Polymetal Presents Q1 2014 Production Results
OREANDA-NEWS. April 24, 2014. Polymetal International plc (LSE, MOEX: POLY, ADR: AUCOY) (together with its subsidiaries – “Polymetal”, the “Company”, or the “Group”) is pleased to announce the Group’s production results for the first quarter ended March 31, 2014.
Polymetal delivered a strong start of the year and produced 316 Koz of gold equivalent in the first quarter of 2014, up 34% year-on-year. Strong performance at the Amursk POX plant enabled a steady processing of Albazino concentrate at design throughput and recovery. Production growth was also driven by increased throughput and grades at the Dukat hub, as well as by a stronger grade profile at Omolon. Quarterly gold production was 191 Koz, up 57% year-on-year. Silver production in Q1 was 7.3 Moz, up 14% year-on-year.
The Amursk POX plant successfully performed pilot processing of Mayskoye concentrate. As a result, the concentrate produced at Mayskoye in 2014 is likely to be split between third party off-take and processing at the POX plant. The Company is progressing with negotiations for Mayskoye concentrate off-take, with contracts expected to be signed during Q2.
Sales lagged production by 46 Koz of gold equivalent as a result of the seasonal factor (New Year holidays at refineries), with reversal of this gap expected to be achieved during the year. Net debt remained almost flat at US\\$ 1,044 million at 31 March 2014. This would have reduced if it were not for the aforementioned timing difference between production and sales.
Polymetal deeply regrets to report two fatalities at our mines from 1 January 2014 to the date of this report. The Company has commenced a comprehensive safety review to identify the systemic root causes of these cases, and will promptly implement additional enforcements to existing rules and procedures in order to achieve a meaningful improvement in safety performance.
The Company is fully on track to deliver on its production guidance of 1.3 Moz of gold equivalent in 2014.
“The Company has delivered a strong start of the year”, said Vitaly Nesis, CEO of Polymetal, commenting on the results. “Our strong operating performance allows the management team to concentrate on growth projects, including our development assets and potential acquisition opportunities”.