26th Jul 2018 10:26
LONDON (Alliance News) - Polymetal International PLC on Thursday reported a strong increase in production for the second quarter of 2018, with the figure boosted by stronger performance at three assets.
Miner Polymetal's gold equivalent output for the three months to June was 324,000 ounces, 16% year-on-year.
The company said this was due to higher volumes at its Svetloye deposit at the Okhotsk hub, the Amursk pressure oxidation plant, as well as better grades at its Omolon hub.
For the first six months of 2018, gold equivalent production was 11% up year-on-year at 619,000 ounces, in line with guidance, and Polymetal said stronger second-half production will be driven by usual seasonal concentrate de-stockpiling at its Mayskoye operations and a contribution from its new Kyzyl project.
Kyzyl, in the east of Kazakhstan, produced its first concentrate in June a month ahead of schedule and should reach full capacity of 150,000 tonnes a month in October. Polymetal hopes to produce 80,000 of gold from the site this year.
Polymetal, which mines in Russia and Kazakhstan, said second-quarter gold sales rose 17% year-on-year, offsetting a 7% fall in silver sales. As a result, revenue for the quarter was up 13% year-on-year to USD435 million.
Polymetal said it is on track for its 2018 guidance of 1.6 million ounces of gold equivalent at a total cash cost of USD650 to USD700 per gold equivalent ounce and an all-in sustaining cost of USD875 to USD925 per gold equivalent ounce.
Chief Executive Vitaly Nesis commented: "Another strong quarter puts us into a very comfortable position vis-a-vis our guidance for 2018.
"With Kyzyl launched ahead of schedule, the focus is now on its smooth ramp-up and the completion of the POX de-bottlenecking project."
Shares were 0.6% higher on Thursday at a price of 689.00 pence. Full interim results will be released on August 22.
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