Polymetal produces 372,000 oz of gold equivalent in Q3, affirms 2016 guidance of 1.26 mln oz
MOSCOW. Oct 18 (Interfax) - Polymetal , Russia's largest silver producer and one of the country's biggest gold miners, produced 372,000 ounces of gold equivalent in the third quarter of 2016, 29% more than in the previous quarter but 5% less than in the same quarter last year, the company said on Tuesday.
The increase in production was driven by seasonal de-stockpiling at Mayskoye, launch of the Svetloye heap leach at Okhotsk operations, and a strong performance at Albazino and Varvara, Polymetal said.
Production in the first nine months of 2016 slumped 7% to 894,000 ounces of gold equivalent due to a decrease in ore grade at Dukat and Omolon.
Polymetal affirmed its production guidance of 1.26 million ounces for this year, as well as guidance for production costs at total cash cost of $525-$575 per ounce and all-in sustaining cash costs of $700-$750 per ounce of gold equivalent.
Polymetal also reconfirmed its production guidance for 2017 at 1.4 million oz of gold equivalent and for 2018 at 1.55 million oz.
Production by mine in Q1 2016, '000 oz gold equivalent:
| Q3 2016 | Q3 2015 | Change | 9M 2016 | 9M 2015 | Change | |
| Dukat operations | 93 | 108 | -14% | 280 | 297 | -6% |
| Albazino-Amursk | 72 | 64 | +13% | 190 | 173 | +10% |
| Mayskoye | 47 | 71 | -34% | 68 | 91 | -25% |
| Omolon operations | 41 | 60 | -32% | 108 | 155 | -30% |
| Voro | 36 | 34 | +7% | 93 | 105 | -11% |
| Varvara | 22 | 20 | +5% | 57 | 58 | -2% |
| Okhotsk operations | 49 | 33 | +49% | 79 | 77 | +2% |
| Kapan | 12 | - | - | 18 | - | - |
| Total | 372 | 390 | -5% | 894 | 957 | -7% |
At Kyzyl, construction activities are progressing on schedule. The project remains on track to produce its first concentrate in Q3 2018. At Svetloye, gold production commenced in August, delivering 15,000 oz of gold during the quarter. Svetloye is currently running at 100% of design capacity and is set to become the key driver for sustaining production levels at the Okhotsk hub in the long term, the company said.
Polymetal's revenue rose 1% in 9M 2016 to $1.059 billion, according to preliminary data. Net debt was $1.469 billion as of September 30, 13% higher than on the same day last year.
Polymetal operating results
| Q3 2016 | Q3 2015 | Change | 9M 2016 | 9M 2015 | Change | |
| Waste mined, mln tonnes | 23.9 | 17.2 | +39% | 58.2 | 50 | +16% |
| Underground development, km | 24.6 | 18.1 | +36% | 68.3 | 54 | +26% |
| Ore mined mln tonnes | 3.462 | 3.116 | +11% | 9.194 | 9.124 | +1% |
| - open pit | 2.405 | 2.360 | +2% | 6.448 | 6.855 | -6% |
| - underground | 1.057 | 755 | +40% | 2.746 | 2.269 | +21% |
| ore processed, mln tonnes | 3.306 | 2.852 | +16% | 8.593 | 8.289 | +4% |
| Production | ||||||
| - Gold, '000 oz | 268 | 270 | -1% | 606 | 642 | -6% |
| - Silver, mln oz | 8.0 | 9.3 | -14% | 22.2 | 24.9 | -11% |
| - Copper, tonnes | 311 | 670 | -54% | 1.266 | 808 | +57% |
| - Gold equivalent, '000 oz | 372 | 390 | -5% | 894 | 957 | -7% |
| Sales | ||||||
| - Gold, '000 oz | 239 | 261 | -8% | 558 | 614 | -9% |
| - Silver, mln oz | 8.3 | 8.4 | -2% | 21.3 | 22.4 | -5% |
| - Copper, tonnes | 0.3 | - | - | 0.5 | 0.7 | -36% |
| Revenue, $ mln | 466 | 402 | +16% | 1.059 | 1.050 | +1% |
Polymetal, Russia's largest silver producer and one of the country's biggest gold miners, has operations in Magadan and Sverdlovsk regions, Khabarovsk Territory, Chukotka, Kazakhstan and Armenia. The company is listed on the LSE and Moscow Exchange , with a free float of more than 50%. Polymetal's largest shareholders are Alexander Nesis's ICT Group with 26.87%, Petr Kellner's PPF Group with 12.92% and the family of Alexander Mamut with 10.12%.