Stockpiles at the Varvara mine.
JOHANNESBURG (miningweekly.com) – Russian gold and silver producer Polymetal on Monday reported a 26% increase in its third-quarter gold-equivalent production of 470 000 oz, which is in line with its production plan of 1.4-million ounces for 2017.
The third-quarter output included 370 000 oz of gold, a 38% year-on-year increase, and 7.4-milion ounces of silver, a 7% year-on-year decline, as well as copper and zinc production.
Gold sales increased by 50% to 363 000 oz, helping to boost overall sales revenues by 17% to $546-million.
Polymetal explained that the overall improvement in production was the result of strong contributions from the fully ramped-up Svetloye heap leach operation at the Okhotsk hub, in Russia’s Far East, and the Mayskoye oxide ore processing, in the Chukotka Autonomous Territory of Russia.
The Albazino mine, in Russia’s Far East, and the Varvara mine, in Kazakhstan, also achieved record quarterly production levels.
Polymetal said it was on track to achieve its full-year production guidance of 1.4-million ounces at total cash costs of $600/oz to $650/oz and all-in sustaining costs of $775/oz to $825/oz of gold-equivalent. The company cautioned that the cost guidance was contingent on the exchange rate, which has a significant impact on rouble-denominated operating costs.
The miner is ramping up production over the short term and has a production target of 1.55-million ounces for 2018 and 1.7-million ounces for 2019.
First production from the new Kyzyl mine, in Kazakhstan, is less than a year away, with the operation expected to produce its first concentrate in the third quarter of 2018.
Kyzyl mine will produce 300 000 oz/y once fully ramped up.