017          Y-o-Y %   
Financial performance      
Gold sold, koz      113      68      66%
Average refined gold selling price, USD /oz      1,323      1,239      7%
Revenue, USD million, of which:      146      84      74%
Revenue from gold sales, USD million      141      84      68%
Revenue from concentrate sales, USD million      5      -      -
Operating profit, USD million      43      28      52%
Net profit, USD million      19      21      -6%
Adj. EBITDA, USD million      57      33      74%
Adj. EBITDA margin, %      39%      41%      -4%
Net cash inflow from operations, USD million      36      - 9      -
Total cash cost (TCC), USD /oz      658      568      16%
All-in sustaining cash cost (AISC), USD /oz      793      726      9%
Financial position      
Cash and cash equivalents, USD million      37      35      6%
Net debt, USD million      177      175*      1%
Net debt/EBITDA, х      1.26      1.40      -10%
Operating highlights
     
Ore mined, kt      3,639      1,772      105%
Ore processed, kt
     3,535      2,187      62%
Total gold production, koz      128      73      76%

*As of 31 December 2017

Revenue

In the reporting period, the Company’s revenue totaled USD 146 million, up 74% y-o-y, due to higher volumes of gold produced (+76%) and sold (+66%) as a result of the commissioning of two new mines (Taryn and Ugakhan) and higher gold production at all production assets. The average selling price was USD 1,323 per ounce (+7% y-o-y). 

EBITDA

Adjusted EBITDA for H1 2018 rose by 74% to  USD 57 million, as anticipated higher costs were fully offset by an increase in total gold sold, as well as by operational improvements. The adjusted EBITDA margin was 39%, compared to 41% a year earlier.   

Total Cash Costs

In the reporting period, the Group’s TCC increased by 16%, to USD 658 per ounce. This increase was due to the commissioning of the Taryn and Ugakhan mines, and lower average grades of ore processed at the Vysochaishy Mine. Despite this, GV Gold’s TCC still remains relatively low compared to other Russian gold producers.

At the Vysochaishy Mine, TCC decreased by 14% as a result of higher ore throughput and higher recovery rates, as well as scheduled work to improve operational performance.

At the Ugakhan Mine, the second enterprise commissioned in 2017, TCC totaled USD 889 per ounce. This was higher than the Group’s average due to higher power supply costs, as the mine was supplied in H1 2018 by diesel power generators, which operated until June 2018. The Company expects these costs to decrease by the end of the year following the Mine’s connection to the grid power supply in May 2018.

At the Taryn Mine, TCC was USD 643 per ounce. The Company expects this parameter to improve further by the end of the year.

At Bolshoy Kuranakh, TCC rose by 8% y-o-y to USD 1,512 per ounce due to intensive scheduled preparations for the operational season. 

TCC performance by mine, USD /oz   H1 2018    H1 2017      Y-o-Y %   
Golets Vysochaishy      452      528        -14%
Ugakhan      889         -      -
Taryn      643         -      -
Bolshoy Kuranakh      1,512         1,398       8%
GV Gold       658         568      16%

All-In Sustaining Costs

In H1 2018, Group AISC rose by 9% y-o-y from USD 726 per ounce to USD 793 per ounce, mainly driven by an increase in TCC while maintaining capex at the same level as previously. 

AISC performance by mine, USD /oz
  H1 2018     H1 2017       Y-o-Y %   
Golets Vysochaishy
     818         664       23%
Ugakhan
     903      -      -
Taryn
     720        -      -
Bolshoy Kuranakh
     2,147        2,085         3%
 GV Gold      793         726       9%


Financial position

As at 30 June 2018, net debt totaled USD 177 million. Leverage remains stable, with an LTM Net Debt/EBITDA ratio of 1.3x at the end of the reporting period and a comfortable repayment schedule.

Outlook for 2018

The Company confirms its 2018 production target of 280-300 koz of gold.

 Contacts

Investor Relations

Vasily Migunov, Deputy CEO for IR and Capital Markets

+ 7 495 287 88 40

vvm@gvgold.ru

Press Office

Tatiana Demyanova, Deputy CEO for Public Relations

+ 7 495 287 88 40

dtv@gvgold.ru

ЕМ

Denis Denisov

+7 495 363 28 49

denisov@em-comms.com         

Company profile

GV Gold (Vysochaishy, PJSC) is one of Russia’s largest and fastest growing gold producers. The Company develops open pit deposits and washes gold at the country’s largest alluvial deposit. In 2017, the Company produced 225 koz of gold, making it the seventh-largest gold miner in Russia. GV Gold boasts an extensive resource base, with JORC reserves and resources estimated at 4.4 Moz and 7.0 Moz, respectively.

GV Gold’s key operating assets are located in the Irkutsk Region and the Republic of Sakha (Yakutia). The Company operates six mines with a total capacity of 8 Mtpa of ore, and holds 20 mining and exploration licences.

The Company adheres to high standards of corporate governance and has a transparent ownership structure, with BlackRock among its shareholders (17.99%).

For further information, please visit http://gvgold.ru   

Forward looking statements

This release may contain “forward-looking statements” regarding GV Gold (Vysochaishy, PJSC) and (or) its subsidiaries. The words “will”, “can”, “must”, “should”, “will continue”, “possibility”, “believes”, “expects”, “intends”, “plans”, “estimates” and other similar phrases are largely indicators of forward-looking statements. Forward-looking statements contain elements of risk and uncertainty, as a result of which actual results can differ dramatically from the figures listed in the forward-looking statements. Forward-looking statements contain statements regarding future capital expenditures, strategies for business operations and management, as well as development and expansion of GV Gold (Vysochaishy, PJSC) and (or) its subsidiaries. Many of those risks and uncertainties pertain to factors that cannot be controlled or quantified by GV Gold (Vysochaishy, PJSC) and (or) its subsidiaries, so the content of the statements should not be treated as definitive because it is provided strictly as at the date of the statement. GV Gold (Vysochaishy, PJSC) and (or) any of its subsidiaries does not make any commitment and does not plan to provide updates to the forward-looking statements, except where required by applicable law.


[1] TCC is defined by the Company as cost of gold sales (less depreciation and amortization of property, plant and equipment and intangible assets that are recognized in cost of goods sold). TCC per ounce is calculated as TCC divided by total gold sold, including gold in concentrate.

[2] AISC per ounce sold is defined as TCC plus administrative expenses (less depreciation and amortization of property, plant and equipment and intangible assets that are recognized in administrative expenses), equipment acquisition costs, construction and design costs required for sustaining ongoing operations. General administrative expenses are excluded for the purpose of calculating AISC for separate deposits, but are included in total AISC for the Group. AISC per ounce is defined as AISC divided by total gold sold, including gold in concentrate.

[3] Adjusted EBITDA is defined by the Company as profit before finance costs, income tax, depreciation and amortization, write-down and impairment costs related to exploration and appraisal of mineral resources and excluding financial income. Adjusted EBITDA is based on the Company’s audited annual consolidated IFRS financial accounts for the reporting period.

[4] Net debt is defined as the amount of current and non-current liabilities on loans and borrowings as well as current and non-current liabilities on financial leases, minus cash and cash equivalents as of the reporting date. This calculation is based on the Company’s audited annual consolidated IFRS financial accounts for the reporting year.






ВРИО Главы Республики Саха (Якутия) посетил Тарынский ГОК 13.08.2018 ВРИО Главы Республики Саха (Якутия) посетил Тарынский ГОК

12 августа 2018 года состоялся рабочий визит ВРИО Главы Республики Саха (Якутия) Айсена Сергеевича Николаева в Оймяконский улус (район), в рамках которого он посетил Тарынский ГОК — одно из ключевых горнодобывающих предприятий региона.

Name:  Acting Head of the Republic of Sakha (Yakutia) Visited the Taryn Mine
Detail text: 

On August 12, 2018, a working visit of the Acting Head of the Republic of Sakha (Yakutia) Aysen S. Nikolayev to the Oimyakon Area took place. Within the framework of this visit, he inspected the Taryn Mine – one of the key mining enterprises of the region.

 In the course of the visit, Mr. Nikolayev met the management of the mine, took a tour around the mine site, inspected the mill. The guests were acquainted with the key stages of the production process of the enterprise, from feeding of the ore to the grinding circuit to production of the commodity – the Dore alloy and the gravity and flotation concentrate. The guests also visited the mine camp with the administrative office and the staff dormitory, and estimated the quality and comfort of the staff’s living conditions and development of the adjacent infrastructure.

 The Taryn Mine is a new leader among the Company’s operating assets and the largest gold mining enterprise in the Oimyakon Area of the Republic of Sakha (Yakutia). The enterprise was launched in the autumn of 2017 and in the record breaking time attained its design parameters. Since that time, it has been demonstrating persistently high operational results: 29 koz in h1 2018, 42 koz in 2017. Today the Taryn Mine represents a complex of production facilities form the open pit, the mill, the mine camp to the number of auxiliary facilities. The mine’s staff totals 500 specialists of different professions.

 “The shareholders and the management of GV Gold are grateful for the assistance in the Taryn Mine development rendered by the state authorities on the regional and the federal levels and by the Ministry of Development of the Far East. In the future, we are planning to expand the production capacities of the enterprise and create additional workplaces. Further development of the region’s infrastructure is very important for us», — said Sergey M. Karabutov, Deputy CEO for GR.

 In the evening, the delegation returned to the settlement of Ust-Nera, where in the meeting room of the municipal entity’s administration, a meeting of the Acting Head of the Republic of Sakha (Yakutia) Aysen S. Nikolayev with the heads of the gold mining enterprises took place. At the meeting, in the round table format, the participants discussed the issues with floods and road communication in the region, and the power supply of the settlements and mining enterprises.

 Company Information

 GV Gold (Vysochaishy, PJSC) is one of largest and fastest growing Russian gold mining companies. It develops open pit deposits and washes gold at the country’s largest alluvial deposit. In 2017, the Company produced 225 koz of gold, becoming the 7th largest gold miner in Russia. In 2018, the Company expects to produce 280 - 300 koz of gold.

 Its key operating assets are located in the Irkutsk Region and the Republic of Sakha (Yakutia). The Company operates six mines with a total capacity of 8 Mtpa of ore and holds 20 mining and exploration licenses. GV Gold boasts an extensive resource base, with JORC reserves and resources estimated at 4.4 Moz and 7.0 Moz, respectively.

 The Company adheres to high corporate governance standards and has a transparent ownership structure, with BlackRock among its shareholders (17.99%).

 For further information, please visit http://gvgold.ru

 


26.07.2018 Производственные результаты за 2 квартал и 1 полугодие 2018

В первом полугодии 2018 года GV Gold увеличил объем производства золота на 76% по сравнению с результатом прошло года.

Name:  GV Gold Operational Results for Q2 and H1 2018
Detail text: 

GV Gold (Vysochaishy, PJSC), together with its subsidiaries ("GV Gold", "Vysochaishy" or "the Company"), today announces its operational results for Q2 2018 and H1 2018 ended 30 June 2018.

Highlights of Q2 2018

 

  • The Company produced 72 koz of gold, up 60% y-o-y, as the result of new operations at the Taryn and Ugakhan mines, and the ramp-up of output at the Bolshoy Kuranakh placer deposit.

  •  Gold production increased by 29% q-o-q, driven by the ramp-up of production at the Taryn and Aldan mines due to the seasonal nature of these assets.

  • Ore volumes mined in Q2 2018 totaled 1,843 kt, up 2.5x y-o-y, due to the new operations at the Ugakhan deposit and higher output at the Drazhnoye deposit as the mine reached full capacity.

  • Ore volumes processed rose 50% y-o-y and totaled 1,787 kt, also due to the commissioning of new plants at the Taryn Mine and the Ugakhan Mine.

  • Sales of refined gold and concentrate were USD 80 million, up 67% y-o-y and up 24% q-o-q, respectively.

Highlights of H1 2018

  • Gold production totaled 128 koz, up 76% y-o-y, as the result of the commissioning of new production capacities at the Drazhnoye and Ugakhan deposits in 2017, and the ramp-up of output at the Vysochaishy and Marakan mines as well as at the Bolshoy Kuranakh placer deposit.

  • Ore volumes mined doubled, due to the launch of operations at new mines commissioned last year.

  • Ore volumes processed totaled 3,535 kt, up 62% y-o-y, due to growth of ore throughput at the Ugakhan and Taryn mines.

  • The Ugakhan project remains on schedule, with full-scale operations scheduled for 2018.

  • The average selling price of refined gold reached 1,361 USD/oz, up 10% y-o-y.

  • Sales of refined gold and concentrate totalled USD 145 million, up 73% y-o-y.[1]  

  • As of 30 June 2018, the Company had net debt of USD 158 million[2], down 9% on 31 March 2018 (USD 173 million).

2018 Guidance

The Company confirms its production plan for 2018 and expects to produce 280-300 koz.

GV Gold CEO German Pikhoya said:

“The Company’s record results for the second quarter and first six months of 2018 underscore the success and consistency of GV Gold’s strategy, which aims to realize the significant potential of the Company’s resource base. In 2Q and 1H, the Company produced 72 and 128 koz of gold, respectively, representing increases on the previous year of 60% and 76%, respectively. This growth was possible due to consistent implementation of our strategic projects – the commissioning of the Ugakhan and Taryn mines in 2017, improved operational performance at the Vysochaishy Mine and the successful operation of our placer deposit in Yakutia (Sakha).

“In the reporting period we continued active exploration work aimed at realizing the significant resource potential of our existing deposits. Detailed follow-up exploration of flanks and deep levels was launched at our flagship Golets Vysochaishy deposit, and drilling and follow-up exploration of the flanks was completed at the Ugakhan deposit, with the aim of drafting the mine development plan for the next three years. In addition, a follow-up exploration program was launched at the Taryn Mine, and is scheduled to be completed by the end of the current year.

“Another important step was the approval of a new dividend policy, which complies with best Russian and international practice, and appointment of new independent directors to the Board of Directors. The appointments of Nikolay Gavrilov, Elizabeth Kirkwood and Anthony Nieuwenhuys will strengthen and bring additional expertise to the Board of Directors, and will further improve the Company’s corporate governance system. 

“In summary, our team has taken another step towards achieving this year’s ambitious plans and reaching production of 280-300 koz. I’d like to thank all of the Company’s employees for their contribution to achieving our record results for H1 2018 and wish them continued success for the rest of the year”. 

Health and Safety

  Q2 2018   Q1 2018    H1 2018    H1 2017  2017
  LTIFR      0.14      0.14      0.14      0.21      0.28

In the reporting period, the following corporate OHS standards were developed and approved:

Road Traffic Safety;

  • Corporate Overalls, which establishes uniform rules for corporate overalls at all business units;

  • Prompt Notification of Accidents, Incidents and Consequences Thereof;

  • Internal Investigation of Accidents, Incidents and Consequences Thereof;

  • Works Safety Assessment Procedure.

In addition, the Company’s business units launched an integrated program to reduce injury rates from road traffic accidents, including:

  • Acquisition of onboard vehicle monitoring systems and video recorders;

  • Additional monitoring of drivers, and training sessions in defensive driving. 

Consolidated Operational Results

 In H1 2018, GV Gold’s production totaled 128 koz, including 13 koz of gold contained in the Taryn Mine gravity and flotation concentrate. Production grew by 76% y-o-y as gold production ramped up at all production assets. On a q-o-q basis, gold production increased by 60% and totaled 72 koz.

The significant increase in mined ore volumes (+105% in H1 2018, +147% in Q2 2018) was due to the new mines commissioned last year: Ugakhan and Taryn.  

With the commissioning of two new mills, GV Gold’s processing capacities increased to about 8 Mt/a. As a result, ore throughput in H1 2018 grew by 62% y-o-y and totaled 3,535 kt; on a q-o-q basis, ore throughput grew by 50% y-o-y and totaled 1,787 kt. The average grade increased to 1.30 g/t in H1 and 1.40 g/t in Q2, respectively. The average recovery rate in H1 2018 was 86.3%. 

GV Gold Key Operational Highlights

  Q2 2018
Q2 2017
Y-o-Y
Q1 2018
Q-o-Q
H1 2018H1 2017
 Y-o-Y 
Rock moved, kt
     10,904      7,472      46%      9,741      12% 20,645 15,993      29%
Stripping, kt
     9,060      6,728      35%      7,945      14% 17,005 14,221      20%
Ore mined, kt
     1 843      745      147%      1,796      3% 3,639  1,772      105%
Stripping ratio, t/t
     4.9      9.0      -46%      4.4      11%      4.7     8.0      -42%
Ore processed, t
     1,787      1,189      50%      1,748      2% 3,535 2,187       62%
Average grade of ore processed, g/t
     1.40      1.21      16%      1.27      10% 1.30  1,19      9%
Recovery, %
     88.6      95.8     -7,2 п.п.      78.4     10,2п.п. 86.3  86,6    -0,3 п.п.
Refined gold production, koz
     62.8      43.9      43%      52.0      21% 114.8  71,8      60%
Gold contained in concentrate, koz
     9.4      1.1      755%      4.0     135% 13.4  1,1      12х
Total gold production, koz.      72.1      45.0      60%      56.0      29% 128.1  72,9      76%

Refined Gold Production by Mine, koz

  Q2 2018
 Q2 2017Y-o-Y Q1 2018Q-o-Q H1 2018 H1 2017Y-o-Y
Golets Vysochaishy
     34.1      36.6      -7%      35.0      -3%      69.1      64.6      7%
Marakan
     1.6      1.3      23%      -      -      1.6      1.3      23%
Ugakhan
     10.6      -     -      12.0      -12%      22.6      -      -
Taryn
     10.9      1.2      808%      5.0      117%      15.9      1.2      13х
Bolshoy Kuranakh (placer operations)
     5.5      4.7      17%      -      -      5.5      4.7      17%
Gold production, koz
     62.8      43.9      43%      52.0      21% 114.8      71.8      60%
Gold contained in concentrate, koz
     9.4      1.1      755%      4.0      135%      13.4      1.1      12х
Total gold production, koz
    72.1      45.0      60%      56.0      29%      128.1      72.9      76%

Operational Results by Mine

Irkutsk Business Unit

Golets Vysochaishy

In Q2 2018, the mine’s refined gold production totaled 34 koz, almost unchanged q-o-q but down 7% y-o-y due to processing of lower grade ore. In H1 2018, gold production increased by 7% y-o-y and totaled 69 koz due to higher throughput and recoveries. 

To improve the mine’s operational efficiency, the Company is continuing to develop and introduce measures launched in Q1 2018 to optimize performance and improve process control at Mills 2 and 3.

Active exploration continued at the deposit with the aim of extending the Vysochaishy Mine’s LOM. In Q1 2018, implementation of a program for detailed exploration of the flanks and deeper levels of the deposit continued. Based on the results of this exploration programme, a new cutoff grade estimation report and reserves calculation will be prepared for the Golets Vysochaishy deposit by mid-2019. 

Vysochaishy Mine Operational Results

   Q2 2018Q2 2017 Y-o-YQ1 2018Q-o-QH1 2018 H1 2017Y-o-Y
Rock moved, kt
 2,915      4,637      -37%      4,760      -39%      7,675      8,737      -12%
of which stripping, kt
 2,373      4,088      -42%      4,160      -43%      6,533      7,464      -12%
Stripping ratio, t/t
 4.4      4.7      -7%      6.9      -37%      5.7      3.9      47%
Ore mined, kt 542      549      -1%      600      -10%      1,142      1,274      -10%
Ore processed, t
1,083      1,083      0%      1,043      4%      2,126      2,081      2%
Average grade of ore processed, g/t
1.13      1.16      -3%      1.27      -11%      1.13      1.16      -3%
Recovery, %
 84.6      81.1      3,5 p.p.        81.0      3.6 p.p.      83.1      81.1      2,0 p.p  
Refined gold production, koz
33.4      36.0      -7%      35.0      -5%      68.4      64.0      7%
Sands washed, k m3
29      30      -5%      -          n/a      29      30      -5%
Average grade, g/m3
0.91      0.67      36%      -         n/a      0.91      0.67      36%
Refined gold production, koz
0.8      0.6      34%      -          n/a      0.8      0.6      34%
Total gold production, koz
34.1      36.6      -7%      35.0      -2%      69.1      64.6      7%

Marakan

 Because operation of the deposit is seasonal, no gold production took place in Q1 2018. In Q2 2018 and H1 2018, the mine produced 2 koz of gold, up 24% and 23% y-o-y, respectively. 

Marakan Mine Operational Results

  Q2 2018
 Q2
2017
  Y-o-Y Q1 2018 Q-o-Q H1 2018H1 2017
 Y-o-Y  
Rock moved, kt
     464      502      -8%      68      583%      532      753      -29%
of which stripping, kt
     421      465      -9%      68      519%      489      716      -32%
Stripping ratio, t/t
     9.8      12,6      -22%      -      -      11.4      19.4      -41%
Ore mined, kt
     43      37      16%      -   -      43      37      16%
Ore processed, t
     41      36      13%      -      -      41      36      13%
Average grade of ore processed, g/t
     1.67      1.47      14%      -     -      1.67      1.47      14%
Recovery, %
     81.2      79.7      1,5 p.p.        -     -      79.8      79.7      0.1 p.p.  
Refined gold production, koz
     1.6      1.3      24%      -     -      1.6      1.3      23%

Ugakhan

Full-scale operations at the Ugakhan Mine are scheduled for the end of 2018. The mill is completing construction and installation work to reach its full projected capacity.

In H1 2018, the Ugakhan Mine produced 23 koz of gold. In Q2 2018, it produced 11 koz, down 12% q-o-q. Q2 2018 saw scheduled maintenance of processing equipment at the mill, resulting in an insignificant decrease in ore throughput. Mill stabilization operations were also completed. The recovery rate increased by 7.4 p.p. to 68.4%. To improve the quality of feed ore, the Ugakhan Mine launched two mobile ore-crushing and -grading machines for crushing ore before it reaches the grinding department.

A program of drilling and follow-up exploration of the flanks was completed at the deposit, with the aim of developing a mid-term mining plan for the next three years.

In Q2 2018, GV Gold connected the Ugakhan Mine to the external power grid, which will significantly reduce power supply costs. 

Ugakhan Mine Operational Results


  Q2 
2018 
  Q2 
2017
Y-o-Y Q1 2018  Q-o-Q H12018   H12017   Y-o-Y
Rock moved, kt
4,025      -          n/a         3,863      4%      7,887      -          n/a  
of which stripping, kt
3,073      -         n/a       2,728      13%      5,800      -          n/a
Stripping ratio, t/t
3.2      -          n/a       2.4      34%      2.8      -          n/a
Ore mined, kt
952      -        n/a       1 135      -16%      2 087      -          n/a
Ore processed, t
496      -         n/a       635      -22%      1 131      -          n/a
Average grade of ore processed, g/t
0.99      -          n/a       0.94      5%      0.97      -         n/a
Recovery, %
68.4      -          n/a       61.0      7.4 p.p.        64.3      -         n/a
Refined gold production, koz
10.6      -          n/a       12.0      -12%      22.6      -         n/a

Taryn Business Unit

Taryn

Since being launched in the summer of 2017 and reaching its projected capacity, the Taryn Mine has produced consistently high operational results. In Q2 2018, the mine produced a record 20 koz, including 9 koz of gold contained in the gravity and flotation concentrate. In H1 2018, gold production totaled 29 koz, which was to a large extent due to the significant growth of ore throughput (to 236 kt) and higher grades of processed ore (up to 4.32 g/t). In the reporting period, the mine launched a mobile ore-crushing and -grading machine for crushing ore before it reaches the mill. This step was taken to improve the mill’s operational efficiency.

Expanding the mineral resource base remains a strategic objective of the Taryn business unit, and achieving it would impact the Company’s decision regarding the feasibility of constructing the second stage of the Taryn Mine. A follow-up exploration program at the Drazhnoye deposit license area was launched in summer 2018. The program will be completed by the end of November 2018, and the new cutoff grade estimation report drafted in mid-2019. 

Taryn Mine Operational Results

        Q2  2018           Q2  2017            Y-o-Y              Q1 2018            Q-o-Q   H1  2018 H1 2017             Y-o-Y   
Rock moved, kt 3,499       2,333       50%       1,050       233%       4,550       2,984       52%
of which stripping, kt
3,193       2,174       47%       989       223%       4,182       2,804       49%
Stripping ratio, t/t
10.4       13.7       -24%       16,2       -36%       11.4       15.5       -27%
Ore mined, kt
306       158       93%       61       402%       367       180       104%
Ore processed, t
166       70       138%       70       138%       236       70       238%
Average grade of ore processed, g/t
 4.34       1.83       137%       4.28       1%       4.32       1.83       136%
Recovery, %
 87.3       68.9       18,4 p.p.       90.9       -3,6 p.p.       88.3       68.9       19.4 p.p.
Refined gold production, koz
 10.9      1.2      808%      5.0      118%      15.9      1.2       13х
Gold contained in concentrate, koz
 9.4      1.1     755%      4.0      135% 13.4 1.1       12х
Total gold production, koz
 20.0       2.3     769%      9.0     122% 29.0 2.3       13х

Aldan Business Unit

Bolshoy Kuranakh Deposit

The washing season at the placers traditionally resumes in the first half of Q2. In the reporting period, the Bolshoi Kuranakh mine produced 6 koz, up 17% y-o-y, due to higher grades in the sands. 

Aldan Business Unit Operational Results

  Q2  2018 Q2  2017 Y-o-Y Q12018Q-o-Q
H1 2018 H1  2017 Y-o-Y
 Sands washed, k m3 814 995 -18% - - 814 995 -18%
 Average grade, g/m3 0.203 0.147 38% - - 0.203 0.147 38%
 Refined gold production, koz 5.5 4.717% - - 5.5 4.7 17%

Consolidated Financial Results

In H1 2018, the Company’s gold sales totaled 113 koz, up 66% y-o-y. Gold sales in Q2 2018 grew by 68% y-o-y and by 33% q-o-q

H1 2018 gold sales reached USD 145 million, up 73% y-o-y. In the reporting period, the average gold selling price increased by 10% to 1,361 USD/oz.

As of 30 June 2018, the Company’s net debt stood at USD 158 million, down 9% from 31 March 2018.

Consolidated Financial Results   

  Q2 2018 Q2 2017 Y-o-Y Q12018 Q-o-Q H1  2018 H1 2017 Y-o-Y
Total gold sales, koz
 64 38 68% 48 33% 113 68 66%
Refined gold sold, koz 58 38 52% 48 20% 107 68 57%
Gold contained in concentrate, koz 6 - - - - 6 - -
Average gold selling price, USD/oz
 1,294 1,256 3% 1,335 -3% 1,361 1,239 10%
Total gold sales, million USD 80 48 67% 65 24% 145 84 73%
Refined gold sales, million USD 75 48 56% 65 16% 140 84 66%
Sales of gold contained in concentrate, million USD 5 - - - - 5 - -
Net debt, million USD 158 134 18% 173 -9% 158 134 18%

Corporate and Organizational Development

 In H1 2018, GV Gold made a number of structural changes designed to increase operational performance and further improve transparency and corporate governance.

  • Changes in the Structure of the Board of Directors

The Company appointed Nikolay Gavrilov, Anthony Nieuwenhuys and Elizabeth Kirkwood as independent directors, in line with its commitment to advanced standards of corporate governance. As a result, independent directors now account for half of the new composition of the Board of Directors.

  •  Record Dividends

The Annual General Meeting of shareholders (AGM), which took place on 25 June 2018, approved a dividend payment for FY 2017 of RUB 2,237.7 million, of 30% of EBITDA under the Company’s consolidated financial results under IFRS for FY 2017. This is the highest dividends payout that GV Gold has made to shareholders in its history.

Including dividends paid previously for H1 2017 of RUB 12.731 per share, or RUB 700 million in total, in July 2018 the Company will pay shareholders RUB 27.9663 per ordinary share, or RUB 1,537.7 million in total. 


 Contacts

Investor Relations

Vasily Migunov, Deputy CEO for IR and Capital Markets

+ 7 495 287 88 40

vvm@gvgold.ru

Press Office

Tatiana Demyanova, Deputy CEO for Public Relations

+ 7 495 287 88 40

dtv@gvgold.ru

ЕМ

Denis Denisov

+7 495 363 28 49

denisov@em-comms.com

Forward Looking Statements

This release may contain “forward-looking statements” regarding GV Gold (Vysochaishy, PJSC) and (or) its subsidiaries. The words “will”, “can”, “must”, “should”, “will continue”, “possibility”, “believes”, “expects”, “intends”, “plans”, “estimates” and other similar phrases are largely indicators of forward-looking statements. Forward-looking statements contain elements of risk and uncertainty, as a result of which actual results can differ dramatically from the figures listed in the forward-looking statements. Forward-looking statements contain statements regarding future capital expenditures, strategies for business operations and management, as well as development and expansion of GV Gold (Vysochaishy, PJSC) and (or) its subsidiaries. Many of those risks and uncertainties pertain to factors that cannot be controlled or quantified by GV Gold (Vysochaishy, PJSC) and (or) its subsidiaries, so the content of the statements should not be treated as definitive because it is provided strictly as at the date of the statement. GV Gold (Vysochaishy, PJSC) and (or) any of its subsidiaries does not make any commitment and does not plan to provide updates to the forward-looking statements, except where required by applicable law.


[1] Unaudited figures from consolidated management reports. 

[2] The item is based on preliminary data from consolidated management reports. In respect to the Company, "net debt" means the aggregate of the following amounts as at the end of each reporting period:

a) outstanding principal amount of debt;

b) outstanding principal amount of bonds, promissory notes, debt instruments and other securities of similar nature;

c) principal amount of financial leases; 

d) fixed or minimum amount of the premium payable at redemption of the securities listed in the subparagraph b) above. 

[3] LTIFR per 200,000 work-hours





C днем Металлурга! 14.07.2018 C днем Металлурга!

GV Gold и правительство Иркутской области подписали соглашение о социально-экономическом сотрудничестве 13.07.2018 GV Gold и правительство Иркутской области подписали соглашение о социально-экономическом сотрудничестве

GV Gold и правительство Иркутской области подписали соглашение о социально-экономическом сотрудничестве

Name:  GV Gold and the Government of the Irkutsk Region Signed the Social and Economic Partnership Agreement
Detail text: 

GV Gold (Vysochaishy, PJSC) and the Government of the Irkutsk Region signed the social and economic partnership agreement for 2018. The agreement lays the basis for cooperation in the field of implementation of the social programs, promoting a complex development of the town of Bodaibo and the Bodaibo Area.

 The agreement was signed by the CEO of GV Gold G.R. Pikhoya and the First Deputy Governor of the Irkutsk Region and the Chairman of the Government of the Irkutsk Region R.N. Bolotov. In the context of the visit, the parties discussed results of the Company’s activity on the territory of the Irkutsk Region, the long-term development plans and the areas of cooperation between GV Gold and the regional government.

 The Government of the Irkutsk Region is one of the first sub-federal units to support the long-term practice of development of the partnership relations with the companies based on the conclusion of the social and economic partnership agreements.

 Upon the conclusion of the relevant agreements, such issues as the timely and complete fulfilment of the Company’s tax obligations, financial support of the region’s social programs, growth of investments in the production, fulfillment of the Company’s own social program, including timely payment and indexation of the salary of the Company’s employees, conclusion of the collective bargain agreements, etc. are elaborated and resolved

 - For many years, the Irkutsk Region has been a strategic region where the Company operates. The main production facilities of GV Gold are located in the Bodaibo Area, where 20 years ago the Company obtained its first license for the Golets Vysochaishy gold deposit. With the Irkutsk Region we associate our plans for further expansion and development, - noted German Pikhoya.

  – Every year for the past five years we extend the social and economic partnership agreement concluded with GV Gold. The Government of the Irkutsk Region appreciates long term plans and intensions of the Company in implementation of different programs which would promote not only the Company’s development, but also a development of the region, its social and economic stability, including the implementation of different social initiatives on the territory of the Angara Region – accented Ruslan Bolotov.

 Company Information

 GV Gold (Vysochaishy, PJSC) is one of largest and fastest growing Russian gold mining companies. It develops open pit deposits and washes gold at the country’s largest alluvial deposit. In 2017, the Company produced 225 koz of gold, becoming the 7th largest gold miner in Russia. In 2018, the Company expects to produce 280 - 300 koz of gold.

 

Its key operating assets are located in the Irkutsk Region and the Republic of Sakha (Yakutia). The Company operates six mines with a total capacity of 8 mtpa of ore and holds 20 mining and exploration licences. GV Gold boasts an extensive resource base, with JORC reserves and resources estimated at 4.4 moz and 7.0 moz, respectively.

 

The Company adheres to high corporate governance standards and has a transparent ownership structure, with BlackRock among its shareholders (17.99%).

 

For further information, please visit http://gvgold.ru

 


 Представительству ПАО «Высочайший» (GV Gold) в г. Москве — 10 лет! 26.06.2018 Представительству ПАО «Высочайший» (GV Gold) в г. Москве — 10 лет!
26 июня Представительство ПАО «Высочайший» (GV Gold) в г. Москве отмечает свой первый юбилей — 10 лет!

26.06.2018 GV Gold объявляет новый состав Совета директоров, а также дивиденды за 2017 год
Доля независимых директоров в Совете директоров возросла до 50% Name:  GV Gold announces new composition of the Board of Directors and dividends for FY 2017
Detail text: 

The Annual General Meeting of Shareholders (AGM) of GV Gold (Vysochaishy, PJSC), held on 25 June 2018, approved the new composition of the Board of Directors as follows:

1.                    Sergey V. Dokuchaev – Chairman of the Board

2.                    Valerian A. Tikhonov – Member of the Board

3.                    Natalia V. Opaleva – Member of the Board

4.                    German R. Pikhoya – CEO

5.                    Sergey G. Popov – Independent Director

6.                    Nikolay V. Gavrilov – Independent Director

7.                    Anthony Nieuwenhuys – Independent Director

8.                    Elizabeth Kirkwood – Independent Director

Vladimir S. Kochetkov, shareholder; Sergey A. Filippov, member of the Board; and Mikhail I. Leskov, Independent Director; have left the Board of Directors. GV Gold thanks them for their contributions to the success of the Company.

The Company has appointed international experts Nikolay Gavrilov, Anthony Nieuwenhuys and Elizabeth Kirkwood as independent directors to comply with advanced standards of corporate governance. As a result, half of the new composition of the Board of Directors now comprises independent directors.

The AGM also approved a dividend payment of RUB 2 237.7 million for 2017. The total dividend equates to 30% of adjusted EBITDA, based on the Company’s consolidated IFRS financial statements, and is the highest dividend payment in GV Gold’s history. Including dividends of RUB 12.731 per share (or RUB 700 million in total) already paid to shareholders for the first six months of 2017, it is expected that in July 2018 shareholders will be paid RUB 27.9663 per ordinary share (or RUB 1,537.7 million in total).

Biographical information

Nikolay Gavrilov is First Deputy CEO at JSC Rusatom Energy International (JSC REIN). Between 1995 and 2004, he held top positions at the Department of Foreign Credits and External Public Debt of the Ministry of Finance of the Russian Federation. Between 2004 and 2014, he was the Chairman of the Management Board of CJSC Roseximbank, member of the Board of Directors of Vnesheconombank and Senior Vice-President at PJSC VTB Bank. Graduated with distinction from the socio-economics faculty of the Moscow State University. Fluent in English, Italian and Arabic.

Anthony Nieuwenhuys is the CEO of Lesego Platinum. The company’s assets are located in South Africa. He has extensive experience in mining industry. Between 2011 and 2016, he was Chief Operation Officer at Polyus Gold International Ltd. where he was overseeing the construction of the Verninskoye mine. Prior to that, he lived and worked in South Africa. Between 1988 and 2011, he supervised mining projects of SNC-Lavalin, BATEMAN and other international companies. Holds an engineering degree from RC Elliott Technical College, Kimberley, South Africa.

Elizabeth Kirkwood is a renowned international expert with more than 26 years of experience in telecommunications and retail. Between 1991 and 2001, she held management positions at MediaOne Group. She served as CFO and Vice-President of WalMart USA between 2002 and 2007, and WalMart Russia between 2009 and 2011. Worked as CFO and Executive Director at Metro Cash and Carry Russia between 2011 and 2017. Studied economics at the School of Foreign Service at Georgetown University and holds a number of postgraduate degrees, including MBAs from Georgetown University and Bauer College of Business (University of Houston).

About GV Gold

GV Gold (Vysochaishy, PJSC) is one of largest and fastest growing Russian gold mining companies. It develops open pit deposits and washes gold at the country’s largest alluvial deposit. In 2017, the Company produced 225 koz of gold, becoming the 7th largest gold miner in Russia. In 2018, the Company expects to produce 280 - 300 koz of gold.

Its key operating assets are located in the Irkutsk Region and the Republic of Sakha (Yakutia). The Company operates six mines with a total capacity of 8 mtpa of ore and holds 20 mining and exploration licences. GV Gold boasts an extensive resource base, with JORC reserves and resources estimated at 4.4 moz and 7.0 moz, respectively.

The Company adheres to high corporate governance standards and has a transparent ownership structure, with BlackRock among its shareholders (17.99%).

For further information, please visit http://gvgold.ru


Preivew text:  Нalf of the new composition of the Board of Directors now comprises independent directors.

21.05.2018 Производственные результаты GV Gold за 1 квартал 2018 года

ПАО «Высочайший» (GV Gold), совместно с дочерними предприятиями (далее именуемое «GV Gold», «Высочайший» или «Компания»), публикует производственные результаты за 1 квартал 2018 года, закончившийся 31 марта 2018 года.


Name:  GV Gold Operational Results for Q1 2018
Detail text: 

GV Gold (Vysochaishy, PJSC), together with its subsidiaries ("GV Gold", "Vysochaishy" or "the Company"), publishes its operational results for the three monts ended 31 March 2018 (“Q1 2018”).

 Key Highlights

 ·         In Q1 2018, the Company produced 55 koz of gold, a twofold year-on-year (“y-o-y”) increase, driven by higher production volumes at the Vysochaishy Mine and commissioning of production at the Drazhnoye and Ugakhan deposits in 2017.

·         A quarter-on-quarter (“q-o-q”) decline in production was the result of a seasonal ramp-down at the Drazhnoye deposit and the Bolshoy Kuranakh placer deposit in Yakutia.

·         Ore mined in Q1 2018 totaled 1,686 kt, up by 75% y-o-y as a result of mining operations at new deposits commissioned during 2017.

·         Ore processing volumes rose by 75% y-o-y and amounted to 1,748 kt, as the Company began processing ore from the Ugakhan and Taryn mines.

·         The Ugakhan Project remains on schedule, with full-scale operations due to start in 2018.

·         In Q1 2018, the average refined gold selling price increased to 1,335 USD/oz, up by 10% y-o-y and by 5% q-o-q.

·         Gold sales in Q1 2018 are estimated at USD 65 million, up by 86% y-o-y.[1]

·         As of 31 March 2018, the Company’s net debt is estimated at USD 168 million, down from USD 175 million as of 31 December 2017.[2]

 2018 Guidance

·         The Company confirms its production guidance for 2018 and expects to produce 280-300 koz.

CEO German Pikhoya said:

“The Company produced 55 koz of gold in Q1 2018, which, taking into consideration the seasonal nature of gold production at some of the Company’s deposits, is a record-breaking figure for this period. We achieved this growth thanks to successful operations at our flagship deposit Golets Vysochaishy, and to the ongoing implementation of our strategic projects with the commissioning of the Ugakhan and Taryn mines in 2017.

“At the Vysochaishy Mine the 25% y-o-y increase in gold production was achieved as a result of higher grades of processed ore and higher gold recovery. At the Ugakhan Mine we aim to complete the construction and achieve nameplate capacity by the end of this year. At the Taryn Mine, owing to favourable weather conditions, we managed to commence mining and commission the mill one month ahead of the schedule.

“In addition to strategic initiatives, the Company also focussed on further improvements in operational efficiency. At the Irkutsk business unit, progress was made on improvement of the flotation section’s gold recovery, and we began introduction of a dispatching system that will further improve mine fleet efficiency. During the reporting period we also managed to improve equipment availability by 69% due to better procurement conditions for spare parts.

“I am very grateful to the entire team for their contribution to the strong Q1 2018 results. We took a confident first step towards achieving our targets for 2018.”

 Health and Safety

GV Gold pays great attention to the occupational health and safety (“OHS”) issues. In Q1 2018, the lost time injury frequency rate (LTIFR)[3] decreased to 0.14, down by 13% y-o-y.

The Company strives to achieve a zero injury rate, continually undertaking activities to improve the corporate OHS culture. The Company plans to carry out "Conscious Safety" trainings to improve the corporate OHS culture and motivate employees to uphold OHS rules.

In order to improve the safety culture at the GV Gold’s operations, the Company’s EHSS department has hired a new specialist with vast experience and expertise in this field.

LTIFR Dynamics 


  Q1 2018     Q1 2017 Y-o-Y 2017 2016   Y-o-Y
     LTIFR      0,14      0,16      -13% 0,28  0,22 27%

Consolidated Operatial Results

In Q1 2018, the Company’s gold production totalled 55 koz, including 4 koz of gold contained in the Taryn mine’s gravity and flotation concentrate. Gold output grew twofold y-o-y, but declined by 38% q-o-q owing to the seasonal nature of operations at the Company’s Bolshoy Kuranakh and Drazhnoye deposits located in Yakutia.

With the commissioning of two new mills at the Ugakhan and Taryn mines last year, GV Gold’s processing capacities grew to about 8 Mt/a. As a result, in Q1 2018, ore throughput grew by 75% y-o-y and totalled 1,748 kt of ore, while the average grade increased to 1.27 g/t. The average recovery rate in Q1 2018 was 77.4%. 

GV Gold Key Operational Highlights 

  Q1 2018 Q1 2017   Y-o-Y Q4 2017  Q-o-Q
Rock moved, kt      9,726      8,390      16%      10 373      -6%
Stripping, kt
     7,931      7,173      11%      8 772      -10%
Ore mined, kt
     1,686      965      75%      1 601        5%
Stripping ratio, t/t
     4.7      7.4      -36%      5,5      -15%
Ore processed, t
     1 748      998      75%      2 051      -15%
Average grade in ore processed, g/t      1.27      1.09      17%      1,57      -19%
Recovery, %
     77.4      79.0     -1,6 p.p.      85,2     -7,8 p.p.
Refined gold production, koz
     52
     28       86%      79      -34%
Gold contained in concentrate, koz
     4      -        n/a      9      -56%
Total gold production, koz
     55      28        96%      88      -38%

Refined Gold Production by Mine, koz  


  Q1 2018 Q1 2017   Y-o-Y Q4 2017
 Q-o-Q.
Golets Vysochaishy
     35      28      25%      37      -5%
Marakan
     -      -       n/a      1         n/a
Ugakhan
     12      -       n/a      14      -14%
Taryn
     5      -       n/a      24      -79%
Bolshoy Kuranakh (placer operations)
     -      -       n/a      4      n/a
Gold production, koz     52      28      86%      79      -34%
Gold contained in concentrate, koz
     4      -       n/a      9      -56%
Total gold production, koz.
     55      28      96%      88      -38%

Operational Results by Mine

Irkutsk Business Unit

Golets Vysochaishy

In Q1 2018, the mine’s refined gold production totalled 35 koz. This 25% y-o-y increase was due to higher grades of processed ore and improvement in recovery. The 5% q-o-q decrease was a result of scheduled processing of lower-grade ore.

In order to improve the mine’s operational efficiency, the Company is developing and implementing a comprehensive set of measures aimed at optimising performance and improving process control at Mills 2 and 3. These measures had a positive effect on the recovery rate, which was up by 2.0 p.p. y-o-y and up by 1.2 p.p. q-o-q.

Active exploration continued at the deposit, with the aim of extending the Vysochaishy Mine’s LOM. In Q1 2018, the mine proceeded with development of a programme for detailed exploration of the flanks and deeper levels of the deposit, scheduled for this summer.

Vysochaishy Mine Operational Results 

  Q1 2018  Q1 2017    Y-o-Y  Q4 2017   Q-o-Q
Rock moved, kt
     4 760      4 100      16%      5 002      -5%
Stripping, kt
     4 160      3 123      33%      4 139      1%
Stripping ratio, t/t
     8,5      4,3      98%      6,9      23%
Ore mined, kt
     490      724      -32%      598      -18%
Ore processed, t      1 043      998        5%      1 048      -1%
Average grade in ore processed, g/t
     1,27      1,09      17%      1,36      -7%
Recovery, %
     81,0      79,0      2,0 p.p.      79,8    1,2 p.p.
Refined gold production, koz
     35      28      25%      37      -5%
Sands washed, k m3
     -      -      n/a      6       n/a
Average grade, g/m3
     -      -      n/a      0,94       n/a
Refined gold production, koz
     -      -      n/a      0,2       n/a
Total gold production, koz
     35      28      25%      37      -5%

Marakan

Due to the seasonal nature of deposit exploitation, no gold production took place in Q1 2018. In the reporting period the enterprise performed preparatory operations. Mining at Marakan resumed in April 2018.

Operational Results of Marakan Mine 

  Q1 2018 Q1 2017    Y-o-Y Q4 2017 Q-o-Q
Rock moved, kt
     68      251      -73%      385      -82%
Stripping, kt
     68      251      -73%      363      -81%
Stripping ratio, t/t      -      -      n/a      16      n/a
Ore mined, kt
     -      -      n/a
     23      n/a
Ore processed, kt
     -      -      n/a      28      n/a
Average grade in ore processed, g/t
     -      -      n/a      1.77      n/a
Recovery, %
     -      -      n/a      84/0      n/a
Refined gold production, koz
     -     -      n/a      1      n/a


Ugakhan

The Ugakhan Mine is completing construction to attain its nameplate recovery capacity. Full-scale operations at the Ugakhan Mine are scheduled for 2018.

In Q1 2018, the mine produced 12 koz of gold, down by 14% q-o-q. This decrease in production was associated with lower ore throughput and lower recovery as a result of scheduled maintenance of the mill. 

The Ugakhan deposit has an extensive mineral resource base, which, together with a shallow bedding of the ore body as well as favourable physical and chemical properties of ore, largely offsets the low average grade of gold (1.07 g/t). According to the updated JORC-compliant estimate, the proven and probable reserves (P&P) are estimated at 824 koz of gold, while the measured, indicated and inferred resources (M,I&I) are estimated at 1,376 koz of gold.

Ugakhan Mine Operational Results 

   Q1 2018 Q1 2017
Y-o-Y Q4 2017 Q-o-Q
Rock moved, kt
   3,863      -     n/a       - n/a   
Stripping, kt
   2,728      - n/a       -        n/a   
Stripping ratio, t/t    2.4      -     n/a       -  n/a
Ore mined, kt
   1,135
     -     n/a       -  n/a
Ore processed, t
   635      -     n/a       766*      -17%
Average grade in ore processed, g/t
   0.94      -     n/a       0,88       7%
Recovery, %
  61.0      -     n/a      62,4 -1,4 p.p.
Refined gold production, koz
    12      -     n/a       14 -14%

 *Golets Vysochaishy ore processed

Taryn Business Unit

Taryn

Mining at the Taryn mine resumed on 1 March 2018. During the one month of operations in the reporting period, the mine produced 9 koz of gold, including 4 koz of gold contained in the gravity and flotation concentrate. The tonnage of produced gold decreased by 73% q-o-q due to seasonal termination of operations. Owing to the physical and chemical properties of processed ore, the gravity and flotation concentrate target was achieved, having reached the level of 4 koz of gold.

Open pit mining at the Taryn mine commenced one month ahead of the schedule. The tonnage of rock moved totalled 1,036 kt, ore mined totalled 61 kt, up by 61% and 57% y-o-y, respectively. During the one month of the mill’s operations, it processed 70 kt of ore at an average grade of 4.28 g/t.

Expansion of the mineral resource base is a strategic objective of the Taryn business unit, within the framework of which it intends to carry out large-scale exploration operations to determine the mine’s potential. According to the JORC-compliant estimate as at 1 July 2017, the proven and probable reserves (P&P) of the Drazhnoye deposit are estimated at 759 koz of gold. The Company continues large-scale exploration of the asset.

The Company is considering the possibility of construction of the second stage of the mine and plans to determine different project implementation options by the end of 2018.

  Taryn Mine Operational Results 

  Q1 2018 Q1 2017
 Y-o-Y  Q4 2017  Q-o-Q
Rock moved, kt
   1,036     642       61% 1,756    -41%   
Stripping, kt
     975     620      57% 1,447    -33%
Stripping ratio, t/t      16.3     28.2
    -42%      4.7    246%
Ore mined, kt
      61
      22      177%      309    -80%
Ore processed, t
      70      -       n/a      209    -67%
Average grade in ore processed, g/t
    4.28      -       n/a      5.16    -17%
Recovery, %
    51.8      -       n/a      95.8   -44,0 p.p.
Refined gold production, koz
       5      -       n/a      24   -79%
Gold contained in concentrate, koz        4      -       n/a      9    -56%
Total gold production, koz
       9      -       n/a      33    -73%

Aldan Business Unit

Bolshoy Kuranakh Deposit

In view of the seasonal nature of placer operations, no washing of sands took place in Q1 2018.

The dredging season traditionally resumes in the first half of the second quarter (in April-May). In the reporting period the asset prepared the dredges and auxiliary equipment to launch and performed in-mine exploration of the placer.

Operational Results of the Aldan Business Unit 

       Q1 2018       Q1 2017 Y-o-Y   Q4 2017     Q-o-Q  
Sands washed, k m3      -      -      n/a        654      n/a
Average grade, g/m3
     -      -      n/a      0,175      n/a
Refined gold production, koz      -      -      n/a        4      n/a

Consolidated Financial Results

In Q1 2018, the Company’s gold sales increased by 60% y-o-y and totalled 48 koz. 

Gold sales are estimated at USD 65 million, up by 86% y-o-y. In the reporting period, the average gold selling price increased by 10% to the level of 1,335 USD /oz.

As of 31 March 2018, the Company’s net debt is estimated at USD 168 million, down by 4% from 31 December 2017. Company’s leverage remains at a stable level, with a possibility of early repayment of some part of the debt in 2018.

Consolidated Results of the Financial Activity 

  Q1 2018 Q1 2017 Y-o-Y Q4 2017
Q-o-Q
Total gold sales, koz
     48      30      60%      94   -49%
Refined gold sold, koz
     48      30      60%      82   -41%
Gold contained in concentrate, koz
      0       0        n/a      12   -100%
Gold sales, million USD
     65      35      86%      114   -43%
Refined gold sold, million USD
     65      35      86%      105   -38%
Gold contained in concentrate, million USD
      0       0        n/a
     9    n/a
Average refined gold selling price, USD/oz.
     1 335      1 217      10%      1 276      5%
Net debt, million USD     168      114      47%      175     -4%

Contacts

Investor Relations

Vasily Migunov, Deputy CEO for IR and Capital Markets

+ 7 495 287 88 40

vvm@gvgold.ru

Press Office

Tatiana Demyanova, Deputy CEO for Public Relations

+ 7 495 287 88 40

dtv@gvgold.ru

ЕМ

Denis Denisov

+7 495 363 28 49

denisov@em-comms.com

Company profile

GV Gold (Vysochaishy, PJSC) is one of largest and fastest growing Russian gold mining companies. It develops open pit deposits and washes gold at the country’s largest alluvial deposit. In 2017, the Company produced 225 koz of gold, becoming the 7th largest gold miner in Russia. GV Gold boasts an extensive resource base, with JORC reserves and resources estimated at 4.4 moz and 7.0 moz, respectively.

Its key operating assets are located in the Irkutsk Region and the Republic of Sakha (Yakutia). The Company operates six mines with a total capacity of 8 mtpa of ore and holds 20 mining and exploration licences.

The Company adheres to high corporate governance standards and has a transparent ownership structure, with BlackRock among its shareholders (17.99%).

For further information, please visit http://gvgold.ru

Forward Looking Statements

This release may contain “forward-looking statements” regarding GV Gold (Vysochaishy, PJSC) and (or) its subsidiaries. The words “will”, “can”, “must”, “should”, “will continue”, “possibility”, “believes”, “expects”, “intends”, “plans”, “estimates” and other similar phrases are largely indicators of forward-looking statements. Forward-looking statements contain elements of risk and uncertainty, as a result of which actual results can differ dramatically from the figures listed in the forward-looking statements. Forward-looking statements contain statements regarding future capital expenditures, strategies for business operations and management, as well as development and expansion of GV Gold (Vysochaishy, PJSC) and (or) its subsidiaries. Many of those risks and uncertainties pertain to factors that cannot be controlled or quantified by GV Gold (Vysochaishy, PJSC) and (or) its subsidiaries, so the content of the statements should not be treated as definitive because it is provided strictly as at the date of the statement. GV Gold (Vysochaishy, PJSC) and (or) any of its subsidiaries does not make any commitment and does not plan to provide updates to the forward-looking statements, except where required by applicable law. 


[1] Unaudited figures from consolidated management reports.

[2] The item is based on preliminary data from consolidated management reports. In respect to the Company, "Net debt" means the aggregate of the following amounts as at the end of each reporting period:

a) outstanding principal amount of the debt;

b) outstanding principal amount of bonds, promissory notes, debt instruments and other securities of similar nature;

c) principal amount of financial leases;

d) fixed or minimum amount of the premium payable at redemption of the securities listed in the subparagraph b) above.

[3] LTIFR per 200,000 work-hours.


Preivew text: 

GV Gold (Vysochaishy, PJSC), together with its subsidiaries ("GV Gold", "Vysochaishy" or "the Company"), publishes its operational results for the three monts ended 31 March 2018 (“Q1 2018”).



15.05.2018 GV Gold планирует рекордные дивиденды по итогам 2017 года
Совет директоров GV Gold рекомендует выплатить дивиденды по итогам 2017 года в размере 27,9663 руб. на акцию в дополнении к промежуточным за I полугодие Name:  GV Gold has budgeted the record-breaking dividends in 2017
Detail text: 

GV Gold (Vysochaishy, PJSC), together with its subsidiaries ("GV Gold", "Vysochaishy" or the "Company"), one of the largest and fastest growing gold producers in Russia, announces the results of a meeting of its Board of Directors.

On 14 May 2018, the Board of Directors of GV Gold (Vysochaishy, PJSC) held a meeting to review matters related to the convening of the Annual General Meeting of Shareholders (“AGM”).

The Board of Directors took the decision to convene the AGM of GV Gold (Vysochaishy, PJSC), and for it to take place in Moscow on 25 June 2018.

The agenda for the AGM shall include the items of selecting the new members of the Board of Directors and the Revision Commission, approving the Company’s auditor, annual report and annual financial accounts, as well as the amount of dividends to be paid out on the basis of the result of 2017.

In line with the Company’s new dividend policy, the Board of Directors has recommended the AGM to approve payment of dividends for 2017 in the amount of RUB 40.6973 per ordinary share totaling RUB 2,237.7 million, which equates to 30% of adjusted EBITDA, based on the Company’s consolidated IFRS financial statements. Taking into account the dividends already paid to shareholders for the first 6 months of 2017 in the amount of RUB 12.731 per share (or RUB 700 million in total), it is envisioned that shareholders will be paid RUB 27.9663 per ordinary share (or RUB 1,537.7 million in total).

In addition, the Board of Directors has recommended to include the list of candidates to the Board of Directors to be voted upon by the AGM to include the following three independent directors: Nikolay Vyacheslavovich Gavrilov, Elizabeth Ann Kirkwood and Anthony James Nieuwenhuys.

Company profile

GV Gold (Vysochaishy, PJSC) is one of largest and fastest growing Russian gold mining companies. It develops open pit deposits and washes gold at the country’s largest alluvial deposit. In 2017, the Company produced 225 koz of gold, becoming the 7th largest gold miner in Russia. GV Gold boasts an extensive resource base, with JORC reserves and resources estimated at 4.4 moz and 7.0 moz, respectively.

Its key operating assets are located in the Irkutsk Region and the Republic of Sakha (Yakutia). The Company operates six mines with a total capacity of 8 mtpa of ore and holds 20 mining and exploration licences.

The Company adheres to high corporate governance standards and has a transparent ownership structure, with BlackRock among its shareholders (17.99%).

For further information, please visit http://gvgold.ru

Contacts

Investor Relations

Vasily Migunov, Deputy CEO for IR and Capital Markets

+ 7 495 28788 40

vvm@gvgold.ru

Press Office

Tatiana Demyanova, Deputy CEO for Public Relations

+ 7 495 28788 40

dtv@gvgold.ru

EM

Denis Denisov

+7 495 363 28 49

denisov@em-comms.com


Preivew text:  GV Gold Board of Directors Recommends Dividends for FY2017 in the Amount of RUB 27.9663 per Share [Following Payment of Interim Dividends for H1 2017]

28.04.2018 GV Gold представил новую дивидендную политику

Компания утвердила новую дивидендную политику с целью поддержания дивидендов на стабильно высоком уровне и соответствия лучшим практикам отрасли.

Name:  GV Gold Announces New Dividend Policy
Detail text: 

GV Gold Board of Directors has approved a new dividend policy in line with industry best practices that aims to maintain a consistently high level of dividend payments.

The new formula for calculating dividends, which was based on an analysis of best practices by Russian and foreign companies, is clear and transparent. EBITDA based on the Company’s IFRS financial statements will be used to calculate dividends, as this indicator best reflects the Company's operating performance and quality of earnings, as opposed to net profit. The target dividend payout ratio is 30% of EBITDA, provided that LTM net debt/EBITDA is below 2.5x.

If the LTM net debt/EBITDA ratio is above 2.5x and below 4.0x, the Board of Directors may decide to pay up to 20% of EBITDA, if the Company’s cash position, cash flow forecast, market trends and debt covenants allow for it. If the LTM net debt/EBITDA ratio is higher than 4.0x, dividends will not be paid.

The Board of Directors may also consider special dividends after taking into account the Company's liquidity position, capital expenditure plans and ratio of cash to borrowed funds, and if debt covenants allow.

This flexible scheme for determining dividends helps to ensure the financial stability of the Company while also facilitating successful execution of its business strategy.

The new dividend policy will come into effect immediately following its approval. Thus, dividends for 2017 will be calculated and paid according to the new conditions, after the deduction of previously-accrued dividends for H1 2017.

Previously, the Company paid dividends of no less than 25% of its net profit for the year, calculated in accordance with Russian Accounting Standards. Based on its 2016 results, GV Gold's total payments to shareholders amount to RUB 2.179 billion.

Company profile

GV Gold is one of largest and fastest growing Russian gold mining companies. It develops open pit deposits and washes gold at the country’s largest alluvial deposit. In 2017, the Company produced 225 koz of gold, becoming the 7th largest gold miner in Russia. GV Gold boasts an extensive resource base, with JORC reserves and resources estimated at 4.4 moz and 7.0 moz, respectively.

Its key operating assets are located in the Irkutsk Region and the Republic of Sakha (Yakutia). The Company operates six mines with a total capacity of 8 mtpa of ore and holds 20 mining and exploration licences.

The Company adheres to high corporate governance standards and has a transparent ownership structure, with BlackRock among its shareholders (17.99%).

For further information, please visit http://gvgold.ru

 


Preivew text: 

GV Gold Board of Directors has approved a new dividend policy in line with industry best practices that aims to maintain a consistently high level of dividend payments.