DJ Polymetal: Kutyn start-up
Polymetal International plc (POLY) Polymetal: Kutyn start-up 20-Sep-2022 / 09:00 MSK Dissemination of a Regulatory Announcement, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement.
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Release time IMMEDIATE LSE, MOEX, AIX: POLY
ADR: AUCOY
Date 20 September 2022
Polymetal International plc Kutyn start-up
Polymetal announces first gold production at Kutyn mine (Amursk-Albazino hub). "Remote location, severe climate, and unprecedented supply chain disruptions presented major challenges at Kutyn. The project team successfully overcame all difficulties to deliver first production six months ahead of the original schedule. This achievement underscores Polymetal's outstanding track record in project execution", said Vitaly Nesis, Group CEO of Polymetal.
Following successful completion of construction and commissioning activities, Kutyn heap leach facility produced first 6 Koz of gold. In 2022, production is expected to amount to 40 Koz of gold. Full heap leach processing capacity of 1.3 Mtpa of ore will be reached in 2023. Processing of the refractory ore at Albazino concentrator will commence in 2025. Average annual output from 2023 to 2030 will be approximately 100 Koz of gold with average AISC of approximately USUSD 950/oz.
The construction was completed in 24 months after the Board's project approval, six months ahead of the initial plan. Accelerated development was made possible by effective planning, tight project management, and creative approaches to supply chain issues. Project CAPEX of approximately USUSD 110[1] million is USUSD 30 million (38%) above the plan. CAPEX overrun was mostly due to expanded scope (addition of refractory ore mining and ore haulage road), higher fuel prices and COVID-19 impact on logistics, labor costs.
JORC-compliant Ore Reserves at Kutyn are estimated at 12 Mt of open-pit oxide and refractory ore containing 1.1 GE Moz at gold equivalent grade of 2.9 g/t. Additional Mineral Resources amount to 2.5 Mt of ore containing 414 Koz of GE at 5.1 g/t.
Kutyn deposit is located in the Tugur-Chumikan District of the Khabarovsk Territory, Far East Russia, 114 km north-west of the Albazino mine and 600 km from Khabarovsk. The Kutyn site can be accessed using a winter road from Albazino or by sea through the seasonal port of Ulban on the Sea of Okhotsk.
Enquiries
Investor Relations
Polymetal ir@polymetalinternational.com
Evgeny Monakhov
Timofey Kulakov +44 20 7887 1475 (UK)
Kirill Kuznetsov
+7 812 334 3666 (Russia)
FORWARD-LOOKING STATEMENTS
This release may include statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements speak only as at the date of this release. These forward-looking statements can be identified by the use of forward-looking terminology, including the words "targets", "believes", "expects", "aims", "intends", "will", "may", "anticipates", "would", "could" or "should" or similar expressions or, in each case their negative or other variations or by discussion of strategies, plans, objectives, goals, future events or intentions. These forward-looking statements all include matters that are not historical facts. By their nature, such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the company's control that could cause the actual results, performance or achievements of the company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the company's present and future business strategies and the environment in which the company will operate in the future. Forward-looking statements are not guarantees of future performance. There are many factors that could cause the company's actual results, performance or achievements to differ materially from those expressed in such forward-looking statements. The company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in the company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based.
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[1] Excluding capitalized stripping and exploration costs.
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ISIN: JE00B6T5S470 Category Code: MSCM TIDM: POLY LEI Code: 213800JKJ5HJWYS4GR61 OAM Categories: 3.1. Additional regulated information required to be disclosed under the laws of a Member State Sequence No.: 189050 EQS News ID: 1445673 End of Announcement EQS News Service =------------------------------------------------------------------------------------
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(END) Dow Jones Newswires
September 20, 2022 02:00 ET (06:00 GMT)
