REG - Polymetal Int PLC - First production at Svetloye ahead of schedule <Origin Href="QuoteRef">POLYP.L</Origin>

Polymetal International PKAnnouncement

30/08/2016 07:09

RNS Number : 3566I
Polymetal International PLC
29 August 2016
Release time
IMMEDIATE
Date
30 August2016


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 Khakanjaprocessing 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
+44 20 3727 1000
Polymetal
Maxim Nazimok
Evgenia Onuschenko
Maryana Nesis
ir@polymetalinternational.com
+7 812 313 5964 (Russia)
+44 20 7016 9503 (UK)
Joint Corporate Brokers
Morgan Stanley
Sam McLennan
Richard Brown
+44 20 7425 8000
RBC Europe Limited
Tristan Lovegrove
Marcus Jackson
+44 20 7653 4000
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