OREANDA-NEWS. September 29, 2011. JSC "Polymetal" (LSE, MICEX, RTS: PMTL) ("Polymetal" or the "Company"), released its reviewed consolidated financial statements in accordance with the International Financial Reporting Standards (IFRS) for the six months ended June 30, 2011, reported the press-centre of KASE.

The Company will continue to report its consolidated financial results in accordance with the IFRS. Historical consolidated financial results of the Company for the years ended December 31, 2009 and 2010 have also been reconciled to the new standards and audited by independent consultants.

Copies of the above documents are available on the Company's website at www.polymetal.ru and have been submitted to the National Storage Mechanism and will shortly be available for inspection at: www.Hemscott.com/nsm.do.

In 1H 2011 the Company demonstrated significant improvement in profitability with net income increasing 77% to USD 151 or USD 0.39 per share

Increase in Adjusted EBITDA by 32% to USD 249 million outpaced revenue growth of 29% to USD 545 million with Adjusted EBITDA margins increasing from 45% to 46%

Company-wide total cash costs per ounce of gold equivalent calculated on co-product basis increased 23% to USD 671/ounce mostly as a result of 15% dollar inflation in Russia and the start of commercial production at the Omolon mine which has a higher cash costs per ounce then the Group's existing mines

Capital expenditure grew 30% to USD 203 million from USD 155 million as the Company advanced several large-scale investment projects towards completion and expanded its exploration efforts

Net debt increased 17% to USD 920 million compared to USD 785 million at year-end 2010. The Company's leverage is 1.9x Adjusted EBITDA with 23% of gross debt being short-term (i.e. less than 12 months)

 "We believe 1H financial results demonstrate solid foundation of Polymetal's business in the face of inflationary pressures and bear witness to our focused progress on the implementation of our investment strategy", said Vitaly Nesis, CEO of Polymetal, commenting on the results. "A significant rise in costs is expected to be mitigated as Omolon, Dukat and Albazino are expected to deliver material production improvements in 2H of 2011".