14th Mar 2018 08:26
Polymetal holds a 50% stake in Dolinnoye with the remainder owned by Dolfinflip Co Ltd. Under the agreement, Polymetal and Dolfinflip will transfer their interest in Aktogai Mys LLC which holds the licence and contract of Dolinnoye.
In total, Dolinnoye is being sold for
On Monday, Polymetal reported it generated pretax profit of
"Dolinnoye became manifestly non-core after Komar fully supplanted it as a source of ore for Varvara", Polymetal Chief Executive Officer Vitaly Nesis said. "We will continue to consider other steps to optimize our asset portfolio to focus on high-margin long-life assets".
Dolinnoye has ore reserves of 5.1 million tonnes at 2.4 grams of gold per tonne, equivalent to 400,000 ounces of contained gold.
Polymetal acquired the Dolinnoye stake through a number of transactions in 2015 and 2016.Production has ceased since late 2017 during which time the talks with Altynalmas were taking place.
Polymetal emphasised its production and cost guidance is not expected to be affected by the sale. On Monday, the company reiterated its production guidance for 2018 and 2019 of 1.55 million ounces and 1.7 million ounces of gold equivalent.
Shares in Polymetal were up 0.2% at
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