Polyus Gold - Financial Analysis (DCF Model)

Polyus Gold - Financial Analysis (DCF Model)

We were commissioned by the largest gold producer in Russia to carry out mineral resource and ore reserve estimates for three major operating gold deposits located in the Krasnoyarsk region - Olimpiada, Blagodatnoe and Titimukhta - in accordance with the guidelines of the JORC Code (2004).

As an integral part of this study, we developed three individual technical-economic discounted cash flow models. They included cash flow forecasts based on annual production schedules for the life of each of the mines, and detailed operating and capital costs that took into account the specifics of the Russian fiscal regime. Each of the DCF models presented project NPVs at various discount rates, internal rates of return and payback period of capital, from which a sensitivity analysis on key factors was produced.

This financial analysis, developed within an annual mineral resource and ore reserve update, confirmed the economic viability and high profit potential of the three assets.