29th Feb 2016 07:52
LONDON (Alliance News) - Polymetal International PLC Monday said it remains on track to hit its production targets between 2016 and 2019, and outlined guidance for 2020, when it hopes to be producing around 1.6 million ounces of gold each year.
Polymetal said it has changed the gold:silver ratio used to present its production figures to 1:80 from 1:60 due to the "persistent change in the gold:silver market price ratio", which has altered its production guidance figures over the next few years.
The gold:silver market price ratio is used to link the price of the two commodities. The new 1:80 price ratio being used by Polymetal suggests the price of each ounce of gold produced by the company is worth the same amount as 80 ounces of silver produced.
Under the old 1:60 ratio, Polymetal said production in 2016 would be around 1.35 million ounces before rising to 1.4 million ounces in 2017, 1.45 million ounces in 2018 and 1.55 million ounces in 2019.
Under the new 1:80 ratio, production in 2016 is now guided to 1.23 million ounces, with production in 2017 to rise to 1.3 million ounces. The new ratio also suggests 2018 production will now be 1.4 million ounces before rising to 1.5 million ounces in 2019.
In addition, Polymetal provided its first set of guidance figures for 2020, when it hopes to be producing 1.6 million ounces of gold equivalent.
"The company reconfirms its production guidance for 2016 to 2019 (after restatement of the gold/silver price ratio to 1/80) and provides production guidance for 2020 which will comprise 1.6 million ounces of gold equivalent," said Polymetal.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2016 Alliance News Limited. All Rights Reserved.
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