Polymetal in Jan-September reduced gold production by 1%

Moscow, 20 Oct-RIA/Prime. Polymetal Int (combines assets of polymetal) in January-September 2015 year reduced gold production at 1% to 642 thousand ounces (20 tons), silver-increased by 8% to 24.9 million ounces (774.5 tons) compared with the same period in the year 2014, according to a quarterly report of the company.

In addition, Polymetal for the first 9 months produced 808 tonnes of copper, which is below 50% on the same period a year earlier (1.631 thousands tons). Total production calculated in gold equivalent increased by 2% to 1.061 million ounces (33 tons).

Polymetal confirms its forecast for the year 2015 for the production of 1.35 million ounces of gold equivalent, and forecast for 2016 and 2017 years-1.35 and 1.4 million ounces of gold equivalent ounces, respectively. And also confirms the forecast cash cost in the year 2015 of $ 525-$ 575/ounce gold equivalent ounces and the total cost of $ 700-$ 750/oz Gold equivalent ounces.

Production in the third quarter amounted to 429 thousand ounces of gold equivalent ounces, that 28% higher compared to the previous quarter, and 10% above the year-to-year due to seasonal stocks May concentrate with implementation of the field, and excellent results in deposits of Dukat and Albazino. Quarterly gold production amounted to 270 thousand ounces, an increase of 4% compared with the same period last year. Production of silver-9.3 million ounces, an increase of 21% compared with the same period in the year 2014.

Sales for 9 months amounted to: 614 thousand ounces of gold, that 1% higher than a year earlier and 22.4 million ounces of silver (+5%). Copper company sold 699 tonnes against 300 tons a year earlier. Revenues declined by 11% to 1.05 billion. Net debt at the end of September grew by only 2 percent to 1.268 billion dollars compared to a similar date of 2015.

KYZYL

Polymetal also reports that the former Chairman of the Board of the Eurasian Development Bank Igor Finogenov entered the boards of Directors of Kyzyl and Barbara's enterprises. As Chairman, he will be responsible for coordinating the company's interaction with the State bodies in Kazakhstan, including obtaining permits, validation of transactions, taxation and licensing.

The project is nearing completion and Kyzyl external audit fee, publication of results is scheduled for the third week of November. As reported, the expected significant reduction in capital costs (25% to about 360 million dollars) compared to previous forecasts due to the depreciation of the Russian ruble. At the moment, go work on site preparation. Full-scale construction is planned for the third quarter of the year 2016.

Polymetal this quarter once again demonstrated excellent operating results, while continuing to generate free cash flow. These achievements are based on our business model, the priority of which is to ensure profitability for the shareholders, "said Group Chief Executive Vitaly Nesis. -With the support of a new Committee under the Board of Directors, we focus on security matters in our facilities, in particular in underground mining operations, to provide favourable working conditions for our employees. "

Polymetal is the second largest gold producer in Russia, by the end of 2014 years increased gold production by 17 percent to 945 thousand ounces (29.4 tons), silver-at 5% to 28.7 million ounces (892.7 tons) compared to the year 2013. Total production of metals in gold equivalent increased by 12% to 1.431 million ounces. In 2015 and 2016 respectively planned production of 1.35 million ounces of gold equivalent ounces.

Polymetal Int is registered in Jersey. Polymetal-Russian precious metals mining company with existing businesses and development projects in Russia and Kazakhstan.

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