Polymetal On Track For 2017 Production As Quarterly Revenue Rises

Polymetal on track for full year as gold sales grow

LONDON (Alliance News) – Polymetal International PLC said Tuesday it remains on track to reach its 2017 gold equivalent production guidance.

FTSE 250-listed Polymetal said it produced 278,000 ounces of gold equivalent in the three months to June 30, up 6% over the same period the prior year.

Quarterly gold production amounted to 190,000 ounces, up 12% over the prior year, but silver production fell 6% to 6.6 million ounces. Gold and silver sales increased 29% and 19%, respectively, generating USD385.0 million in revenue, a 26% increase year-on-year.

This brought production for the first six months of 2017 to 558,000 ounces of gold equivalent in total, up 7% year-on-year and in line with the firm’s 2017 production plan.

Polymetal said it expects “materially stronger” production in the second half, with de-stockpiling at its Mayskoye project, heap leach production at Svetoye, and higher throughput at the Amursk POX plant.

This puts the company on track to meet 2017 guidance of 1.4 million ounces of gold equivalent at all-in sustaining costs of USD775 to USD825 per ounces. Polymetal noted this is contingent on the Russian rouble to US dollar exchange rate.

Polymetal reported a fatality at its Varvara facility in Kazakhstan due to a fire. It said guidelines and procedures are in place to prevent similar occurrences.

Shares in Polymetal were down 0.1% to 885.00 pence Tuesday.