First production at Svetloye ahead of schedule

RNS Number : 3566I

Polymetal International PLC

29 August 2016

 

Release time	IMMEDIATE
Date	30 August 2016

Polymetal International plc

First gold production at Svetloye ahead of schedule

Polymetal International plc (LSE, MOEX: POLY; ADR: AUCOY) (together with its subsidiaries - "Polymetal", the "Company", or the "Group") is pleased to announce completion of construction of its Svetloye mine in Okhotsk and first gold production.

The construction at Svetloye has been completed nine months ahead of the original schedule. Total capital expenditure comprised US$ 60 million, which is 33% below initial project estimates, primarily driven by the significant devaluation of the Russian Rouble since the start of construction in 2014. The leaching process commenced on 15 August 2016 and the first 10 Koz of gold were produced at the Merrill Crowe circuit on 29 August 2016.

At present, Svetloye is operating according to the accelerated commissioning schedule, with the heap leach facility running at 100% of its 150-200 Kt per month design capacity.

Based on Polymetal's latest reserve estimates, the planned life of mine is approximately 7 years with total expected production of more than 500 Koz of gold. Significant near-mine exploration potential is expected to result in material resource additions based on the results of the current summer drilling season. Svetloye is set to become the key driver for sustaining production levels at the Okhotsk hub in the long term. All-in sustaining cash costs are estimated at US$ 600-650/oz at a target annual production capacity of 80-90 Koz.

Svetloye is located in the Russian Far-East in the Okhotsk district of the Khabarovsk region, 300 km from Polymetal's operating Khakanja processing plant and 90 km from the access seaport at Unchi.

"Commissioning of Svetloye ahead of schedule and below budget is a significant achievement", said Vitaly Nesis, Group CEO of Polymetal. "The focus now shifts towards extending the life-of-mine of this low-risk and low-cost asset."

Enquiries

Media		Investor Relations
FTI Consulting  Leonid Fink Jenny Payne	[phone]	Polymetal Maxim Nazimok Evgenia Onuschenko Maryana Nesis	[e-mail] [phone] (Russia) [phone] (UK)
Joint Corporate Brokers
Morgan Stanley Sam McLennan Richard Brown	[phone]	RBC Europe Limited Tristan Lovegrove Marcus Jackson	[phone]

FORWARD-LOOKING STATEMENTS

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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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