OREANDA-NEWS.  January 29, 2014. Polymetal International plc (LSE, MOEX: POLY, ADR: AUCOY) (together with its subsidiaries – “Polymetal”, the “Company”, or the “Group”) is pleased to announce the Group’s production results for the fourth quarter and twelve months ended December 31, 2013.

HIGHLIGHTS
Polymetal has exceeded its original annual production guidance and produced 1.28 Moz of gold equivalent in 2013, up 21% year-on-year. This achievement was driven by the successful ramp-up at Amursk POX and Mayskoye and strong operational delivery at the Dukat hub. Gold equivalent production for the fourth quarter was 310 Koz, up 27% year-on-year.

Annual gold production was 805 Koz, up 37% year-on-year with significant increases coming from Albazino and Mayskoye. Annual silver production was 27.2 Moz, up 3% year-on-year as increased throughput at the Dukat hub more than offset the grade-driven decline at Khakanja.

The Amursk POX plant successfully delivered a full quarter at design throughput and recovery (averaging 93% in Q4), an important strategic milestone for the Company which now possesses a unique competitive advantage in the FSU.

The Company successfully progressed with scheduled stockpile reductions in Q4, with total gold equivalent sales significantly exceeding production by 93 Koz. De-stockpiling was driven mainly by the Dukat hub and Albazino.

Positive cash flows resulted in a further decrease in net debt by USD 138 million during the quarter, to USD 1,045 million, driven by continued strong operating cash flow and decreased capital spending.

The Company re-iterates its production guidance of 1.3 Moz of gold equivalent for 2014 and 1.35 Moz for 2015. In 2014, Polymetal expects total cash costs of USD 700-750 / gold equivalent (“GE”) oz, all-in sustaining cash costs of USD 975-1025 /GE oz, and capital expenditure of USD 250 million (including exploration and capitalised stripping).

“Polymetal has beaten its original production guidance for the second consecutive year”, said Vitaly Nesis, CEO of Polymetal, commenting on the results. “Despite challenging market conditions the Company continues to generate strong free cash flows and retains flexibility for further growth opportunities”.