|
For immediate release |
19 January 2012 |
POLYMETAL INTERNATIONAL PLC
Q4 AND FULL YEAR 2011 PRODUCTION RESULTS ANNOUNCEMENT
Polymetal International Plc (LSE: POLY) (together with its subsidiaries, including JSC "Polymetal (Other OTC: POYZF.PK - news) " - "Polymetal", the "Company", or the "Group") announces the Group's production results for the quarter and twelve months ended December 31, 2011.
HIGHLIGHTS
|
|
3 months ended Dec 31, |
% change1 |
12 months ended Dec 31, |
% change |
||
|
|
2011 |
2010 |
2011 |
2010 |
||
|
|
|
|
|
|
|
|
|
Ore mined, Kt |
3,012 |
2,379 |
27% |
11,002 |
7,474 |
47% |
|
Open-pit |
2,672 |
2,119 |
26% |
9,636 |
6,509 |
48% |
|
340 |
260 |
31% |
1,366 |
965 |
42% |
|
|
Ore processed, Kt |
2,142 |
1,970 |
9% |
8,821 |
7,845 |
12% |
|
Production2,3 |
|
|
|
|
|
|
|
Gold, Koz |
136 |
119 |
14% |
443 |
444 |
0% |
|
Silver, Moz |
6.4 |
3.9 |
63% |
19.9 |
17.3 |
15% |
|
Copper, tonnes |
1,608 |
1,067 |
51% |
6,915 |
4,003 |
73% |
|
Sales4 |
|
|
|
|
|
|
|
Gold, Koz |
153 |
116 |
32% |
452 |
440 |
3% |
|
Silver, Moz |
5.0 |
3.8 |
32% |
17.0 |
17.9 |
-5% |
|
Copper, tonnes |
2,734 |
1,067 |
156% |
5,984 |
3,991 |
50% |
|
Revenue, US$m |
419 |
267 |
57% |
1,339 |
924 |
45% |
|
Safety5 |
|
|
|
|
|
|
|
LTIFR |
0.8 |
1.3 |
-38% |
0.7 |
1.9 |
-63% |
|
FIFR |
- |
1.3 |
-100% |
- |
0.5 |
-100% |
|
Notes: (1) % changes can be different from zero even when absolute numbers are unchanged because of rounding. Likewise, % changes can be equal to zero when absolute numbers differ due to the same reason. This note applies to all the tables in this release (2) Starting from Q2 2011 Polymetal has changed the methodology it uses for accounting of, and reporting of, metals produced. Previously production of metals contained in dore and zinc precipitate was recorded upon shipment of lots of dore or precipitate from the gold rooms located at the mine sites to third party refineries. Under the new methodology, these metals are considered to be produced upon receipt of dore or precipitate at the gold rooms. Production of metals contained in concentrates was recorded upon shipment of lots of concentrate to third party off-takers, whereas under the new methodology these metals are considered to be produced when concentrate is bagged, sampled, and prepared for shipment. The Company believes that the new methodology is more accurate as it reflects physical production and eliminates variations associated with shipment cycles. It mostly applies to concentrates, where stockpiles buildup accelerated in 2011, and to much lesser extent - to dore and precipitate, where shipment cycles remain unchanged. Q4 and FY 2010 numbers used for year-on-year comparisons have not been restated as the Company believes that such restatement would not lead to material differences to those numbers. Comparisons for the three months ended 31 December 2011 to the three months ended 30 September 2011 are made on the basis of both Q4 and Q3 2011 numbers calculated in accordance with the new methodology (3) Polymetal reports production of metals contained in concentrates based on percentages payable for these metals by off-takers of concentrates. As final assays are typically determined at the receiving smelters several months after shipment of each lot of concentrate from the Company's mine sites, production reported in relation to the most recent quarter is subject to further reconciliation (4) Calculated based on consolidated management accounts. Unaudited |
||||||
|
(5) LTIFR =lost time injury frequency rate; FIFR = fatal injury frequency rate |
||||||
· Fourth quarter operating performance confirmed Polymetal's steady expansion progress with gold production rising 10% to 136 Koz and silver production increasing 20% to 6.4 Moz compared to the three months ended 30 September 2011 ("quarter-on-quarter"). Strong performance at Dukat, gains at Khakanja and successful concentrate exports at Albazino were the key drivers of this achievement
· For the full year 2011, based on 1:60 Ag/Au and 5:1 Cu/Au conversion ratios, Polymetal produced 810 Koz of gold equivalent ounces, in line with the guidance of 800-850 Koz updated in April 2011. Grade decline at mature operations was balanced by the start-up of new operations and successful completion of the expansion at the Dukat mill
· Annual gold production was essentially flat at 443 Koz with further 28 Koz of payable gold contained in Albazino concentrate prepared for processing at the Amursk POX plant. Silver production increased 15% to 19.9 Moz, an all-time Company record
· All key projects are progressing as planned with the Kubaka plant expansion completed and the POX plant approaching the first gold pour, expected in March 2012
· In 2012 the Group expects to produce 590-640 Koz of gold, 21-23 Moz of silver and 6-7 Kt of copper and targets to increase its total annual gold equivalent production to over 1 Moz (based on 1:60 Ag/Au and 5:1 Cu/Au conversion ratios)
"We are proud to complete 2011 with a strong finish in the fourth quarter," said Vitaly Nesis, CEO of Polymetal.
"Polymetal team is firmly focused on delivering further growth in 2012 driven by the start-up of the Amursk POX facility and achievement of full production capacity at Omolon".
DUKAT OPERATIONS
|
|
3 months ended Dec 31, |
% change |
12 months ended Dec 31, |
% change |
||
|
|
2011 |
2010 |
2011 |
2010 |
||
|
|
|
|
|
|
|
|
|
Dukat |
|
|
|
|
|
|
|
Waste mined, Kt |
252 |
402 |
-37% |
810 |
2,002 |
-60% |
|
Underground development, m |
4,946 |
2,832 |
75% |
15,705 |
12,244 |
28% |
|
Ore mined, Kt |
336 |
250 |
34% |
1197 |
1,069 |
12% |
|
Open-pit |
78 |
48 |
61% |
217 |
271 |
-20% |
|
Underground |
258 |
202 |
28% |
981 |
798 |
23% |
|
Head grades1 |
|
|
|
|
|
|
|
Open-pit |
|
|
|
|
|
|
|
Gold, g/t |
|
|
|
0.7 |
0.9 |
-26% |
|
Silver, g/t |
|
|
|
331 |
340 |
-3% |
|
Underground |
|
|
|
|
|
|
|
Gold, g/t |
|
|
|
0.8 |
1.2 |
-30% |
|
Silver, g/t |
|
|
|
400 |
428 |
-7% |
|
Goltsovoye |
|
|
|
|
|
|
|
Underground development, m |
1,316 |
877 |
50% |
4,238 |
3,518 |
20% |
|
Ore mined (underground), Kt |
8 |
15 |
-48% |
126 |
23 |
NM2 |
|
Silver head grades, g/t |
|
|
|
467 |
623 |
-25% |
|
Lunnoye + Arylakh |
|
|
|
|
|
|
|
Waste mined, Kt |
709 |
696 |
2% |
2,837 |
2,724 |
4% |
|
Underground development, m |
831 |
816 |
2% |
2,444 |
3,139 |
-22% |
|
Ore mined, Kt |
86 |
86 |
1% |
321 |
286 |
12% |
|
Open-pit |
37 |
52 |
-29% |
158 |
160 |
-2% |
|
Underground |
50 |
34 |
47% |
163 |
126 |
30% |
|
Head grades |
|
|
|
|
|
|
|
Open-pit |
|
|
|
|
|
|
|
Gold, g/t |
|
|
|
0.9 |
1.1 |
-16% |
|
Silver, g/t |
|
|
|
473 |
493 |
-4% |
|
Underground |
|
|
|
|
|
|
|
Gold, g/t |
|
|
|
1.7 |
1.7 |
2% |
|
Silver, g/t |
|
|
|
324 |
342 |
-5% |
|
PROCESSING |
|
|
|
|
|
|
|
Dukat |
|
|
|
|
|
|
|
Ore processed, Kt |
391 |
242 |
62% |
1,432 |
1,259 |
14% |
|
Head grades |
|
|
|
|
|
|
|
Gold, g/t |
0.8 |
0.9 |
-7% |
0.7 |
0.9 |
-23% |
|
Silver, g/t |
430 |
329 |
31% |
383 |
366 |
5% |
|
Recovery3 |
|
|
|
|
|
|
|
Gold |
80.2% |
67.8% |
18% |
75.6% |
70.4% |
7% |
|
Silver |
81.7% |
72.4% |
13% |
77.0% |
71.8% |
7% |
|
Production |
|
|
|
|
|
|
|
Gold, Koz |
8.2 |
5.3 |
54% |
24.9 |
27.3 |
-9% |
|
Silver, Moz |
4.4 |
2.2 |
100% |
13.6 |
11.1 |
23% |
|
Lunnoye |
|
|
|
|
|
|
|
Ore processed, Kt |
82 |
84 |
-3% |
301 |
275 |
10% |
|
Head grades |
|
|
|
|
|
|
|
Gold, g/t |
1.6 |
1.2 |
42% |
1.3 |
1.3 |
4% |
|
Silver, g/t |
474 |
394 |
20% |
414 |
426 |
-3% |
|
Recovery3 |
|
|
|
|
|
|
|
Gold |
92.6% |
94.2% |
-2% |
92.1% |
94.2% |
-2% |
|
Silver |
87.5% |
90.3% |
-3% |
87.4% |
90.3% |
-3% |
|
Production |
|
|
|
|
|
|
|
Gold, Koz |
3.7 |
2.8 |
33% |
11.7 |
10.5 |
11% |
|
Silver, Moz |
1.0 |
0.9 |
7% |
3.4 |
3.4 |
-2% |
|
TOTAL PRODUCTION |
|
|
|
|
|
|
|
Gold, Koz |
11.8 |
8.1 |
47% |
36.6 |
37.9 |
-3% |
|
Silver, Moz |
5.4 |
3.2 |
72% |
17.0 |
14.5 |
17% |
|
Notes: (1) Polymetal continues to report head grades in the ore mined by all of its operating subsidiaries, but considers it meaningful to do so only in relation to the full year results as quarterly numbers may vary significantly due to mine sequencing (2) NM = not meaningful (3) Technological recovery, includes gold and silver within work-in-progress inventory (concentrate, precipitate) |
||||||
Quarterly silver production at the Dukat operations increased 20% quarter-on-quarter and 72% compared to the three months ended 31 December 2010 ("year-on-year") underpinned by significant improvements in recoveries and throughput at the Dukat mill following the successful completion of a long and complex expansion project.
Grades at the Dukat mine declined modestly, but overall grades processed at the Dukat mill improved due to inclusion of higher-grade feed from the Goltsovoye mine.
Underground development at both Dukat and Goltsovoye increased significantly as underground mining is expected to compensate for the decline in open-pit ore mined and the exhaustion of stockpiles without compromising the grade.
At Lunnoye it was determined that the underground mine in the future will be mined by the combination of open stoping and cut-and-fill methods to maintain full utilization of the processing plant.
KHAKANJA
|
|
3 months ended Dec 31, |
% change |
12 months ended Dec 31, |
% change |
|||
|
|
2011 |
2010 |
2011 |
2010 |
|||
|
MINING |
|
|
|
|
|
|
|
|
Khakanja + Yurievskoye |
|
|
|
|
|
|
|
|
Waste mined, Kt |
1,806 |
2,706 |
-33% |
9,601 |
10,106 |
-5% |
|
|
Underground development, m |
617 |
358 |
72% |
1,764 |
358 |
393% |
|
|
Ore mined, Kt |
228 |
82 |
176% |
528 |
478 |
11% |
|
|
Open-pit |
216 |
81 |
169% |
510 |
476 |
7% |
|
|
Underground |
11 |
2 |
NM |
18 |
2 |
NM |
|
|
Head grades |
|
|
|
|
|
|
|
|
Open-pit |
|
|
|
|
|
|
|
|
Gold, g/t |
|
|
|
2.7 |
6.6 |
-59% |
|
|
Silver, g/t |
|
|
|
206 |
240 |
-14% |
|
|
Underground |
|
|
|
|
|
|
|
|
Gold, g/t |
|
|
|
8.5 |
7.9 |
8% |
|
|
Silver, g/t |
|
|
|
13 |
12 |
4% |
|
|
Avlayakan |
|
|
|
|
|
|
|
|
Waste mined, Kt |
392 |
33 |
NM |
1,191 |
33 |
NM |
|
|
Ore mined (open pit), Kt |
34 |
4 |
NM |
128 |
4 |
NM |
|
|
Gold head grades, g/t |
|
|
|
17.1 |
1.3 |
NM |
|
|
PROCESSING |
|
|
|
|
|
|
|
|
Ore processed, Kt |
148 |
158 |
-6% |
617 |
622 |
-1% |
|
|
Head grades |
|
|
|
|
|
|
|
|
Gold, g/t |
6.6 |
6.6 |
0% |
4.6 |
6.6 |
-31% |
|
|
Silver, g/t |
244 |
189 |
29% |
173 |
205 |
-16% |
|
|
Recovery1 |
|
|
|
|
|
|
|
|
Gold |
87.0% |
94.0% |
-7% |
92.3% |
94.9% |
-3% |
|
|
Silver |
78.3% |
72.2% |
8% |
77.7% |
63.1% |
23% |
|
|
TOTAL PRODUCTION |
|
|
|
|
|
|
|
|
Gold, Koz |
26.3 |
31.5 |
-16% |
84.4 |
126.9 |
-33% |
|
|
Silver, Moz |
0.85 |
0.68 |
25% |
2.6 |
2.6 |
2% |
|
|
Notes: (1) Technological recovery, includes gold and silver within work-in-progress inventory (precipitate) |
|||||||
Quarterly gold and silver production at Khakanja increased respectively by 37% and 19% quarter-on-quarter, as high-grade ores from Avlayakan (22 Kt at 15.5 g/t gold) and Sopka (14 Kt at 21.5 g/t gold) were processed at the plant. For the full year, gold production declined 33% while silver production was effectively flat as a result of lower grades from the main Khakanja deposit.
Underground development at Yurievskoye and open-pit mining at Avlayakan intensified with the goal to improve grade profile at the operation in 2012.
Underground mining below Khakanja pit and open-pit mining at the new satellite Ozerny operation are expected to start in Q4 2012.
VORO
|
|
3 months ended Dec 31, |
% change |
12 months ended Dec 31, |
% change |
||
|
|
2011 |
2010 |
2011 |
2010 |
||
|
MINING |
|
|
|
|
|
|
|
Voro |
|
|
|
|
|
|
|
Waste mined, Kt |
2,483 |
2,738 |
-9% |
10,954 |
9,465 |
16% |
|
Ore mined (open pit), Kt |
209 |
166 |
26% |
1,665 |
956 |
74% |
|
Oxidized |
37 |
16 |
137% |
914 |
288 |
218% |
|
171 |
150 |
14% |
751 |
668 |
12% |
|
|
Gold head grades, g/t |
|
|
|
|
|
|
|
Oxidized ore |
|
|
|
1.7 |
2.7 |
-35% |
|
Primary ore |
|
|
|
5.8 |
6.1 |
-5% |
|
Degtyarskoye |
|
|
|
|
|
|
|
Waste mined, Kt |
302 |
407 |
-26% |
1,591 |
1,566 |
2% |
|
Ore mined (open pit), Kt |
46 |
62 |
-26% |
194 |
274 |
-29% |
|
Gold head grades, g/t |
|
|
|
4.2 |
5.7 |
-26% |
|
Fevralskoye |
|
|
|
|
|
|
|
Waste mined, Kt |
- |
- |
- |
243 |
- |
NM |
|
Ore mined (open pit), Kt |
- |
- |
- |
12 |
- |
NM |
|
Gold head grades, g/t |
|
|
|
2.4 |
- |
NM |
|
PROCESSING |
|
|
|
|
|
|
|
Voro Heap Leach |
|
|
|
|
|
|
|
Ore stacked, Kt |
82 |
159 |
-48% |
902 |
1,024 |
-12% |
|
Gold head grades, g/t |
1.7 |
1.5 |
13% |
1.7 |
1.6 |
7% |
|
Gold recovery1 |
|
|
|
74.3% |
72.5% |
2% |
|
Gold production, Koz |
9.4 |
10.6 |
-12% |
31.7 |
33.7 |
-6% |
|
Voro CIP |
|
|
|
|
|
|
|
Ore processed, Kt |
230 |
215 |
7% |
901 |
907 |
-1% |
|
Gold head grades, g/t |
6.1 |
5.9 |
4% |
5.9 |
6.1 |
-4% |
|
Gold recovery |
78.4% |
78.8% |
0% |
77.7% |
79.8% |
-3% |
|
Gold production, Koz |
32.1 |
39.5 |
-19% |
125.4 |
148.9 |
-16% |
|
TOTAL PRODUCTION |
|
|
|
|
|
|
|
Gold, Koz |
41.5 |
50.1 |
-17% |
157.2 |
182.6 |
-14% |
|
Silver, Moz |
0.031 |
0.057 |
-46% |
0.151 |
0.171 |
-11% |
|
Notes: (1) Heap leach recoveries are meaningful for full year only due to the influence of seasonality |
||||||
Quarterly gold production at Voro declined 12% quarter-on-quarter and 17% year-on-year mostly as a result of planned decrease in grades and recoveries at the CIP plant driven, in turn, by the exhaustion of the Degtyarskoye satellite mine. Annual gold production decreased by 14% due to the same reason.
Based on the results of trial mining and processing of ore from the Fevralskoye satellite mine it was decided that ore mined from this deposit will be transported to and processed at Varvara.
VARVARA
At Varvara, there are two distinct ore types based upon their copper and gold contents: primary copper (known as float ore) and primary gold (known as leach ore).
Float ore is treated by flotation to maximize both copper and gold recovery; the final product of this process is a gold-copper concentrate. Leach ore is treated by leaching; the final product of this process is gold dore. The tailings from the flotation circuit were previously thickened and combined with leaching feed, but this practice was discontinued by Polymetal in Q3 2010.
|
|
3 months ended Dec 31, |
% change |
12 months ended Dec 31, |
% change |
||
|
|
2011 |
2010 |
2011 |
2010 |
||
|
MINING |
|
|
|
|
|
|
|
Waste mined, Kt |
6,392 |
5,728 |
12% |
25,993 |
21,955 |
18% |
|
Ore mined (open pit), Kt |
1,143 |
1,032 |
11% |
3,983 |
3,411 |
17% |
|
Head grades |
|
|
|
|
|
|
|
Gold, g/t |
|
|
|
0.94 |
0.91 |
4% |
|
Copper (float ore) |
|
|
|
0.69% |
0.71% |
-3% |
|
PROCESSING |
|
|
|
|
|
|
|
Flotation |
|
|
|
|
|
|
|
Ore processed, Kt |
232 |
233 |
0% |
950 |
793 |
20% |
|
Head grades |
|
|
|
|
|
|
|
Gold, g/t |
1.2 |
1.0 |
21% |
1.3 |
1.1 |
17% |
|
Copper |
0.82% |
0.69% |
20% |
0.87% |
0.71% |
23% |
|
Recovery1 |
|
|
|
|
|
|
|
Gold |
56.1% |
49.8% |
13% |
60.9% |
54.6% |
12% |
|
Copper |
90.6% |
83.6% |
8% |
89.4% |
81.8% |
9% |
|
Production |
|
|
|
|
|
|
|
Gold (in concentrate), Koz |
4.4 |
3.5 |
25% |
22.1 |
13.8 |
60% |
|
Copper (in concentrate), t |
1,608 |
1,067 |
51% |
6,915 |
4,003 |
73% |
|
Gold (in dore), Koz |
- |
- |
- |
- |
3.4 |
-100% |
|
Leaching |
|
|
|
|
|
|
|
Ore processed, Kt |
633 |
618 |
2% |
2,523 |
2,283 |
11% |
|
Gold head grades, g/t |
1.1 |
1.2 |
-14% |
1.1 |
1.1 |
-3% |
|
Gold recovery1 |
84.6% |
79.0% |
7% |
81.9% |
77.2% |
6% |
|
Gold production (in dore), Koz |
17.2 |
16.8 |
2% |
69.9 |
61.1 |
14% |
|
TOTAL PRODUCTION |
|
|
|
|
|
|
|
Gold, Koz |
21.5 |
20.3 |
6% |
92.0 |
78.3 |
17% |
|
Copper, t |
1,608 |
1,067 |
51% |
6,915 |
4,003 |
73% |
|
Notes: (1) Technological recovery, includes gold and copper within work-in-progress inventory |
||||||
At Varvara, annual gold production grew 17% and copper production increased 73% in 2011 as the mine met or exceeded all of its design parameters.
Work started on the construction of a 21 km railway spur to facilitate bulk transportation of ores from other deposits to the Varvara processing plant. The spur is expected to be commissioned in Q3 2013 at the cost of approximately US$15 million.
OMOLON OPERATIONS
|
|
3 months ended Dec 31, |
% change |
12 months ended Dec 31, |
% change |
||
|
|
2011 |
2010 |
2011 |
2010 |
||
|
MINING |
|
|
|
|
|
|
|
Sopka |
|
|
|
|
|
|
|
Waste mined, Kt |
1,320 |
591 |
123% |
4,956 |
2,025 |
145% |
|
Ore mined (open pit), Kt |
244 |
130 |
88% |
735 |
159 |
362% |
|
Head grades |
|
|
|
|
|
|
|
Gold, g/t |
|
|
|
2.6 |
7.2 |
-63% |
|
Silver, g/t |
|
|
|
86 |
225 |
-62% |
|
Birkachan |
|
|
|
|
|
|
|
Waste mined, Kt |
1,299 |
880 |
48% |
7,925 |
3,039 |
161% |
|
Ore mined (open pit), Kt |
345 |
364 |
-5% |
1,192 |
521 |
129% |
|
Gold head grades, g/t |
|
|
|
1.6 |
1.4 |
14% |
|
PROCESSING |
|
|
|
|
|
|
|
Birkachan Heap Leach |
|
|
|
|
|
|
|
Ore stacked, Kt |
- |
134 |
-100% |
- |
459 |
-100% |
|
Gold head grades, g/t |
- |
1.2 |
-100% |
- |
1.6 |
-100% |
|
Gold recovery1 |
|
|
|
|
|
|
|
Gold production, Koz |
0.7 |
1.2 |
-44% |
4.0 |
5.7 |
-30% |
|
Kubaka Mill |
|
|
|
|
|
|
|
Ore processed, Kt |
116 |
128 |
-10% |
574 |
223 |
157% |
|
Gold head grades, g/t |
3.6 |
2.1 |
74% |
2.4 |
2.2 |
10% |
|
Gold recovery |
93.1% |
87.8% |
6% |
91.8% |
90.7% |
1% |
|
Gold production, Koz |
11.1 |
8.3 |
35% |
39.2 |
12.6 |
210% |
|
TOTAL PRODUCITON |
|
|
|
|
|
|
|
Gold, Koz |
11.8 |
9.4 |
25% |
43.2 |
18.3 |
136% |
|
Silver, Moz |
0.074 |
0.018 |
312% |
0.151 |
0.034 |
341% |
|
Notes: (1) Heap leach recoveries are meaningful for full year only due to the influence of seasonality |
||||||
While annual gold production at Omolon increased more than two-fold, quarterly processing volumes and gold production were lower quarter-on-quarter (by 28% and 24% respectively) due to the impact of commissioning of the Merrill-Crowe circuit at the Kubaka mill and ramp-up activities.
The Merrill Crowe circuit was successfully commissioned and presently everything is ready to start full-scale processing of high-grade ore from the Sopka deposit.
The winter road used to truck ore from Sopka is now fully operational with 22 Kt already delivered to the Kubaka mill during the first 17 days of January (compared to the total of 44 Kt trucked during the full year 2011).
ALBAZINO-AMURSK
|
|
3 months ended Dec 31, |
% change |
12 months ended Dec 31, |
% change |
||
|
|
2011 |
2010 |
2011 |
2010 |
||
|
MINING |
|
|
|
|
|
|
|
Waste mined, Kt |
3,546 |
3,266 |
9% |
14,584 |
10,367 |
41% |
|
Ore mined (open pit), Kt |
321 |
182 |
77% |
841 |
278 |
202% |
|
Gold head grades, g/t |
|
|
|
4.3 |
3.7 |
16% |
|
PROCESSING |
|
|
|
|
|
|
|
Ore processed, Kt |
228 |
- |
- |
620 |
- |
- |
|
Gold head grades, g/t |
4.0 |
- |
- |
4.3 |
- |
- |
|
Gold recovery1 |
79.2% |
- |
- |
70.2% |
- |
- |
|
Concentrate produced, Kt |
18.0 |
- |
- |
43.1 |
- |
- |
|
Gold in concentrate, g/t |
39.2 |
- |
- |
42.7 |
- |
- |
|
Gold in concentrate, Koz2 |
22.7 |
- |
- |
59.2 |
- |
- |
|
TOTAL PRODUCITON |
|
|
|
|
|
|
|
Gold, Koz |
22.9 |
- |
- |
29.8 |
- |
- |
|
Notes: (1) To concentrate (2) For information only; not considered as gold produced and therefore not reflected in the table representing total production |
||||||
At Albazino, recoveries improved significantly during the year with December and January recoveries consistently exceeding the design level of 87.5% as processing transitioned from semi-oxidized to primary ore.
Throughput in the quarter was lower than design as the plant experienced several shutdowns needed to re-adjust flotation to the new type of ore feed.
During the year, approximately 20 Kt of gold concentrate (containing 29.8 Koz of payable gold) was successfully sold to a Chinese off-taker; further sales are expected to occur in 2012 depending on prevailing gold price and off-take conditions.
At Amursk, the commissioning of the POX plant commenced on December 19, 2011. Currently the autoclave integrity is tested using high-pressure steam and hot water. First (OTC BB: FSTC.OB - news) gold pour is planned for March 2012.
MAYSKOYE
|
|
3 months ended Dec 31, |
% change |
12 months ended Dec 31, |
% change |
||
|
|
2011 |
2010 |
2011 |
2010 |
||
|
MINING |
|
|
|
|
|
|
|
Underground development, m |
2,805 |
2,214 |
27% |
10,999 |
4,318 |
155% |
|
Ore mined (underground), Kt |
13 |
7 |
96% |
79 |
16 |
380% |
|
Gold head grades, g/t |
|
|
|
9.8 |
8.7 |
13% |
At Mayskoye, navigation was successfully completed with the vast majority of equipment and construction materials delivered by sea. Late arrivals are planned to be airlifted in March 2012.
Mills have been installed with work currently focusing on flotation, filtering, and drying sections.
Power substation is nearing completion with the operation expected to be linked to the regional power grid in Q2 2012.
Processing plant is on track to start up in Q3 2012.
PERSONNEL
Vyacheslav Kornyuhin (48) replaced Dmitry Igumnov (35) as EVP-Supply Chain Management. Mr. Igumnov resigned to pursue other business opportunities. Polymetal thanks Dmitry for 8 years of service with the Group and wishes him success in his further projects. Mr. Kornyuhin holds degrees in engineering form the Moscow State University of Economics, Statistics and Informatics (SES: E1:I03.SI - news) (MESI) and in international economic relations from the Financial University under the Government of the Russian Federation, and has been with Polymetal since 2005, most recently as the Head of Strategic Purchasing Department.
CONFERENCE CALL AND WEBCAST
Polymetal will hold a conference call and webcast on Thursday, January 19, 2012 at 5:30pm Moscow time (1:30pm London time; 8:30am New York (Frankfurt: A0DKRK - news) time).
To participate in the call/webcast, please dial:
8 10 8002 198 4011 (toll-free from Russia), or
0800 358 5256 (toll-free from the UK), or
+44 20 7190 1590 (from outside the UK and Russia), or follow the link:
http://www.cyber-presentation.de/cgi-bin/visitors.ssp?fn=visitor∓id=1640
Please be prepared to introduce yourself to the moderator or register.
Recording of the call will be available on Polymetal's website and at the above link immediately after the call. It will also be available at 0800 358 9369 (toll-free from the UK) or +44 20 7959 6720 (from outside the UK), access code 4507859#, from 7:30pm Moscow time Thursday, January 19, until 11:59pm Moscow time Thursday, January 26, 2012.
ENQUIRIES
|
|
Investor Relations |
|
|
|
College Hill Leonid Fink Tony Friend |
+44.207.457.2020 |
Polymetal Pavel Danilin |
+7.812.313.5964 |
|
Joint Corporate Brokers |
|
||
|
Morgan Stanley (EUREX: DWDF.EX - news) Alastair Cochran Sandip Patodia |
+44.207.425.8000 |
Collins Stewart (Other OTC: COLLF.PK - news) John Prior Roger Lambert |
+44.207.523.8000 |
FORWARD-LOOKING STATEMENTS
THIS RELEASE may INCLUDE STATEMENTS THAT ARE, OR MAY BE DEEMED TO BE, "FORWARD-LOOKING STATEMENTS". THESE FORWARD-LOOKING STATEMENTS SPEAK ONLY AS AT THE DATE OF THIS RELEASE. THESE FORWARD-LOOKING STATEMENTS CAN BE IDENTIFIED BY THE USE OF FORWARD-LOOKING TERMINOLOGY, INCLUDING THE WORDS "TARGETS", "BELIEVES", "EXPECTS", "AIMS", "INTENDS", "WILL", "MAY", "ANTICIPATES", "WOULD", "COULD" OR "SHOULD" OR SIMILAR EXPRESSIONS OR, IN EACH CASE THEIR NEGATIVE OR OTHER VARIATIONS OR BY DISCUSSION OF STRATEGIES, PLANS, OBJECTIVES, GOALS, FUTURE EVENTS OR INTENTIONS. THESE FORWARD-LOOKING STATEMENTS ALL INCLUDE MATTERS THAT ARE NOT HISTORICAL FACTS. BY THEIR NATURE, SUCH FORWARD-LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER IMPORTANT FACTORS BEYOND THE COMPANY'S CONTROL THAT COULD CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE COMPANY TO BE MATERIALLY DIFFERENT FROM FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. SUCH FORWARD-LOOKING STATEMENTS ARE BASED ON NUMEROUS ASSUMPTIONS REGARDING THE COMPANY'S PRESENT AND FUTURE BUSINESS STRATEGIES AND THE ENVIRONMENT IN WHICH THE COMPANY WILL OPERATE IN THE FUTURE. FORWARD-LOOKING STATEMENTS ARE NOT GUARANTEES OF FUTURE PERFORMANCE. THERE ARE MANY FACTORS THAT COULD CAUSE THE COMPANY'S ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS TO DIFFER MATERIALLY FROM THOSE EXPRESSED IN SUCH FORWARD-LOOKING STATEMENTS. THE COMPANY EXPRESSLY DISCLAIMS ANY OBLIGATION OR UNDERTAKING TO DISSEMINATE ANY UPDATES OR REVISIONS TO ANY FORWARD-LOOKING STATEMENTS CONTAINED HEREIN TO REFLECT ANY CHANGE IN THE COMPANY'S EXPECTATIONS WITH REGARD THERETO OR ANY CHANGE IN EVENTS, CONDITIONS OR CIRCUMSTANCES ON WHICH ANY SUCH STATEMENTS ARE BASED
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