Locations
of the key assets The Structure
of Polyus Group
Description
of Polyus Group Key
features Letter from the Chairman
of the Board of Directors Letter from the
General Director
 

Key features of 2010

Production development and new projects

The Blagodatnoye mine was commissioned:

  • The largest gold mill in Russia with a capacity of 6 million tonnes;
  • Large-scale project developed from scratch;
  • A project completed on time and on budget;
  • In 2010, the Blagodatnoye mine produced 249 thousand ounces of gold;
Significant progress on the Verninskoye mine construction: commissioning scheduled for Q4 2011;
OJSC Polyus Gold’s Board of Directors approved the resolution to construct a mine on the Natalka deposit. All the necessary permits have been received;
A heap leaching facility commissioned at the Akzhal deposit in Eastern Kazakhstan.

 

Production and finance

Gold production grew 10% to 1,386 thousand ounces;
Gold sales increased 43% to USD 1,711 million;
Net profit increased by 91% to USD 356 million;
EBITDA increased to USD 717 million, or by 31%;.
Gross profit margin and EBITDA margins were 47% and 41%, respectively;
Total cash costs (TCC) per ounce of gold sold amounted to USD 554 per ounce;
Cash margin grew to USD 689 per ounce, or by 19%
Capital expenditure in 2010 was USD 359 million, compared to USD 496 in the previous year.

 

Exploration and reserves growth

As a result of geological exploration operations and revaluation of reserves during the year, proved and probable reserves (measured under JORC) increased by 5.5% to 78.2 million ounces;
The Company became one of the top three global gold mining companies by proved and probable reserves (JORC);
Exploratory drilling amounted to 187.5 thousand meters.

 

 

Gold production of the Group in 2006–2010, million ounces

Proved and probable reserves (P&P, JORC), million ounces

1.4

78.2

EBITDA of the Group in 2006–2010, USD million

Gold sales of the Group in 2006–2010, USD million

717

1,711

Capital expenditure of the Group in 2006–2010, USD million

Total cash costs and cash margin of the Group in 2006-2010, USD/ounce

359