OREANDA-NEWS. August 05, 2013. 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 second quarter and six months ended June 30, 2013.

HIGHLIGHTS

Total gold equivalent production for the first half of the year was 559 Koz, up 11% compared to the first half of 2012 driven by contributions from the Amursk POX plant and the commencement of seasonal concentrate shipments to off-takers at Albazino. Gold equivalent production for the second quarter was an all-time record of 323 Koz, up 9% year-on-year.

The implementation of corrective measures at the Amursk POX plant is progressing on schedule. The long maintenance shutdown was successfully completed in early July. Currently, daily concentrate throughput stands at 85-90% of design capacity while recoveries in July are averaging 86-88%.

The Mayskoye concentrator was started up in April and is currently making solid progress towards full capacity by October. Concentrate shipment to off-takers will commence in early August.

As a result of the strategic review, Polymetal is implementing measures aimed at maintaining free cash flow generation and capacity to pay dividends in the current market environment. Open-pit mining has been suspended at Birkachan (Omolon hub), and mining volumes have been re-allocated within the Omolon and Khakanja hubs.

The Company is currently testing its assets for impairment at lower commodity prices in accordance with IFRS requirements. Polymetal expects a non-cash impairment charge to be recorded in the 1H financial statements, mostly representing the write-off of goodwill and some low-grade ore stockpiles. The total pre-tax value of impairment charges is expected to be between US\\$280 and US\\$340 million, subject to ongoing audit review.

Polymetal remains on track to deliver its annual gold equivalent production guidance of 1.2 Moz in 2013, with further production growth in the second half of the year to be driven by the commencement of sales of Mayskoye concentrate, and continued improvement of throughput and recoveries at the Amursk POX.

“We have achieved solid operating results and are now well positioned to deliver on our annual production targets”, said Vitaly Nesis, CEO of Polymetal, commenting on the results. “Our key growth projects, Mayskoye and Amursk POX, are both on track to achieve design capacity and will further contribute to production growth in the second half of the year”.