Polus · RUS:PLZL
Polus — Polyus Gold International — FY2015 Earnings Presentation
32 slides from Polus's earnings presentation
Slide 1: Polyus Gold International FY15 Financial results
Polyus Gold International FY15 Financial results
Slide 2: FY 2015 key highlights
FY 2015 key highlights Lowest costs, sustained growth, high margins 8th successive year of production growth: Total gold output of 1,763 koz, up 4% y-o-y Average recovery up 2.3 ppts y-o-y to 84.5% Mills at Olimpiada and Blagodatnoye operated 19% and 25% above capacity First gold poured from
Slide 3: Financial Results
Financial Results
Slide 4: FY15 financial highlights
Financial Results FY15 financial highlights FY15 FY14 change y-o-y Gold production, koz 1,763 1,696 4% Average realised gold price excl. SPPP1, $/oz 1,155 1,275 -9% Average realised gold price incl. SPPP, $/oz 1,221 1,300 -6% Total cash cost (TCC), $/oz 424 585 -28% All-in-sustaining costs (AISC), $
Slide 5: Revenue analysis
Financial Results Revenue analysis Sales by mine dynamics, koz1 Revenue breakdown by mine, FY15, % 761 732 Blagodatnoye Titimukhta 24% 6% 424 393 Verninskoye FY15 9% $2,189 mln 161146 168190 144 136 Alluvials 108 94 10% Olimpiada Blagodatnoye Titimukhta Verninskoye Alluvials Kuranakh Kuranakh Olimpi
Slide 6: Adjusted EBITDA performance
Financial Results Adjusted EBITDA performance Adj. EBITDA and adj. EBITDA margin, FY15 Adj. EBITDA bridge, $ mln 800 64% 66% 70% 295 1,268 59% 700 60% 605 1,011 600 95 50% 42% 75 40% 39% 500 40% (208) 400 348 30% 300 20% 200 115 100 76 10% 54 70 0 0% Olimpiada Blagodatnoye Titimukhta Verninskoye All
Slide 7: TCC & AISC performance
Financial Results TCC & AISC performance TCC dynamics by mines, $/oz The Group’s FY15 TCC fell by 28% to $424/oz, the lowest level since FY09 956 868 All mines managed to reduce TCC y-o-y due to the 735 rollout of efficiency programs, operational 594 598 improvements and the weaker RUB 541 582 4
Slide 8: Polyus TCC curve
Financial results Polyus TCC curve Polyus Gold TCC curve FY15 1200 TCC, $/oz 1000 800 76% of Polyus’ FY15 production was below TCC of $420/oz The average FY15 TCC amounted to $424/oz 600 424 Titimukhta Kuranakh 400 Alluvials 200 Olimpiada Blagodatnoye 0 0 200 400 600 800 1000 1200 1400 1600 1800 Pol
Slide 9: Polyus AISC curve
Financial results Polyus AISC curve Polyus Gold AISC curve FY15 AISC, $/oz 1200 1000 76% of Polyus’ production was below AISC of $615/oz The average FY15 AISC amounted to $610/oz 800 600 610 Titimukhta Kuranakh Alluvials Verninskoye 400 Olimpiada 200 Blagodatnoye 0 0 200 400 600 800 1000 1200 1400 1
Slide 10: Operating cash costs
Financial Results Operating cash costs The Group’s cash operating costs breakdown by item, FY14/FY15, $ mln Outsourced mining services Outsourced mining services 2% Other 2% Other 8% Labour 7% 31% Labour Power Power 31% 5% 4% Fuel 10% Fuel 13% FY15 A decline of 25% y-o-y in FY14 $765 mln the Group’s
Slide 11: Operating cash costs by BU
Financial Results Operating cash costs by BU Cost of sales breakdown by business unit, FY15 Krasnoyarsk Verninskoye Kuranakh Alluvials Power Outsourced Outsourced mining services 4% mining services Power 6% 4% Other 2% Other Other Other 6% 10% Labour 2% Labour 16% Fuel Labour 21% 32% 31% Labour 11%
Slide 12: Cash flow dynamics
Financial Results Cash flow dynamics FY15 cash flow bridge, $ mln 1,076 269 2,039 (36) (487) 1,217 Dec 2014 Cash & CE Operating CF Investing CF Financing CF Forex Dec 2015 Cash & CE Cash and CE at the end of FY15 increased by 68% y-o-y to $2,039 mln thanks to a robust operating cash flow of $1,076
Slide 13: Net working capital dynamics
Financial Results Net working capital dynamics FY15 net working capital bridge, $ mln 565 11 409 20 (187) Dec 2014 NWC Change in inventories Change in receivables Change in payables Dec 2015 NWC The Group registered a 28% decrease in net working capital due to a marked decrease in inventories as a
Slide 14: Capex analysis
Financial Results Capex analysis Capex breakdown, $ mln change FY15 FY14 y-o-y Natalka 111 310 (64%) Olimpiada 39 56 (30%) Blagodatnoye 13 17 (24%) Titimukhta 1 6 (83%) Verninskoye 21 38 (45%) Kuranakh 10 6 67% Alluvials 5 17 (71%) Exploration 7 6 17% Other 61 69 (12%) Total 268 525 (49%) Maintenanc
Slide 15: Debt maturity profile
Financial Results Debt maturity profile Debt repayment schedule, $ mln Total $2,653 mln 614 2,039 762 578 418 258 144 38 Total liquidity 2016 2017 2018 2019 2020 2021+ position Debt repayments Cash & cash equivalents Unused committed credit lines The Group’s total liquidity position at the end of
Slide 16: Debt and cash structure
Financial Results Debt and cash structure Cash/debt breakdown by currency, as of FY15, % Net debt totaled $146 mln at the end of FY15, down from $327 mln at the end of FY14 Debt by currency* Cash by currency EUR RUB Net debt/EBITDA was 0.12x at the end of FY15, 1% 5% down from 0.32x at the end o
Slide 17: Strategic Price Protection Programme overview
Financial Results Strategic Price Protection Programme overview The revenue stabiliser structure until FY15 (2 tranches) The current revenue stabiliser structure (tranches 1-2) $1,720/oz $1,704/oz Knock-in barrier Knock-in barrier $1,603/oz $1,603/oz $1,542/oz $1,528/oz $1,491/oz $1,491/oz $1,377/oz
Slide 18: Operating Results
Operating Results
Slide 19: Operational Performance: Key highlights
Operational Performance Key highlights Eighth consecutive year of rising production with 1,763 koz produced in FY15 (up 4% y-o-y) Production increases achieved at all hard-rock mines with the first gold poured at the new Poputninskoye deposit Output by mine, koz FY13 FY14 FY15 y-o-y change Olimp
Slide 20: Operational Performance: Olimpiada
Operational Performance Olimpiada Operations FY13 FY14 FY15 TCC FY12-15, $/oz Rock moved, km³ 25,052 24,122 22,340 Strip ratio, m³/t 1.8 3.6 7.7 685 666 Ore mined, kt 11,597 6,005 2,777 541 -23% Grade in ore mined, g/t 3.6 3.68 2.67 Ore processed, kt 7,822 8,526 9,506 416 Grade in ore processed, g/t
Slide 21: Operational Performance: Blagodatnoye
Operational Performance Blagodatnoye Operations FY13 FY14 FY15 TCC FY12-15, $/oz Rock moved, km³ 13,321 14,696 16,433 Strip ratio, m³/t 1.6 1.6 1.8 463 479 442 -22% Ore mined, kt 6,840 7,392 7,628 345 Grade in ore mined, g/t 2.07 2.00 1.97 Ore processed, kt 6,755 7,251 7,512 Grade in ore processed,
Slide 22: Operational Performance: Titimukhta
Operational Performance Titimukhta Operations FY13 FY14 FY15 TCC FY12-15, $/oz Rock moved, km³ 10,195 9,640 5,092 Strip ratio, m³/t 3.7 3.9 1.2 920 956 -48% 869 Ore mined, kt 2,514 2,242 3,225 Grade in ore mined, g/t 2.02 1.66 1.58 Ore processed, kt 2,391 1,978 1,514 498 Grade in ore processed, g/t
Slide 23: Operational Performance: Poputninskoye
Operational Performance Poputninskoye Highlights In FY15, the Group commenced trial mining at the Poputninskoye deposit in the Krasnoyarsk region. The deposit is part of the Razdolinskiy ore cluster, located 240 km south of the Group’s flagship Olimpiada mine. This ore cluster also includes the Zm
Slide 24: Operational Performance: Verninskoye
Operational Performance Verninskoye Operations FY13 FY14 FY15 TCC FY12-15, $/oz Rock moved, km³ 4,539 4,910 6,026 869 Strip ratio, m³/t 0.5 0.7 1.2 789 Ore mined, kt 4,934 4,716 3,954 594 -30% Grade in ore mined, g/t 1.98 1.90 2.09 417 Ore processed, kt 1,626 2,203 2,284 Grade in ore processed, g/t
Slide 25: Operational Performance: Alluvials
Operational Performance Alluvials Operations FY13 FY14 FY15 TCC FY12-15, $/oz 925 10,107 9,139 9,370 880 Sands washed, km³ 735 -21% 582 Average grade, g/t 0.63 0.65 0.56 Gold production, koz 205.4 190.2 168.2 FY12 FY13 FY14 FY15 Highlights FY15 refined gold output at Alluvials decreased by 12% y-o
Slide 26: Operational Performance: Kuranakh
Operational Performance Kuranakh Operations FY13 FY14 FY15 TCC FY12-15, $/oz Rock moved, km³ 13,244 12,537 13,432 1085 Strip ratio, m³/t 2.6 2.6 2.8 993 868 -31% Ore mined, kt 4,146 3,991 3,996 Grade in ore mined, g/t 1.36 1.27 1.31 598 Ore processed, kt 3,811 3,785 3,863 Grade in ore processed, g/t
Slide 27: Appendix
Appendix
Slide 28: Balance sheet highlights
Financial Statements Balance sheet highlights change Assets, $ mln FY 2015 FY 2014 y-o-y Non-current assets Property, plant and equipment 1,923 2,241 (14%) Exploration and evaluation assets 100 110 (9%) Derivative financial instruments and investments 212 172 23% Inventories 184 227 (19%) Other 54 5
Slide 29: Balance sheet highlights (cont.)
Financial Statements Balance sheet highlights (cont.) change Equity and Liabilities, $ mln FY 2015 FY 2014 y-o-y Share capital 1 1 0% Additional paid-in capital 2,159 2,152 0% Cash flow hedge revaluation reserve 112 108 4% Translation reserve (2,665) (2,045) 30% Retained earnings 2,107 1,258 67% Equ
Slide 30: Profit and loss statement highlights
Financial Statements Profit and loss statement highlights change $ mln FY 2015 FY 2014 2H 2015 1H 2015 y-o-y Revenue from gold sales 2,159 2,197 (2%) 1,154 1,005 Other revenue 30 42 (29) 16 14 Total revenue 2,189 2,239 (2%) 1,170 1,019 Cost of gold sales (876) (1,174) (25%) 470 406 Other cost of sal
Slide 31: Cash flow highlights
Financial Statements Cash flow highlights $ mln FY 2015 FY 2014 change y-o-y Profit before income tax 1,313 40 N.M. Amortisation and depreciation 128 182 (30%) Loss on derivative financial instruments and investments (12) 934 N.M. Finance costs 48 26 85% Interest income on bank deposits (59) (31) 90
Slide 32: Disclaimer
Disclaimer The information contained herein has been prepared using information available to Polyus Gold International Limited (“PGIL”) at the time of preparation of the presentation. External or other factors may have impacted on the business of PGIL and the content of this presentation, since its
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