OREANDA-NEWS.  Polymetal International plc is pleased to announce the Group’s production results for the fourth quarter and twelve months ended December 31, 2012.

Total gold equivalent production of 1,063 Koz was up 31% compared to 2011 and exceeded the original guidance of 1 Moz by 6%. These excellent results were driven by stable performance at all mature mines, with a notable improvement achieved at Dukat, and successful ramp-up at Omolon and Albazino.

Metal sales for the full year exceeded production for both gold and silver, representing an expected de-stockpiling of concentrate and refined metals inventories (most importantly, at Dukat and Omolon) and thus contributing to stronger operating cash flows.

Annual gold production was 589 Koz, up 33% year-on-year driven mainly by the successful ramp-up at Omolon and Albazino. Annual silver production was 26.5 Moz, up 33% year-on-year as a result of higher grades and recoveries at Dukat, successful processing of high-grade Sopka ore at Omolon, and increased silver grades at Khakanja.

The Company re-confirms its 2013 production guidance of 1.2 Moz of gold equivalent. Polymetal currently views as moderate the risk of this guidance not being achieved (amounting to approximately 5% of total gold equivalent production) due to delays in ramping up to the design capacity at the POX facility.

Given current macroeconomic environment and particularly recent significant appreciation of the Russian rouble vs. the US Dollar, Polymetal expects total cash costs in 2013 to be approx. US\\$ 700-725/GE oz and capital expenditures (inclusive of exploration) of approx. US\\$ 300 million.