Polymetal buoyed as revenues jump 64pc

City A.M. Reporter
RUSSIAN precious metals miner Polymetal yesterday reported a 64 per cent year-on-year rise in first quarter revenue to $377m (£238m) thanks to rising gold and silver production.

First quarter gold equivalent production – a measurement of gold and other metals expressed in units of gold – grew 41 per cent year-on-year to 203,000 troy ounces, said Polymetal, controlled by Alexander Nesis and Alexander Mamut with Czech investor PPF.

Gold production reached 101,000 ounces and was up 24 per cent, while silver production jumped 74 per cent to 5.7m ounces.

The company, which joined the FTSE 100 index last year, said it was on track to deliver on its 2012 gold equivalent production target of 1m ounces and expects to increase production in the second quarter.

Polymetal is the largest silver and fifth largest gold producer in Russia, whose companies have been increasingly seeking London listings.

Chief executive Vitaly Nesis said in a statement that there would be meaningful production growth in the second quarter.

Polymetal said earlier its 2012 gold output would be between 590,000 and 640,000 ounces, up from 443,000 ounces last year.

Silver output was expected to be between 21m and 23m ounces, up from 19.9m.

Polymetal owns gold and silver mines and carries out exploration activities in four regions of Russia – Magadan, Khabarovsk, Sverdlovsk and Chukotka.