17th Mar 2014 11:25
LONDON (Alliance News) - Polymetal International PLC Monday announced significant falls in ore reserves and mineral resources in 2013, but expects significant improvements in both during 2014.
The gold, silver and copper-mining exploration and production company, with operations in Russia and Kazakhstan, said in its 2013 Ore Reserves decreased 12% to 13.3 million ounces of gold equivalent from 15.1 million ounces by the end of 2012 and its average ore reserve grade fell 7% to 3.7 grams per tonne of gold equivalent.
The company said its mineral resources, additional to ore reserves, fell 11% to 16.7 million ounces of gold equivalent from 18.7 million the previous year but average mineral resource grade increased by 14% to 3.7 grams per tonne.
Polymetal said mineral resources fell mostly as a function of lower gold prices used in estimates, at USD1,300 per ounce rather than USD1,500 per ounce in 2012 as the gold price fell significantly during the year.
The company said decreases in ore reserves, in addition to regular depletion, were mostly due to changes in mine plans driven by geotechnical and economic factors, including the re-optimisation of its open pits at Birkachan, Sopka and Dalnee, and the indefinite postponement of underground mining at Khakanja.
Polymetal said it expects material improvements to ore reserves in 2014 at Svetloye, Albazino and Kutyn, with further likely additions at near-mine properties at Omolon and Voro.
"Polymetal remains committed to the strategic goal of maintaining and expanding high-quality Ore Reserves at our assets," Chief Executive Vitaly Nesis said in a statement. "Reductions in ore reserves and mineral resources in 2013 are expected to be significantly reversed in 2014 as we step up our exploration efforts and complete feasibility studies on several projects."
Polymetal shares were up 2.9% to 586.00 pence, putting it in the top FTSE 250 risers Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
Copyright © 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
POLY.L