Top News: PolyMetal Production And Costs On Track For Full-year Plan

Polymetal International (LON:POLY) Analyst Target Changes

Polymetal International PLC reiterated its full-year production and cost guidance on Tuesday but said production in the first nine months of 2016 came in considerably lower than last year.

The miner operating in Russia, Kazakhstan and Armenia said it produced 372,000 ounces of gold equivalent in the third quarter of 2016, up 29% from the previous quarter but 5.0% lower than in the same period of the previous year.

The rise from the second quarter was driven by the start up of the Svetloye heap leach operations in August, seasonal de-stockpiling at the Mayskoye mine, and strong performances from the Albazino and Varvara operations, Polymetal said.

Compared to last year, however, grades were lower at the Dukat mine and Omolon operation.

Gold equivalent production in the first nine months of this year totalled 894,000 ounces, down 7.0% from the previous year when Polymetal had produced 957,000 ounces.

Guidance for the full year 2016 remains unchanged at 1.26 million ounces at a total cash cost of USD525 to USD575 per ounce and an all-in sustaining cash cost in the range of USD700 to USD750 per ounce.

Polymetal said free cashflow was “significant” in the third quarter, without providing any figures, adding that net debt at the end of the period was essentially flat at USD1.46 billion.

The Kyzyl project remains on schedule and should be producing in the third quarter of 2018, and the new Svetloye operation is running at full capacity. There was one fatality at the operation in the period.