Friday, September 8 2017 15:25
Emmanuil Mkrtchyan

Polymetal International plc group of companies for the first six months of 2017 invested in Kapan ore mining and processing enterprise $ 13 million

Polymetal International plc group of companies  for the first six  months of 2017 invested in Kapan ore mining and processing enterprise  $ 13 million

ArmInfo. The volume of  investments of the group of companies Polymetal International plc in  KAPAN MINING AND PROCESSING ENTERPRISE   for the first half of 2017  was $ 13 million. Investments were mainly related to the purchase of  equipment for underground mining and exploration in the vicinity of  the existing field, including drilling at the Lichkvaz-Teyskoye  field.

As reported in the company's semi-annual report on financial  results, the revenue from the operation of Kapan GOK for the first 6  months of 2017 was $ 20mln.  Indicators associated with cash costs  per ounce of gold equivalent are significantly  improved. The  implementation of the gold equivalent for the reporting period in  Kapan was 17 thousand rubles ounces, while the cash costs per ounce  of gold equivalent at the field in the first half of the year  amounted to 795US $ / oz compared to 1,186US $ / oz, having decreased  by 33%. In the second half of 2016 this indicator was equal to 865US  $ / oz. According to the report, the decrease in costs was due to the  production and financial recovery of the enterprise, as well as the  continued introduction of measures to eliminate bottlenecks in  underground mining.

It is noted that in total for the Group of companies, in the first  half of 2017, the cash costs per ounce of the realized gold  equivalent increased by 28% compared to the same period last year and  by 9% compared to the second half of 2016, amounting to US $ 656 per  ounce of gold equivalent. The continued growth of the Russian ruble  had a negative impact on the level of costs in dollar terms, which  was partially offset by sustained operating results at Varvarinskoye  and Svetly fields and Kapan mine.

At the same time, the cumulative cash costs per ounce of gold  equivalent in the I half of 2017 in Kapan mine amounted to 1,197 US $  / ounce versus 1,930 US $ / ounce in the first half of 2016, having  decreased by 38%. In the second half of last year, they amounted to  1,184 US $ / ounce.

According to the report, the so-called adjusted EBITDA for the Kapan  enterprise was $ 7 million by the end of the first half of 2017,  while at the end of the corresponding period of the past was  negative, at the level of $ 2 million.

To recall, Kapan Mining and Processing Combine , member of Polymetal  International plc, in the first half of 2017, processed 246 thousand  tonnes of ore. Only in the second quarter the processing volumes were  132 thousand tons, the gold content in tonne of ore was 2.6 grams,  which is 17% higher compared to the results of the second quarter of  2016, the silver content was 45 g. (+ 6%), copper - 0.32% (+ 18%) and  zinc - 1.31% (-13%). At the same time, gold recovery ratio was 86.3%  (+ 3%), silver 84.9% (+ 1%), copper 91.6% (-1%) and zinc 90.8% (0%).  As a result, gold production in the second half of the year amounted  to 8.6 thousand ounces (for the first six months - 14.4 thousand  tons), silver - 0.1 million ounces (02 million tons), copper - 0.3  thousand tons (06 thousand tons) and zinc - 1.2 thousand tons (2.3  thousand tons). Almost all recoverable metals showed in the second  half of the year more than double-digit growth in production volumes:  gold by 153%, silver by 128%, copper by 145% and zinc by 73%.

To recall, Polymetal company started operating in Armenia in 2015 by  acquiring shares in Lichkvaz, which has a subsoil use right in  respect of the Lichkvaz-Tey gold mine, which will produce 300,000  tons of ore per year after commissioning the underground mine. Ore  will be processed at Kapan mine, which the company acquired in April  2016.

Polymetal is one of the leading gold and silver mining companies in  Russia, Kazakhstan and Armenia. It was founded in 1998. Has 19 years  of experience in geological exploration, design, construction and  commissioning of large mining enterprises. Polymetal 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, final beneficiary of about 27% of the share capital of  Polymetal (LSE, Moscow Exchange: POLY, ADR: AUCOY) is the Alexander  Group of ICTs Nesis, 13% of the company belongs to the Czech PPF  Group NV Petr Kellner. In addition, about 1% of the authorized  capital is controlled by the management of the company and the  director, 19% by private persons and 40% by individual investors.

POST A COMMENT
Input digits     


News
Etihad Airways to launch Abu Dhabi-Yerevan flight Etihad Airways to launch Abu Dhabi-Yerevan flight 
Gazprom Armenia working at gas transportation system facilitiesGazprom Armenia working at gas transportation system facilities
143 trucks with liquified gas enter Armenia in four days - minister 143 trucks with liquified gas enter Armenia in four days - minister 
1,775 trucks with Armenian apricots enter Russia - minister 1,775 trucks with Armenian apricots enter Russia - minister 
Armenian Ardshinbank planning to acquire HSBC MaltaArmenian Ardshinbank planning to acquire HSBC Malta
Armenia recognizes the need for direct flights with the Netherlands - David Khudatyan
Minister of Economy: 99 trucks with liquefied gas enter ArmeniaMinister of Economy: 99 trucks with liquefied gas enter Armenia
Rosselkhoznadzor to negotiate with competent Armenian agency on   Armenian flower supply issues Rosselkhoznadzor to negotiate with competent Armenian agency on Armenian flower supply issues
Armenia`s energy transformation rating remains unchanged for the past  9 years - Luys FoundationArmenia`s energy transformation rating remains unchanged for the past  9 years - Luys Foundation
In Armenian insurance market  loss ratio for OSAGO decreased to 73.3%  by July 2025In Armenian insurance market  loss ratio for OSAGO decreased to 73.3%  by July 2025
Yerevan Municipality records 88.5% budget performance in first half  of 2025 Yerevan Municipality records 88.5% budget performance in first half  of 2025 
Armenian NPP connected to country`s power grid ahead of schedule Armenian NPP connected to country`s power grid ahead of schedule 
In Armenian interbank foreign exchange market, dollar transactions decreased while ruble transactions increased from July 7-11, 2025In Armenian interbank foreign exchange market, dollar transactions decreased while ruble transactions increased from July 7-11, 2025
Seven organizations from Armenia to resume flower supplies to RussiaSeven organizations from Armenia to resume flower supplies to Russia
14,757 applications submitted under bad loan program 14,757 applications submitted under bad loan program 
Idram and Alipay+ Facilitate Cross-Border QR Payments in Armenia, Connecting Local Merchants with Global Digital Wallet UsersIdram and Alipay+ Facilitate Cross-Border QR Payments in Armenia, Connecting Local Merchants with Global Digital Wallet Users
Solid waste management program should be implemented throughout  Armenia - Vardan Kostanyan Solid waste management program should be implemented throughout  Armenia - Vardan Kostanyan 
Rossotrudnichestvo and South Caucasus Railways sign memorandum of  cooperationRossotrudnichestvo and South Caucasus Railways sign memorandum of  cooperation
Ardshinbank Participated in Tech Week Vanadzor 2025Ardshinbank Participated in Tech Week Vanadzor 2025
Armenia, WIPO discussed ways to enhance collaborationArmenia, WIPO discussed ways to enhance collaboration
Gevorg Papoyan: Effective protection of intellectual property is  crucial for sustainable economic growthGevorg Papoyan: Effective protection of intellectual property is  crucial for sustainable economic growth
Daily regulation reservoirs in Hovnanadzor to serve 9 villagesDaily regulation reservoirs in Hovnanadzor to serve 9 villages
Armenia`s government to develop cooperation with jewelry industry Armenia`s government to develop cooperation with jewelry industry 
ADB to provide Armenia with $3mln for school reconstruction in  Voskepat village ADB to provide Armenia with $3mln for school reconstruction in  Voskepat village 
Armenia`s government to direct huge funds to information and  cybersecurity Armenia`s government to direct huge funds to information and  cybersecurity 
Armenia top ratify EAEU agreement on Permissible Weights, Axle Loads and Dimensions of VehiclesArmenia top ratify EAEU agreement on Permissible Weights, Axle Loads and Dimensions of Vehicles
EIB to provide Armenia with EUR 50mln for Armenia - Resilient Syunik programme EIB to provide Armenia with EUR 50mln for Armenia - Resilient Syunik programme 
"Business Process Optimization with AI" – a Course for the Senior Management of AraratBank
IBRD to provide Armenia with EUR 96.4mln for implementation of Tourism and Regional Infrastructure Development programIBRD to provide Armenia with EUR 96.4mln for implementation of Tourism and Regional Infrastructure Development program
Armenia`s government to direct 1.189bln to co-financing of local communities development programmes Armenia`s government to direct 1.189bln to co-financing of local communities development programmes 
ANC condemns nationalization of ENA, violation of property rights ANC condemns nationalization of ENA, violation of property rights 
EAEU countries to start testing transportation digitalization in first half of 2026EAEU countries to start testing transportation digitalization in first half of 2026
Central Bank: RA Law Central Bank: RA Law "On Crypto Assets" entered into force in Armenia on July 4, 2025
Gohar Barseghyan:  EEC consistently promotes the enhancement of industrial cooperationGohar Barseghyan:  EEC consistently promotes the enhancement of industrial cooperation
Armenia`s foreign trade sees sharp decline after neutralization of diamond and gold re-export factorArmenia`s foreign trade sees sharp decline after neutralization of diamond and gold re-export factor
Every year, Lori region loses $40 million due to untapped tourism  potentialEvery year, Lori region loses $40 million due to untapped tourism  potential
We are going round in circles: Aram Kocharyan on  current IT  situation in ArmeniaWe are going round in circles: Aram Kocharyan on  current IT  situation in Armenia
Net direct foreign investments in Armenia`s economy up Net direct foreign investments in Armenia`s economy up 
RA president signs laws nationalizing ENA CJSCRA president signs laws nationalizing ENA CJSC
Responsible innovations instead of offshores - CB Responsible innovations instead of offshores - CB 
Armenia, Uruguay to increase bilateral trade turnover Armenia, Uruguay to increase bilateral trade turnover 
Armenian vice-premier takes part in EEC Council`s meeting Armenian vice-premier takes part in EEC Council`s meeting 
Yerevan to host Black Sea Trade and Development Bank`s Annual Meeting  Yerevan to host Black Sea Trade and Development Bank`s Annual Meeting  
Solid Municipal Waste Management project launched in HrazdanSolid Municipal Waste Management project launched in Hrazdan
Armenian IT sector`s output developed as compared with other regional states - expert Armenian IT sector`s output developed as compared with other regional states - expert 
Lawyer on `legal terror` surrounding ENA Lawyer on `legal terror` surrounding ENA 
AraratBank participated in the WEPs regional experience-sharing workshopAraratBank participated in the WEPs regional experience-sharing workshop
1,507 trucks with apricots leave for Russia since beginning of summer 1,507 trucks with apricots leave for Russia since beginning of summer 
TechWeek transforms Vanadzor into an innovation hubTechWeek transforms Vanadzor into an innovation hub
In Q1 2025, unemployment rate in Armenia decreased to 13.9%In Q1 2025, unemployment rate in Armenia decreased to 13.9%
Moody`s upgrades Converse Bank`s ratingsMoody`s upgrades Converse Bank`s ratings
Armenia`s industrial sector is experiencing a significant  declineArmenia`s industrial sector is experiencing a significant  decline
Power generation in Armenia increased by 3.6% in a yearPower generation in Armenia increased by 3.6% in a year
Armenia`s State Revenue Committee proposes postponing payment of  road, environmental taxes, entry duties Armenia`s State Revenue Committee proposes postponing payment of  road, environmental taxes, entry duties 
46 trucks with Armenian brandy enter Russia 46 trucks with Armenian brandy enter Russia 
Expert: Armenia has every chance to become a key regional  hub for  innovative solutionsExpert: Armenia has every chance to become a key regional  hub for  innovative solutions
IDBank issues the 3rd, 4th and 5th tranches of bonds of 2025IDBank issues the 3rd, 4th and 5th tranches of bonds of 2025
ARMSWISSBANK Launches Mastercard World – A New Premium CardARMSWISSBANK Launches Mastercard World – A New Premium Card
Ministry of Economy: Compared to 2018, job numbers in Armenia  increased by 33.9%Ministry of Economy: Compared to 2018, job numbers in Armenia  increased by 33.9%
Illegal mining in Armenia`s Syunik causes AMD 63mln damage to public Illegal mining in Armenia`s Syunik causes AMD 63mln damage to public 
Read more
Exchange rates
14.07.2025
RUB4.90-0.03
USD384.140.23
EUR449.250.34
GBP518.09-1.15
CAD280.990.62
JPY26.09-0.06
CNY53.600.04
CHF482.41-0.07