Q3 2013 production results

RNS Number : 7267Q

Polymetal International PLC

17 October 2013

 



Release time	IMMEDIATE
Date	17 October 2013

Polymetal International plc

Q3 2013 production results

Polymetal International plc (LSE, MOEX: POLY, ADR: AUCOY) (together with its subsidiaries - "Polymetal", the "Company", or the "Group") is pleased to announce the Group's production results for the third quarter and nine months ended September 30, 2013.

HIGHLIGHTS

·     Polymetal reports another record-setting quarter, with a total gold equivalent production of 413 Koz, up 30% year-on-year. Significant progress at Amursk POX, as well as concentrate sales from Albazino and Mayskoye were the key contributors. Gold equivalent production for the nine months of 2013 was 972 Koz, up 19% year-on-year.

·     The Company has now completed the implementation of remedial measures at the Amursk POX plant. Full design throughput for Albazino concentrate was reached in August and the Company expects to achieve design recovery in Q4. In Q3 the POX plant produced 59 Koz of gold at an average recovery of 87% and average throughput of 444 tpd. Currently, the plant is running at 500 tpd, exceeding its nameplate capacity for Albazino concentrate, with the goal to fast-track processing of accumulated stockpiles. Recoveries in October are averaging 91-92%.

·     Polymetal has completed the ramp-up process at the Mayskoye concentrator, having achieved more than 90% of the design throughput and recoveries of 86% by the end of September. First concentrate shipments to off-takers contributed 36 Koz of gold production and sales in Q3. 

·     Total gold equivalent sales in Q3, in line with expectations, exceeded production, and comprised 418 Koz. Significant de-stockpiling at the Albazino/Amursk hub and Dukat hub were the main drivers of increased sales.

·     Net debt decreased by US$ 112 million during the quarter, to US$ 1,183 million, a decrease mainly attributed to strong operating cash flows generated on healthy production growth and de-stockpiling.  Meaningful free cash flow generation is expected to continue in Q4.  

·     Polymetal is on track to deliver its annual gold equivalent production guidance of 1.2 Moz in 2013. The Company expects to produce 1.3 Moz of gold equivalent in 2014 and 1.35 Moz of gold equivalent in 2015.

"Our strong results in the quarter were underpinned by the full ramp-up of two key growth assets, Mayskoye and Amursk POX", said Vitaly Nesis, CEO of Polymetal, commenting on the results. "This achievement has paved the way for significant free cash flow generation and is expected to allow us to maintain our dividend policy despite continued weakness in commodity prices".

	3 months ended Sep 30,		% change1	9 months ended Sep 30,		% change1
	2013	2012		2013	2012
Waste mined, Kt	20,804	22,723	-8%	63,928	65,172	-2%
Underground development, m	13,860	11,363	+22%	41,456	33,938	+22%
Ore mined, Kt	2,641	3,714	-29%	7,795	9,492	-18%
Open-pit	2,060	3,296	-37%	5,992	8,260	-27%
Underground	580	418	+39%	1,803	1,232	+46%
Ore processed, Kt	2,960	2,608	+14%	8,021	7,435	+8%
Production
Gold, Koz	281	196	+43%	592	452	+31%
Silver, Moz	7.6	6.8	+12%	21.5	20.5	+5%
Copper, tonnes	1,254	1,718	-27%	4,092	4,897	-16%
Gold equivalent, Koz2	413	317	+30%	972	819	+19%
Sales
Gold, Koz	266	197	+35%	539	415	+30%
Silver, Moz	8.7	7.6	+15%	19.6	20.0	-2%
Copper, tonnes	1,385	1,506	-8%	4,980	4,887	+2%
Revenue, US$m3	518	530	-2%	1,211	1,283	-6%
Net debt4	1,183	1,2954	-9%	1,183	1,0374	+14%
Safety6
LTIFR	0.90	0.46	+96%	0.40	0.60	-33%
FIFR	-	-	NA	-	-	NA
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) Based on 1:60 Ag/Au and 5:1 Cu/Au conversion ratios.                 (3) Calculated based on the unaudited consolidated management accounts. Concentrate sales are recorded based on forward prices for the expected dated of final settlement and concentrate revenue is presented net of refining and treatment charges. (4) Non-IFRS measure, based on unaudited consolidated management accounts. Net debt equals to current and non-current borrowings less cash and cash equivalents. Comparative information is presented for 30 June 2013 and 31 December 2012, respectively.                 (5) NA = not available                 (6) LTIFR =lost time injury frequency rate; FIFR = fatal injury frequency rate

CONFERENCE CALL AND WEBCAST

Polymetal will hold a conference call and webcast on Thursday, October 17, 2013 at 2:30 pm London time (5:30 pm Moscow time).

To participate in the call, please dial:

[phone] (free from Moscow), or

[phone] (free from the UK), or

[phone] (toll-free from the US), or

any of the above numbers (from outside the UK, the US and Russia), followed by the access code 283690#, or follow the link:

http://www.audio-webcast.com/cgi-bin/visitors.ssp?fn=visitor&id=2113   

Please be prepared to introduce yourself to the moderator or register.

Webcast replay will be available on Polymetal's website (www.polymetalinternational.com) and at http://www.audio-webcast.com/cgi-bin/visitors.ssp?fn=visitor&id=2113. A recording of the call will be available immediately after the call at [phone], [phone] and [phone], access code 283690#, from 6:30 pm Moscow time Thursday, October 17, till 6:30 pm Moscow time Thursday, October 24, 2013.

Enquiries

Media		Investor Relations
College Hill Leonid Fink Tony Friend	[phone]	Polymetal Maxim Nazimok Evgenia Onuschenko Elena Revenko	[e-mail] [phone] (Russia) [phone] (UK)
Joint Corporate Brokers
Morgan Stanley Bill Hutchings Sandip Patodia	[phone]	RBC Europe Limited Stephen Foss Jonny Hardy	[phone]

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

DUKAT OPERATIONS

	3 months ended Sep 30,		% change	9 months ended Sep 30,		% change
	2013	2012		2013	2012
MINING
Dukat
Waste mined, Kt	-	269	-100%	-	865	-100%
Underground development, m	7,587	5,749	+32%	23,415	17,485	+34%
Ore mined, Kt	311	311	+0%	945	1,030	-8%
Open-pit	-	16	-100%	-	131	-100%
Underground	311	295	+6%	945	899	+5%
Goltsovoye
Underground development, m	1,929	1,543	+25%	5,229	3,656	+43%
Ore mined (underground), Kt	38	31	+23%	124	51	+145%
Lunnoye + Arylakh
Waste mined, Kt	81	607	-87%	890	1,985	-55%
Underground development, m	1,828	1,124	+63%	5,072	3,303	+54%
Ore mined, Kt	86	87	-2%	309	280	+11%
Open-pit	9	43	-79%	74	133	-44%
Underground	77	44	+73%	235	147	+60%
PROCESSING
Dukat
Ore processed, Kt	363	301	+21%	1,181	1,073	+10%
Head grades
Gold, g/t	0.80	0.69	+16%	0.73	0.67	+8%
Silver, g/t	455	398	+14%	425	407	+4%
Recovery1
Gold	87.3%	82.7%	+6%	84.7%	79.9%	+6%
Silver	88.2%	86.0%	+3%	86.4%	83.8%	+3%
Production
Gold, Koz	8.2	5.3	+54%	23.7	18.3	+30%
Silver, Moz	4.7	3.2	+45%	14.1	11.5	+22%
Lunnoye
Ore processed, Kt	89	87	+2%	257	251	+2%
Head grades
Gold, g/t	1.1	1.1	-3%	1.1	1.2	-10%
Silver, g/t	370	427	-13%	405	424	-4%
Recovery1
Gold	80.6%	88.5%	-9%	85.4%	90.6%	-6%
Silver	90.0%	88.2%	+2%	89.2%	87.7%	+2%
Production
Gold, Koz	2.6	2.7	-2%	7.7	8.9	-14%
Silver, Moz	1.0	1.0	-2%	3.0	2.9	+2%
TOTAL PRODUCTION
Gold, Koz	10.8	8.0	+35%	31.4	27.2	+15%
Silver, Moz	5.7	4.2	+34%	17.0	14.4	+18%

Note:       (1) Technological recovery, includes gold and silver within work-in-progress inventory (concentrate, precipitate)

Quarterly silver production at Dukat increased by 34% compared to same period of prior year ("year-on-year") driven mainly by continuous improvements in grades and recoveries at the Omsukchan concentrator, both as a result of better grade profile at the Dukat mine and input from higher-grade ore from Goltsovoye. Silver production for the nine months was 17.0 Moz, up 18% year-on-year.

Meaningful de-stockpiling of flotation concentrate from Dukat has been achieved in the quarter due to accelerated sales to off-takers, mostly in Japan and South Korea. As a result, silver sales in the quarter exceeded production by 0.6 Moz. Off-take diversification is an important element of Company's strategy aimed at strengthening commercial independence from key customers.

Underground development at Dukat increased by 32% year-on-year, and the amounts of ore mined from underground fully compensated for the completion of open-pit mining. At Goltsovoye, underground development and ore mined during the quarter grew by 25% and 23% year-on-year, respectively.

At Arylakh, volumes of stripping and ore mined from open-pit continue to decline due to depletion while being substituted by higher grade ore from underground. At Lunnoye works are progressing steadily across ore zones 7 and 9 in accordance with the mine plan.

Silver production at Lunnoye plant was up 14% quarter-on-quarter at 1.0 Moz due to increased throughput. Production at Omsukchan concentrator was 4.7 Moz, down 3% quarter-on-quarter due to re-lining of one of the mill sections, however this was partially offset by processing of higher grade ore with better recoveries.

KHAKANJA

	3 months ended Sep 30,		% change	9 months ended Sep 30,		% change
	2013	2012		2013	2012
MINING
Khakanja + Yurievskoye
Waste mined, Kt	929	656	+42%	2,174	4,034	-46%
Underground development, m	-	382	-100%	-	1,264	-100%
Ore mined, Kt	2	360	-100%	294	992	-70%
Open-pit	2	320	-99%	290	881	-67%
Underground	-	40	-100%	5	110	-96%
Avlayakan
Waste mined, Kt	325	462	-30%	1,108	1,167	-5%
Underground development, m	108	-	NA	108	-	NA
Ore mined (open pit), Kt	21	34	-38%	62	59	+6%
Ozerny
Waste mined, Kt	1,272	-	NA	3,475	-	NA
Ore mined (open pit), Kt	27	-	NA	166	-	NA
PROCESSING
Ore processed, Kt	161	155	+4%	463	463	+0%
Grade
Gold, g/t	6.6	6.0	+9%	4.8	4.6	+4%
Silver, g/t	137	287	-52%	157	292	-46%
Recovery1
Gold	95.2%	96.1%	-1%	95.2%	95.3%	-0%
Silver	86.8%	84.0%	+3%	84.1%	80.0%	+5%
TOTAL PRODUCTION
Gold, Koz	32.5	28.8	+13%	67.7	65.5	+3%
Silver, Moz	0.6	1.2	-47%	2.0	3.5	-43%

Note:       (1) Technological recovery, includes gold and silver within work-in-progress inventory (precipitate)

Gold production at Khakanja in Q3 was 32.5 Koz, up 73% quarter-on-quarter, mainly due to commencement of processing high-grade ore from Avlayakan, while quarterly silver production decreased by 2%.

At Khakanja open-pit mine, volumes of stripping remained flat quarter-on-quarter while the amount ore mined was insignificant due to continued pushback at pit 1. The processing plant was mostly filled with ore from other sources. The increase in amounts of ore mined and a normalised stripping ratio at Khakanja are expected to be achieved from the beginning of 2014.

In accordance with the reviewed mine plan, underground development has commenced at Avlayakan during the quarter. Open-pit mining is nearing completion, with ore mined decreasing to 21 Kt during the period. Active stoping at Avlayakan underground mine is expected from Q2 2014. 55 Kt of Avlaykan ore was safely shipped by sea to date from the port of Kiran to the port of Okhotsk, a significant improvement from 41 Kt shipped for the same period in 2012.   

Ore mining at Ozerny continued to be seasonally reduced as major volumes are to be mined in Q4 2013 - Q1 2014 for trucking by winter road, with mining works in the quarter were concentrated on stripping.

Throughput at the Khakanja plant increased by 6% quarter-on-quarter to 161 Kt, while the average gold grade increased by 61% to 6.6 g/t driven by higher grades from Avlayakan. Silver grade and, accordingly, silver production continued to decline due to lower share of ore from Khakanja's pit 3.

VORO

	3 months ended Sep 30,		% change	9 months ended Sep 30,		% change
	2013	2012		2013	2012
MINING
Voro
Waste mined, Kt	2,541	2,885	-12%	8,354	8,518	-2%
Ore mined (open pit), Kt	710	930	-24%	1,441	1,359	+6%
-     primary	197	206	-5%	601	575	+5%
-     oxidised	514	724	-29%	840	784	+7%
PROCESSING
Voro Heap Leach
Ore stacked, Kt	424	439	-4%	686	759	-10%
Gold head grade, g/t	1.4	1.8	-23%	1.4	1.6	-15%
Gold recovery	74.3%	74.7%	-1%	73.9%	74.1%	-0%
Gold production, Koz	6.7	10.9	-39%	15.5	22.6	-31%
Voro CIP
Ore processed, Kt	247	241	+2%	694	692	+0%
Gold head grade, g/t	5.4	5.2	+3%	5.9	5.4	+10%
Gold recovery	80.5%	79.7%	+1%	79.9%	78.9%	+1%
Gold production, Koz	34.2	30.9	+11%	98.7	88.4	+12%
TOTAL PRODUCTION
Gold, Koz1	40.9	44.3	-8%	117.3	114.8	+2%
Silver, Moz	0.018	0.052	-66%	0.066	0.120	-46%

Note:       (1) Including the effect of rounding

Gold production at Voro for Q3 2013 was up 6% quarter-on-quarter, mainly due to additional input from the heap leaching circuit, while at the CIP plant, despite some decline in grade profile, modest increase throughput and in recoveries have resulted in flat production.

In the open-pit mine at Voro, works are continuing at a stable pace across Central and Southern pits. The amount of oxidised ore mined in Q3 nearly doubled quarter-on-quarter, in order to supply material for the seasonal heap leaching.

Carbon-in-Column (CIC) process was introduced for the extraction of gold from heap leach solutions as changing ore chemistry slowed down recoveries at the historical Merrill Crowe circuit.

VARVARA

	3 months ended Sep 30,		% change	9 months ended Sep 30,		% change
	2013	2012		2013	2012
MINING
Waste mined, Kt	7,258	7,023	+3%	23,170	19,476	+19%
Ore mined (open pit), Kt	523	874	-40%	1,450	2,797	-48%
PROCESSING
Flotation
Ore processed, Kt	256	249	+3%	761	736	+3%
Grade
Gold, g/t	1.4	1.2	+11%	1.2	1.3	-9%
Copper	0.58%	0.75%	-24%	0.64%	0.76%	-16%
Recovery1
Gold	55.9%	61.7%	-9%	57.4%	61.7%	-7%
Copper	88.8%	92.5%	-4%	89.9%	91.7%	-2%
Production
Gold (in concentrate), Koz	6.0	6.0	+0%	15.9	18.1	-12%
Copper (in concentrate), t	1,254	1,718	-27%	4,092	4,897	-16%
Leaching
Ore processed, Kt	663	632	+5%	2,010	1,981	+1%
Gold head grade, g/t	1.3	1.3	+3%	1.3	1.2	+8%
Gold recovery1	82.4%	84.0%	-2%	82.2%	84.9%	-3%
Gold production (in dore), Koz	22.9	18.8	+21%	63.7	56.6	+13%
TOTAL PRODUCTION
Gold, Koz	28.9	24.8	+16%	79.6	74.7	+7%
Copper, t	1,254	1,718	-27%	4,092	4,897	-16%

Note:       (1) Technological recovery, includes gold and copper within work-in-progress inventory

At Varvara, gold production during nine months 2013 was 80 Koz, up 7% year-on-year. Copper production has declined to 4.1 Kt as a result of planned grade decline. In the leaching circuit, average gold grade processed increased by 11% quarter-on-quarter to 1.3 g/t as a result of increased share of 3^rd-party ore processing.

The amounts of ore mined have increased by 27% compared to the previous quarter, but remained well below the levels of 2012.  The return to normalized stripping ratio is expected in Q3 2014 as the pushback in the North-West and North-East pits is completed.

OMOLON OPERATIONS

	3 months ended Sep 30,		% change	9 months ended Sep 30,		% change
	2013	2012		2013	2012
MINING
Sopka
Waste mined, Kt	794	2,543	-69%	4,917	7,474	-34%
Ore mined (open pit), Kt	48	447	-89%	512	976	-47%
Birkachan
Waste mined, Kt	-	2,593	-100%	1,932	7,469	-74%
Ore mined (open pit), Kt	-	255	-100%	586	845	-31%
Tsokol
Waste mined, Kt	1,702	917	+86%	3,557	2,230	+59%
Ore mined (open pit), Kt	43	24	+76%	155	55	+181%
Dalneye
Waste mined, Kt	1,558	-	NA	1,709	-	NA
Ore mined (open pit), Kt	316	-	NA	316	-	NA
PROCESSING
Kubaka Mill
Ore processed, Kt	193	192	+0%	550	540	+2%
Grade
Gold, g/t	6.4	7.7	-17%	5.5	6.6	-17%
Silver, g/t	222	244	-9%	162	176	-8%
Recovery1
Gold	95.7%	94.9%	+1%	95.7%	95.0%	+1%
Silver	89.4%	90.5%	-1%	88.6%	86.4%	+2%
Gold production, Koz	35.2	43.9	-20%	91.2	108.9	-16%
Silver production, Moz	1.3	1.3	-2%	2.5	2.5	-1%
TOTAL PRODUCTION
Gold, Koz	35.2	43.9	-20%	91.2	108.9	-16%
Silver, Moz	1.3	1.3	-2%	2.5	2.5	-1%

Note:       (1) Technological recovery, includes gold and silver within work-in-progress inventory

At Omolon, gold production for nine months 2013 decreased by 16% year-on-year, while silver production remained broadly flat. This was mainly driven by lower gold grades and stable silver grades in the ore processed from Sopka in 2013 compared to 2012.

Overall waste mining volumes have declined by approximately a third as Birkachan remains on care and maintenance and additional consideration is given to the potential of underground mining at Sopka.

At Tsokol, stripping has intensified and increased 34% quarter-on-quarter as in Q4 ore from Tsokol is expected to compensate for suspension of Birkachan in the plant feed.

First 316 Kt of ore were mined at Dalneye ahead of schedule, with high-grade ore representing approximately 1/3 and another 2/3 represented by heap leach ore. It is expected that first ore from Dalneye will be trucked to Kubaka mill in Q1 2014 and processed in Q4 2014.

Currently processing of high-grade Sopka ore is completed and the plant is switching to ores from Tsokol and available Birkachan stockpiles.

ALBAZINO-AMURSK

	3 months ended Sep 30,		% change	9 months ended Sep 30,		% change
	2013	2012		2013	2012
MINING
Waste mined, Kt	4,345	4,432	-2%	12,642	10,904	+16%
Ore mined (open pit), Kt	361	309	+17%	940	953	-1%
PROCESSING
Albazino concentrator
Ore processed, Kt	386	310	+24%	1108	940	+18%
Gold head grade, g/t	5.2	5.9	-12%	5.8	5.0	+15%
Gold recovery1	89.3%	87.1%	+2%	88.2%	86.6%	+2%
Concentrate produced, Kt	34.5	31.6	+9%	105.1	82.9	+27%
Concentrate gold grade, g/t	52.3	51.0	+2%	53.7	49.7	+8%
Gold in concentrate, Koz2	57.9	51.8	+12%	181.3	132.4	+37%
Concentrate sold, Kt	23.4	26.2	-11%	43.7	31.6	+39%
Payable gold in concentrate sold, Koz3	38.6	42.2	-9%	69.7	50.5	+38%
Amursk POX
Concentrate processed, Kt	40.8	3.8	+970%	87.0	10.2	+755%
Gold head grade, g/t	51.3	39.8	+29%	49.7	38.9	+28%
Recovery	87%	85%	+3%	83%	88%	-6%
Gold produced, Koz	58.8	4.1	+1323%	100.0	10.6	+844%
TOTAL PRODUCTION
Gold, Koz	97.3	46.3	+110%	169.7	61.1	+178%

Notes:     (1) To concentrate

                (2) For information only; not considered as gold produced and therefore not reflected in the table representing total production

                (3) Included in total production upon sale to off-taker

Gold production at Albazino/Amursk in Q3 reached 97.3 Koz, mainly driven by step-up improvement in the performance of the Amursk POX plant and continued concentrate sales at Albazino to Chinese off-takers.

Gold in concentrate produced at Albazino increased by 37% year-on-year to 181 Koz as a result of improved average grades and recoveries, combined with an 18% increase in plant throughput.

The Amursk POX plant, re-launched in July after the maintenance shutdown, has performed above expectations, having achieved the design throughput by August and an average recovery of 87% during the quarter. As a result, 59 Koz of gold were produced at the POX plant in Q3 and the cumulative production during 2013 exceeded 100 Koz.

The remedial measures at the Amursk POX plant have been completed, with works on installation of additional filtering equipment partially finalized.  Recoveries in October are averaging 91-92%. Full impact of the remediation programme on recoveries is expected by the end of the current quarter.

Sales to off-takers in China during nine months 2013 have increased by 37% year-on-year and comprised 70 Koz.  The Company does not plan to sell any concentrate from Albazino to off-takers next year. All concentrate will be processed through the POX plant.

MAYSKOYE

	3 months ended Sep 30,		% change	9 months ended Sep 30,		% change
	2013	2012		2013	2012
MINING
Underground development, m	2,408	2,565	-6%	7,632	8,230	-7%
Ore mined (underground), Kt	154	7	NM	494	25	NM
PROCESSING
Ore processed, Kt	179	-	NA	312	-	NA
Gold head grade, g/t	7.6	-	NA	6.8	-	NA
Gold recovery1	86.0%	-	NA	75.0%	-	NA
Concentrate produced, Kt	19.7	-	NA	29.0	-	NA
Concentrate gold grade, g/t	58.8	-	NA	54.0	-	NA
Gold in concentrate, Koz2	37.2	-	NA	50.4	-	NA
Concentrate sold, Kt	22.7	-	NA	22.7	-	NA
Payable gold in concentrate sold, Koz3	35.6	-	NA	35.6	-	NA
TOTAL PRODUCTION
Gold, Koz	35.6	-	NA	35.6	-	NA

Notes:     (1) To concentrate

                (2) For information only; not considered as gold produced and therefore not reflected in the table representing total production

(3) Included in total production upon sale to off-taker

Mayskoye concentrator has ramped up to its design parameters. The daily ore throughput currently amounts to 90-95% of design capacity, while recoveries in Q3 were 86%. Grade is expected to improve in Q4 as ore from stopes fully replaces ore from historic development openings.

First 36 Koz of payable gold in concentrate were sold to off-takers in China during Q3, with the off-take shipments expected to continue until mid-November.  Negotiations on long-term off-take contracts for Mayskoye concentrate are expected to commence after the processing of trial lots at Amursk POX in January of 2014.

 

END

 

 

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