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Дата раскрытия:  15.03.2024
Polymetal International plc
POLYMETAL INTERNATIONAL PLC

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION



Note 31 December 2023 31 December 2022
Assets US$m US$m

Property, plant and equipment 15 2,998 3,392
Right-of-use assets 76 131
Goodwill 11 14
Investments in associates and joint ventures 16 129 13
Non-current accounts receivable 107 31
Other non-current financial assets 9 24
Deferred tax asset 13 192 142
Non-current inventories 17 115 133
Total non-current assets 3,637 3,880

Current inventories 17 1,178 1,057
Prepayments to suppliers 180 185
Income tax prepaid 46 64
VAT receivable 131 148
Trade and other receivables 261 103
Other financial assets at FVTPL 5 10
Cash and cash equivalents 23 842 633
Total current assets 2,643 2,200

Total assets 6,280 6,080

Liabilities and shareholders' equity

Current borrowings 18 (1,005) (514)
Accounts payable and accrued liabilities (240) (270)
Income tax payable (20) (11)
Other taxes payable (81) (68)
Current portion of contingent consideration liability 20 (15) (9)
Current lease liabilities 23 (18) (25)
Total current liabilities (1,379) (897)

Non-current borrowings 18 (2,220) (2,512)
Contingent and deferred consideration liabilities 20 (29) (112)
Deferred tax liability 13 (252) (107)
Environmental obligations (69) (76)
Non-current lease liabilities 23 (52) (106)
Other non-current liabilities (26) (28)
Total non-current liabilities (2,648) (2,941)
Total liabilities (4,027) (3,838)
NET ASSETS 2,253 2,242

Stated capital account 21 - 2,450
Share capital 21 14 -
Share premium 21 2,436 -
Share-based compensation reserve 33 35
Cash flow hedging reserve 8 16
Translation reserve (2,063) (1,543)
Retained earnings 1,825 1,284
Total equity 2,253 2,242

Total liabilities and shareholders’ equity (6,280) (6,080)


POLYMETAL INTERNATIONAL PLC

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS



Year ended Year ended
Note 31 December 2023 31 December 2022
US$m US$m

Net cash generated by operating activities 23 575 206

Cash flows from investing activities
Purchases of property, plant and equipment (679) (794)
Net cash (outflow)/inflow on asset acquisitions 3 (24) 123
Proceeds from disposal of subsidiaries, net of cash disposed of 3 21 5
Loans advanced (60) (19)
Repayment of loans provided 29 3
Contingent consideration received 7 3

Net cash used in investing activities (706) (679)

Cash flows from financing activities
Borrowings obtained 23 1,324 3,885
Repayments of borrowings 23 (944) (3,029)
Repayments of principal under lease liabilities 23 (21) (18)
Acquisition of non-controlling interest - (24)
Contingent consideration paid 23 - (27)

Net cash from financing activities 359 787

Net increase in cash and cash equivalents 228 314
Cash and cash equivalents at the beginning of the year 23 633 417
Effect of foreign exchange rate changes on cash and cash equivalents (19) (98)
Cash and cash equivalents at the end of the year 23 842 633

POLYMETAL INTERNATIONAL PLC

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY



Note Stated capital account Share capital Share premium Share-based compensation reserve Cash flow hedging reserve Translation reserve Retained earnings Total equity
US$m US$m US$m US$m US$m US$m US$m US$m

Balance at 1 January 2022 2,450 - - 31 - (1,865) 1,587 2,203
Loss for the year - - - - - - (288) (288)
Other comprehensive income, net of income tax - - - - 16 322 - 338
Total comprehensive income/(loss) - - - - 16 322 (288) 50
Share-based compensation - - - 13 - - - 13
Acquisition of non-controlling interest - - - - - - (24) (24)
Transfer to retained earnings - - - (9) - - 9 -
Balance at 31 December 2022 2,450 - - 35 16 (1,543) 1,284 2,242

Profit for the year - - - - - - 528 528
Other comprehensive loss, net of income tax - - - - (8) (520) - (528)
Total comprehensive income/(loss) - - - - (8) (520) 528 -
Redomiciation to AIFC 21 (2,450) 14 2,436 - - - - -
Share-based compensation - - - 11 - - - 11
Transfer to retained earnings - - - (13) - - 13 -
Balance at 31 December 2023 - 14 2,436 33 8 (2,063) 1,825 2,253

1. GENERAL

Corporate information
Polymetal Group is a leading gold and silver mining group, operating in Kazakhstan and Russia.
Polymetal International plc (the “Company”) is the ultimate parent entity of Polymetal Group. The Company was incorporated on 29 July 2010 as a public limited company under Companies (Jersey) Law. On 8 August 2023, the Group completed the re-domiciliation of the Company from Jersey to the Astana International Financial Centre ("AIFC"), Republic of Kazakhstan. The Company is listed on the AIX, which has become the Company’s primary stock exchange, while its listing on London stock exchange was cancelled on 28 August 2023. The Company also maintains a secondary listing on Moscow Exchange (MOEX).
On 19 May 2023, JSC Polymetal, the holding company for the Group’s assets located in the Russian Federation, and its subsidiaries were designated by the U.S. Department of State pursuant to Executive Order 14024 for operating in the metals and mining sector of the Russian economy. Following the designation the Board of Directors of the Company (the “Board”) set up a special committee of independent non-executive directors to ensure full and comprehensive compliance with U.S. sanctions. The Company and its non-Russian subsidiaries are not subject to blocking sanctions.
In the light of these developments, and in the interests of preserving shareholder value, the Board and the Special Committee undertook a strategic process to review all possible options in respect of JSC Polymetal and its subsidiaries (JSC Polymental Group) divestment in order to restore value for Polymetal shareholders and de-risk its ongoing operations.
Based on circumstances existing as of 31 December 2023, the Group has determined that JSC Polymetal and its subsidiaries did not meet the definition of the disposal group in accordance IFRS 5 Non-current Assets Held for Sale and Discontinued Operations.
In February 2024, the Group entered into contracts for the divestment of its Russian business through a sale of 100% JSC Polymetal’s shares to a third party, JSC Mangazeya Plus, as described in Note 24. On 16 February 2024, US Department of the Treasury’s Office of Foreign Asset Control (“OFAC”) confirmed to the Company that it would not impose sanctions on non-US persons, including Polymetal International Plc, for participating in or facilitating such a transaction. On 7 March 2024, following receipt of required regulatory and shareholder approvals, the transaction was completed.

Going concern
In assessing its going concern status, the Group has taken into account principal risks and uncertainties, financial position, sources of cash generation, anticipated future trading performance, borrowings and other available credit facilities, and forecasted compliance with covenants on those borrowings, and capital expenditure commitments and plans.
In the going concern assessment, the Group also considered the implications of sanctions imposed by U.S. Department of State on JSC Polymetal, the Company’s subsidiary in the Russian Federation, and the imminent sale of Russian business in March 2024, as described above. The Group determined that these implications did not have any material effect on the Group’s liquidity position and its ability to finance its obligations.
On 7 March 2024 the transaction was approved by the Shareholders General Meeting and, following receipt of required regulatory approvals, the transaction was completed on the same day.
To assess the resilience of the Group’s going concern assessment in light of the macroeconomic volatility, management performed the stress downside scenario that is considered plausible over the next 12 months from the date of approval of the 2023 condensed consolidated financial statements. As such, this does not represent the Group’s ‘best estimate’ forecast, but was considered in the Group’s assessment of going concern, reflecting the current evolving circumstances and the most significant and plausible changes in macro assumptions identified at the date of performing of the going concern assessment.
The Group has already taken precautionary measures to manage liquidity and provide flexibility for the future. In addition, it was assumed that the Group has adapted its sales routes and supply chain and the net cash flows generated will be available for use within the Group. Under the stress scenario, the Group’s income and profits are affected by simultaneous decrease of gold prices by 5% and local currency appreciation by 10%, as well as 10% overrun of development сapital expenditure.
At the reporting date, the Group holds US$ 329 million of cash and US$ 100 million of undrawn credit facilities (excluding assets sold in March 2024), which when combined with the forecast net cash flows under the stress scenario above, is considered to be adequate to meet the Group’s financial obligations as they fall due over the next 12 months. No borrowing covenant requirements are expected to be breached in the stress scenario. The Group expects to settle obligations as they fall due but also has mitigating actions available such as reducing production volumes and variable mining costs where possible, reducing and deferring non-essential and non-committed capital expenditure.
The Board is therefore satisfied that the Group’s forecasts and projections, including the stress scenario above, demonstrate that the Group has adequate resources to continue in operational existence for at least 12 months from the date of approval of the 2023 condensed consolidated financial statements and that it is appropriate to adopt the going concern basis in preparing the condensed consolidated financial statements for the year ended 31 December 2023.
Basis of presentation
The Group’s annual condensed consolidated financial statements for the year ended 31 December 2023 are prepared in accordance with the recognition, derecognition, measurement and classification principles of International Financial Reporting Standards (IFRS). The financial statements have been prepared on the historical cost basis, except for certain financial instruments which are measured at fair value as of end of the reporting period and share-based payments which are recognised at fair value as of the measurement date.
The accounting policies and methods of computation applied are consistent with those adopted and disclosed in the Group’s annual report for the year ended 31 December 2022 on pages 177 to 187, except as described below.
During the year ended 31 December 2023 management has reviewed the segmental presentation of financial information it requires to assess performance and allocate resources, As a result the presentation of segmental information was re-assessed, including comparative information as described in Note 4.
The Group determined that starting from August 2023, following the re-domiciliation of the Company from Jersey to AIFC in Kazakhstan and due to the accumulation over time of those factors which are the main determinants of functional currency, there had been a change in facts and circumstances surrounding the operations of the Company, indicating that the functional currency of the Company and some of its intermediate holding companies had changed from the US Dollar to the KZT. In accordance with IAS 21 The Effects of Changes in Foreign Exchange Rates, this change has been accounted for prospectively from 1 August 2023.
New standards adopted by the Group
• IFRS 17 Insurance Contracts, effective for annual period beginning on or after 1 January 2023 with earlier application permitted;
• Amendments to IAS 1 and IFRS Practice Statement 2 requiring that an entity discloses its material accounting policies, instead of its significant accounting policies, effective for annual period beginning on or after 1 January 2023 with earlier application permitted;
• Amendments to IAS 12 clarifying that the initial recognition exemption does not apply to transactions in which equal amounts of deductible and taxable temporary differences arise on initial recognition, effective for annual period beginning on or after 1 January 2023 with earlier application permitted;
• Amendments to IAS 12 – International Tax Reform – Pillar Two Model Rules, introducing a temporary exception to the accounting requirements for deferred taxes in IAS 12, so that an entity would neither recognise nor disclose information about deferred tax assets and liabilities related to Pillar Two income taxes; and
• Amendments to IAS 8 replacing the definition of a change in accounting estimates with a definition of accounting estimates, effective for annual period beginning on or after 1 January 2023 with earlier application permitted.
The Group has determined that these standards and interpretations do not have a material impact on its condensed consolidated financial statements or are not applicable to the Group.
New accounting standards issued but not yet effective
The following amendments to the accounting standards were in issue but not yet effective as of date of approval of these condensed consolidated financial statements:
• Amendments to IAS 1 Presentation of Financial Statements regarding non-current liabilities with covenants, effective for annual periods beginning on or after 1 January 2024, with early application permitted;
• Amendments to IFRS 16 Leases regarding lease liabilities in sale and leaseback transactions, effective for annual period beginning on or after 1 January 2024 with earlier application permitted;
Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures regarding supplier finance arrangements, effective for annual period beginning on or after 1 January 2024 with earlier application permitted;
• Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Disclosures of information that enables users of financial statements to understand the impact of a currency not being exchangeable, effective for annual period beginning on or after 1 January 2025 with earlier application permitted; and
• Amendments to IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures regarding the sale or contribution of assets between an investor and its associate or joint venture, the effective date of the amendments has yet to be set. However, earlier application of the amendments is permitted.
The Group has determined that these standards and interpretations are unlikely to have a material impact on its condensed consolidated financial statements or are not applicable to the Group.

2. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
In the course of preparing the condensed consolidated financial statements, management necessarily makes judgements and estimates that can have a significant impact on those financial statements. The determination of estimates requires judgements which are based on historical experience, current and expected economic conditions, and all other available information.
Estimates and underlying assumptions are reviewed on an ongoing basis, with revisions recognised in the period in which the estimates are revised and in the future periods affected. The judgements involving a higher degree of estimation or complexity are set out below.
Critical accounting judgements
The following are the critical accounting judgements (apart from judgements involving estimation which are dealt with separately below), made during the year that had the most significant effect on the amounts recognised in the condensed consolidated financial statements.
Re-assessment and impairment of Amursk POX CGU
Impairment charges are assessed at the CGU level. Significant management judgement is applied in determining the Group’s CGUs, particularly when assets relate to integrated operations, and where changes in CGU determinations could impact the impairment recognised. It was previously determined that Amursk POX represented a shared corporate asset in accordance with IAS 36 Impairment of assets. During the year ended 31 December 2023, the Group has determined that due to the changes in the mode of assets utilisation that generate a revenue stream for Amursk POX, it became a separate CGU. Such changes included continued use of Amursk POX processing facility to treat Kyzyl refractory concentrate on the terms of tolling agreement, as entailed by provisions of JSC Polymetal divestment (Notes 1, 24) and the offtake arrangement over Veduga concentrate, described below. This judgement was applied to the impairment review as of 31 December 2023, resulting in impairment charge of US$ 165 million (Note 14).

Indicators of Impairment and reversal of impairment
The Group considers both external and internal sources of information in assessing whether there are any indications that CGUs are impaired. The external sources of information the Group considers include changes in the market, economic and legal environment in which the Group operates, that are usually not within its control, and are expected to affect the recoverable amount of CGUs. Internal sources of information include the manner in which mining properties, plant and equipment are being used or are expected to be used; and indicators of the economic performance of the assets, historical exploration and operating results. The primary external factors considered are changes in spot and forecast metal prices, market rates of returns that form discount rates, and changes in laws and regulations. The primary internal factors considered are the Group’s current mine performance against expectations, changes in mineral reserves and resources, life of mine plans and exploration results.
Assets (other than goodwill) that have been previously impaired should be assessed for indicators of both impairment and impairment reversal. Such assets are generally carried on the balance sheet at a value close to their recoverable amount at the last assessment. Therefore in principle any change to operational or macroeconomic parameters could result in further impairment or impairment reversal if an indicator is identified.
During year ended 31 December 2023 the Group determined that due to updated operational plans and futher advancement of the project, impairment loss previously recognised for Veduga was fully reversed as detailed in Note 14. As a result the reversal of impairment loss of US$ 68 million was recorded.
Other significant operating assets that the Group has previously impaired include Nezhda-Prognoz and Kutyn CGU. These assets had a combined carrying value of US$ 751 million as at 31 December 2023. Despite the external indicators such as commodities’ prices and foreign exchange rates showed favorable changes, there is no significant positive change in these CGUs’ expected economic performance, and therefore no indicators of the reversal of previously recognised impairment loss were identified.
Veduga (Amikan GRK LLC) Joint Venture
In September 2023, the Group disposed of the stake in Amikan LLC (holder of Veduga deposit license), which resulted in loss control of over subsidiary, as described in Note 3. The Group retained interest of 49.9% in Amikan and entered into a number of corporate arrangements with the new shareholder regarding project financing, governance and operations.
When the Group enters into an arrangement where it has the power to participate in the financial and operating policy decisions of an investee or into arrangements with other parties for the joint ownership of particular assets or developments, it must assess whether the arrangements constitute significant influence, control, joint operations or a joint venture based on the rights and obligations of the parties to the arrangements.
Based on the governance structure of the investee, it was determined that the arrangement requires the unanimous consent of the parties sharing control. The preliminary offtake arrangement to purchase the output by Amursk POX, entailed by the shareholders agreement, does not indicate that the parties have rights to the substantially all economic benefits of the assets and, therefore, in effect do not have the obligation for liabilities, as pricing mechanism relates only to the market metal price and related adjustments is in line with the market practice, with no additional financing arrangements.
Therefore it was concluded that the joint arrangement provides the parties with rights to the net assets of the arrangement and, therefore, the retained investment represents a joint venture. The retained investment was initially recognised at fair value as of date of transaction, as described in Note 3.
Accounting for acquisitions
To determine the appropriate accounting approach to be followed for an acquisition transaction, the Group applies judgement to assess whether the acquisition is of a business, and therefore within scope of IFRS 3 Business Combinations, or is of a group of assets that do not constitute a business and is therefore outside scope of IFRS 3. In making this determination, management evaluates the inputs, processes and outputs of the asset or entity acquired. Judgement is used to determine whether an integrated set of activities and assets is capable of being conducted and managed for the purpose of providing a return in the form of dividends, lower costs or other economic benefits directly to investors or other owners, members or participants. The acquisitions of subsidiaries during reporting year have been assessed as asset acquisitions (Note 3).
Recoverability of exploration and evaluation assets
Exploration and evaluation assets include mineral rights and exploration and evaluation costs, including geophysical, topographical, geological and similar types of costs. Exploration and evaluation costs are capitalised if management concludes that future economic benefits are likely to be realised and determines that economically viable extraction operation can be established as a result of exploration activities and internal assessment of mineral resources.
According to IFRS 6 Exploration for and evaluation of mineral resources, the potential indicators of impairment include: management’s plans to discontinue the exploration activities, lack of further substantial exploration expenditure planned, expiry of exploration licences in the period or in the nearest future, or existence of other data indicating the expenditure capitalised is not recoverable. At the end of each reporting period, management assesses whether such indicators exist for the exploration and evaluation assets capitalised, which requires significant judgement. During the year ended 31 December 2023 the Group recognised impairment loss related to the individual exploration and evaluation assets of US$ 29 million as detailed in Note 14.
Use of estimates
The preparation of financial statements requires the Group to make estimates and assumptions that affect the amounts of the assets and liabilities recognised, amounts of revenue and expenses reported, and contingent liabilities disclosed, as of the reporting date. The determination of estimates is based on current and expected economic conditions, as well as historical data and statistical and mathematical methods as appropriate.
Key sources of estimation uncertainty
Key sources of estimation uncertainty reflect those sources of estimation uncertainty which may have a possible material impact of resulting in a material adjustment to the carrying amount of assets and liabilities within the next financial year. They include: cash flow projections for impairment testing and impairment reversal, valuation of contingent consideration assets and liabilities and calculation of net realisable value of stockpiles and work-in progress, mineral reserves and resources assessment and life of mine plans, useful lives of production and other assets, environmental provision and recoverability of deferred tax assets.
DCF models are developed for the purposes of impairment testing, valuation of contingent consideration assets and liabilities, calculation of net realisable value of metal inventories and assessment of the recoverability of deferred tax assets. Expected future cash flows used in DCF models are inherently uncertain and could change over time. They are affected by a number of factors including ore reserves, together with economic factors such as commodity prices, exchange rates, discount rates and estimates of production costs and future capital expenditure.
• Ore reserves and mineral resources – Recoverable reserves and resources are based on the proven and probable reserves and resources in existence. Reserves and resources are incorporated in projected cash flows based on ore reserve statements and exploration and evaluation work undertaken by appropriately qualified persons (see below). Mineral resources, adjusted by certain conversion ratios, are included where management has a high degree of confidence in their economic extraction, despite additional evaluation still being required prior to meeting the required confidence to convert to ore reserves.

• Commodity prices – Commodity prices are based on latest internal forecasts, benchmarked against external sources of information. Polymetal currently uses flat real long-term gold and silver prices of US$ 1,900 per ounce for 2024, US$ 1,800 per ounce from 2025 per ounce (2022: of US$ 1,800 per ounce for 2023, US$ 1,700 per ounce from 2024) and US$ 23 per ounce (2022: and US$ 20 per ounce for 2023, US$ 21 per ounce from 2024), respectively.

• Foreign exchange rates – Foreign exchange rates are based on observable spot rates, or on latest internal forecasts, benchmarked with external sources of information for relevant countries of operation, as appropriate. The RUB/US$ exchange rates are estimated at 90 RUB/US$ for 2024 (2022: 65 RUB/US$ for 2023, at 73 RUB/US$ for 2024 and 75 RUB/US$ from 2025). The KZT/US$ exchange rate are estimated at 450 KZT/USD for 2024 and 500 KZT/USD for 2025 and beyond (2022: 450 KZT/US$ for 2023, at 502 KZT/US$ from 2024), respectively.

• Discount rates – The Group used a post-tax real discount rate of 12.5% for Russia assets and 8.7% for Kazakhstan (2022: 14.1% for Russia assets and 9% for Kazakhstan). Post-tax cash flow projections used in the value in use impairment models are discounted based on these rates.

• Operating costs, capital expenditure and other operating factors – Cost assumptions incorporate management experience and expectations, as well as the nature and location of the operation and the risks associated therewith. Underlying input cost assumptions are consistent with related output price assumptions. Other operating factors, such as the timelines of granting licences and permits are based on management’s best estimate of the outcome of uncertain future events at the balance sheet date.

Sensitivity analysis
The impairment charge of US$ 165 million for Amursk POX property, plant and equipment was recognised during the year ended 31 December 2023 (Note 14). The recoverable amount was estimated based on a value in use calculation.
The impairment assessment is inherently sensitive to plausible changes in certain economic and operational key input assumptions within the next financial year, which could increase or reduce the CGU’s recoverable value estimate.
Management performed an analysis as to whether a reasonably possible adverse change to any of the key assumptions would lead to further impairment. The table below summarises the outcomes of the following isolated scenarios and respective additional impairment that would be recognised.
Scenario US$m

10% simultaneous decrease in gold and silver prices over the life of mine 73
10% appreciation in RUB/US$ exchange rates; 6
10% increase in operating expenses over the life of mine 60
1% increase in the discount rate applied 26

Each of the sensitivities above has been determined by assuming that the relevant key assumption moves in isolation, and without regard to potential mine plan changes and other management decisions which would be taken to respond to adverse changes in existing management projections.
The sensitivities of contingent consideration liabilities measured at FVTPL of US$ 44 million at 31 December 2023 (31 December 2022: US$ 36 million) and inventories held at net realisable value of US$ 80 million at 31 December 2023 (31 December 2022: US$ 95 million) to a reasonably possible change in key assumptions described above are not considered material due to materiality of the respective balances.
Recoverability of deferred tax assets
Deferred tax assets are reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. This review takes into account the factors such as estimated future production, projected commodity prices, operating costs, future capital expenditure, as described above. If actual results differ from these estimates or if these estimates must be adjusted in future periods, the financial position, results of operations and cash flows may be negatively affected. Deferred tax assets arising from tax losses carried forward, as well as applicable tax legislation, are described in Note 13.
Climate change
We have assessed and set out the Group’s climate risks and opportunities as part of our commitment to climate disclosure within the Strategic Report. Mitigation and adaptation measures that may be required in the future to combat the physical and transition risks of climate change could also have potential implications for the Group’s financial statements. This would be the case where assets and liabilities are measured based on an estimate of future cash flows.
In preparing the Group’s financial statements, climate-related strategic decisions have impacted the following:
• Our decarbonisation and clean energy initiatives considered and approved by the Board were included in future cash flow projections, underpinned by estimates for recoverable amounts of property, plant and equipment, as deemed relevant; and
• The provision for mine closure costs impacted by climate risks and opportunities.
We have adopted both mitigation and adaptation measures within our climate management system. We focus on renewable energy, carbon-intensive fuel replacement and innovative technologies to both mitigate climate change impacts and to reduce our carbon footprint. The adaptation measures we use are based on climate models, which inform the design, construction, operation and closure of our mining assets.
Significant judgements and key estimates made by the Group may be impacted in the future by changes to our climate change strategy or in global commitments to decarbonisation. This could, in turn, result in material changes to the financial results and the carrying values of certain assets and liabilities in future reporting periods. As at the reporting date, the Group believes that there is no material impact on balance sheet carrying values of assets or liabilities.
3. ACQUISITIONS AND DISPOSALS
Veduga (Amikan GRK LLC)
In September 2023, the Group has agreed to cancel its historic call and put options and a shareholder agreement over 40.6% share in GRK Amikan LLC (“Amikan”) with the previous joint venture (JV) partner (refer to the transaction disclosure in the condensed consolidated financial statements for the year ended 31 December 2020). This allowed the Group to form a new joint venture over Amikan. The 40.6% stake was acquired from the previous JV partner by a new third party. Subsequently, JSC Polymetal disposed of its 9.5% stake in Amikan to the same third party for a сash consideration of US$ 21 million. As a result, the Group now owns 49.9% interest of Amikan. Simultaneously, JSC Polymetal entered into number of corporate arrangements with the new shareholder regarding Amikan project financing, governance and operations.
In 2020 at the inception of options the Group determined that the call option over 40.6% stake represents a derivative containing potential voting right, that provided the Group access to the returns associated with related ownership interest, and thus in accordance with IFRS 10 Consolidated financial statements the Group accounted for the options over 40.6% interest as is they were already exercised and consolidated 100% interest in Amikan with the option exercise price recognised as a deferred consideration payable. At the disposal date, the fair value of deferred consideration payable amounted to US$ 88 million, which was recognised as a part of the consideration received on disposal.
As a result of this transaction the Group has effectively disposed of 50.1% interest of the investee. The retained interest of 49.9% was valued at the fair value of US$ 110 million at the date when control was lost in accordance with IFRS 10 requirements. The fair value was determined based on consideration received from third party for 9.5% stake, which was supported by life-of-mine model.
Based on the governance structure of the investee, policy-making processes and the board of directors composition, it was determined that all key decisions require the unanimous consent of the parties sharing control and provides the parties of the joint arrangement with rights to its net assets, therefore, the investment was classified as a joint venture. Subsequently, the investment is accounted for using the equity method.
The summary of transaction is presented below.

US$m
Property, plant and equipment 162
Inventories 22
Other assets 3
Income tax (14)
Accounts payable (3)
Intercompany loans and other accounts (64)
Net assets disposed of 106

Cash consideration received 21
Deferred consideration cancelled 88
Fair value of the investment retained 110
Less net assets disposed of (106)
Gain on disposal of subsidiary 113

Other acquisitions
Other individually insignificant acquisitions of exploration assets during the year ended 31 December 2023 of US$ 52 million in total, related to consolidation of certain former joint ventures, including the Baksy project project in Kazakhstan (Note 16), and the acquisition a number of exploration interests in Russia. All transactions represented asset acquisitions in accordance with IFRS 3 Business Combinations, as the acquired companies did not have any substantive processes required to create outputs. The summary of net assets acquired is presented below:
Baksy NORK LLC OGK LLC Utkinskaya Uenma TOTAL
US$m US$m US$m US$m US$m $m
Property, plant and equipment 19 5 3 19 6 52
Other assets/(liabilities), net (1) - 1 - - -
Intercompany loans and other accounts (5) (4) (1) - - (10)
Net assets acquired 13 1 3 19 6 42

Cost of equity investment reclassified - - 1 - - 1
Loan assignment - - - 17 - 17
Cash consideration 13 1 2 2 6 24
Total consideration 13 1 3 19 6 42


4. SEGMENT INFORMATION
The Group’s operating segments are aligned to those businesses that are evaluated regularly by the chief operating decision maker (the CODM) in deciding how to allocated resources and in assessing performance. Operating segments with similar economic characteristics are aggregated into reportable segments.
In May 2023, following the designation of JSC Polymetal by the U.S. Department of State pursuant to Executive Order 14024, the governance and management structure of the Group was changed. As a part of ring-fencing the Group’s Russian subsidiaries to ensure sanctions compliance the management of the Russian operations has been delegated to the executives of JSC Polymetal, while the Company’s Board and management focused on the operations of the Group’s assets located in Kazakhstan, as well as separation of the Group’s assets by jurisdiction, as described in Note 1.
As a result of these changes management of the Company has re-assessed presentation of financial information by segments it requires to assess performance and allocate resources. It was concluded that jurisdiction-based reporting format is more meaningful from a management and forecasting perspective, as well as better aligned to the new management structure, internal reporting and processes. The comparative information was presented in line with the current year format.
Therefore the Group has identified two reportable segments in 2023:
• Kazakhstan (Varvarinskoye JSC, Komarovskoye Mining Company LLC, Bakyrchik Mining Venture LLC);
• Russian Federation (aggregating Khabarovsk, Magadan, Ural and Yakutia operating segments).

The measure which management and the CODM use to evaluate the performance of the Group is a segment Adjusted EBITDA, which is an Alternative Performance Measure (APM).
The accounting policies of the reportable segments are consistent with those of the Group’s accounting policies under IFRS. Revenue and cost of sales of the production entities are reported net of any intersegmental revenue and cost of sales, related to the intercompany sales of ore and concentrates.
Business segment current assets and liabilities, other than current inventory, are not reviewed by the CODM and therefore are not disclosed in these condensed consolidated financial statements. Additionally, net debt is included in performance measures, reviewed by CODM. The segment adjusted EBITDA reconciles to the profit before income tax as follows:

4. SEGMENT INFORMATION (CONTINUED)

Period ended 31 December 2023 Period ended 31 December 2022
KAZAKHSTAN RUSSIA Total KAZAKHSTAN RUSSIA Total
Revenue from external customers 893 2,132 3,025 933 1,868 2,801
Cost of sales, excluding depreciation, depletion and write-down of inventories to net realisable value 378 833 1,211 340 1,015 1,355
Cost of sales 442 1,017 1,459 415 1,275 1,690
Depreciation included in Cost of sales (64) (190) (254) (75) (197) (272)
Reversal/(write-down) of metal inventories to net realisable value - 8 8 - (65) (65)
(Write-down)/reversal of non-metal inventories to net realisable value - (2) (2) - 1 1
Rehabilitation expenses - - - - 1 1
General, administrative and selling expenses, excluding depreciation, amortisation and share-based compensation 58 198 256 47 241 288
General, administrative and selling expenses 71 203 274 62 249 311
Depreciation included in SGA (2) (5) (7) (2) (8) (10)
Share-based compensation (11) - (11) (13) - (13)
Other operating expenses excluding additional tax charges 18 80 98 30 111 141
Other operating expenses, net 18 99 117 32 110 142
Bad debt and expected credit loss allowance - (19) (19) - 1 1
Additional tax charges/fines/penalties - - - (2) - (2)
Share of losses of associates and joint ventures - 2 2 - - -
Adjusted EBITDA 439 1,019 1,458 516 501 1,017
Depreciation 66 195 261 77 205 282
Rehabilitation expenses - - - - (1) (1)
Write-down/(reversal) of non-metal inventories to net realisable value - 2 2 - (1) (1)
(Reversal)/write-down of metal inventories to net realisable value - (8) (8) - 65 65
Impairment of non-current assets, net 16 110 126 - 825 825
Share-based compensation 11 - 11 13 - 13
Bad debt and expected credit loss allowance - 19 19 - (1) (1)
Additional tax charges/fines/penalties - - - 2 - 2
Operating profit 346 701 1,047 424 (591) (167)
Foreign exchange loss (174) (32)
Gain/(loss) on disposal of subsidiaries 113 (2)
Change in fair value of financial instruments (8) (20)
Finance expenses (162) (119)
Finance income 27 8
Profit/(loss) before income tax 843 (332)
Income tax (315) 44
Profit/(loss) for the year 528 (288)
Current metal inventories 171 647 818 111 594 705
Current non-metal inventories 62 298 360 46 306 352
Non-current segment assets: - - -
Property, plant and equipment, net 810 2,188 2,998 696 2,696 3,392
Goodwill - 11 11 - 14 14
Non-current inventories 41 74 115 34 99 133
Investments in associates 6 123 129 - 13 13
Total segment assets 1,090 3,341 4,431 887 3,722 4,609
Additions to non-current assets:
Property, plant and equipment 150 606 756 108 775 883
Acquistion of assets 19 33 52 - 49 49
Total segment liabilities
Net debt (174) (2,209) (2,383) (277) (2,116) (2,393)




5. REVENUE

Year ended 31 December 2023
Volume shipped (unaudited) Volume payable (unaudited) Average price ($ per oz/t payable) (unaudited) US$m



Gold (thousand ounces) 1,438 1,400 1,886 2,640
Silver (thousand ounces) 17,461 16,595 21.9 363
Copper (tonnes) 3,037 2,693 8,168 22
Total 3,025

Year ended 31 December 2022
Volume shipped (unaudited) Volume payable (unaudited) Average price ($ per oz/t payable) (unaudited) US$m



Gold (thousand ounces) 1,408 1,376 1,738 2,392
Silver (thousand ounces) 18,973 18,542 20.7 383
Copper (tonnes) 3,810 3,399 7,650 26
Total 2,801


Included in revenues for the year ended 31 December 2023 are those arisen from the sales to the Group’s largest customers, whose contribution to the Group’s revenue presented 10% or more of the total revenue. In 2023 revenues from such customers amounted to US$ 547 million, US$ 357 million and US$ 292 million (2022: US$ 754 million, US$ 446 million, US$ 452 million and US$ 233).
Geographical analysis of revenue by destination is presented below:

Year ended
31 December 2023 31 December 2022
US$m US$m
Sales within the Russian Federation 1,251 296
Sales to Asia 969 1,284
Sales to Kazakhstan 805 1,205
Sales to Europe - 16
Total 3,025 2,801


Presented below is an analysis per revenue streams:

Year ended
31 December 2023 31 December 2022
US$m US$m
Bullions 1,582 1,104
Concentrate 865 915
Dore 547 754
Ore 31 28
Total 3,025 2,801




6. COST OF SALES
Year ended
31 December 2023 31 December 2022
US$m US$m
Cash operating costs
On-mine costs (Note 7) 632 741
Smelting costs (Note 8) 532 567
Purchase of metal inventories from third parties 127 69
Mining tax 163 136
Total cash operating costs 1,454 1,513

Depreciation and depletion of operating assets (Note 9) 280 324
Rehabilitation expenses - (1)
Total costs of production 1,734 1,836

Increase in metal inventories (276) (216)
(Reversal)/write-down of inventories to net realisable value (Note 17) (6) 64
Idle capacities and abnormal production costs 7 6
Total 1,459 1,690

7. ON-MINE COSTS
Year ended
31 December 2023 31 December 2022
US$m US$m
Services 283 363
Labour 153 175
Consumables and spare parts 190 196
Other expenses 6 7
Total (Note 6) 632 741

8. SMELTING COSTS
Year ended
31 December 2023 31 December 2022
US$m US$m
Consumables and spare parts 216 242
Services 207 213
Labour 104 110
Other expenses 5 2
Total (Note 6) 532 567


9. DEPLETION AND DEPRECIATION OF OPERATING ASSETS
Year ended
31 December 2023 31 December 2022
US$m US$m
On-mine 182 228
Smelting 98 96
Total in cost of production (Note 6) 280 324
Less: absorbed into metal inventories (26) (52)
Depreciation included in cost of sales 254 272


Depreciation of operating assets excludes depreciation relating to non-operating assets (included in general, administrative and selling expenses) and depreciation related to assets employed in development projects where the charge is capitalised.

10. GENERAL, ADMINISTRATIVE AND SELLING EXPENSES
Year ended
31 December 2023 31 December 2022
US$m US$m
Labour 215 243
Share-based compensation 11 13
Depreciation 7 10
Services 19 15
Other 22 30
Total 274 311


11. OTHER OPERATING EXPENSES, NET

Year ended
31 December 2023 31 December 2022
US$m US$m
Exploration expenses 35 62
Social payments 34 44
Bad debt allowance 19 (1)
Expenses related to the investment in Special Economic Zone 15 14
Taxes, other than income tax 14 17
Change in estimate of environmental obligations (7) (2)
Other expenses 7 8
Total 117 142

For the operations held in the Special Economic Zone of the Russian Far East, Omolon Gold Mining Company LLC and Magadan Silver JSC are entitled to the decreased statutory income tax rate of 17%, as well as decreased mining tax rate (paying 60% of standard mining tax rates). In return for obtaining this tax relief the members of the regional free Economic Zone are obliged to invest 50% of their tax savings each year in the Special Economic Zone Development Programme, amounting to US$ 15 million in 2023 (2022: US$ 14 million).
Operating cash flows spent on exploration activities amounted to US$ 34 million (2022: US$ 61 million).
12. FINANCE EXPENSES
Year ended
31 December 2023 31 December 2022
US$m US$m
Interest expense on borrowings 141 94
Unwinding of discount on contingent consideration liability (Note 23) 7 10
Unwinding of discount on environmental obligations 7 8
Unwinding of discount on lease liabilities (Note 23) 7 7
Total 162 119

During the year ended 31 December 2023 interest expense on borrowings excluded borrowing costs capitalised in the cost of qualifying assets of US$ 49 million (2022: US$ 35 million). These amounts were calculated based on the Group’s general borrowing pool and by applying an effective interest rate of 5.57% (2022: 4.53%) to weighted average balance of expenditure associated with qualifying assets.
13. INCOME TAX
Income tax expense for the years ended 31 December 2023 and 2022 recognised in the condensed consolidated income statement was as follows:
Year ended
31 December 2023 31 December 2022
US$m US$m
Current income taxes (235) (164)
Deferred income taxes (80) 208
Total (315) 44

A reconciliation between the reported amounts of income tax expense attributable to income before income tax is as follows:
Year ended
31 December 2023 31 December 2022
US$m US$m

Profit before income tax 843 (332)
Theoretical income tax (expense)/benefit at the tax rate of 20% (169) 66
Effect of Special Economic Zone and Regional Investment project decreased tax rates 16 (19)
Tax effect of withholding tax on intercompany dividends (161) 15
Non taxable net foreign exchange gains 37 25
Disposal of subsidiary 11 -
Effect of different tax rates of subsidiaries operating in other jurisdictions and windfall tax (7) 9
Change in unrecognised deferred taxes (9) (14)
Non-deductible interest expense (17) (6)
Other non-taxable income and non-deductible expenses, net (14) (27)
Adjustments in respect of prior periods (2) (5)
Total income tax expense (315) 44

The actual tax expense differs from the amount which would have been determined by applying the statutory rate of 20% for the Russian Federation and Kazakhstan to profit before income tax as a result of the application of relevant jurisdictional tax regulations, which disallow certain deductions which are included in the determination of accounting profit.
The Group has a number of tax concessions, therefore the tax rate varies for each separate entity from 0% to 20%.
Tax exposures related to the income tax
In 2023 and 2022 no individual material exposures were identified as probable and therefore provided for. Management has identified a total exposure in respect of contingent liabilities (Note 19) (covering taxes and related interest and penalties) of approximately US$ 38 million being uncertain tax positions (31 December 2022: US$ 122 million) which relate to income tax. This is connected largely to the more assertive position of the Russian tax authorities in their interpretation of tax legislation in several recent court cases for other taxpayers. Fiscal periods remain open to review by the tax authorities in respect of taxes for the three and five calendar years preceding the year of tax review for Russia and Kazakhstan respectively. In case of Regional Investment Project in Russian Federation fiscal period remains open to review for five years as well. While the Group believes it has provided adequately for all tax liabilities based on its understanding of the tax legislation, the above facts may create additional financial risks for the Group.
Management does not anticipate a significant risk of material changes in estimates in these matters in the next financial year.
Deferred taxation
Deferred taxation is attributable to the temporary differences that exist between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for tax purposes.
The following are the major deferred tax assets and liabilities recognised by the Group and movements thereon during the reporting period.
Mineral rights Exploration in progress Borrowings and other liabilities Environmental obligation Tax losses Undistributed earnings Other Total
US$m US$m US$m US$m US$m US$m US$m US$m

At 1 January 2022 (184) (66) 18 11 100 (22) 4 (139)
Charge to income statement 88 12 (23) 1 86 22 22 208
Exchange differences (22) (9) 2 - 3 - (8) (34)
At 31 December 2022 (118) (63) (3) 12 189 - 18 35
Charge to income statement (4) (17) 92 2 (39) (151) 37 (80)
Disposal of subsidiaries 12 10 (1) - (2) - (5) 14
Exchange differences 15 15 (23) (2) (28) (1) (5) (29)
At 31 December 2023 (95) (55) 66 12 119 (152) 45 (60)

Deferred tax assets and liabilities are offset where the Group has a legally enforceable right to do so. The following analysis shows deferred tax balances presented for financial reporting purposes:
Year ended
31 December 2023 31 December 2022
US$m US$m
Deferred tax liabilities (252) (107)
Deferred tax assets 192 142
Total (60) 35

The Group believes that recoverability of the recognised deferred tax asset (DTA) of US$ 119 million at 31 December 2023 (2022: US$ 189 million), which is related to the tax losses carried forward, is more likely than not based upon expectations of future taxable income in the Russian Federation. It was concluded that there is sufficient evidence to overcome the recent history of losses based on forecasts of sufficient taxable income in the carry-forward period.
In accordance with Russian Federation tax law regarding loss carryforwards, they are limited to 50% of taxable profit in tax years through to 2026. Starting from 2027, the limitation will expire and it will be possible to fully utilise loss carryforwards against the corporate tax base in a given year. Losses incurred from 2007 can be carried forward for an indefinite period until fully utilised.
The Group’s estimate of future taxable income is based on established proven and probable reserves which can be economically developed. The related detailed mine plans and forecasts provide sufficient supporting evidence that the Group will generate taxable earnings to be able to fully realise its net DTA even under various stressed scenarios. The amount of the DTA considered realisable, however, could be reduced in the near term if estimates of future taxable income during the carry forward period are reduced due to delays in production start dates, decreases in ore reserve estimates, increases in environmental obligations, or reductions in precious metal prices.
No deferred tax asset has been recognised in respect of US$ 31 million (2022: US$ 95 million) of losses as it was not considered probable that there will be future taxable profits against which these losses can be utilised.
In 2023 the Group paid withholding income tax of US$ 10 million (2022: US$ 7 million) related to intercompany dividends, which were remitted during the year. As of 31 December 2023 the Group recognised deferred tax liability of US$ 152 million (31 December 2022: nil) in respect of the undistributed retained earnings of certain of the Group subsidiaries, which are expected to be remitted from these subsidiaries in foreseeable future (judged to be one year). No deferred tax liabilities for taxes that would be payable on the unremitted earnings of the Group subsidiaries is recognised where the Group determines that the undistributed profit of its subsidiaries will not be distributed in a foreseeable future (judged to be one year). The temporary differences associated with investments in subsidiaries, for which deferred tax liabilities have not been recognised, amounted to US$ 2.3 billion (2022: US$ 4.1 billion).

14. IMPAIRMENT OF NON-CURRENT ASSETS, NET
During year ended 31 December 2023 due to the updated operational plans and further advancement of the Veduga project (Amikan GRK LLC), the Group carried out an impairment review of the property, plant and equipment, related to this CGU. As a result of this review an impairment loss of US$ 68 million previously recognised for Veduga CGU was fully reversed.
An impairment charge of US$ 165 million in respect to Amursk POX is mainly attributable to the classification of Amursk POX as a separate CGU due to changes in the mode of assets utilisation (Note 2). Additionally, as a result of review of recoverability of exploration and evaluation assets, the Group recognised an impairment loss of US$ 29 million.
Total net impairment loss of US$ 126 million recognised comprised the following:
Amikan Amursk POX Viksha Bolshevik TOTAL
US$m US$m US$m US$m US$m
Property, plant and equipment
Exploration assets 2 - (13) (16) (27)
Development assets 8 - - - 8
Mining assets 48 (29) - - 19
Capital construction in-progress 10 (136) - - (126)
Total 68 (165) (13) (16) (126)

Amikan, Amursk POX and Viksha related to Russia reporting segment, Bolshevik was included in Kazakhstan reporting segment (Note 4).
The recoverable amount of the relevant cash-generating units is determined based on a value in use calculation. The impairment testing procedure, related assumptions and sensitivities are described in detail in Note 2 “Use of estimates” section above.

15. PROPERTY, PLANT AND EQUIPMENT

Development assets Exploration assets Mining assets Non-mining assets Capital construction in-progress Total
US$m US$m US$m US$m US$m US$m
Cost
Balance at 1 January 2022 384 74 3,343 74 783 4,658
Additions 65 19 255 11 533 883
Transfers (13) - 245 2 (234) -
Change in environmental obligations - - 12 - 8 20
Acquisitions 29 1 - - 19 49
Eliminated on disposal of subsidiaries - (8) (10) - - (18)
Disposals and write-offs including fully depleted mines - - (152) - (1) (153)
Translation to presentation currency 35 (1) 50 6 39 129
Balance at 31 December 2022 500 85 3,743 93 1,147 5,568
Additions 47 26 255 7 421 756
Transfers (282) (18) 491 2 (193) -
Change in environmental obligations - - 7 - (1) 6
Acquisitions (Note 3) - 52 - - - 52
Eliminated on disposal of subsidiaries (Note 3) (18) (4) (113) (2) (36) (173)
Disposals and write-offs including fully depleted mines - (16) (55) (3) (17) (91)
Translation to presentation currency (82) (14) (603) (23) (263) (985)
Balance at 31 December 2023 165 111 3,725 74 1,058 5,133

Development assets Exploration assets Mining assets Non-mining assets Capital construction in-progress Total
US$m US$m US$m US$m US$m US$m
Accumulated depreciation, amortisation
Balance at 1 January 2022 - - (1,304) (40) - (1,344)
Charge for the year - - (345) (9) - (354)
Eliminated on disposal of subsidiaries (Note 3) - - 10 - - 10
Impairment recognised during the year (Note 14) (334) (2) (418) (4) (43) (801)
Disposals and write-offs including fully depleted mines - - 148 - - 148
Translation to presentation currency 82 - 75 - 8 165
Balance at 31 December 2022 (252) (2) (1,834) (53) (35) (2,176)
Charge for the year - - (297) (7) - (304)
Transfers 202 - (214) - 12 -
Eliminated on disposal of subsidiaries (Note 3) - - 10 1 - 11
Reversal of Impairment/(Impairment) recognised during the year, net (Note 14) 8 (27) 19 - (126) (126)
Disposals and write-offs including fully depleted mines - 16 52 2 - 70
Translation to presentation currency 35 2 334 13 6 390
Balance at 31 December 2023 (7) (11) (1,930) (44) (143) (2,135)

Net book value
31 December 2022 248 83 1,909 40 1,112 3,392
31 December 2023 158 100 1,795 30 915 2,998

Mining, exploration and development assets at 31 December 2023 included mineral rights with a net book value of US$ 621 million (31 December 2022: US$ 713 million) and capitalised stripping costs with a net book value of US$ 262 million (31 December 2022: US$ 277 million). Mineral rights of the Group comprise assets acquired upon acquisition of subsidiaries.
Disposed and written off assets included fully depreciated items of US$ 21 million (year ended 31 December 2022: US$ 153 million and US$ 121 million, respectively).
No property, plant and equipment was pledged as collateral at 31 December 2023 and at 31 December 2022.
16. INVESTMENTS IN ASSOCIATES AND JOINT VENTURES
31 December 2023 31 December 2022
Voting power % Carrying Value Voting power % Carrying Value
US$m US$m

Interests in associates and joint ventures
GRK Amikan LLC (Veduga) (Note 3) 49.9 121 n/a -
Individually immaterial investments 6 6
Total 127 6

Loans forming part of net investment in joint ventures
Individually immaterial investments 2 7
Total 2 7
Total investments in associates and joint ventures 129 13

Movement during the reporting periods was as follows:
Year ended
31 December 2023 31 December 2022
US$m US$m

At 1 January 13 28
Impairment recognised - (24)
Fair value of interest in joint venture retained (Note 3) 110 3
Consolidated as subsidiaries (Note 3) (11) -
Loans advanced forming part of net investment 11 4
Share of loss in joint ventures (2) -
Currency translation adjustment 8 2
Total at 31 December 129 13

Summarised financial position of the investments
31 December 2023 31 December 2022
Amikan Non-significant investments Non-significant investments
US$m US$m US$m

Non-current assets 364 4 13
Current assets 12 1 5
Non-current liabilities (40) (2) (5)
Current liabilities (94) - (1)
Net assets 242 3 12

Reconciliation of Amikan net assets to the investment recognised in the Group balance sheet
Group interest 49,9%
Net assets 242
Group's ownership interest 121
Carrying value of the investment 121

17. INVENTORIES
Year ended
31 December 2023 31 December 2022
US$m US$m
Inventories expected to be recovered after twelve months
Ore stock piles 51 89
Work in-process 13 -
Сopper, gold and silver concentrate 8 10
Consumables and spare parts 43 34
Total non-current inventories 115 133

Inventories expected to be recovered in the next twelve months
Сopper, gold and silver concentrate 324 277
Ore stock piles 208 229
Work in-process 146 121
Dore 70 55
Metal for refining 25 20
Refined metals 45 3
Total current metal inventories 818 705

Consumables and spare parts 360 352
Total current inventories 1,178 1,057

Write-downs of metal inventories to net realisable value
The Group recognised the following write-downs and reversals to net realisable value of its metal inventories:
Year ended
31 December 2023 31 December 2022
US$m US$m
Ore stock piles (6) (28)
Ore in heap leach piles 15 (31)
Сopper, gold and silver concentrate (1) (6)
Total 8 (65)

The key assumptions used as of 31 December 2023 in determining net realisable value of inventories (including the commodity price assumptions for long-term stockpiles) are described in Note 2 “Use of estimates” section. For short-term metal inventories, applicable quoted forward prices as of 31 December 2023 were used: gold and silver prices of US$ 2,128 per ounce (2022: US$ 1,874) and US$ 24.8 per ounce (2022: US$ 24.6), respectively.
During the year ended 31 December 2023 the Group recognised a write-down of consumables and spare parts of US$ 2 million (year ended 31 December 2022: reversal of US$ 1 million).
The amount of inventories held at net realisable value at 31 December 2023 amounted to US$ 81 million (31 December 2022: US$ 95 million).