Polymetal International PLC Start-up of Kyzyl and first concentrate (5668S)
26 June 2018 - 4:00PM
UK Regulatory
TIDMPOLY
RNS Number : 5668S
Polymetal International PLC
26 June 2018
Release IMMEDIATE
time
Date 26 June 2018
Polymetal International plc
Start-up of Kyzyl and delivery of first concentrate
production
Polymetal International plc (LSE, MOEX: POLY; ADR: AUCOY)
("Polymetal", the "Company") announces the start-up of the new
Kyzyl mine in Kazakhstan ahead of schedule and below budget.
Following the completion of all construction and commissioning
activities, Kyzyl has successfully produced first gold concentrate
on June 25(th) . Polymetal has achieved the start-up of the
concentrator one quarter ahead of the original schedule that had
been announced in 2014, and one month earlier compared with the
January 2018 updated plan. Project Capex is expected to be
approximately 3% below the original US$ 325 million budget,
inclusive of 62 Mt of pre-stripping.
Mining activities have reached full design capacity with 315 kt
of ore stockpiled ahead of start-up. The grade control program
demonstrated robust reconciliation with the reserve model with both
ore grade and gold contained tracking slightly above plan. First
concentrate deliveries to off-takers are scheduled for the end of
July with shipments to the Amursk POX expected to commence in
September.
The Kyzyl concentrator now enters the 3-month ramp-up period,
after which it is expected to reach nameplate capacity of 150 kt
per month and recoveries of 86% by October 2018. Polymetal will
host a site visit to Kyzyl for investors and analysts in October.
This year Polymetal plans to produce 80 koz of payable gold at
Kyzyl, ramping up production to 280 koz in 2019 and 330 koz
thereafter at AISC of approximately US$ 500-550/oz.
JORC-compliant gold reserves at Kyzyl are estimated at 7.3 Moz
at 7.7 g/t of gold. This supports a life-of-mine of 10 years for
the open pit followed by further 14 years of underground mining.
Additional JORC-compliant gold resources comprise 3.1 Moz at 6.8
g/t indicating strong potential to further extend operations.
"Polymetal is delighted and proud to successfully complete the
largest development project in the company's history ahead of time
and below budget", said Vitaly Nesis, Group CEO of Polymetal.
"Significant cash flow and net income contributions from Kyzyl
should start in Q4 2018."
Enquiries
Media Investor Relations
------------------ ------------------ ----------------------------------------------------
FTI Consulting +44 20 3727 1000 Polymetal ir@polymetalinternational.com
Leonid Fink Eugenia Onuschenko +44 20 7016 9505 (UK)
Viktor Pomichal Maryana Nesis
Michael Vasiliev +7 812 334 3666 (Russia)
------------------ ------------------ -------------------- ------------------------------
Joint Corporate Brokers
-------------------------------------- ----------------------------------------------------
Morgan Stanley
Andrew Foster
Richard Brown +44 20 7425 8000
Panmure Gordon RBC Europe Limited
Adam James Tristan Lovegrove
James Stearns +44 20 7886 2500 Marcus Jackson +44 20 7653 4000
------------------ ------------------ -------------------- ------------------------------
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END
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