Thursday, July 27 2017 10:55
Emmanuil Mkrtchyan

Polymetal processed 246 thousand tons of ore for the first half of 2017 at Kapan mine

Polymetal processed 246 thousand tons of ore for the first half of 2017 at Kapan mine

ArmInfo. The Kapan Mining and Processing Enterprise (GOK), part of Polymetal  International plc, in the first half of 2017, processed 246 thousand tons of ore. Only in the second quarter the processing volumes were 132 thousand tons against 64 thousand tons for the same period last year. This is stated in the company's report on the production results of the II quarter of this year.

According to the report, the gold content per ton of ore was 2.6 grams, which is 17% higher than in the second quarter of 2016, the silver content was 45 grams. (+ 6%), copper - 0.32% (+ 18%) and zinc - 1.31% (-13%). At the same time, the gold recovery ratio was 86.3% (+ 3%), silver 84.9% (+ 1%), copper 91.6% (- 1%) and zinc90.8% (0%). As a result, gold production in the second half of the year was8.6 thousand ounces (for the first half-year - 14.4 thousand tons), silver - 0.1 million ounces (0.2 million tons), copper - 0.3 thousand tons (0.6 thousand tons) and zinc - 1.2 thousand tons (2.3 thousand tons). Almost for all extracted metals, the company showed more than double-digit growth of production volumes in the second half of the year: gold by 153%, silver by 128%, copper by 145% and zinc by 73%. 

During the first half-year, the mining deposit (underground penetration) operated by the company reached 7.723 meters. A total of 250 thousand tons of metal ore were mined (PGR) over the first half of the year. Only in the second quarter of the production volume amounted to 135 thousand tons, which is almost double the figures for the same period in 2016.

<Polymetal demonstrated excellent production results in the second quarter of 2017 and confirms the production plan for 2017. We are also pleased that our recent acquisitions, Komarovskoye and Kapan, show impressive results, " Vitaly Nesis, the  Polymetal Group Chief Executive Officer said.

According to the report, Kapan continues to demonstrate improvements in almost all indicators, including a significant increase in production volumes, which is associated with the continued introduction of measures to increase the productivity of the underground mine. Gold production during the quarter increased by 153% compared to the second quarter of 2016 due to the growth in processing volumes and significant improvement in content.

It is also reported that Valuation of reserves (VR) in accordance with the JORC Code and the combined operation plan for Kapan and Lichkvaz will be ready in the third quarter of 2017, as planned.  In total, the Polymetal group of companies produced 558,000 ounces of gold equivalent in the first half of 2017, which is 7% higher compared to year-on-year and corresponds to the production plan for 2017. The volume of sales of gold and silver during the second quarter increased by 29% and by 19%, respectively, compared to year-on-year, while revenue was $ 385 million, an increase of 26% compared to 2016. The time gap between production and sales has significantly decreased compared to the first half of the year.  Net debt increased slightly from $ 1.506 million as of March 31, 2017 to $ 1,583 million as of June 30, 2017, with the company paying final dividends for the fiscal year 2016 for $ 77 million ($ 0.18 per share) and actively investing in construction The Kyzyl project.

Polymetal confirms the production plan for 2017 in volume of 1.4 million ounces, as well as the forecast for cash costs of US $ 600-650 /ounce  of gold equivalent and total cash costs of US $ 775-825 /ounces of gold equivalent. Actual costs will depend on the dynamics of the ruble / US dollar exchange rate, which has a significant impact on operating costs in rubles. Polymetal will announce its financial results for the first half of August 29, 2017.

Recall that the company Polymetal began its activity in Armenia in 2015 with the acquisition of a polymetallic deposit Lichkvaz-Tey in the south, in the Syunik region. The company processes Lichkvaz ore at a concentrator in Kapan, where in April 2016 it acquired Kapan Mining Plant.  Polymetal is  one of the world's largest producers of primary silver, is one of the three leading gold mining companies in Russia. It conducts extraction of precious metals and geological exploration in Russia, Kazakhstan and Armenia. Polymetal Int independently carries out the whole complex of works on development of ore deposits - from geological prospecting to operation. The key element of the strategy is the creation of processing centers (hubs), which allow the most effective and responsible use of financial and human resources, contribute to achieving higher returns on invested capital. In November 2011, Polymetal  Int was the first Russian company to receive a premium listing on the London Stock Exchange (ticker POLY).

To note, the final beneficiary of about 27% of the share capital of Polymetal (LSE, Moscow Exchange:  POLY, ADR: AUCOY) is the Group of ICT of  Alexander Nesis, 13% of the company belongs to the Czech PPF Group NV Petr Kellner. In addition, about 1% of the authorized Capital controls the management of the company and directors, 19% - private individuals and 40% - individual investors.


News
Team Telecom Armenia becomes technology partner of KoreezTeam Telecom Armenia becomes technology partner of Koreez
Armenia to receive $20mln share from customs duties collected in EAEUArmenia to receive $20mln share from customs duties collected in EAEU
Pashinyan receives Executive Director of World Trade Centers  AssociationPashinyan receives Executive Director of World Trade Centers  Association
Vahan Kerobyan on goals of MoE: Vahan Kerobyan on goals of MoE: "Dry Port" of Gyumri will provide 3%  of Armenia`s GDP 
Evocabank replenishes its share capitalEvocabank replenishes its share capital
"The state collects taxes from the economy, but does not spend, thus  reducing economic activity": Luys Foundation 
Investin.am business portal for Private Equity has been launched in  ArmeniaInvestin.am business portal for Private Equity has been launched in  Armenia
YOY inflation in Armenia in April 2021 was 8.4%, and in January-April  alone - 5.8%YOY inflation in Armenia in April 2021 was 8.4%, and in January-April  alone - 5.8%
Branch of International Coaching Federation has been opened in  ArmeniaBranch of International Coaching Federation has been opened in  Armenia
Gnel Sanosyan discusses new agreement on gas-for-electricity program  with Iranian Petroleum Minister Gnel Sanosyan discusses new agreement on gas-for-electricity program  with Iranian Petroleum Minister 
RA High-Tech Industry Minister, French Ambassador discuss Armenia`s  participation in VivaTech 2022RA High-Tech Industry Minister, French Ambassador discuss Armenia`s  participation in VivaTech 2022
MoE reports on results of World Bank`s CARMAC2 programMoE reports on results of World Bank`s CARMAC2 program
Central Bank of Armenia: Prices for food and energy  are expected  to stay at high levelCentral Bank of Armenia: Prices for food and energy  are expected  to stay at high level
CMTPL loss ratio in Armenia decreased from 86% in 2021 to 67% by May  2022CMTPL loss ratio in Armenia decreased from 86% in 2021 to 67% by May  2022
Evocabank to help Armenian postal operator introduce financial  servicesEvocabank to help Armenian postal operator introduce financial  services
Remittances of labor migrants from Russia decreased, while transfers  of Russians increased: Central Bank of ArmeniaRemittances of labor migrants from Russia decreased, while transfers  of Russians increased: Central Bank of Armenia
Armenia, Iran reached agreement to remove obstacles to increase trade  between two countriesArmenia, Iran reached agreement to remove obstacles to increase trade  between two countries
Wildberries launches direct sales from Armenian entrepreneursWildberries launches direct sales from Armenian entrepreneurs
Armenia`s Minister of Economy WB Country Manager discuss CARMAC IIArmenia`s Minister of Economy WB Country Manager discuss CARMAC II
Armenian, UAE  FMs discuss bilateral cooperation Armenian, UAE  FMs discuss bilateral cooperation 
Armenia to attract another loan from IBRD in amount of EUR 26.5  million to improve public administration systemArmenia to attract another loan from IBRD in amount of EUR 26.5  million to improve public administration system
According to UBA level of profitability of the Armenian banking  system is quite lowAccording to UBA level of profitability of the Armenian banking  system is quite low
$10 million to be invested in construction of multifunctional  business center in Dzoragyugh district of Yerevan$10 million to be invested in construction of multifunctional  business center in Dzoragyugh district of Yerevan
Converse Bank bonds can now be purchased via the mobile applicationConverse Bank bonds can now be purchased via the mobile application
UBA: Net inflow of private transfers to Armenia increased by 45% per  annum in Q1UBA: Net inflow of private transfers to Armenia increased by 45% per  annum in Q1
Seyran Sargsyan: The reduction in non-resident deposits had a  negative impact on the total volume of bank depositsSeyran Sargsyan: The reduction in non-resident deposits had a  negative impact on the total volume of bank deposits
UBA: Volumes of lending to the Armenian economy have grown in almost  all areasUBA: Volumes of lending to the Armenian economy have grown in almost  all areas
Team Telecom Armenia to start business data center construction Team Telecom Armenia to start business data center construction 
Discount system in cashless transactions for pensioners to be  introduced in Armenia Discount system in cashless transactions for pensioners to be  introduced in Armenia 
Armenia`s government to allocate  $10mln to road renovation Armenia`s government to allocate  $10mln to road renovation 
Passenger traffic in Armenia reached 40% growth in Q1Passenger traffic in Armenia reached 40% growth in Q1
Armenia, Iran simplify mutual access of investors to FEZ markets of  two countriesArmenia, Iran simplify mutual access of investors to FEZ markets of  two countries
Armenia`s communications sector revenue in Q1 2022 increased by 6.8%Armenia`s communications sector revenue in Q1 2022 increased by 6.8%
Armenia reduced wine production in Q1Armenia reduced wine production in Q1
Pashinyan receives Alexei Overchuk and Andrey RudenkoPashinyan receives Alexei Overchuk and Andrey Rudenko
Tourist flow to Armenia starts to recoverTourist flow to Armenia starts to recover
ARMSWISSBANK receives EBRD award ARMSWISSBANK receives EBRD award "The most Active Issuing Bank in Armenia for 2021"
Natural population decline was recorded in Armenia Natural population decline was recorded in Armenia 
Armenia`s population decreased by 2.3 thousand people by April 1,  2022Armenia`s population decreased by 2.3 thousand people by April 1,  2022
S&P Global Ratings assigns S&P Global Ratings assigns "B-" (Local Currency LT credit rating) to  ASCE Group
Armenia spares no effort for North-South energy corridor program to  be implemented in shorted period - minister Armenia spares no effort for North-South energy corridor program to  be implemented in shorted period - minister 
Turkey never agreed on construction of dams on Aras River with other  countries of basin - Ali Akbar MehrabianTurkey never agreed on construction of dams on Aras River with other  countries of basin - Ali Akbar Mehrabian
Armenia, Iran to consider to increasing gas supplies from Iran to  ArmeniaArmenia, Iran to consider to increasing gas supplies from Iran to  Armenia
Hayk Yesayan: Introduction of 5G in Armenia in the next couple of  years will be inexpedientHayk Yesayan: Introduction of 5G in Armenia in the next couple of  years will be inexpedient
Armenia, Iran to sign memorandum to develop cooperation in number of  areasArmenia, Iran to sign memorandum to develop cooperation in number of  areas
Another intermediate subway station to be built in YerevanAnother intermediate subway station to be built in Yerevan
FinRating ArmInfo: Travel insurance has grown in terms of the number  of contracts concludedFinRating ArmInfo: Travel insurance has grown in terms of the number  of contracts concluded
Armenia`s premier visits Confederation of Netherlands Industry and  Employers to present investment opportunities in Armenia to local  businessArmenia`s premier visits Confederation of Netherlands Industry and  Employers to present investment opportunities in Armenia to local  business
Armenia`s foreign trade turnover with EAEU countries increased by  40.7% in Q1 2022Armenia`s foreign trade turnover with EAEU countries increased by  40.7% in Q1 2022
Armenia`s specific debt burden per capita has already reached $3.2  thousandArmenia`s specific debt burden per capita has already reached $3.2  thousand
Russia, China remain leaders in Armenia`s exports, imports Russia, China remain leaders in Armenia`s exports, imports 
Innovative Agradrons Laboratory has been opened at Armenian National Agrarian University Innovative Agradrons Laboratory has been opened at Armenian National Agrarian University 
Despite significant migration flow from Russia, the negative balance  of Armenia`s migration exceeded 2.4 thousand people in Q12022Despite significant migration flow from Russia, the negative balance  of Armenia`s migration exceeded 2.4 thousand people in Q12022
Electricity generation increased by 16.7% in Armenia in Q1 2022 Electricity generation increased by 16.7% in Armenia in Q1 2022 
Service sector and energy complex were major drivers of economic  activity growth in Q1 2022 Service sector and energy complex were major drivers of economic  activity growth in Q1 2022 
About AMD 372 million were allocated for payment of salary arrears  to employees of Nairit Plant About AMD 372 million were allocated for payment of salary arrears  to employees of Nairit Plant 
Metallurgical industry of Armenia reduced production volumes by 17%  in Q1 2022Metallurgical industry of Armenia reduced production volumes by 17%  in Q1 2022
Turkish aviation authorities closed their airspace to FLYONE ARMENIA  European destinationsTurkish aviation authorities closed their airspace to FLYONE ARMENIA  European destinations
In Q1 2022 more than 8 thousand tons of aluminum foil were produced  in ArmeniaIn Q1 2022 more than 8 thousand tons of aluminum foil were produced  in Armenia
Statistics: The production volumes of Armenia`s industry increased by  3.1% in Q1 2022 Statistics: The production volumes of Armenia`s industry increased by  3.1% in Q1 2022 
Read more


Exchange rates
19.05.2022
RUB7.400.18
USD459.401.91
EUR484.072.88
GBP571.033.88
CAD358.572.13
JPY35.980.56
CNY68.040.18
CHF470.6511.55