Russian gold and silver producer Polymetal on Thursday reported a 27% year-on-year increase in first-quarter gold-equivalent (GE) production, on the back of a strong performance from its Kyzyl mine and steady operational performance at its other mines.
GE production increased to 374 000 oz. Gold production was up 41% to 302 000 oz, while silver production decreased by 15%, owing to the planned grade decline at the Dukat underground mine.
The new Kyzyl mine delivered 78 000 oz of gold in the three-month period.
“Kyzyl's performance demonstrates both Polymetal's project development capability and the asset's huge potential for cash flow generation,” commented CEO Vitaly Nesis.
Revenue increased by 28% year-on-year to $454-million, largely driven by a 41% uptick in gold sales, compared with the prior-year period.
Polymetal affirmed its production guidance of 1.55-million ounces of GE.