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.


23.04.2018 Финансовые результаты GV Gold за 2017 год
ПАО «Высочайший» (GV Gold), совместно с дочерними предприятиями (далее именуемое «GV Gold», «Высочайший» или «Компания»), одна из крупнейших и наиболее динамично развивающихся золотодобывающих компаний России, публикует консолидированные аудированные финансовые результаты за 2017 год. Name:  GV Gold Financial Results for the Year 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 its audited consolidated financial results for the year 2017.

Financial highlights

  • Total gold sales increased by 34% y-o-y to 218 koz, including 11.7 koz of gold contained in concentrate.
  • Revenue totalled $271 million, up 33% from 2016.
  •  Average refined gold selling price increased by 2% to $1,265 per ounce.
  • Тotal cash costs (TCC)1 rose from $462 to $530 per ounce primarily due to the strengthening of the rouble, and also due to higher TCC at the Vysochaishy Mine attributable to the planned processing of lower-grade ore, which was partially offset by lower costs at the placer deposit in Yakutia.  
  •  All-in sustaining costs (AISC)2 stood at $701 per ounce, up 14% y-o-y, mainly as a result of TCC growth.
  • Adj. EBITDA3 grew by 17% to $128 million despite the expected increase of costs that was fully offset by stronger gold sales and operational improvements. Adj. EBITDA margin stood at 47%.     
  • Net profit decreased by 3% y-o-y to $85 million as gains in revenue were offset by the strengthening of the rouble against the US dollar and higher per unit costs.
  • CAPEX decreased by 35% y-o-y to $68 million as the CAPEX programme was past its peak after several years of expenditures mostly focused on the construction of Taryn Mine and Ugakhan Mine.  
  • Net debt4 totalled $175 million as at 31 December 2017. Leverage remains stable with a comfortable repayment schedule and Net Debt/Adj. EBITDA standing at 1.4x at year-end. 

Operational highlights

  • Total gold output amounted to 225 koz, up 37% y-o-y, effectively making the Company the 7th largest gold producer in Russia5.
  •  In 2017, the Company launched two strategic projects – the Ugakhan Mine and the Taryn Mine, boosting GV Gold's processing capacities to nearly 8 mt of ore annually.
  •  With these new capacities, the Company considerably expanded its mining and processing volumes by 27% and 32%, respectively.

Statement from CEO German Pikhoya:

The Company delivered strong operational and financial performance in 2017 driven by the strategic initiatives and consistent efforts made to propel GV Gold forward as a major Russian gold producer. Revenue climbed by 33% to a five year high of $271 million.”

“We launched two strategic projects last year – Phase 1 of Taryn Mine during the Eastern Economic Forum 2018 in September, followed by the process start-up at Ugakhan Mine in October. With its extensive track record and expertise, our team has what it takes to fully unlock the potential of both deposits.

“Last year, we saw total cash costs reach $530 per ounce. This increase was expected and controlled as we brought new capacities on stream and started processing lower-grade ore at Vysochaishy, our flagship deposit. Higher costs affected full-year EBITDA margin that decreased to 47% from 53% a year earlier. However, GV Gold still stands out as one of the lowest cost gold producers in Russia with EBITDA margin on par with industry leaders[7].

“Despite a favourable pricing environment in the gold market throughout 2017, the Company continued to stick to well-balanced financial policies. The Company passed its CAPEX peak last year, and, given its comfortable leverage, is now set to achieve the desirable balance between target investments in growth projects and required shareholder earnings going forward.

We reiterate plans to expand gold production in 2018, standing assured that the year ahead Company will further strengthen the foundation for GV Gold's sustainable growth. Our guidance for full 2018 currently totals 280–300 koz.” 

Key financial results for the years ended 31 December 2017 and 2016



   2017  2016 8           Y-o-Y, %   
Financial performance
Gold sold, koz 
     218      163      34%
Average refined gold selling price, $/oz
     1 265      1 245      2%
Revenue, $ million, including:
     271      204      33%
Revenue from gold sales, $ million
     261      204      28%
Revenue from concentrate sales, $ million          9      н/д      н/д
Operating profit, $ million
     107      94      14%
Net profit, $ million
     85      88      -3%
Adj. EBITDA, $ million
     128      109      17%
Adj. EBITDA margin, %
    47%      53%      -6 ppts

Net cash inflow from operations, $ million

    88      81      9%
Capital expenditure, $ million
    68      104      -35%
Total cash cost (TCC) per ounce sold, $/oz
     530      462      15%

All-in sustaining cash cost (AISC) per ounce sold, $/oz

     701      615      14%
Financial position
Cash and cash equivalents
    35      54      -35%
Net debt, $ million
    175      99      77%
Net debt /Adj. EBITDA, х
    1,4      0,9      56%
Operating highlights
Ore mined, kt
    4 383      3 448      27%
Ore processed, kt
    5 854      4 438      32%
Total gold output, koz
    225      164 
     37%
   

Revenue

Revenue stood at $271 million rising by 33% y-o-y on the back of higher volumes of gold produced (+37%) and sold (+34%) as we brought new capacities on stream and boosted production at the placer deposit. Average realised gold price amounted to $1,265 per ounce, up 2% from 2016.

EBITDA

Adj. EBITDA rose by 17% to $128 million despite expectedly higher costs fully offset by an increase in total gold sold, as well as by operational improvements. Adj. EBITDA margin stood at 47% compared to 53% a year earlier.     

Total Cash Costs (ТСС)

TCC of GV Gold increased by 15% in 2017, to $530 per ounce, largely triggered by a stronger rouble and higher costs at the Irkutsk business unit. However, GV Gold remains one of the leaders in terms of TCC in the Russian gold mining sector. 

At Vysochaishy Mine, TCC grew by 24% as the rouble appreciated and the Company started the planned processing of lower-grade ore, while decreasing overall processing volumes due to scheduled maintenance at Mill 3. Notably, TCC remained virtually unchanged in rouble terms as Mill 2 and Mill 3 continued to gradually introduce operational improvements.

Taryn Mine showed the lowest TCC across the Group, at $476 per ounce, as the stripping ratio declined by 93% in 2017, while mining volumes increased. Taryn Mine started operations in the summer of 2017 and reached design capacity in record time, becoming GV Gold's leading operational asset.

Ugakhan Mine that was launched last year after Taryn had TCC of $649 per ounce. The Ugakhan Mill is operating in process start-up mode. TCC at Ugakhan was higher than the Group’s average mainly as a result of low-grade ore it had to process, because it has yet to ramp up. Furthermore, Ugakhan Mine has had higher electricity costs as it is using diesel generators before it gets connected to the power grid.

At Bolshoy Kuranakh, TCC declined 6% to $835 per ounce, as the volumes of sands washed increased 52% y-o-y after new 400-litre dredge No. 401 was commissioned.

TCC performance by mine, $/oz
    2017          2016 8      Y-o-Y, % 
Golets Vysochaishy
     499      403      24%
Marakan
     984      821      20%
Ugakhan
     649      n/a       n/a
Taryn
     476      n/a       n/a
Bolshoy Kuranakh
     835      885      -6%


All-In Sustaining Costs (AISC)

In 2017, AISC rose 14% y-o-y to $701 per ounce from $615 per ounce, mainly driven by higher TCC while sustaining capital expenditures remained flat.

AISC performance by mine, $/oz         2017           2016 8      Y-o-Y, %   
Golets Vysochaishy
     653      495      32%
Marakan
     1 200      1 137      6%
Ugakhan
     678       n/a      n/a
Taryn
     538       n/a      n/a
Bolshoy Kuranakh
     1 063      1 146      -7%

Capital expenditures

Capital expenditures declined as the investment programme passed its peak values after strategic projects, such as Taryn Mine and Ugakhan Mine, were brought on-stream. To recap, capital expenditures amounted to $68 million net of exploration costs. 

In 2017, the Company adopted a new exploration strategy that sets more aggressive and stringent project assessment and selection criteria seeking to expand resource potential at the existing fields and find prospective areas across its geographies. As a result, exploration costs totalled $9 million last year, up 13% vs 2016.  

Capital expenditures, $ million         2017          20168     Y-o-Y, % 
Golets Vysochaishy
      8      5      60%
Ugakhan
     41      53      -23%
Taryn      16      45      -64%
Bolshoy Kuranakh
     3      1      200%
Total
     68      104      -35%

Financial position

As at 31 December 2017, net debt totalled $175 million. This increase was mainly due to the Company buying back its own shares from the European Bank for Reconstruction and Development (EBRD), as well as the need to finance the final tranche of investments for main projects. Net Debt / Adj. EBITDA stood at 1.4x compared to 0.9x a year earlier.

Mineral Resources and Ore Reserves

Last year, GV Gold had its resources and reserves reappraised in accordance with the JORC Code (2012) as at 1 July 2017. As a result of exploration works, M and I&I mineral resources and P&P reserves were estimated at 7.0 moz and 4.4 moz of gold, respectively. Notably, P&P ore reserves increased to 66 mt with an average grade of 1.35 g/t, while the estimated volume of gold reached 2.9 moz. Ore reserves effectively rose 68% after successful exploration works in licence areas and follow-up exploration at flanks in operating assets, and after Drazhnoye in Oimyakon district, Yakutia, and Krasnoye in Bodaibo district, Irkutsk Region, were added to the overall estimation. 

Outlook for 2018

In its production guidance, the Company expects 280–300 koz of gold to be produced in 2018.

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


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

Sources of financial information

The Group is using Adjusted EBITDA and other non-IFRS measures as it believes these measures and related ratios are widely used by certain investors, securities analysts and other interested parties as supplemental measures of performance and liquidity. This measure should not be considered as an alternative to profit for the period and operating cash flows based on IFRS, and should not necessarily be construed as a comprehensive indicator of the Group's measure of profitability or liquidity. The Group calculates Adjusted EBITDA margin as Adjusted EBITDA divided by total revenue.

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 amortisation of property, plant and equipment and intangible assets that are recognised 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 amortisation of property, plant and equipment and intangible assets that are recognised in administrative expenses), equipment acquisition costs, construction and design costs required for sustaining ongoing operations. For the purpose of calculating AISC for separate deposits, general administrative expenses are excluded, but they 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.
[5]Source: The Union of Gold Producers, excluding foreign assets
[6] Source: According to Companies' data
[7] Source: According to Companies' data
[8] Comparative data for 2016 have changed in connection with adjustments to create a reserve for materials without movement and adjustment of the reflection of the subsidy received in 2016. Details of the adjustments and their impact are described in the Notes to the consolidated financial statements for 2017.


Preivew 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 audited consolidated financial results for the year 2017.

Нам 20 лет! 05.03.2018 Нам 20 лет!
Компания GV Gold отмечает юбилей успешной деятельности

Name:  We turned 20!
Detail text: 

GV Gold received its first mining licence 20 years ago on March 5th. Since then, the Company has expanded beyond its flagship Golets Vysochaishy deposit to become one of Russia’s largest gold mining companies with operating mines in the Irkutsk region and Republic of Sakha (Yakutia).

The Company is showing good financial results, continuing to increase operational efficiency and production volumes. As of today, GV Gold’s production capacity is about 8 million tons of ore per year and gold output is 225 koz.

The Company has commissioned six Mills. The successful launch of two strategic projects, Taryn Mine and Ugakhan Mine, is an important milestone of recent years, as is the commissioning of a second 400-litre dredge at the Bolshoy Kuranakh placer deposit in 2017. The projects were completed in record time despite difficult meteorological conditions.

A successful launch of new production capacities is a testament to the professionalism and dedication of GV Gold’s 2,500-strong team. The Company strives to ensure the best working and living conditions for its employees, including instituting working in shifts for staff employed by its business units.

Over the last 20 years, the Company became one of the biggest tax payers in the Irkutsk region, creating hundreds of new jobs. GV Gold also has continued to participate in the social and economic development of the regions where it operates in line with the company’s agreements with local governments.

We offer our thanks and congratulations to the Company’s founding shareholders, Sergey Dokuchaev, Natalia Opaleva, Valerian Tikhonov and Vladimir Kochetkov, as well as to BlackRock and our dedicated, passionate and professional employees for GV Gold’s 20-year anniversary. We wouldn’t have gotten where we are today without you!

Reference

GV Gold (Vysochaishy, PJSC) is an actively developing company with high production efficiency level. It ranks in the Russia’s TOP 10 gold mining companies list. The Company operates in the Irkutsk Region and the Republic of Sakha (Yakutia), where its operating assets are located and large scale exploration operations are carried out.


05.02.2018 Производственные результаты GV Gold за 2017 год

ПАО «Высочайший» (GV Gold), совместно с дочерними предприятиями (далее именуемое «GV Gold», «Высочайший» или «Компания»), публикует производственные результаты за 12 месяцев, закончившиеся 31 декабря 2017 года.

Name:  GV Gold announces 2017 operational results
Detail text: 

Vysochaishy PJSC (GV Gold), together with its subsidiaries ("GV Gold", "Vysochaishy" or "the Company"), publishes its operational results for the 12 months ended 31 December 2017.

2017 Key Highlights

  • In 2017, the Company produced 225 koz increased by 37% y-o-y. Such growth came as a result of the commissioning of production at the Drazhnoye and Ugakhan deposits, as well as the commissioning of a second 400-L dredge at the Bolshoy Kuranakh placer deposit.

  • In 2017, the Company launched two strategic projects, as Ugakhan Mine and Taryn Mine began production, resulting in the expansion of the GV Gold processing capacities about 8 mtpa.

  • The Taryn Mill reached design parameters in record-breaking time, having exceeding target volumes by 1.5 times. By the end of the year, Taryn had produced 57 koz of gold.

  • Implementation of the Ugakhan Project is on schedule: in the pre-commissioning period the Ugakhan produced 15 koz of gold. Full-scale operations at the Ugakhan Mine is scheduled for the summer of 2018.

  • As a result of the commissioning of new projects, the Company increased volumes of ore mined by 27% to 4,383 kt in 2017.

  • Volumes of ore processed rose 32% y-o-y and amounted to 5,854 kt.

  • In 2017, the average refined gold selling price increased by 2% to 1,265 USD/oz.

  • Gold sales are estimated at USD 271 million, up 33% y-o-y.[1]

  • As of 31 December 2017, the Company’s net debt position is estimated at USD 176 million compared to USD 99 million as at the end of 2016[2].

2018 Guidance

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

  • Reaching and exceeding design production parameters for the Taryn Mine and the Ugakhan Mine will be the key growth factors.

Statement from CEO German Pikhoya:

"I am delighted to announce that the Company has delivered strong operational results. In 2017, production totaled 225 koz of gold, which exceeds the previous year’s result by 37% and the earlier announced production plan by 5%.

In 2017, a new page was turned in the Company’s history. Thanks to the joint efforts and professionalism of all our employees, we launched two strategic projects, work on which had been in progress over the last few years. In September, within the framework of the Eastern Economic Forum, the commissioning of the first stage of the Taryn Mine took place. Less than two months later, our Irkutsk business unit launched the Ugakhan Mine. These steps will enable us to reach a qualitatively new level by the end of 2018, and to lay a firm foundation for our continued development, including through organic growth.

The past year has also included a number of important changes in our corporate governance. There were some changes to the GV Gold shareholder structure, while the Board of Directors was also refreshed. Staff changes deserve some special attention. In 2017, the top management team was considerably strengthened both at the corporate center level and at the business unit level of the Company. One of our top priorities is to establish a transparent corporate structure and achieve maximum efficiency across all levels of the Company. We transitioned to a new organizational structure with the establishment of the corporate centre and the business units, and introduced a rotation work scheme at our Mines.

I am very grateful to the entire team for their contributions in achieving our strategic objectives and for their commitment throughout the year. Ahead of us, we have another busy and interesting year. The expertise the Company has accrued enables us to set the most ambitious objectives. But the employees of the Company and their safety are still of the greatest value for us".

Consolidated operational results  

GV Gold’s total gold production reached 225 koz, which is 37% higher than in 2016.

This significant growth came as a result of commissioning production at the Taryn Mine, which reached the design parameters in record-breaking time, having exceeded targets by 1.5 times. In 2017, production volumes at this mine amounted to 57 koz of gold, including 15 koz of gold contained in concentrate.

GV Gold Key Operational Highlights  

   2017
2016 
  Y-o-Y. %
  Rock moved, kt  39, 910   28, 185   42%
  Stripping, kt   35, 527   24, 737   44%
  Ore mined, kt   4, 383   3, 448   27%
  Stripping ratio, t/t   8.1   7.2   -13%
  Ore processed, t   5, 854   4, 438   32%
Average grade in ore processed, g/t
  1.39   1.32   5%
  Recovery, %   86.0   86.7   0,7ppts.
  Refined gold output, koz   209.1   163.9   28%
  Gold contained in concentrate, koz   15.4   -   -
 Total gold output, koz   224.5   163.9   37%

Refined gold output by mine, koz                                                                                                                                                                                                       

   2017
2016 
  Y-o-Y %
Golets Vysochaishy
132.6
148.5
-11%
Marakan
4.7
5.5
-15%
Ugakhan
14.8
-
-
Taryn
42.1
-
-
Bolshoy Kuranakh (placer operations) 14.9
9.9
51%
Gold production, koz
209.1
163.9
28%
Gold contained in concentrate, koz
15.4
-
-
Total gold production, koz.
224.5
163.9
37%

 

Operating results by mine

Irkutsk Business Unit

Golets Vysochaishy

In 2018, GV Gold celebrates the 20-year anniversary since the first license for the Golets Vysochaishy deposit was granted. Over the life of the mine, approximately 1.7 moz of gold has been produced here. The deposit still remains one of the largest mining enterprises in the Irkutsk Region. Gold output in the reporting period amounted to 133 koz, which is 11% lower than in 2016. This decrease in production was due to the planned processing of ore with lower grades, and also as a result of reduced volumes of ore processed (-3%) following the scheduled maintenance works at Mill 3.

Volume of rock moved grew by 14%, reaching the level of 18,386 kt. In 2017, the stripping ratio amounted to 6.9. Volume of ore processed remained at approximately the level of the previous reporting period and amounted to 4,194 kt of ore. Average recoveries went 1.2 ppts lower y-o-y to 79.5%.

In the interest of enhancing operating efficiency at the mine, the Company is developing and implementing a set of measures aimed at work optimization and process control strengthening at Mills 2 and 3. Within the framework of the project, in H2 2017, an audit of the production flow (from the mining operations to the gold production) was carried out. The Company will start implementing the set of measures developed based on the findings of the audit in 2018.

Following the results of geological and in-mine exploration, the Company expects that the Vysochaishy life of the mine’s period will be extended. According to the JORC-compliant estimate as of 1 July 2017, the proven and probable reserves (P&P) of the deposits total 824 koz of gold, while the measured, indicated and inferred resources (M,I&I) — 862 koz of gold.

In 2018, within the contour of the identified resources, advanced in-mine exploration is planned to enable the Company to develop a detailed mining schedule and determine the parameters of the remaining life of the mine.
                                                                                                                                                                                                                        

Operational results of Golets Vysochaishy 

   2017
2016
  Y-o-Y. %
  Rock moved, kt 18, 386
16, 098
14%
  Stripping, kt 16, 066
13, 007
24%
Stripping ratio, t/t 6.9
4.2
64%
Ore mined, kt 2, 320
3, 091
-25%
Average grade in the mined ore, g/t 1.71
1.62
6%
Ore processed, kt 4, 194
4, 321
-3%
Average grade in ore processed, g/t 1.22
1.31
-6%
Recovery, % 79.5
80.7
-1,2ppts.
Refined gold production, koz 131.1
146.5
-11%
Sands washed, k m3 85
84
1%
  Average grade, g/m3   0.73   0.80   -9%
  Refined gold production, koz   1.5   2.0   -25%
  Total gold production, koz   132.6   148.5   -11%


Marakan

In 2017, Marakan gold output totalled 4.8 koz, which is 15% lower than in 2016. The decrease in production is associated with the decrease in the average grade of gold in ore mined and lower volumes of ore processed, down 9% to 107 kt. Average recoveries were 78.1%.

Operational results of Marakan

   2017
2016 
  Y-o-Y. %
  Rock moved, kt 1, 611
1, 583
2%
  Stripping, kt 1, 508
1, 496
1%
Stripping ratio, t/t 14.6
17.2
-15%
Ore mined, kt 103
87
18%
Average grade in ore mined, g/t 1.94
2.19
-11%
Ore processed, kt 107
117
-9%
Average grade in ore processed, g/t 1.76
2.01
-12%
Recovery, % 78.1
72.6
5,5 ppts.
Refined gold production, koz 4.7
5.5
-15%


Ugakhan

In October 2017, a launch of the Ugakhan Mine (Irkutsk business unit) took place. The proximity of the new deposit to the Company’s flagship Mine enabled acceleration of construction and commissioning of the Mill. Implementation of this project was one of the strategic priorities of GV Gold due to considerable expected synergies, including application of expertise of the current team, accrued experience of production of similar sites, and the ability to utilize single logistical chains of supply and equipment servicing.

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.  

During the reporting period, starting from the commissioning of the processing plant, the Mill has produced 14.8 koz of gold. The Company expects that in 2018 Ugakhan Mill will reach the design ore processing capacity of more than 2.6 Mt.

Operational results of Ugakhan

   2017
2016 
  Y-o-Y. %
Ore processed, kt 1,022
-
-
Average grade in ore processed, g/t 0.72
-
-
Recovery, % 62.2
-
-
Refined gold production, koz 14.8
-
-



Taryn Business Unit

Taryn

The Taryn deposit has become the new leader among the operating assets of the Company and the largest Mine in the Oymyakon Area of the Republic of Sakha (Yakutia), at the heart of Russia’s Pole of Cold.

An official ceremony for commissioning the first stage of the Taryn Mine took place in September at the Eastern Economic Forum with the participation of the President of the Russian Federation Vladimir V. Putin and the Chairman of GV Gold Board of Directors Sergey V. Dokuchaev. In October, at the MINEX Russia 2017 mining forum, the Taryn Deposit was recognized as the best mining project of 2017 for the successful establishment of a mining enterprise in Russia.

Following the results of the year, Mine exceeded targets by 1.5 times: 57.5 koz of gold were produced, including 15.4 koz of gold contained in concentrate. Over the period of the mine exploitation, volumes of rock moved totalled 6,646 kt, volumes of ore mined came to 663 kt. The stripping ratio reduced by 93% to 9.0 on the back of increased ore mined volumes. Over the reporting period, the Mill treated 530 kt of ore with the average grade of 3.90 g/t.

The Mine was commissioned in the summer of 2017 and reached design output in record-breaking time. In July, the hourly ore processing capacity of the plant reached 140 t/h, surpassing design parameters by 12% (125 t/h). In December, Taryn reached its throughout design recovery, coming in at 94.4% when the target had been 93.5%. The average recovery for the year totalled 86.6%.

Mineral resource base expansion is a strategic objective of the Taryn Deposit, 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 considers a possibility of construction of the second stage of the Mine and plans to determine different project implementation options by the end of the year.

Operational results of Taryn

   2017
2016
  Y-o-Y. %
  Rock moved, kt 6, 646
4, 229
57%
Stripping, kt 
5, 986
4, 194
43%
Stripping ratio, t/t 9.0
120.5
-93%
Ore mined, kt 663
35
18,9х
Average grade in ore mined, g/t 3.19
0.99
222%
Ore processed, kt 530
- -
Average grade in ore processed, g/t 3.90
- -
Recovery, % 86.6
- -
Refined gold production, koz 42.1
- -
Gold contained in concentrate, koz 15.4
- -
  Total gold production, koz 57.5
- -



Aldan Business Unit

Bolshoy Kuranakh Deposit

Development of the Bolshoy Kuranakh placer deposit in the Aldan Area of the Republic of Sakha (Yakutia) is carried out by SAHA Gold Mining, CJSC, the Aldan business unit of GV Gold. The dredging fleet consists of three dredges: one 250-L dredge and two 400-L dredges. According to the updated JORC-compliant estimate as at 1 July 2017, the proven and probable reserves (P&P) of the deposit total 1.5 Moz of gold.

Over the 2017 season, which lasted from April to December, the asset produced 14.9 koz of gold, a 51% increase year-on-year. Such growth came as a result of commissioning of the second 400-L dredge, which operated throughout the entire season. The volume of sands washed totaled 2,923 k m³, which is 52% higher than in 2016. The average grade remained at approximately the level of the previous year and totalled 0.157 g/m ³.

One of the options for further expansion of gold production at the deposit is the establishment of selective mining sites. This option is at the stage of detailed review and analysis.

Operational Results of the Aldan Business Unit

   2017
2016 
  Y-o-Y %
Sands washed, k m3 2, 923
1, 925
52%
Average grade, g/m3 0.157
0.160
-2%
Refined gold production, koz 14.9
9.9
51%


Consolidated Financial Results

In 2017, the Company’s total gold sales totaled 218 koz of gold, including 11.7 koz of gold in gravity and flotation produced at the Taryn Mill.   

The Company’s total revenues from the gold sales are estimated at USD 271 million, which is 33% higher than in 2016. In the reporting period, the average gold selling price increased by 2% to the level of USD 1,265 /oz.

As at 31 December 2017, the net debt of the Company is estimated at USD 176 million. Company’s leverage remains at a stable level, with a limited amount due for payment in 2018.

Consolidated Results of the Financial Activity    

   2017
2016
  Y-o-Y. %
Total gold sales, koz 218
163
34%
Refined gold sold, koz 206
163
26%
Gold contained in concentrate, koz 12
-
-
Gold sales, million USD 271
204
33%
Refined gold sold, million USD 261
204
28%
Gold contained in concentrate, million USD 10
-
-
Average refined gold selling price, USD/oz. 1, 265
1, 245
2%
Net debt, million USD 176
99
78%


Health and Safety

In 2017, the lost time injury frequency rate (LTIFR) amounted to 0.28, while in 2016 the metric was 0.22. This growth in the LTIFR was primarily due to the introduction of additional requirements in regard to the recording of injuries: starting from 2017 special attention is paid to the work with near misses and investigation of micro-injuries.

It is important to note that in the reporting period there were zero fatalities. The Company strives toward a "zero injury rate", continually undertaking activities to improve the corporate OHS culture. In 2018, the Company plans to take additional measures for transportation safety improvement and carry out "Conscious Safety" trainings.

In 2017, GV Gold (Vysochaishy, PJSC) confirmed the compliance of its EHS management system with the requirements of the ISO 14001:2015 and OHSAS 18001:2007 international standards, which confirms the chosen path on the way to providing safe working conditions.

Corporate and Organizational Development

During the reporting period, the Company made a number of structural changes, which also drove growth of production metrics and improved the transparency and efficiency of corporate governance:

  • Changes in the Shareholding Structure and the Composition of the Board of Directors

On November 2, 2017, the shareholding structure of GV Gold (Vysochaishy, PJSC) was changed when the equity stake of the European Bank for Reconstruction and Development (EBRD) equal to 5.26% was repurchased by the Company’s subsidiary SAHA Gold Mining, CJSC (the Aldan business unit of GV Gold) ahead of schedule. The final payment amounted to USD 39 million. In total, GV Gold paid USD 62 million to the European Bank for Reconstruction and Development.

On November 30, 2017, the composition of the Board of Directors was changed. Non-executive director Alexander V. Chmel left the Board of Directors and the CEO of GV Gold German R. Pikhoya joined the Board of Directors.

  • Staff Changes

During the reporting period, the Company strengthened its top management team both at the level of the corporate center and within its business units.

On April 10, 2017, German R. Pikhoya assumed an office of the CEO of GV Gold (Vysochaishy, PJSC).

In January 2018, Alexander N. Tuluptsov, who previously served as the CEO of TGMC, JSC and successfully launched the Taryn Mine, was reassigned to the position of the Deputy CEO Operations.

  • Transition to a New Organizational Structure

Within the framework of the approved plan for transition to the new organizational structure, the corporate center and the business units were established.

  • Transition to a Rotation Work Scheme

In 2017, employees of the processing plants within the Irkutsk and Taryn business units were transferred to a rotation work scheme with the aim of improving workplace appeal, enhancing the competitiveness of the Company on the sector’s labor market, as well as attracting and retaining highly-skilled personnel.

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

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 is based on unaudited 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.


Preivew text: 

Vysochaishy PJSC (GV Gold), together with its subsidiaries ("GV Gold", "Vysochaishy" or "the Company"), publishes its operational results for the 12 months ended 31 December 2017.


26.12.2017 Высочайший получил сертификат соответствия системы менеджмента ОТ и ООС

ПАО «Высочайший» подтвердило соответствие системы менеджмента охраны труда и охраны окружающей среды требованиям международных стандартов ISO 14001:2015 и OHSAS 18001:2007. Аудит проведен Ассоциацией по сертификации «Русский Регистр».

Name:  GV Gold Obtained the EHS Management System Compliance Certificate
Detail text: 

GV Gold (Vysochaishy, PJSC) confirmed a compliance of its EHS management system with the international standards ISO 14001:2015 and OHSAS 18001:2007 requirements. The audit was carried out by the “Russian Register” Certification Association.

In November-December 2017, the Irkutsk business unit enterprises and the Moscow corporate center underwent a certification audit of the production as well as management departments engaged in the EHS-related activities of the Company. The audit assessed the management system introduction, its performance and possibilities for its further improvement. The auditor noted an efficient functioning of the introduced management system and interest of the enterprise personnel in its further development and improvement.

Following the certification audit, the “Russian Register” Certification Association made a decision to issue a certificate evidencing a compliance of the GV Gold (Vysochaishy, PJSC) EHS management system with the requirements of the international standards ISO 14001:2015 and OHSAS 18001:2007.

Reference

GV Gold (Vysochaishy, PJSC) is an actively developing company with high production efficiency level. It ranks in the Russia’s TOP 10 gold mining companies list. The Company operates in the Irkutsk Region and the Republic of Sakha (Yakutia), where its operating assets are located and large scale exploration operations are carried out.


Preivew text: 

GV Gold (Vysochaishy, PJSC) confirmed a compliance of its EHS management system with the international standards ISO 14001:2015 and OHSAS 18001:2007 requirements. The audit was carried out by the “Russian Register” Certification Association.


22.12.2017 Сергей Докучаев стал лауреатом Государственной премии РС (Я)

За заслуги в области развития золотодобывающей промышленности, личный вклад в развитие инфраструктуры и  реализацию проекта по строительству Тарынского ГОКа 


Тарын вышел на проектные показатели  21.12.2017 Тарын вышел на проектные показатели

Тарынский ГОК (АО «ТЗРК», Тарынская бизнес-единица ПАО «Высочайший» (GV Gold)) вышел на полную производственную мощность. 

Name:  Taryn Mine Attained Its Design Capacity
Detail text: 

Taryn Mine (TGMC, JSC, GV Gold Taryn business-unit) attained its full productive capacity.

Drazhnoye deposit commercial development commenced in 2017. The asset has been developed via the open pit mining method since February 2017. As at the end of December, 663 kt of gold-bearing ore have been mined. The stripping ratio is 3.3 m3/t.

Taryn Mine processing plant was launched in the pre-commissioning mode in May, and in summer the enterprise already transited to commercial exploitation. In June, the hourly processing plant ore throughput capacity reached 140 t/h, having outstripped the target by 12% (125 t/h). In May-December, the processing plant treated 530 Kt of ore with the average grade of 3.72 g/t.

In December, the enterprise attained its design total gold recovery, which made 94.42% at the target of 93.51%. The year average recovery of primary gold concentrate made 63.40% at the target of 60.30%.

In 2017, the Taryn business-unit outstripped the production target by 58%. The combined gold production totaled 1.8 t (57 koz) of gold, including 1.3 t (42 koz) of precious metal and 0.480 t of gold contained in the gravity and flotation concentrate (8.218 kt).

An official ceremony of the Taryn Mine commissioning took place in September within the framework of the Eastern Economic Forum VEF-2017 and featured the President of the Russian Federation Vladimir V. Putin and the Chairman of the Board of Directors of GV Gold (Vysochaishy, PJSC) Sergey V. Dokuchaev. In October, within the framework of the 13th mining industry forum “MINEX Russia 2017”, the Taryn Mine was recognized the “Mining Project of the Year” for successful implementation of the mining project within the territory of Russia.

The Taryn Mine was granted a status of the regional investment project. LOM is estimated at least until 2029.

German Pikhoya, GV Gold CEO:

Taryn Mine is a new leader among GV Gold projects portfolio. In the record-breaking time the Mine has attained its design capacity and outstripped the gold production target by half. Next year the gold production will already total 96 koz (3 t) of gold, including the gravity and flotation concentrate.

We are reviewing a potential for further production expansion. I’d like to congratulate the Taryn Mine team on the outstanding achievements and wish to move beyond!

Company Profile

GV Gold (Vysochaishy, PJSC) is an actively developing company with high production efficiency level. It ranks in the Russia’s TOP 10 gold mining companies list. The Company operates in the Irkutsk Region and the Republic of Sakha (Yakutia), where its operating assets are located and large scale exploration operations are carried out.


Preivew text: 

Taryn Mine (TGMC, JSC, GV Gold Taryn business-unit) attained its full productive capacity.


07.12.2017 GV Gold увеличил запасы рудного золота

Общие ресурсы категории M, I&I составили 7,0 млн унций золота, запасы категории P&P — 4,4 млн унций золота. Аудит провела консалтинговая компания Micon International Ltd.

Name:  GV Gold Increases Its Hardrock Gold Reserves
Detail text: 

Following successful completion of Company’s exploration program, Measured, Indicated and Inferred Resources totaled 7.0 Moz of gold, Proven & Probable (P&P) Reserves — 4.4 Moz of gold.

In accordance with the updated report, hardrock  P&P Reserves  were increased to 66 Mt of ore at an average grade of 1.35 g/t, with 2.9 Moz of gold contained. The majority of new Reserves ounces were accrued through successful exploration at the flanks of existing hardrock deposits, as well as the inclusion of new deposits Drazhnoye (Oimyakon Area of the Republic of Sakha (Yakutia)) and Krasnoye (Bodaibo Area of the Irkutsk Region), which underpins an exciting exploration potential at Company’s key assets located in one of the most favorable (from geology perspective) gold-bearing provinces in the world.

An extensive drilling program has been commissioned during this period with more than 169 000 m drilled, including 70 000 m at each of Drazhnoye and Krasnoye deposits.

Bolshoy Kuranakh alluvial deposits’ M&I&I resources totaled 1.9 Moz of gold; P&P reserves are estimated at 1.5 Moz of gold which can be processed via cost-efficient gravity separation route.  

Organic growth remains the key focus area for GV Gold as Company’s management aims to create value for shareholders through efficient conversion of Company’s resource base into ounces produced. Building on the successful exploration campaign, the Company has retained an ambitious exploration programme for next year, ensuring that long-term sustainability of GV Gold’s business model remains intact.

The Reserves and Resources update was commissioned by Micon International Ltd. in accordance with the JORC Code (2012).

JORC-Compliant Reserves and Resources 

     Deposit                          As at 01.01.2014                            As at 01.07.2017    

Ore,kt

Grade,g/t

  Gold, kg      Gold,koz

Ore,kt

Grade,g/t

Gold,kg

Gold, koz
                                                                                     Proven & Probable RESERVES                
Golets Vysochaishy
33 750      1.08  36 458 1 172 23721      1.08 25 616 824
Ykanskoye
    499      2.56 1 277 41  2 730      1.97 5 373 173
Ozhereliye
    544      2.14 1 165 37 431      2.59 1 115  36
Krasnoye*
     -        -      -      -  7 327      1.02 7 466 240
Ugakhan
14 779      0.95  13 976  449 23 875      1.07 25 627 824
Drazhnoye 
    -        -      -      - 7 651      3.09 23 602 759
TOTAL Hardrock Gold
49 572      1.07 52 876 1 700 65 735      1.35  88 799  2 855
Bolshoy Kuranakh**
     -      -      -      - 219 334    214.27  46 997 1 511
TOTAL     52 876 1 700         135 796  4 366
                                                                          Measured, Indicated & Inferred Resources   
Golets Vysochaishy 30 954      1.27 39 246    1 262      24 575      1.09 26 798      862
Ykanskoye 2 491      2.47 6 147      198      2 875      2.23 6 423      207
Ozhereliye 1 676      2.62 4 386      141      1 185      3.24 3 839   123
Krasnoye* 20 172      1.47 29 653      953      27 267      1.59 43 163   1 388
Ugakhan
49 543      1.09 53 906  1 733      38 466      1.11  42 810  1 376
Drazhnoye     5 815      4.22 24 533      789      9 223      3.50 32 272  1 038
TOTAL Hardrock Gold     110 651      1.16 157 871  5 076      103 591      1.50 155 305   4 993
Bolshoy Kuranakh**  199 598     320 63 880  2 054     225 031      271 61 035  1 962
TOTAL      221 751  7 130      216 340  6 955


*With no regard to the ownership structure (100% gross attributable basis) **The volume of sands is measured in ‘000 m3, and the grade – in mg/m3. Only the gravity-recoverable gold data were used for the estimation.

Reference

GV Gold (Vysochaishy, PJSC) is an efficient growing gold business and Russia’s top-10 largest producer. The Company carries out its activities in the Irkutsk Region and the Republic of Sakha (Yakutia), where it’s Irkutsk, Taryn and Aldan business units are located and large scale exploration operations are carried out.


Preivew text:  GV Gold (Vysochaishy, PJSC, or the “Company”) is pleased to announce its JORC-compliant Reserves and Resources as of 1 July, 2017.

01.12.2017 Изменен состав Совета директоров GV Gold

На внеочередном общем собрании акционеров ПАО «Высочайший» (GV Gold) избран Совет директоров в новом составе.  

Name:  GV Gold Board Structure changed
Detail text: 

On November 30, 2017 an extraordinary general meeting of GV Gold  shareholders took place and elected the new Board of Directors. The non-executive director Alexander Chmel left the Board and GV Gold CEO German Pikhoya joined the Board.

Board of Directors structure:

  • Sergey V. Dokuchaev, Chairman of the Board of Directors
  • Valerian A. Tikhonov, shareholder
  • Natalia V. Opaleva, shareholder
  • Sergey A. Filippov, non-executive director
  • Vladimir S. Kochetkov, shareholder
  • Sergey G. Popov, independent director
  • Mikhail I. Leskov, independent director
  • German R. Pikhoya, CEO

  • Reference

    GV Gold (Vysochaishy, PJSC) is an actively developing group of companies with high production efficiency level. It ranks in the Russia’s TOP 10 gold mining companies list. The Company carries out its activity in the Irkutsk Region and the Republic of Sakha (Yakutia), where its Irkutsk, Taryn and Aldan business units are located and large scale exploration operations are carried out.


    Preivew text: 

    GV Gold CEO German Pikhoya joined the Board of Directors


    02.11.2017 Состав акционеров GV Gold изменен

    ПАО «Высочайший» (GV Gold) досрочно выкупило полный пакет своих акций у ЕБРР в размере 5,26%

    Name:  Change in the GV Gold’s Shareholding Structure
    Detail text: 

    On November 02, 2017, the GV Gold (Vysochaishy, PJSC) shareholding structure was changed — the 5.26% equity stake held by the European Bank for Reconstruction and Development (the EBRD) was bought out by the Company’s subsidiary, SAKHA Gold Mining, CJSC (Aldan business unit), ahead of the schedule. The final payment amounted to USD 39 million. In total, GV Gold paid USD 62 million.

    Scheduled repurchasing of the equity stake held by the EBRD is carried out by GV Gold within the framework of the agreement signed between SAKHA Gold Mining, CJSC, GV Gold Aldan business unit and the EBRD in December 2015. The parties planned to effect a complete cessation of the Bank’s shareholding by August 31, 2018.

    As at 02.11.2017, the GV Gold shareholding structure was as follows:

    • 20.36% — Sergei V. Dokuchaev, the Chairman of the Board of Directors

    • 20.36% — Natalia V. Opaleva, a member of the Board of Directors

    • 20.36% — Valerian A. Tikhonov, a member of the Board of Directors

    • 17.99% — BlackRock Funds

    • 6.37% — Brishurt Ltd

    • 5.26% — SAKHA Gold Mining, CJSC

    • 2.95% — Fayweld

    • 6.35% — Minority shareholders

    Reference

    GV Gold (Vysochaishy, PJSC) is an actively developing group of companies with high production efficiency level. It ranks in the Russia’s TOP 10 gold mining companies list. The Company carries out its activity in the Irkutsk Region and the Republic of Sakha (Yakutia), where its Irkutsk, Taryn and Aldan business units are located and large scale exploration operations are carried out.


    Preivew text: 

    GV Gold (Vysochaishy, PJSC) shareholding structure was changed — the 5.26% equity stake held by the EBRD was bought out by the Company’s subsidiary, SAKHA Gold Mining, CJSC (Aldan business unit).


    Тарынская золоторудная компания отмечает 5-летие 01.11.2017 Тарынская золоторудная компания отмечает 5-летие

    В ноябре АО «ТЗРК», Тарынская бизнес-единица GV Gold, отмечает первый юбилей – 5 лет с получения лицензии на месторождение Дражное и начала его освоения.

    Name:  Taryn Gold Mining Company Celebrates Its 5th Anniversary
    Detail text: 

    In November, Taryn Gold Mining Company (TGMC), JSC, the Taryn business unit of GV Gold, celebrates its first jubilee – 5 years from the day of the Drazhnoye deposit license obtainment and commencement of its development.

    The Drazhnoye deposit is located within the territory of the Oimyakon Area of the Republic of Sakha (Yakutia) — at the Russia’s Pole of Cold. The nearest inhabited locality is the settlement of Ust-Nera where the TGMC office is located. The Taryn Mine constructed at the deposit is the largest mining enterprise in the Oimyakon Area, and a key production asset of the GV Gold Group in the Republic of Sakha (Yakutia). In 2017, the Taryn business unit personnel totaled 430 pers.

    A Story of Success

    In the span of 5 short years TGMC personnel managed to achieve the goals which seemed impossible: constructed the mining enterprise including a processing plant, open pit, well-furnished mine camp with the amenity and office facility, garage, utility constructions, as well as resolved the mine power supply issue.
    The Drazhnoye deposit license was acquired by GV Gold (Vysochaishy, PJSC) as the result of a victory in the auction at the end of 2012. In 2013, the confirmatory exploration operations started and the detailed metallurgical testworks were performed. At the time of the operations commencement, there was absolutely no infrastructure. The temporary camp was equipped with portable cabins and tipis or yourts, keeping the heat best of all.

    The company commenced the Taryn Mine designing in 2014; a long-lead equipment was ordered and preparatory mining operations in the open pit were started at that time as well. Construction of the processing plant facilities, the Stage I mine camp facilities and the hydraulic engineering constructions began in 2015.

    In Q1 2016, the processing equipment installation began, the Stage I mine camp was commissioned and inhabited. At the beginning of 2017, the Taryn Mine was ready for pre-commissioning. Consequently, the construction was completed in the record-breaking time – in only two years, in the extreme climatic conditions.

    An official ceremony of the Stage I Taryn Mine commissioning took place in September within the framework of the Eastern Economic Forum VEF-2017 and featured the President of the Russian Federation Vladimir V. Putin and the Chairman of the GV Gold Board of Directors Sergey V. Dokuchaev. TGMC General Director Alexander N. Tuluptsov, who at the moment of the launch was at the Drazhnoye deposit site, took part in the event in the format of a teleconference bridge.

    In October, the Taryn Mine was recognized the best mining project of 2017 for a successful establishment of the mining enterprise on the territory of Russia. The award was given at the mining forum "MINEX Russia 2017".

    Alexander Tuluptsov, General Director of TGMC:

    "The deposit is located in a remote province of the Oimyakon Area with underdeveloped infrastructure. First of all, we are talking about the actual absence of roads. Transportation of the equipment and materials is carried out only along the winter roads from January till March. All the rest of the time, communication with the Mine is complicated. Implementation of the project in such severe conditions of the Pole of Cold in the record-breaking time is definitely an achievement of the TGMC and GV Gold team and the partners taking part in the project".

    Performance of the First 9 Months of the Operations

    Commercial development of the Drazhnoye deposit began in 2017. Mining operations at the asset are carried out using the open pit mining method. The Taryn Mine has attained the design parameters in the record-breaking time.

    The mining operations have been carried out since February. As at the end of September, 354 kt of gold-bearing ore were mined. The Mine’s processing plant began to operate in the pre-commissioning mode in Q2, and in the summer, the commercial production commenced. In July, the hourly ore processing rate made 140 t/h, having exceeded the design rate by 12 %. Over 9 months of the plant exploitation, 322 kt of ore were processed and 570 kg (18 koz) of gold were produced.

    By the end of 2017, the company plans to produce not less than 1 t (32 koz) of precious metal at the Taryn business unit. The company plans to exploit the deposit at least until 2029. The expected annual gold production will be at the level of up to 3 t (96 koz).

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    Reference

    GV Gold (Vysochaishy, PJSC) is an actively developing group of companies with high production efficiency level. It ranks in the Russia’s TOP 10 gold mining companies list. The Company operates in the Irkutsk Region and the Republic of Sakha (Yakutia), where its production assets are located and large scale exploration operations are carried out




    Preivew text: 

    In November, Taryn Gold Mining Company (TGMC), JSC, the Taryn business unit of GV Gold, celebrates its first jubilee – 5 years from the day of the Drazhnoye deposit license obtainment and commencement of its development.


    GV Gold запустил ГОК «Угахан» 23.10.2017 GV Gold запустил ГОК «Угахан»
    23 октября ПАО «Высочайший» (GV Gold), как заявлял ранее, в соответствии с намеченным графиком произвёл технологический запуск ГОКа «Угахан» Иркутской бизнес-единицы. В мероприятии приняли участие акционеры-основатели компании Сергей Докучаев и Наталия Опалева, а также генеральный директор ПАО «Высочайший» Герман Пихоя.

    Name:  GV Gold Commissions the Ugakhan Mine
    Detail text: 

    As previously announced, GV Gold (Vysochaishy, PJSC) is commissioning the Ugakhan Mine of the Irkutsk business unit. Strictly in accordance with the schedule, a technical launch of the new mine with the first smelting of gold took place on the 23d of October with participation of the founding shareholders Sergey Dokuchaev and Natalia Opaleva, and the CEO German Pikhoya.  

    The Ugakhan deposit was discovered by the GV Gold geologists in 2010. The deposit is located within the territory of the Bodaibo Area of the Irkutsk Region. In 2013, based on the results of the performed exploration operations, the C1+C2 category reserves of the Ugakhan deposit were tripled and approved by the State Reserves Committee GKZ in the amount of 49 t (1.58 Moz). The minable reserves total 36 t (1.16 Moz) of gold with LOM (life of mine) till 2029.

    The Ugakhan Mine construction commenced in 2015. The project implementation CAPEX amounted to c. USD 200 million.

    A processing plant has a capacity up to 3 Mt of ore per year and is designed with gravity and CIL (carbon in leach) process.

    In 2018, the Company will bring the Ugakhan mine to full capacity with the annual gold production of up to 3 t (96 koz).

    The Ugakhan mine is located at the distance of only 23 km from the first GV Gold deposit of Golets Vysochaishy, where the gold production has been carried out since 2001.

    Close proximity of the new mine to the flagship enterprise of the Company allowed to accelerate the construction and commissioning of the new deposit. A competence of the current team, an accumulated experience of exploitation of similar deposits as well as the uniform logistical supply and equipment servicing chains represent the special synergetic advantages.

    The project has a high significance for development of the region. At the moment, more than 800 people are engaged in construction and exploitation of the new mine. After the mine attains its full capacity, the tax payments to the budgets of different levels will total c. RUB 350 million per year.

    In 2017, the Ugakhan project obtained a status of the regional investment project which means an obtainment of tax preferences in the first 10 years of the mine exploitation for further development of the deposit, creation of new jobs and investment into the infrastructure and technologies.

    The CEO of GV Gold (Vysochaishy, PJSC) German Pikhoya:

    “I’d like to congratulate the shareholders and employees of the Company with smelting of the first gold of the Ugakhan deposit! In accordance with the earlier-announced plans, the Company is entering a new stage of its development: with the commissioning of two new mines in 2017, the GV Gold’s productive capacities expand significantly. Fulfillment of an objective on quick expansion of the gold production becomes possible at the expense of construction and commissioning of two new mining enterprises. A unique experience accumulated by the Company in the course of construction of two new large production enterprises within one year allows us to set the most unique and ambitious goals for ourselves!”

     Reference

    GV Gold (Vysochaishy, PJSC) is an actively developing company with high production efficiency level. It ranks in the Russia’s TOP 10 gold mining companies list. The Company carries out its activity in the Irkutsk Region and the Republic of Sakha (Yakutia), where its Irkutsk, Taryn and Aldan business units are located and large scale exploration operations are carried out.

     


    Preivew text: 

    As previously announced, GV Gold (Vysochaishy, PJSC) is commissioning the Ugakhan Mine of the Irkutsk business unit.


    Тарынский ГОК – горный проект года 12.10.2017 Тарынский ГОК – горный проект года

    GV Gold победил в ежегодном конкурсе "Российская Горная Награда" в номинации "Горный проект года" за успешную реализацию горнодобывающего проекта на территории России - Тарынского ГОКа.

    Name:  Taryn Mine was Recognized Mining Project of the Year
    Detail text: 

    On the 12th of October, 2017, within the framework of the 13th mining industry forum “MINEX Russia 2017”, awardees and finalists of the Russian Mining Excellence Award were announced. Taryn Mine became the winner in the nomination “Mining Project of the Year” for successful mining project implementation within the territory of Russia.

    Taryn Mine is the largest mining enterprise in the Oimyakon Area. The processing plant’s design capacity is 700 kt o.p.a.. The annual production is up to 97 koz (3 t) of gold p.a. By the end of the year, the company plans to produce here c. 32 koz (1 t) of precious metal. 

    GV Gold acquired the Drazhnoye deposit license at the end of 2012. The asset is located in a remote province within the Oimyakon Area of the Republic of Sakha (Yakutia), 70 km from the Ust-Nera settlement – at the Russia’s Pole of Cold. Geological reserves of the deposit total 35 t (1.12 Moz) of gold.  An official ceremony of the Taryn Mine Stage I commissioning took place in September 2017 at the Far-eastern Economic Forum VEF-2017.

    Russian Mining Excellence Award

    The Russian Mining Excellence Award has been given within the framework of the “MINEX Russia” forum since 2007, drawing attention of the industry community to the best practices and the projects implemented in the Russian mining industry. Over the time of its existence, the award gained a significant success owing to establishment of an independent and unbiased platform for presentation of outstanding achievements of the Russian and foreign companies in the field of development and improvement of the mining standards and practices in Russia.

    About the Company

    GV Gold (Vysochaishy, PJSC) is an actively developing group of companies with high production efficiency level. It ranks in the
    Russia’s TOP 10 gold mining companies list. The Company carries out its activity in the Irkutsk Region and the Republic of Sakha (Yakutia), where its Irkutsk, Taryn and Aldan business units are located and large scale exploration operations are carried out. 


    Preivew text:  Taryn Mine became the winner in the nomination “Mining Project of the Year” for successful mining project implementation within the territory of Russia.

    22.09.2017 GV Gold досрочно выкупает пакет акций ЕБРР
    ПАО «Высочайший» (GV Gold) направило уведомление в Европейский банк реконструкции и развития (ЕБРР) о досрочном выкупе полного пакета своих акций у Банка в размере 5,26%.  Name:  GV Gold Repurchases the Shares Held by the EBRD before the Scheduled Date
    Detail text: 

    GV Gold (Vysochaishy, PJSC) forwarded a notice to the European Bank for Reconstruction and Development (the EBRD) on an early repurchasing of the full equity stake of 5.26% fr om the Bank. The final payment will total c. USD 39 million. It will be determined as at the date of the EBRD’s withdrawal from shareholding in GV Gold in accordance with the Share Purchase Agreement (SPA). The indicative payment date is November 01, 2017.

    Scheduled repurchasing of the equity stake held by the EBRD is carried out by GV Gold within the framework of the agreement signed between SAKHA Gold Mining, CJSC, GV Gold Aldan business unit and the EBRD in December 2015. The parties planned to effect a complete cessation of the Bank’s shareholding by August 31, 2018. As at September 22, 2017, GV Gold had fulfilled a part of its shares repurchasing obligations to the EBRD in the amount of USD 23 million.

    Reference

    GV Gold (Vysochaishy, PJSC) is an actively developing group of companies with high production efficiency level. It ranks in the Russia’s TOP 10 gold mining companies list. The Company carries out its activity in the Irkutsk Region and the Republic of Sakha (Yakutia), wh ere its Irkutsk, Taryn and Aldan business units are located and large scale exploration operations are carried out.


    Preivew text:  GV Gold forwarded a notice to the EBRD on an early repurchasing of the full equity stake of 5.26% from the Bank.

    GV Gold запустил в производство ГОК в Якутии в рамках ВЭФ-2017 05.09.2017 GV Gold запустил в производство ГОК в Якутии в рамках ВЭФ-2017
    05.09.2017г. – Владивосток. ПАО «Высочайший» (GV Gold) запустило в промышленную эксплуатацию первую очередь производства Тарынского ГОКа.

    Name:  GV Gold Commissions a Mine in the Republic of Sakha (Yakutia)
    Detail text: 

    Within the framework of the Eastern Economic Forum VEF-2017 featuring the President of the Russian Federation Vladimir Putin, an official ceremony of the Taryn Mine commissioning took place. On the part of GV Gold, the event featured the founding shareholders - Chairman of the Board of Directors Sergey Dokuchaev and member of the Board of Directors Natalia Opaleva. GV Gold Taryn business unit (TGMC, JSC) CEO Alexander Tuluptsov, who at the moment of the launch was at the processing plant of the Mine, took part in the event in the format of a teleconference bridge.

    A license for the Drazhnoye deposit was acquired by GV Gold (Vysochaishy, PJSC) at the end of 2012 as the result of its victory in the tender. The asset is located in a remote region within the territory of the Oimyakon Area of the Republic of Sakha (Yakutia) – the Pole of Cold. Taryn business unit of GV Gold – Joint Stock Company “Taryn Gold Mining Company” (TGMC, JSC), is the operator of the project.

    Productive capacity of Stage 1 of the plant is 700 kt of ore p.a. After the plant attains its full capacity, the annual gold production will total 2.7 t (87 koz) of gold. Within the framework of the project implementation, the Company has obtained a state subsidy for construction of the infrastructural facilities.

    After the Taryn Mine processing plant attains its full capacity, the annual tax payments to all levels of the budget of the Russian Federation will total RUB 500 million, 450 additional jobs will be created, financing of the region’s social programs will be expanded.

    Chairman of the Board of Directors Sergey Dokuchaev

    “In just two years, in severe climatic conditions, the Company has built the largest mining enterprise in the Oimyakon province – the Taryn Mine. I’d like to express my sincere gratitude to the team of TGMC and GV Gold for its high professionalism and successful implementation of the project!

    Commissioning of the enterprise has expanded the Group’s productive capacities to 8 Mt of ore p.a. We are not going to rest on our laurels: next thing on the agenda is a commissioning of the Ugakhan Mine in the Irkutsk Region and development of the new projects. By 2020, we are planning to ramp up the annual gold production to 10 t (320 koz) of gold.”

    Company Profile

    GV Gold (Vysochaishy, PJSC) is an actively developing group of companies with high production efficiency level. It ranks in the Russia’s TOP 10 gold mining companies list. The Company operates in the Irkutsk Region and the Republic of Sakha (Yakutia), where its Irkutsk, Taryn and Aldan business units are located and large scale exploration operations are carried out.


    Preivew text: 

    05.09.2017 – Vladivostok. GV Gold (Vysochaishy, PJSC) commissioned Stage 1 of the Taryn Mine.


    GV Gold продолжает сотрудничество со Сбербанком 01.09.2017 GV Gold продолжает сотрудничество со Сбербанком

    31 августа 2017 года ПАО «Высочайший» (GV Gold) подписало два кредитных соглашения с Байкальским банком ПАО Сбербанк.

    Name:  GV Gold Continues Its Cooperation with Sberbank
    Detail text: 

    GV Gold opens a non-revolving credit line for USD 100 million in Sberbank with the 5 years credit term. The deal will provide for decreasing debt financing costs and improving the Group’s credit portfolio significantly.

    The second agreement provides for revolving credit line opening with the RUB 3 billion limit and the 3 years term. Raised funds will be channeled to the current GV Gold Group financial and economic activity.

    Sergey Gostev, Deputy CEO for Economics and Finances, GV Gold:
    Over a period of more than 10 years, GV Gold Group has been demonstrating high financial performance. A start of cooperation with Sberbank proves that we’ve chosen a correct route of corporate development. We appreciate the confidence given to us and hope for a fruitful long-term cooperation.”

    Eugeny Eliseev, Deputy Chairman of Baikal Bank of Sberbank:
    Our bank renders active support to gold mining industry enterprises. In the context of financing, we take into account all peculiarities of the company business. GV Gold is a significant client for Baikal Bank. We understand, that having provided a credit to this enterprise, we promote a development of the regions, where the company operates.”

    As at August 31, 2017, the total debt of GV Gold amounted to USD 175 million.


    Preivew text: 

    August 31, 2017 GV Gold (Vysochaishy, PJSC) concluded two credit agreements with Baikal Bank of Sberbank, PJSC.


    01.08.2017 ПАО "Высочайший" открыло рублевый лимит в Сбербанке
    Name:  GV Gold Opened RUB Facility in Sberbank
    Detail text: 

    GV Gold (Vysochaishy, PJSC) opened a revolving multi-currency credit facility in the amount of RUB 1.5 billion in Sberbank of Russia.

    The credit facility has a term of 3 years and will be used for trade financing operations with application of letters of credit under the contracts concluded within the framework of the operating and investment activity.


    28.07.2017 Производственные результаты GV Gold за 1 полугодие 2017 года
    28 июля 2017 года. - ПАО «Высочайший» (GV Gold) публикует производственные результаты за 1 полугодие 2017 года Name:  GV Gold Production Results for H1 2017
    Detail text: 

    GV Gold (Vysochaishy, PJSC) is a highly efficient and rapidly developing gold mining company, the priority of which is an onward development of its assets and safe labour conditions of its employees. 

    Health and Safety

    The lost time injury frequency rate (LTIFR) for H1 2017 was 0.43, the index was at the level of 0.22 for 2016. Despite the fact that the index has increased in quantitative respect, LTIFR has improved qualitavely.  Due to the labor safety improvement, the Company managed to avoid severe and fatal accidents, as compared to H1 2016 when unfortunately one fatality took place. Despite the taken safety measures, workers of the Vysochaishy and Drazhnoye sites sustained 5 light injuries, based on the investigation of which some additional prevention measures were taken.

    For the purpose of further safety culture development, the Company carries on improving the environment, health and safety (EHS) system. In the reference period, it approved the EHS Policy of GV Gold (Vysochaishy, PJSC), the "Golden Safety Rules" handout for workers, carried out the internal EHS risk management system audit within the production facilities of the Irkutsk business unit.

    Production

    In H1 2017, GV Gold production totaled 2.2 t (70 koz) of gold, which is 16% lower than the respective figure of the corresponding period of the previous year. A decrease is associated with the scheduled reduction of the mined ore output tonnages (-13%) and processing of lower grade ores (-16%) at the Irkutsk business unit assets. As compared to the corresponding figure of H1 2016, the tonnage of overburden stripped increased as the result of commencement of mining operations at the Drazhnoye deposit in Yakutia and growth of stripping at the Golets Vysochaishy deposit (+20%).  

    In H1 2017, the GV Gold revenue from sales of gold totaled USD 84.1 Million, which is 14% lower than the respective figure of the corresponding period of the previous year. The average gold sale price grew to the level of USD 1,239 /oz.

    The Company’s production target for 2017 is 6.5-6.7 t (209-215 koz) of gold. An increase of up to 30% against the result of 2016 is expecting due to the commissioning of the Taryn Mine and launch of the Ugakhan Mine in the pre-commissioning mode.

             H1 2017     H1 2016  Change, %
         Gold produced by GV Gold   kg      2,195      2,597 -15%
    koz      70.6      83.5 -15%
         Irkutsk business unit   kg       2,009      2,474 -19%
    koz      64.6      79.5  -19%
         Taryn business unit   kg      38.6      -      n. a.
    koz      1.2      -      n. a.
         Aldan business unit   kg      148      123 20%
    koz      4.7      3.9 20%
         Gold sold*   kg      2,111      2,510 -16%
    koz       67.9      80.7 -16%
         Average gold selling price       RUB/g      2,310      2,769 -17%
    USD/oz      1,239      1,218  2%
         Revenue of GV Gold*   M RUB      4,876      6,949 -30 %
    M USD      84.1      98.3  -14 %

    *Excluding Taryn business unit

     

    Irkutsk Business Unit

    The Irkutsk business unit comprises the Vysochaishy and Ykanskoye Mines located in the Bodaibo Area. The tonnage of gold produced in January-June 2017 totaled 2 t (64 koz) of gold, which is 19% lower than the respective figure of the corresponding period of the previous year. A decrease in production is associated with the scheduled processing of lower grade ore (-15%) at the Vysochaishy Mine. The gold recovery index remained at the level of the previous year and made 81%. Following the results of H1 2017, the stripping ratio increased to 1.56 m³/t. The tonnage of ore processed totaled 2 Mt.

    For the purpose of the Irkutsk business unit production efficiency improvement, the Company develops a set of measures aimed at operations optimization and the process control improvement at the Vysochaishy Mine (Plants 2, 3). For this purpose in H2 2017, it is planned to audit the production chain from the mining operations to the gold production. The Company will start implementing the set of measures developed based on the findings of the audit in 2017-2018.

    In order to enhance the motivation of workers and improve the working conditions, in July, 2017 the Company started staged introduction of the rotational work scheme. The changes will be introduced at the production sites of the Irkutsk business unit first, and then – at the Taryn business unit.  

             H1 2017     H1 2016  Change, %
    Overburden stripped  ‘000 m³     2,839      2,361 20%
    Ore mined      kt     1,825      2,106 -13%
    Stripping ratio      m³/t     1.56      1.12 39%
         Ore processed      kt     2,117      2,212 -4%
         Plant 2, Vysochaishy Mine      kt     549      606 -9%
         Plant 3, Vysochaishy Mine      kt     1,532      1,564  -2%
         Plant 4, Ykanskoye Mine      kt      36      41 -12%
         Sands processed      ‘000 m³      30      25  21%
         Average grade of ore in ore      g/t      1.16      1.38 -16%
         Plant 2, Vysochaishy Mine      g/t      2.02      2.37 -15%
         Plant 3, Vysochaishy Mine      g/t      0.85      1.00 -15%
         Plant 4, Ykanskoye Mine      g/t      1.47      1.34 10%
         Average grade of gold in the sands      g/m³      0.64      0.91  -30%
         Gold recovery, Mills      %      81      81 0.7%
         Plant 2, Vysochaishy Mine      %      87      88 -2%
         Plant 3, Vysochaishy Mine      %      76      73 4%
         Plant 4, Ykans
         %      80      80 -1%
         Gold recovery, Washplant GGM-3      %      91      91 0%
         Gold produced     kg      2,008      2,474 -19%
        koz      64.6      79.5 -19%
         Plant 2, Vysochaishy Mine     kg      962      1,271 -24%
         Plant 3, Vysochaishy Mine     kg      988      1,147 -14%
         Plant 4, Ykanskoye Mine     kg      41      36 -12%
         Washplant GGM-3     kg      17      20 17%
         Gold sold       kg      2,014      2,509 -20%
        koz      64.8      80.7 -20%
         Average gold selling price      RUB/g      2,307      2,769 -17%
         Revenue from gold sales        M RUB      4,646.8      6,949.5 -33%
         M USD      80.2      98.3 -18%


    Aldan Business Unit

    Development of the Bolshoy Kuranakh alluvial deposit (buried placer) located in the Aldan Area of the Republic of Sakha (Yakutia) is carried out by SAKHA Gold Mining, CJSC, the Aldan business unit. The dredging fleet consists of three bucketladder dredges: one 250-L dredge and two 400-L dredges.

    Over three months of the operations from the start of the season, the enterprise produced 147.7 kg of gold, which is 20% higher than the respective figure of the corresponding period of the previous year. The dredges processed 995 thousand m³ of sands which is 63% higher than the throughput in April-June, 2016.

    Improvement of the performance is resulting from a pilot exploitation of the second 400-L dredge and a high quality inter-seasonal maintenance of the equipment. 

            H1 2017      H1 2016      Change, %
        Sands throughput      ‘000 m³      995      609         63% 
         Dredge 6 (250 L)      ‘000 m³      252      257        -2%
         Dredge 135 (400 L)      ‘000 m³      356      312        14% 
         Dredge 400H №1 (400 L)*      ‘000 m³      387      40      868%
        Average grade of gold in the sands     g/m³      0.148      0.202      -27%
         Gold recovery      %      75.2      78.4      -4%
         Gold produced        kg      147.7      122.8      20%
         koz      4.7      3.9      20%
         Dredge 6      kg      14      28.5       -51% 
         Dredge 135      kg      98      93.2       5%
         Dredge 400H №1*      kg      35      1.1      3082%
         Gold sold        kg      97.4       -      n. a.
         koz      3.1       -      n. a.
         Average gold selling price        RUB/g      2,360      -      n. a.
         USD/oz      1,258      -      n. a.
         Revenue from gold sales        M RUB      229.7      -      n. a.
         M USD        3.9      -      n. a.

    *In 2016, Dredge 400H №1 was commissioned, pilot exploitation

    Development Projects

    Taryn

    Exploration and development of the Drazhnoye deposit located within the Oimyakon Area of the Republic of Sakha (Yakutia) are effected by the Taryn business unit. Geological reserves of the deposit total 35 t (1.12 Moz) of gold. In the autumn of 2017, Stage 1 of the Taryn Mine with the design capacity of 700 kt of ore p.a. will be commissioned. After the plant attains its design capacity, the annual production will achieve 2.7 t (87 koz) of gold. Taryn Mine is the largest hardrock gold mining company in the Oimyakon Area and is the launch pad for development of other neighboring deposits.

    At the moment, the pre-commissioning operations are carried out at the plant for timely commissioning of the enterprise and achievements of the target production of 1 t (32 koz) of gold in 2017. In February, 2017, mining operations were commenced at the deposit. The tonnage of ore excavated in March-June, 2017 totaled 255 kt.

    In H1 2017, TGMC, JSC obtained the technical conditions for 8 MW and concluded the contract with Magadanenergo, PJSC for technological connection to the power grid.

    Ugakhan

    The Ugakhan deposit is located within the Bodaibo Area of the Irkutsk Region, 25 km to the west of the Golets Vysochaishy deposit. The design capacity of the plant and the target production are 2.6 Mt of ore p.a. and 3 t (96 koz) of gold p.a. correspondingly.

    By the end of the year, it is planned to launch the Ugakhan Mine in the pre-commissioning mode. Mine connection to the power grids is expected in 2018.

    Krasny

    The Krasny project is a joint venture of GV Gold (Vysochaishy, PJSC) (holding a stake of 51%) and Kopy Goldfields АВ (holding a stake of 49 %). The Krasny deposit is located in the Bodaibo Area of the Irkutsk Region, 75 km from Bodaibo. Following the accomplished exploration program the C1+C2 category geological resources were increased from 9.77 t (314 koz) to 44.2 t (1.42 Moz) (according to the operating calculation) and the cutoff grade estimation report was drawn up.

    In 2017, the Company carries on exploration operations aimed at resources expansion in the central part of the deposit, and the gold prospecting operations in the northern part of the license area. Based on the results of exploration operations the Company will make a decision in regard to the start of preparation of the deposit to commercial development and construction of the mine.

     


    Preivew text:  GV Gold (Vysochaishy, PJSC) publishes its production results for H1 2017.