OREANDA-NEWS. October 23, 2012. Polymetal International plc (LSE: POLY) (together with its subsidiaries, including JSC “Polymetal” – “Polymetal”, the “Company”, or the “Group”) is pleased to announce the Group’s production results for the third quarter and nine months ended September 30, 2012, reported the press-centre of Polymetal. 

HIGHLIGHTS
Polymetal has posted another strong quarter, with quarterly gold equivalent production reaching an all-time high of 317 Koz, growing 48% year-on-year and 7% quarter-on-quarter. Gold equivalent production for nine months ended 30 September 2012 was 818 Koz, up 46% year-on-year. This superior operating performance was driven by continued strong production growth at Omolon, further progress at Albazino-Amursk, and improved grade profile at Khakanja;

Sales were ahead of production, most importantly for silver, representing an expected reduction in inventory (most importantly, at Omolon and Dukat) and thus contributing to stronger operating cash flows.

Ramp-up of Amursk POX is catching up with the plan, after several unscheduled shutdowns in Q3 due to the need for additional welding work. Full ramp-up expected to be achieved in November 2012.

Based on the strong performance already achieved, the Company is revising its FY2012 production guidance to 1,050 Koz of gold equivalent, up from original 1,000 Koz. In 2013, the Company expects to produce approximately 1,200 Koz of gold equivalent, including approximately 760 - 800 Koz of gold and approximately 23 – 24 Moz of silver and 5 – 6 Kt of copper. The 2012 – 2013 production guidance is revised cumulatively down by 50 Koz of gold equivalent (approx. 2%), mostly due to the delay in the expected commissioning of Mayskoye concentrator.  Production guidance for 2014 remains unchanged at 1,400 Koz of gold equivalent.
The Board of Directors has approved changes to the Company’s dividend policy, raising minimum payout ratio to 30% of net earnings (provided that Net debt / Adjusted EBITDA ratio does not exceed 1.75), introducing interim dividends, and instituting special dividend to be considered at the end of each financial year.

“We have demonstrated another record quarterly performance this year, driven by strong operational delivery at both mature and new operations and allowing us to beat our original production guidance. Importantly, during this quarter we have essentially closed the gap between production and sales, resulting in stronger than expected cash flow performance” said Vitaly Nesis, CEO of Polymetal. “The new dividend policy adopted by the Board will ensure sound capital discipline and consistent decision-making in allocation of our financial resources”.