14th Jul 2015 06:45
LONDON (Alliance News) - Polymetal International PLC Tuesday said gold equivalent production in the second quarter remained flat from a year earlier but was significantly up quarter-on-quarter, as it reaffirmed its full-year production guidance.
The FTSE 250-listed precious metals producer operating in Russia and Kazakhstan said gold equivalent production in the second quarter totalled 334,000 ounces, flat from a year earlier but up from 299,000 ounces in the previous quarter.
Second-quarter gold production was down 5% year-on-year to 186,000 ounces whilst silver production was up 9% year-on-year at 8.9 million ounces. Compared to the first quarter of 2015, gold production was flat and silver production was significantly up from 6.8 million ounces.
That brought first-half production to 633,000 ounces of gold equivalent, down 3% from a year earlier, but Polymetal said it is expecting production to be higher in the second half of 2015, driven by seasonal de-stockpiling of Mayskoye concentrate accumulated during the first-half, it said.
"The company remains in a strong position to meet its annual production guidance of 1.35 million ounces of gold equivalent in 2015, along with its total cash cost guidance of USD 575 to USD625 per gold equivalent ounce and all-in sustaining cash costs of USD750 to USD800 per gold equivalent ounce," said Polymetal in a statement.
Polymetal also said it reduced its net debt by USD16 million in the first-half to GBP1.23 billion due to strong cash flow. Polymetal said cash flow should be "even stronger" in the second half due to the planned de-stockpiling.
On Monday, Polymetal had said it had acquired the entire licence for the Primorskoye silver-gold property located in the Magadan region of Russia from Decamor Investments Ltd for an initial USD4.5 million and a deferred cash payment.
By Joshua Warner; [email protected]; @JoshAlliance
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