16th Apr 2015 07:06
LONDON (Alliance News) - Russia and Kazakhstan-focused gold and silver miner Polymetal International PLC on Thursday said its first quarter production fell due to grade declines at its Dukat and Omolon mines and a temporary suspension at the Varvara site but maintained its production guidance for the year.
Polymetal said its gold equivalent production was 299,000 ounces in the first quarter to the end of March, down 5% year-on-year. The company said this was primarily down to planned grade declines at the Dukat and Omolon sites and a temporary suspension of the float circuit at Varvara.
Quarterly gold production was 186,000 ounces, down 3% year-on-year, while silver production fell 7% to 6.8 million ounces.
Total sales were down 11% in the quarter to USD298 million from USD336 million a year earlier, as gold sales rose 1% but silver sales fell by 14%.
The company said its Kyzyl project development remains on track, with design and permitting activities on schedule and the feasibility study set to be released in October.
Polymetal affirmed its full year production guidance of 1.35 million ounces of gold equivalent and maintained its cash cost guidance of USD575 to USD325 per gold equivalent ounce. The cost guidance is, however, contingent on the ruble-dollar exchange rate dynamics, it said, noting the ruble has been volatile against the dollar in the first quarter.
"We are on track to deliver on our production and cost targets for the current year", said Vitaly Nesis, chief executive of Polymetal.
By Sam Unsted; [email protected]; @SamUAtAlliance
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