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GV Gold IFRS Financial Results for FY 2021

GV Gold (Vysochaishy, PJSC), together with its subsidiaries (hereinafter referred to as “GV Gold”, “Vysochaishy” or the “Company”), one of Russia’s largest and fastest-growing gold mining companies, announces its audited IFRS financials for the twelve months ended December 31, 2021.

Financial Highlights

  • Total gold production increased by 2% y-o-y to 276 koz.

  • The Company’s total gold sales stood at 252 koz, (-8.6% y-o-y).

  • Revenue from sales of gold and concentrate amounted to USD 438 million. The 7% y-o-y decrease was associated with the fact that the Company didn’t sell a part of the produced concentrate as a result of seasonality of shipments in the northern regions of Yakutia and scheduled to ship the batch in 2022.

  • Total cash costs (TCC) increased by 1.9% y-o-y to 707 USD/oz. This increase was caused mainly by the decrease in total gold sales and it's partially offset by 1.6% increase in the average gold price.

  • All-in sustaining costs (AISC) increased by 11.4% y-o-y to 915 USD/oz due to capital overburden stripping and current production sustaining costs.

  • Adjusted EBITDA decreased by 9.7 % y-o-y to USD 224 million as a result of the decrease in total gold sales. Adjusted EBITDA margin remains high — 51%.

  • Net profit is estimated at USD 118 million.

  • Capital expenditures increased by 68.5% y-o-y to USD 184 million and it's driven by investments in development of the new Svetlovsky Mine project and capital mining works at the main production sites.

  • Net debt increased by 3.8% y-o-y and totaled USD 198 million as of December 31, 2021. The net debt/adjusted EBITDA ratio at the end of the reporting period was 0.88x compared to 0.77x as of December 31, 2020.

Statement from the CEO of GV Gold, German Pikhoya:

«I am pleased to announce that GV Gold, after several years of sustainable production growth and production capacity increasing, has begun a new investment cycle. We have a number of strategic development projects ahead of us to implement, as well as to carry out active exploration works at some new promising sites in Yakutia.

The Company ended 2021 delivering solid financial results amid growing production performance, which was a logical result of consistently implemented programs to improve operational efficiency at all assets and to develop corporate governance.

GV Gold maintains its commitment to a balanced financial policy, keeping net debt at the level lower than 1.0x EBITDA. At the same time an increase in capital investments is completely in line with our strategic objectives and associated primarily with the start of preparations for the Svetlovsky Mine construction.

All of this allows the Company to consider increasing the rate of production growth, constructing new Mines and at the same time providing value to GV Gold's shareholders. Driven by the concerted efforts of all business units of GV Gold, we are confidently moving forward towards our goal - to become one of the five largest gold mining companies in Russia».

The full text of the press release is available here.