OREANDA-NEWS. October 25, 2010. JSC "Polymetal" (LSE, MICEX, RTS: PMTL) ("Polymetal" or the "Company") announced its production results for the quarter and nine months ended September 30, 2010, reported the press-centre of Polymetal.

Gold production in the third quarter increased 51% year-on-year due to contribution from Varvarinskoye and successful launch of the Kubaka CIP plant at Omolon

Silver production in the third quarter slipped 9% year-on-year as grades and recoveries at Dukat declined on the back of processing of old stockpiles

Construction at Albazino achieved mechanical completion in early October. Commissioning is planned to start in November with the first concentrate production expected by year-end

Construction at Amursk is in progress on schedule. The autoclave, the key equipment unit for the POX plant, has arrived on site

Polymetal updates its 2010 production guidance to 440-450Koz of gold (previously announced 430-450Koz), 18.5-19.0Moz of silver (previously announced 19-20Moz), and 4.0-4.5Kt of copper (previously announced 4.0-5.0Kt), or 770-790Koz of gold equivalent (previously announced 775-800Koz) based on 1:60 Ag/Au and 5:1 Cu/Au conversion ratios

In 2011 the Company plans to produce 620-660Koz of gold, 21-22Moz of silver, and 6.0-7.0Kt of copper, or 1,000-1,060Koz of gold equivalent (based on the same conversion ratios as above). This represents an approximately 7% reduction to the estimate presented in earlier investor communication and is mostly due to the slower ramp-up of production at Dukat following the expansion

"Start of production from Kubaka mill and solid performances by Voro, Khakanja, and Varvara kept Polymetal on target to deliver growth in gold production," said Vitaly Nesis, CEO of Polymetal.

"Dukat underperformance is a concern which we believe will be addressed decisively over the next six months".

ABOUT POLYMETAL
Polymetal is a Russian gold and silver miner with operations and development projects in Russia and Kazakhstan. The Company produced 0.6 million of gold equivalent ounces in 2009 and is targeting to double its total production by 2012 mostly as a result of commissioning of the new projects, all of which are now under construction. A key element of Polymetal's strategy is creation of processing hubs with the goal to ensure the most efficient and responsible utilization of financial and human capital by treating ores and concentrates from various sources at centralized locations.