OREANDA-NEWS. January 27, 2012. JSC "Polymetal" (LSE, MICEX, RTS: PMTL) (together with its subsidiaries - "Polymetal", the "Company", or the "Group") announces its production results for the quarter and twelve months ended December 31, 2011, reported the press-centre of Polymetal.

Fourth quarter operating performance confirmed Polymetal's steady expansion progress with gold production rising 10% to 136Koz and silver production increasing 20% to 6.4Moz compared to the three months ended 30 September 2011 ("quarter-on-quarter"). Strong performance at Dukat, gains at Khakanja and successful concentrate exports at Albazino were the key drivers of this achievement.

For the full year 2011, based on 1:60 Ag/Au and 5:1 Cu/Au conversion ratios, Polymetal produced 810Koz of gold equivalent ounces, in line with the guidance of 800-850Koz updated in April 2011. Grade decline at mature operations was balanced by the start-up of new operations and successful completion of the expansion at the Dukat mill.

Annual gold production was essentially flat at 443Koz with further 28Koz of payable gold contained in Albazino concentrate prepared for processing at the Amursk POX plant. Silver production increased 15% to 19.9 Moz, an all-time Company record.

All key projects are progressing as planned with the Kubaka plant expansion completed and the POX plant approaching the first gold pour, expected in March 2012.

In 2012 the Group expects to produce 590-640Koz of gold, 21-23Moz of silver and 6-7Kt of copper and targets to increase its total annual gold equivalent production to over 1Moz (based on 1:60 Ag/Au and 5:1 Cu/Au conversion ratios).

"We are proud to complete 2011 with a strong finish in the fourth quarter," said Vitaly Nesis, CEO of Polymetal.

"Polymetal team is firmly focused on delivering further growth in 2012 driven by the start-up of the Amursk POX facility and achievement of full production capacity at Omolon".