Polymetal eyes strong 2012

Russian mining giant Polymetal said it was on track to hit ambitious targets this year after significant increases in gold and silver production in the first quarter.

Gold equivalent production grew 41 per cent year-on-year to 203 thousand ounces (Koz) on the back of strong improvements at its Omolon processing hub and Dukat deposit.

An additional 32 Koz of payable gold was contained within concentrate produced at its Albazino site during the period, it added.

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In the first three months of 2012 the firm said gold production had increased 24% compared to the year before to 101 Koz, while silver production jumped 74% to 5.7 million ounces (Moz).

The company said it was "well on track" to deliver on gold equivalent production guidance of 1 Moz.

"The first quarter results, including successful start-up of production at the Amursk POX plant, achievement of design recoveries at Albazino, and smooth operation of winter road at Omolon, give us further confidence in achieving our ambitious 2012 targets," said Chief Executive Vitaly Nesis.

"The effect of these achievements will be fully visible through meaningful production growth in the second quarter," he added.

"Further during the year, we will be focusing on timely ramp-up of the POX plant, and the start-up of Mayskoye concentrator."