Good morning. This is Mikhail Damrin. I am CEO of the company, and I'm happy to present to you the first quarter report for 2021 for Kopy Goldfields. This is our first quarter report that the company is issuing, and it is in line with our strategy to make the company more transparent and visible to the market. Today, I will be mostly presenting our slides, and then Tim Carlsson, our CFO, will assist me with some financial figures. I'm glad to say that through the first quarter, we were able to achieve strong financial results despite some operational challenges, which we had in the very beginning of the year. This quarter really shows how the company has become different through the last transaction with Amur Zoloto. Now, we are a producing company with heavy revenues, and we operate with a significant profit. Our operations and financial results are affected to some extent by COVID-19 outbreak at Yubileyniy mine in the second part of December 2020, and our operations were slowed in January when we were fighting the consequences of COVID-19. We don't have any more cases of COVID-19 at our mine sites since then. Our revenue for the first quarter amounted to $19 million, and EBITDA amounted to $7.2 million. Our profit before tax reached $10 million, and we confirm our production guidance within the range of 56,000-59,000 ounces for 2021 unchanged. Also, we confirm our growth target of 100,000 ounces by 2025. Move to slide four, please. The gold price. We operate in a fairly beneficial environment. The gold price average during the first quarter was $1,794, significantly higher compared to the first quarter 2020. Yesterday, the gold price crossed $1,900, obviously, this is very favorable for mining. Overall, gold price in 2020 was 27% higher than in 2019. We believe that fundamentally, in terms of the supply and demand in the market, there is a trend that the gold mining will be decreasing over the years, and this will certainly support fundamentally the gold price going forward. Turn to slide five, please. As a company, we operate in Russia, and we believe Russia is one of the priority mining destinations worldwide. Russia, in terms of gold, has a great exploration upside. It has very supportive local authorities in terms of mining, and mining in most parts of Russia, in Siberia and in the Far East, where we operate, are the only industries which are supporting the local population, which are supporting the local budgets and local municipalities spending. There are a lot of talented, skilled human resources. Russia is providing low taxes and favorable tax legislation. Within the area we operate, Irkutsk and Far East, there are tax benefits for capital mining projects. The permitting process is fairly straightforward in Russia. We have fairly low production costs, favorable currency conditions, and ruble last year has depreciated by 20%. During the first quarter, it has further depreciated 2%. There is an established market infrastructure within Russia, where we can easily send our product from the site Doré bars to the refinery in order to get the bankable bullions. Turning to slide six, please. Within Russia, we operate within Irkutsk region and within Khabarovsk region. We have four offices worldwide, office in Stockholm, office in Moscow, office in Bodaibo, and office in Khabarovsk. Within Bodaibo, we have mostly exploration and one pre-development project, Krasny, which we have been developing for a number of years, fairly successfully as I said. Within Khabarovsk, we have all our producing assets at Perevalnoe, Yubileyniy, and placers. We also have a development project, Malyutka, which we are going to commence in 2023. I will stop on that on the slide going forward. Turning to slide seven, please. 2021 gold production guidance unchanged. As we started with that, production was affected by COVID-19 in the beginning of the year. Overall, during the first quarter, we produced 7.7 thousand ounces of gold equivalent, which means gold and silver and gold equivalent, which is slightly below the last year production. Within the projects, as you can see, we have Yubileyniy, which suffered most. It is below 33% in production compared to the last year. We have a slight decline in Perevalnoye and within silver production in absolute figures, we are more or less the same. What I can say is that Yubileyniy is picking up through the first quarter. It started fairly weak in January, then it was picking up in February, picking up in March, and it's now trading very close towards the initial plan. Also we have Perevalnoye project, which is outperforming compared to our plan. By the year-end, based on the current development of production at all our projects, we keep our production guidance of within the range of 56,000 ounces-59,000 ounces. It's important to mention that since we have placers, the production through the year is not evenly spread. Placers start gold production in May. The stripping and a little mine site preparation starts in March, then April, then in May, the first little gold is produced, we already have that at our two placer mines. Most of our placer operations are developing during June, July, August, then September, it starts to build on. That means that our operations through the year are not evenly spread. Also, we target to commission Yubileyniy increased processing capacity in the fourth quarter, we will stop on that on the next slide. This will also move the production from Yubileyniy towards the fourth quarter. We will see that the fourth quarter Yubileyniy production will be higher than average through the year. Turning to slide eight, please. Gold production and sales and the cost. Production first quarter 2020 was 7.7 thousand ounces in gold equivalent. Gold sales about 11,000 ounces. What we can say is that realized gold price has increased by 9%, to some extent mitigating the decreased production and sales. Total cash costs have increased through the first quarter, very much in line with lower sales since total cash costs are calculated based on the gold sold and not gold produced. Also, we have seasonal variation in the costs since we produce concentrate and then concentrate at Perevalnoye, which is moving from Perevalnoye towards Yubileyniy, and there are some costs associated with the move of the concentrate, and they are also split over the year not evenly. Total cash costs, $869, 10% higher compared with first quarter 2020. All-in sustaining costs are also slightly higher. That really reflects the fact that during the winter and the first quarter, we're preparing equipment for sustaining operations over local places. This year we bought quite a couple of dozers. These dozers, they are treated as sustainable capital costs, and then really changing quarterly all-in sustaining cost metric. Through the year, then all-in sustaining costs will vary and change as well. Moving to slide nine. Now, I will hand it over to Tim. Tim, please. Thank you, Mikhail. Good morning, everyone. I am very pleased to have the opportunity to present this summary of financial information of the first quarter 2021 for Kopy Goldfields. We are on slide nine, and I would start with a few words on the interim report and the numbers as such. As we previously have discussed and presented, the transaction between Kopy and Amur Zoloto was finalized in September last year. Due to accounting rules, it is important to understand that the comparison figures for 2020 refers to Amur Zoloto only and not include old Kopy Goldfields as such. Looking at the financial statements, we do see that the first quarter has been affected by the operational challenges, which Mikhail just described due to the outbreak of COVID-19. The revenues for the period decreased by 16% compared to last year and amounted to $19 million. This is obviously a consequence of lower sales, but partially offset by higher gold prices, which was described on the previous page. Gross margin remained at the same level as the first quarter of 2020 and amounts to 38%. Looking into the EBITDA, we do see the effect from the lower sales here as well, and EBITDA amounted to $7.2 million compared to $9.3 last year. Looking into profit before tax and profit for the period, we do see some significant increases. Profit before tax amounted to $10 million, while the profit for the period amounted to $7.9 million, both up 100% compared to the corresponding quarter last year. This is explained by an unrealized gain from gold price hedges in the financial net of $6.2 million. The gold price is hedged in accordance with the requirements from our loan agreement, and we have approximately 40% of the projected gold production for the period 2021 to 2025 hedged. The hedging instruments are arranged as a corridor between floor and ceiling prices, and they provide a secured floor gold price of $1,400 per ounce, while the ceiling prices are exceeding $2,500 per ounce. To explain this unrealized gain in the financial net, I will explain that the instruments are valued at each period end, and the spot price on March 31st was 11% lower than the gold spot price at year-end 2020. This increased the value of the contracts, and hence we show an unrealized gain of $6.2 million in the quarter. It's also important to understand that there will be no impact on the cash flow when closing the contract as long as the gold price stays within the corridor. Next slide, please. Slide 10. On the balance sheet, we still see a healthy financial standing, and the cash balance amounted to $0.8 million, and gold in stock ready for sale was $3.2 million in total. During the period, we repaid the loan to Scandinavian Credit Fund of $6.1 million, and within our investment program, we raised loans of $7.1 million from our available finance facility. Total loans and borrowings at the end of the period amounted to $22 million. If we add leasing and our contract liability and taking the cash balance into account, we end up in a net debt of $51 million. In relation to the last 12 months EBITDA, the net debt ratio is 1.17, still on a healthy level. This means that we are well-positioned to work with the growth plans, which Mikhail has mentioned, and he will tell you more about now. Mikhail, please, go on. Yes, Tim, thank you very much. Turning to slide 11, please. During this first quarter, we have been very much focusing on developing our producing mine and also developing the [capital cost] project. Just a reminder, since we are fairly new in the market, that we have underground mine operations called Yubileyniy at the deposit called Krasivoye. This is a CIP plant, 130,000 tons of ore processing capacity, which we are currently upgrading to 250,000 tons to be commissioned by the end of this year, starting producing in Q4. We also have Perevalnoe open pit, which is a CIP plant as well, producing gravity and flotation concentrates, which are first transported and then leached at Yubileyniy plant. Perevalnoe has a capacity of 160,000 tons of ore per year, currently finalizing open pit. There are two open pits in operations. One is called Priyatnoe and the second is called Brekchiyevaya. In the second half of the year, we are going to convert Brekchiyevaya into underground operations. Then, Perevalnoe will proceed in operations for the next four to five years. In parallel, on Perevalnoe, we are commissioning heap leach operations, starting with 200,000 tons of ore per year. By the end of the year, we will commission these heap leach operations. They are in construction at the moment. We operate two little mines. One is called Buor, the second is called Khayarylakh. We have the first gold produced from both of them in May. We have two processing plants, as mentioned, one at Yubileyniy and the second at Perevalnoye. Our target for this year, 56,000-59,000 ounces, which will imply 5%-11% growth compared to the last year. Last year, we produced 53,000 ounces. By 2025, our target is organically, just from reserves, not resources, just reserves, gold reserves that we have, and from the project at Perevalnoe heap leach, Perevalnoe CIP, Malyutka, and Yubileyniy produce at least 100,000 ounces of gold. All of these projects which are going to contribute toward the 100,000 ounces gold production target, they're all either in production already or in construction already. Moving to slide 12, please. Talking about our production portfolio. We need to actually consider that as a mining company, we have an excellent structure of the portfolio. We have a lot of projects in early stage. We have projects in pre-development. We have projects in development. We have a few projects in production. We do have reserves, but also we have a lot of resources to support our additional above 100,000 ounces production growth. Since we have been in operation for many years, and I'm glad to say that in Amur Zoloto, we have a production history of more than 40 years by now. The company was started in the 1970s, and Kopy was started in mid-2000s. We have a fairly long history of explorations and production. It's important to mention also that all our projects which are in production currently, they have been developed from the early stage exploration. They were started as greenfield projects, then resources, reserves, and development, and then production. The company has a fairly strong experience how to develop projects from early stage into construction and then into production. Out of many exploration projects, we are certainly confident that some of them will move into resources and then reserve stage. In the pre-development, we have Krasny. The project which we are developing is a joint venture with our partner, a company called GV Gold, one of major Russian gold producers. The project is currently in pre-development stage. We are considering a fairly extensive exploration program for this year to move into production planning stage. The next project is Malyutka, which is in development stage. We target to produce the first gold in 2023. The project is in construction. End of the last year and this year, we have started the land preparation, mobilized initial equipment, developing the road, all-year round access toward the project, and then developing the construction camp. Most of the construction activities will be developed next year, and then the first gold will be produced 2023. Yubileynoye and Perevalnoye in placers. Yubileynoye is going to be our target project for many years ahead. It was started in 2004 as an open pit and then converted from open pit to underground. Currently, it's a CIP plant, 130,000 tons of ore processing capacity, producing Doré bars, which are further refined to bankable gold bullions. The project has reserves which we are producing now, but it also has a lot of resources, and then it has an excellent exploration upside as well. Last year, we issued the update of mineral resource statement showing that the project has a great potential going forward. We proceed with explorations on Yubileyniy this year as well. By the end of the year, we increase capacity from 130,000 to 250,000, and by 2025, we increase capacity further to 400,000 tons of ore per year. Perevalnoye is currently the major gold producer, open pit. We are converting it by the end of the year into the underground operations, and also in parallel, develop heap leach operations. As a CIP plant, it has a processing capacity of 160,000 tons of ore per year. As heap leach operations, it will have a capacity between 200,000 to 250,000 tons of ore. We have currently two placers in operation, and they have been in operation placers for many years. The company initially started as a placer gold producer, so they are not as big in their input in the overall production. Not as big as it was some years ago, but we still have them since they are profitable. Overall, I just want to stress that our organic growth target is 100,000 ounces based on the reserves which we currently have, and then based on the project which we 100% control and which are already in development. On top of that, we have a potential from Krasny project, 1.8 million ounces resource at the moment in pre-development stage. There is no doubt that it will be a producing mine in the coming years. So far, since it's not under our full control, we don't include it now in the production forecast. On top of that, we obviously have some non-organic growth opportunities, and we spent a lot into the exploration. All the resources which you see on this slide, they're not included in the production profile so far. Any further discoveries or conversion of the existing resources into reserves, they will obviously add towards the production upside. Going to slide 13, please. Our total investments into the capital projects during the first quarter amounted to $9.3 million. This year in the history of the company would be the most capital-intensive year. The company has never spent that much on the growth projects, and this is very much in line with our efforts to reach production growth target of 100,000 ounces in 2025. Our overall capital expenditures planned for the year are $36 million, and about $8 million out of that are targeted for exploration activities. Looking on the split of the spending between the projects, we see that most is coming to [Perevalnoe] heap leach operations, where we're preparing the pads, we are preparing the plant to treat the pregnant fluids coming from the heaps. We already have the ore mined, we are in the process of crushing this ore. Then, Q4, Q3, we will start preparing the piles and prepare the chemicals to put on top of the piles. We spent a lot on Malyutka, this is the last year, very much this winter season, starting from December and then moving into this year. This is our first year of the project development, next year it will be our major capital investment. We spent for Yubileyniy increase of capacity. We spent on placers and some of these capital costs is sustaining, this is really why we have some impact on our all-in sustaining costs. We spent something, not that much during the first quarter on explorations since fairly cold winter during this year. Moving to slide 14, please. We have a fairly busy year undergoing ahead. We have a strong financial performance. We have a strong balance sheet, have debt available from major Russian banks, which are supporting our organic growth plans to develop significant gold asset base. For our production target of 100,000 ounces, we are fully financed. Mostly, we will finance from cash flow from existing operations, but partially we have a credit line already arranged and signed, and which we are using as you can see from our changes in the total debt balance. Once again, production guidance 56 to 59 unchanged. Total capital costs 2020-2025 estimated at $130, out of them this year we're spending $56. This year is really a big year for the company in terms of developing several capital construction projects at the same time. They're going to focus for the first quarter, they are in the focus in the second quarter, and they will be in the focus for the full year. Obviously, in parallel with upgrading processing plants, we increase underground mine capacity at Yubileyniy, growing and developing access to the lower horizons and based on the recent reserve report by SRK. We can see that going deeper, the thickness of gold mineralization and the grade of gold mineralization at Krasivoye, which is the deposit at Yubileyniy, is increasing. We do expect that going forward, the grade at Krasivoye will be growing. We can see through the first quarter already that the grade mined is increasing. This year, we are supporting exploration activities for the Krasny project. We do develop this project as a joint venture. GV Gold, our partner in the project, is the operator of the project and the majority shareholder. With the existing agreed exploration activities for Krasny, by the end of the year, we will be targeting to move Krasny into feasibility and production planning stage. From the corporate side, we are preparing for the main market listing. We currently proceed with pre-listing review done by one of the major audit companies in Sweden. We have identified what do we have, what is missing, what should be filled in to prepare for the listing. We put a lot of effort into that. This is in the focus of the company. Our target is to get ready and apply for the main listing on Nasdaq Stockholm very much as soon as possible. On top of that, following the merger with Amur Zoloto, we put a lot of efforts into ESG. We have taken external consultant in ESG, which has reviewed initially all our operations, identified some areas for improvement to be in line with best industry international practices. Now we do develop and go along the action plan proposed to them. This is very much everything about the first quarter, what we would like to present, and now we are open for questions. We have previously disclosed that questions could be put written by to the info@kopygoldfields.com and currently we don't have any questions by email. Question to the operator, do we have any audio questions? We have no audio questions at the moment. Then, we say thank you. Should we wait for a couple of minutes? Because sometimes it's not easy really to send a question if you are hearing by the phone. Just to wait for a couple of minutes. If there are no questions, then -- while we are waiting for the question, I just want to mention that the gold industry as such is really going through an interesting development. Gold price is on top. It might cool down a bit, but it's still significantly high if you will look in 2018, 2017. There are a lot of transactions going on through the industry. Many of them are happening in Russia nowadays. There are a lot of consolidational attempts currently observed within the industry. Since as I understand there are no further questions, I would say that obviously you have my and Tim emails on our website. If you want to speak on any particular topic or you would like to raise any questions with us later, you're very welcome. Otherwise, thank you very much for joining this presentation. We will, me, Tim, and we have more people now within the company who will be providing more information over the company development. We're trying to be as much transparent and provide as much information to the market as we can. I say thank you very much. Mikhail, sorry. We do have two questions coming in here now. Yeah. The first question is about the timing for the Nasdaq listing. Just as Mikhail said, we are doing a pre-listing review. We have identified where we need to add certain documentations and matters, et cetera, and fill in gaps. Then, our target is really to approach Nasdaq as soon as possible. It's also important to understand that the listing process as such goes over several months. This is the best estimate we can say. Do you want to add something, Mikhail? No. Obviously, it is really we're now going through a sort of pre-audit review and then we have some results of this review, then we really look fairly positive that we will be able to get listed as soon as possible. It's as Tim was saying, then there will be a process then with the auditor from the stock exchange, which really take place four to five months. I can't say that it would be the third quarter or the fourth quarter of this year or the first quarter of the next year, but we really try to put as much effort in to make it as close as possible since we understand that this is a strong wish from all of our investors. I have now the second question. What kind of transaction are you looking at, looking for? Producing company or more mine to be developed? I would say we are looking from the value creation perspective. For us as a gold producer, obviously a producing company would be the first priority. Since gold price is on top, I would say all gold producing companies are trying really to be in this type of discussion as extensive as possible. You understand that there is no interest to do a transaction just for the sake of transaction. We really want to create a value of the transaction. We cannot really pay more than the other company, but we can really find some wins which we might get in such a transaction which the other companies cannot get. Since we are listed companies, we also can propose towards the company which we are looking at different type of payment as well. Yes, we will be obviously looking on the producing assets first. However, I mentioned that through the presentation, all our mines currently have been developed as greenfield initially. We really have an experience of developing projects from greenfield into reserves and then pre-development and then construction and production. Actually, we are looking on the projects at the reserve stage, even at the resource stage. We believe that this is not the area where the many companies are looking at. I would say producing assets, however, at a reasonable price where we can create value for our current shareholders, not just for the sake of transaction or just increasing the number of gold produced following the transaction and also for the projects which are in development. On the same topic, we received another question on possible M&A activities mentioned in the release. I think you answered that in your previous discussion. Yes. I would say M&A market is very hot. Considering the area where we operate, which is primarily Russia. There are no intentions to go to the other continents. We are not considering going into Africa or South America, Australia. Within the area we operate, the number of producing projects are fairly limited. There are more projects which are in reserve and resource stage. They are all known, I would say, towards the people who are following the market. Yes, we are looking for many of these projects. Once again, as I mentioned, we're trying to find a way how we will create value from the transaction. At the current prices, just buying the future NPV what everyone is trying to sell. What will be left for us after such a transaction? We have another question about the list change, and I think we have answered that as well. The question is about the timing of this list change. Just as previously said, it's a quite formalized process and our target is to do it as soon as we can. We have a question regarding our all-in sustaining costs. Will our all-in sustaining costs decrease to the level of 2020 of $1,035? I would say I cannot guarantee that, but they will certainly be lower than we have now. Last year was fairly beneficial in terms of both gold price and also the devaluation of ruble against the U.S. dollar. This really moved their costs and sales in the same direction. This year, the ruble is weakening, however, not as strong as last year. However, we are decreasing the volume. Once again, I cannot guarantee, but this is one of our sort of KPI, call it that way, to make all-in sustaining costs close towards what our other peers within among the producers have. What can also be said that obviously the AISC contains some fixed CapEx cost. Looking at our ambitious growth plans, obviously the all-in sustaining costs will be speaking to gold sold and with the future increase in sales. We have also reasons to believe that we can optimize the AISC. I have no further questions on my side. Do you have any, Tim? No, I don't see any more questions as well. There are no audio questions. Yes, as I mentioned, if you have any further questions, you have our contact details on the website. Please come back. We're trying to develop as a company. We try to be as much transparent and predictable for you as possible. Now, we are covered with the research. We're trying to increase number of researches issued for the company so that there is an independent view on how the company is developing and where we are targeting. On that, thank you very much for joining the panel and listening to our presentation, and we are glad to see you at similar events in the future. Thank you.
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