OREANDA-NEWS. January 25, 2011. JSC "Polymetal" (LSE, MICEX, RTS: PMTL) ("Polymetal" or the "Company") announced its production results for the quarter and the full year ended December 31, 2010, reported the press-centre of Polymetal.

Polymetal's 2010 production grew 25% to a record 753Koz of gold equivalent (based on 1:60Ag/Au and 5:1Cu/Au conversion ratios) with gold accounting for approximately 60% of revenues, which, in turn, increased 66% to USD922million.

New project development remains on schedule with Kubaka mill starting production in August, Albazino concentrator currently in the commissioning stage, and Mayskoye construction ramping up.

The Company produced a record 444Koz of gold in 2010 (+43% year-on-year), which is in line with both the initial (Q42009, 430-450Koz) and the updated (October 2010, 440-450Koz) guidance. All Polymetal's gold mines performed according to plan.

Annual silver production remained flat at 17.3Moz, which is less than 10% short of both the original (Q42009, 19-20Moz) and the updated (October 2010, 18.5-19Moz) guidance. The key reason behind missing these targets was underperformance at the expanded Dukat plant. The fourth quarter has shown marked improvement in recoveries at Dukat with further progress to be achieved after full ramp-up of the gravity circuit.

The Company confirms its plan to produce 620-660Koz of gold, 21-22Moz of silver, and 6.0-7.0Kt of copper, or 1,000-1,060Koz of gold equivalent (based on the same conversion ratios as above) in 2011. The production will be more weighted towards second half of the year. The key risk to this guidance remains the successful start-up and ramp-up to design parameters of the Amursk POX plant.

"2010 continued Polymetal's tradition of setting and achieving ambitious goals," said Vitaly Nesis, CEO of Polymetal.

"With the exception of short-term teething problems at the Dukat concentrator, the Company successfully met all of its major objectives, including start-up of the Kubaka mill, integration and turnaround at Varvarinskoye, and steady progress at mature assets. Albazino-Amursk remains the top management priority and the key risk for 2011".