Volumes of ore processing at Polymetal Kapan mine increased by 34% in first quarter of 2018

ArmInfo. The Kapan Mining and Processing Enterprise, a member of the Polymetal International plc group of companies, processed 154,000 tonnes of ore in the first 3 months of 2018, a 34% increase compared to the same period last year. The volume of production for the quarter amounted to 157 thousand tons of ore, which is 36% higher than in the previous year. This is stated in the company's report on production results for the first quarter of 2018.

According to the report, the gold content per tonne of processed ore in the first quarter was 1.8 grams, which is 13% lower compared to the results of the first quarter of 2017, the silver content was 33 g. (-24%), copper - 0.30% (+ 11%) and zinc - 1.31% (-1%). At the same time, gold recovery ratio was 81.9% (-1%), silver 81.7% (-2%), copper 94.5% (+ 4%) and zinc 87.5% (-1%). As a result, in the first quarter gold production 6.4 thousand ounces (+ 12%), silver - 0.1 million ounces (-1%), copper - 0.4 thousand tons (+ 48%) and zinc - 1.3 thousand tons (+ 28%).

The report notes that in the first quarter Kapan continued to improve its production performance and produced 12 thousand ounces of gold equivalent, which is 18% higher compared to the previous year. This was mainly due to the growth in processing volumes against the backdrop of continued implementation of measures to increase the productivity of the underground mine. In particular, underground penetration grew by 61% after the mine personnel completely switched from manual drilling to mechanized drilling. The content decreased due to the fact that due to security problems, the Company phased out the manual seizure with storekeeping, which provided minimal dilution.

Polymetal started its activity in Armenia in 2015 with the acquisition of shares of Lichkvaz, which has the right to use subsoil in relation to the gold deposit of Lichkvaz-Tey. Kapan company acquired in April 2016.  The plant includes an underground mine, a processing plant and a flotation infrastructure facilities. Works are carried out on the Lichkvaz, aimed at expanding the gallery for the subsequent drilling of preparatory and threaded workings in the current year.

"We started 2018 with stable results in all our enterprises," said Vitaly Nesis, CEO of Polymetal Group. In the first quarter of 2018 Polymetal produced 295 thousand ounces of gold equivalent, which is 5% higher compared to the same period last year. Quarterly gold production increased by 8% compared to last year - up to 214 thousand ounces, and silver production decreased by 3% - to 6.0 million ounces.

Revenues in the first quarter of 2018 increased by 19% compared to the first quarter of 2017 to US $ 354 million due to increased sales volumes, higher metal prices and a reduced effect of seasonal closure of refineries (compared to the previous year). Polymetal confirms the production plan for 2018 at 1.55 million ounces, as well as a cash outlook of US $ 650-700 / oz of gold equivalent and total cash costs of US $ 875- 925/ounce of gold equivalent.

Polymetal - 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 the development of ore deposits - from geological exploration 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).