15th Oct 2018 13:09
LONDON (Alliance News) - Polymetal International PLC said on Monday said it expects to beat its production target in 2018 despite a decline in gold and silver output in the third quarter.
The FTSE 250-listed gold & silver miner said its gold sales in the three months to the end of September totalled 321,000 ounces, while silver sales stood at 5.3 million ounces. For the same period in the prior year gold sales were 363,000 ounces and silver sales 5.8 million.
Revenue for the third quarter declined by 16% year-on-year to USD459 million due to lower metal prices and reduced sales volumes.
Polymetal produced 356,000 ounces of gold during the quarter, down 3.8% from 370,000 ounces produced the year before, while silver production fell by 10% to 6.7 million ounces from 7.4 million ounces.
During the period, the company said it has ramped up Kyzyl mine up to full throughput capacity of 150,000 tonnes per month with a recovery rate of 86%. As a result, Poymetal said Kyzyl mine is likely to exceed its production guidance of 80,000 ounces of payable gold shipped for 2018.
Looking forward, the company said it expects to beat its full-year production guidance of 1.55 million ounces of gold equivalent by up to 50,000 ounces of gold equivalent.
"We quickly and efficiently ramped up Kyzyl to full capacity", said Chief Executive Vitaly Nesis.
"The other assets in our portfolio demonstrated a steady performance which leaves us well placed to outperform our original production guidance," added Nesis.
Separately, Polymetal said it had planned to publish its third-quarter financial results on Tuesday, but due to analyst note published earlier on Monday, which contained the details of production results, it has brought forward the release.
Polymetal shares were trading 2.3% higher on Monday at 680.40 pence each.
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