(Alliance News) - Polymetal International PLC on Monday noted production plans for its Nezhda mine in Russia after producing first concentrate ahead of schedule.
FTSE 100-listed Polymetal is a gold and silver miner with assets in Russia and Kazakhstan.
The company said its Nezhda mine produced its first gold and silver concentrate on Saturday, two weeks ahead of schedule.
Polymetal said the mine has estimated JORC-compliant ore reserves of 4.4 million ounces of gold equivalent at a grade of 3.6 grams per tonne, with a predicted lifespan of around 24 years. It built the 2 million tonne per annum, open-pit mine and its combined gravity and floatation concentrator in 38 months, the company noted.
"The concentrator now enters a ramp-up period, and is expected to reach its nameplate capacity and full design recovery by April 2022," Polymetal added.
Once fully ramped up, total project capital expenditure will be around USD370 million, the company noted.
Polymetal said it expects to produce up to 30,000 ounces of gold equivalent from Nezhda in the rest of the year. Following full ramp-up, the company guides an average output of 180,000 ounces of gold equivalent per year in 2022 to 2024. All-in-sustaining costs are predicted to sit between USD850 and USD900 per ounce.
Shares in Polymetal were trading up 1.2% at 1,345.75 pence each in London on Monday morning
By Scarlett Butler; scarlettbutler@alliancenews.com
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