OREANDA-NEWS. Polymetal International plc is pleased to announce the Group's production results for the second quarter and six months ended June 30, 2015.

Polymetal has demonstrated solid operating results in the second quarter of 2015. The Company reported gold equivalent production of 334 Koz matching the results of the second quarter of 2014. Quarterly gold production was 186 Koz, down 5% as compared to Q2 2014 ("year-on-year"), while silver production in the second quarter was 8.9 Moz, up 9% year-on-year.

Production for the 1H 2015 was 633 Koz of gold equivalent, down 3% year-on-year. Traditionally, higher production is expected in the second half of the year driven by seasonal de-stockpiling of Mayskoye concentrate accumulated during 1H of the year.

Polymetal continued to generate free cash flow (after capital expenditure) in the second quarter. Net debt at 30 June 2015 decreased by US\\$ 16 million compared to 31 December 2014 to USD 1,233 million while USD 139 million of dividends was paid out to shareholders. Free cash flow generation is expected to be even stronger in the second half of the year due to the planned de-stockpiling at Mayskoye and the seasonal reduction of the gap between production and sales.

At Kyzyl, the final statutory certification of open-pit reserves has been successfully received which represents a major milestone on the path toward full permitting of the project. Site preparation works have commenced with all major engineering contracts for external infrastructure in place. The feasibility study release is scheduled for October 2015 with construction targeted to commence in Q2 2016.

Polymetal deeply regrets to report a fatality at one of our mines in May. The Company is continuing the comprehensive safety review and expects the results of that review in Q3 2015.

The Company remains in a strong position to meet its annual production guidance of 1.35 Moz of gold equivalent in 2015, along with its total cash cost guidance of USD 575 - 625/GE oz and all-in sustaining cash costs of USD 750-800/GE oz.

"We continue to demonstrate strong operational and financial delivery. It is deeply satisfying to have largely stable production and free cash flow generation against the backdrop of weakening commodity prices", said Vitaly Nesis, Group CEO of Polymetal, commenting on the results.