Polymetal boosts production 15% to 1.03 mln oz of gold equivalent in Jan-Sept
MOSCOW. Oct 16 (Interfax) - Polymetal , Russia's largest silver producer and one of the country's biggest gold miners, increased production by 15% to 1.028 million ounces in the first nine months of 2017, the company reported.
Production in the third quarter jumped by 26% to 470,000 ounces of gold equivalent on the back of strong contributions from the Svetloye heap leach operation (Okhotsk hub), which reached design operating results, and oxide ore processing at Maiskoye. Albazino and Varvara also achieved record quarterly production levels, Polymetal said.
Gold production in the third quarter surged 38% year-on-year to 370,000 ounces, while silver production slumped 7% to 7.4 million ounces due to an anticipated decline in grade at the Dukat underground mine.
Polymetal confirmed its production guidance of 1.4 million ounces for 2017, as well as guidance for total cash cost (TCC) of $600-$650 per ounce of gold equivalent and all-in sustaining cash costs (AISC) of $775-$825 per ounce.
The company also reconfirmed its production guidance of 1.55 million ounces of gold equivalent for 2018 and 1.7 million ounces for 2019.
The company's sales grew by 17% year-on-year to $546 million in the third quarter as gold sales volume jumped 50% on the back of the production growth and higher prices. The company expects the temporary gap between silver production and sales to be closed completed in the fourth quarter of 2017.
Polymetal's net debt rose slightly in the third quarter, to $1.599 billion as of September 30 from $1.583 billion at the end of June.
Polymetal operational highlights:
| Q3 2017 | Q3 2016 | Change | 9M 2017 | 9M 2016 | Change | |
| Waste mined, mln tonnes | 29.7 | 23.9 | +24% | 84.7 | 58.1 | +46% |
| Underground development, km | 30.0 | 24.6 | +22% | 83.9 | 68.3 | +23% |
| Ore mined mln tonnes | 3,066 | 3,462 | -11% | 9,657 | 9,194 | +5% |
| - open pit | 1,975 | 2,405 | -18% | 6,377 | 6,448 | -1% |
| - underground | 1,091 | 1,057 | +3% | 3,279 | 2,746 | +19% |
| ore processed, mln tonnes | 3,725 | 3,306 | +13% | 10,011 | 8,593 | +13% |
| Production | ||||||
| - Gold, '000 oz | 370 | 268 | +38% | 759 | 606 | +25% |
| - Silver, mln oz | 7.4 | 8.0 | -7% | 20.2 | 22.2 | -9% |
| - Copper, '000 tonnes | 0.9 | 0.3 | +193% | 1.9 | 1.3 | +50% |
| - Zinc, '000 tonnes | 1.3 | 1.3 | +1% | 3.6 | 2.0 | +77% |
| - Gold equivalent, '000 oz | 470 | 372 | +26% | 1.028 | 894 | +15% |
| Sales | 363 | 242 | +50% | 742 | 561 | +32% |
| - Gold, '000 oz | 5.8 | 8.3 | -31% | 18,2 | 21.3 | -15% |
| - Silver, mln oz | 0.8 | 0.3 | +139% | 1.3 | 0.4 | +189% |
| - Copper, '000 tonnes | 1.2 | 1.4 | -11% | 3.5 | 1.5 | +123% |
| - Zinc, '000 tonnes | 546 | 466 | +17% | 1,229 | 1,059 | +16% |
| Revenue, $ mln | 1,599 | 1,583 | +1% | 1,599 | 1,329 | +20% |