Polus · RUS:PLZL
Polus — Polyus Gold International — H1 2014 Earnings Presentation
21 slides from Polus's earnings presentation, 2014
Slide 1: 1H 2014 Financial results
Polyus Gold 1QPolyus 2014 BoardGold International presentation 1H 2014 Financial results 1
Slide 2: 1H 2014 key highlights
1H 2014 key highlights Navigating in a challenging market environment Strong operating parameters: Organic growth continued with gold output rising 4% y-o-y Verninskoye reached its design throughput parameters Natalka launch guidance confirmed for the summer 2015 FY14 production guidance rei
Slide 3: Operating Results
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Slide 4: Solid operational performance in a difficult market
Operating Results Solid operational performance in a difficult market 1H13-1H14 gold output by mine, koz Refined gold output was up 4% year-on-year to 746 koz in 931 1H14. 746 718 155 69 The overall growth came from an increase at Olimpiada 51 36 57 70 69 32 67 69 (+15% y-o-y) and Verninskoye du
Slide 5: Financial Results
Financial results Financial Results 5
Slide 6: 1H 2014 financial highlights
Financial Results 1H 2014 financial highlights 1H 14 1H 13 Change, % FY13 Gold production, koz 746 718 4% 1,649 Average realised gold price, $/oz 1,306 1,513 (14%) 1,385 Total cash cost (TCC), $/oz 662 757 (13%) 707 All-in-sustaining costs (AISC), $/oz 905 1,103 (18%) 1,002 Revenue, $mln 1,007 1,024
Slide 7: Revenue analysis
Financial Results Revenue analysis Sales by mine dynamics, 1H13 vs 1H14, koz Revenue breakdown by mine, 1H14, % 357 Blagodatnoye Titimukhta 273 25% 5% Verninskoye 187 173 9% Olimpiada Kuranakh 69 69 67 56 51 48% 9% 34 32 36 Alluvials Olimpiada Blagodatnoye Titimukhta Verninskoye Kuranakh Alluvials 5
Slide 8: Strategic price protection programme
Financial Results Strategic price protection programme Gold forward contract structure To mitigate the risk of lower gold prices the Group 1,321 $/oz decided to initiate a Strategic Price Protection Programme (SPPP) comprised of a series of zero cost 77.5 77.5 77.5 77.5 Asian go ld co llars (“reve
Slide 9: EBITDA analysis
Financial Results EBITDA analysis Adjusted EBITDA and adj. EBITDA margin, 1H14 250 60% 214 53% 200 50% 46% 39% 40% 150 131 30% 100 22% 20% 50 36 20 10% 10% 5 0 0% (2) -4% -50 -10% Olimpiada Blagodatnoye Titimukhta Verninskoye Kuranakh Alluvials EBITDA, $ mln (lhs) EBITDA margin, % (rhs) 1H14 Group
Slide 10: TCC & AISC performance
Financial Results TCC & AISC performance Total cash costs (TCC) dynamics, 1H13/1H14, $/oz 1 275 1138 1042 970 894 874 832 720 716 757 662 611 471 499 Olimpiada Blagodatnoye Titimukhta Verninskoye Kuranakh Alluvials Group 1H13 1H14 TCC y-o-y change AISC y-o-y change $mln, if not mentioned otherwise 1
Slide 11: Cost of sales breakdown
Financial Results Cost of sales breakdown The Group’s cost of sales breakdown by item, 1H 2013/1H 2014, % 1H13 1H14 Outsourced Outsourced mining mining Other Other services services 1% Power 8% 1% Power 7% 5% Labour 5% Labour 31% 31% Fuel Fuel 13% 14% Tax on Tax on mining mining Consumables 14% 14%
Slide 12: Cash flow dynamics
Financial Results Cash flow dynamics 1H 2014 cash flow bridge, $ mln 336 875 809 278 (548) FY13 Cash and CE 1H14 operating cash 1H14 investment cash 1H14 financing cash 1H14 Cash and CE flow flow flow and other Cash and cash equivalents in 1H14 were up 8% compared to the end of FY13 level to $875
Slide 13: Capex analysis
Financial Results Capex analysis Capex breakdown by mines/projects, $ mln Change 1H 2014 1H 2013 FY 2013 y-o-y, % Natalka 172 524 (67%) 1,059 Olimpiada 38 41 (7%) 146 Blagodatnoye 13 21 (38%) 54 Titimukhta 6 5 20% 2 Verninskoye 12 35 (66%) 53 Kuranakh 2 10 (80%) 16 Alluvials 15 16 (6%) 18 Exploratio
Slide 14: Debt maturity profile
Financial Results Debt maturity profile Debt repayment schedule, $ mln 2,010 833 302 764 541 875 82 91 52 21 9 Total liquidity 2H14 FY15 FY16 FY17 FY18 FY19 FY20+ position Cash & cash equivalents Bank deposits Unused committed credit lines Debt repayments The Group’s total liquidity position at th
Slide 15: Debt and cash structure
Financial Results Debt and cash structure Cash/debt breakdown by currency, as of 1H14, %* Net debt, net debt/EBITDA 400 0.5 370 349 Debt by currency Cash by currency 350 0.4 300 0,42x 250 0,38x 0.3 8% 21% 200 0.2 150 34% 100 0.1 58% 50 -0,01x 79% 0.0 0 -15 -50 -0.1 1H13 FY13 1H14 EUR RUB USD RUB USD
Slide 16: Appendix
Appendix
Slide 17: Balance sheet highlights
Financial Statements Balance sheet highlights Change Assets, $ mln 1H 2014 FY 2013 1H 2013 half-o-half, % Non-current assets 4,035 3,829 5% 3,127 Property, plant and equipment 3,442 3,357 3% 2,748 Exploration and evaluation assets 178 175 2% 166 Inventories 324 295 10% 198 Investments in securities
Slide 18: Balance sheet highlights (cont.)
Financial Statements Balance sheet highlights (cont.) Change Equity and Liabilities, $ mln 1H 2014 FY 2013 1H 2013 half-o-half, % Share capital 1 1 0% 1 Additional paid-in capital 2,152 2,152 0% 2,152 Cash flow hedge revaluation reserve (2) 0 N/M 0 translation reserve (493) (396) 24% (389) Retained
Slide 19: Profit and loss statement highlights
Financial Statements Profit and loss statement highlights Change $ mln 1H 2014 1H 2013 FY 2013 y-o-y, % Revenue from gold sales 981 989 (1%) 2,259 Other revenue 26 35 (26%) 70 Total revenue 1,007 1,024 (2%) 2,329 Cost of gold sales (599) (583) 3% (1,347) Other cost of sales (23) (18) 28% (47) Total
Slide 20: Cash flow highlights
Financial Statements Cash flow highlights Change $ mln 1H 2014 1H 2013 FY 2013 y-o-y, % Profit before income tax 321 (148) N/M 234 Amortisation and depreciation 107 103 4% 214 Other non-cash items (33) 463 N/M 462 Changes in working capital (12) (218) N/M (284) Interest paid (26) (5) 420% (32) Incom
Slide 21: 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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