In 2016 Polymetal will launch Svetloe field and obtain 300 kg of gold

19 May 2016

Polymetal Int (integrates the assets of JSC "Polymetal") plans in 2016 to start production in the field Svetloe (Khabarovsk region) and get by 2017 10 thousand ounces (300 kg) of gold - said in the company's presentation. Earlier it was planned to put the object into industrial operation in the third quarter of 2017, average annual production will be 70 thousand ounces (2.18 tons) of gold at total cash costs (AISC) 750-800 USD / ounces of gold. Total capital costs before operation were previously estimated at $ 90 million. According to the current expectations of the company, production at Svetloe in 2016-2023 will amount to 10 thousand ounces, 53 thousand, 90 thousand, 86 thousand, 84 thousand, 81 thousand, 38 thousand and 6 thousand ounces respectively. Total investments into the project will be about $ 70 million, 6 million of which should be invested in 2016. As it was explained to PRIME Agency in the company, the company reassessed the project in connection with new economic parameters. "In 2014, the reserves estimation at the price of $ 1,300 / ounce was 7.3 million tons of ore containing 2.8 g / t. Currently, as of January 1, 2016, it is 5.5 million tons of ore containing 3.2 g / m at a price of gold $ 1,100 / ounce".


In addition, the materials Polymetal note that in 2017 it is planned to extend / refinance the loan from Sberbank for $ 400 million. The loan was granted in 2013 for five years to finance current operations and refinance the debt; its repayment accounts for November 2018. In the second quarter of this year, the company plans to agree the terms of attracting new long-term loan with a maturity period of about 7-9 years to fund the development of Kyzyl Project, - said in the materials. Polymetal's net debt at the end of 2015 amounted to almost 1.3 billion dollars. The ratio of net debt to adjusted EBITDA is 1.97. As of the end of the last year, the company's balance contained 52 million USD. The most part of the company's debt repayment accounts for 2018 - more than 650 million dollars.

Source: RIA News