Share Name Share Symbol Market Type Share ISIN Share Description
Polymetal International Plc LSE:POLY London Ordinary Share JE00B6T5S470 ORD NPV
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.0% 1,272.50 1,272.00 1,272.50 1,276.00 1,265.50 1,276.00 1,273,348 16:29:44
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Industrial Metals 1,475.8 334.1 61.9 21.0 5,983

Polymetal: Ore Reserves increase at Kyzyl

11/11/2019 7:00am

UK Regulatory (RNS & others)

 Polymetal International plc (POLY) 
Polymetal: Ore Reserves increase at Kyzyl 
11-Nov-2019 / 10:00 MSK 
Dissemination of a Regulatory Announcement, transmitted by EQS Group. 
The issuer is solely responsible for the content of this announcement. 
Date         11 November 2019 
Polymetal International plc 
           Ore Reserves increase at Kyzyl 
   Polymetal is pleased to announce an 18% increase in Ore Reserves at Kyzyl 
    gold deposit to 8.5 Moz of gold in accordance with the JORC Code (2012). 
"We have concluded the first stage of extending open-pit life-of-mine at our 
       flagship operation. The next step is to estimate Ore Reserves at East 
           Bakyrchik in Q4 2020", said Vitaly Nesis, Group CEO of Polymetal. 
? The updated JORC-compliant Ore Reserve estimate as of 1 July 2019 
comprises 41.7 Mt of ore with an average grade of 6.3 g/t containing 8.5 
Moz of gold. This represents an 18% increase in gold contained in 
comparison with the reserves as at the end of 2018 1. 
? Open-pit reserves increased by 37% to 4.2 Moz of gold contained at an 
average grade of 5.7 g/t, while underground reserves were up 4% to 4.3 Moz 
of gold contained at an average grade of 7.1 g/t. 
? Total life of mine extended by 8 years (to 2047), while life of mine for 
the open pit added 5 years (to 2031) in comparison with the previous 
Feasibility Study estimate conducted in 2015 ("FS"). 
? The updated Ore Reserve estimate incorporates data from the drilling 
campaign (additional 239 diamond drill holes, 41.5 km of drilling) which 
resulted in extension of mineralization zones within the existing ore 
bodies and update of the resource model. 
? Cut-off grades decreased from 2.0 g/t to 1.0 g/t for the open pit and 
from 3.7 g/t to 3.0 g/t for the underground compared to the previous FS. 
The decline was driven by lower mining and processing costs based on 
actual operational and economic data and lower concentrate processing and 
transportation expenses which now take into account concentrate processing 
at the Amursk POX. 
? The new mining schedule assumes increased capacity of the Kyzyl 
processing plant which grew from the originally designed 1.8 Mtpa to 2.0 
Mtpa in 2019. 
           Ore Reserves (Proved + Probable) changes 
Ore Reserves    Category     01.01.2019[1] 01.07.2019 Change, % 
Open pit       Tonnage, Mt       13.6         22.9      +68% 
              Au grade, g/t       7.0         5.7       -19% 
             Au content, Moz      3.1         4.2       +37% 
Underground    Tonnage, Mt       15.1         18.8      +25% 
              Au grade, g/t       8.5         7.1       -16% 
             Au content, Moz      4.1         4.3        +4% 
Total          Tonnage, Mt       28.7         41.7      +45% 
              Au grade, g/t       7.8         6.3       -19% 
             Au content, Moz      7.2         8.5       +18% 
           Ore Reserves reconciliation, Moz 
    Ore Reserves,     Depletion Revaluation    Ore Reserves, 
     01.01.2019                                 01.07.2019 
         7.2            -0.2       +1.5             8.5 
Notes: Discrepancies in calculations are due to rounding. This note applies 
to all tables in this release. 
           ORE RESERVES 
The Ore Reserve estimate is reported in accordance with the JORC Code (2012) 
    as at 1 July 2019 using a gold price of US$ 1,200/oz and was prepared by 
  Polymetal. A cut-off grade of 1.0 g/t of gold was applied for the open pit 
and 3.0 g/t for the underground. Ore Reserves were estimated solely for Zone 
       1 of the Bakyrchik deposit, Zone 2 (East Bakyrchik) reserves were not 
           Kyzyl Ore Reserves estimate as at 1 July 2019 
Ore Reserves           Tonnage, Gold grade,  Gold content, 
                          Mt        g/t           Moz 
Open pit                 1.2        6.3           0.3 
Stockpiles               0.5        5.9           0.1 
Total Proved             1.7        6.2           0.3 
Open pit                 21.2       5.7           3.9 
Underground              18.8       7.1           4.3 
Total Probable           40.0       6.3           8.1 
Open pit                 22.5       5.7           4.1 
Underground              18.8       7.1           4.3 
Stockpiles               0.5        5.9           0.1 
Total Proved+Probable    41.7       6.3           8.5 
The Mineral Resources estimate for Zone 1 is reported in accordance with the 
   JORC Code (2012) as at 1 July 2019 using a gold price of US$ 1,200/oz and 
   was prepared by Polymetal. A cut-off grade of 1.0 g/t of gold was applied 
     for the open pit and 3.0 g/t for the underground. The Mineral Resources 
    estimate for Zone 2 was prepared by RPA Inc. in accordance with the JORC 
   Code (2012) as at 1 January 2015. Cut-off grades for the open pit and the 
 underground are 2.0 g/t and 3.7 g/t of gold, respectively. Revised estimate 
           for Zone 2 was not conducted due to the lack of material changes. 
           Kyzyl Mineral Resources estimate 
Mineral Resources          Tonnage, Gold grade,  Gold content, 
                              Mt        g/t           Moz 
Underground (Zone 1)         2.3        5.0           0.4 
Total Indicated              2.3        5.0           0.4 
Open-pit                     0.5        3.8           0.1 
Zone 1                       0.2        2.3           0.01 
Zone 2                       0.3        4.8           0.05 
Underground                  10.8       6.7           2.3 
Zone 1                       2.4        6.4           0.5 
Zone 2                       8.4        6.8           1.8 
Total Inferred               11.4       6.6           2.4 
Indicated + Inferred 
Open-pit                     0.5        3.8           0.1 
Zone 1                       0.2        2.3           0.01 
Zone 2                       0.3        4.8           0.05 
Underground                  13.1       6.4           2.7 
Zone 1                       4.7        5.7           0.9 
Zone 2                       8.4        6.8           1.8 
Total Indicated + Inferred   13.6       6.3           2.8 
           Notes: Mineral Resources are additional to Ore Reserves. 
           ABOUT KYZYL 
       Kyzyl is a world-class asset located in north-eastern Kazakhstan in a 
  traditional mining region with good infrastructure and easy access to grid 
    power and the railway. In 2014, the asset was acquired by Polymetal. The 
  initial Feasibility Study and the updated Ore Reserve and Mineral Resource 
           estimates was completed by the Company in 2015. 
         The operation comprises the Bakyrchik refractory gold deposit and a 
 state-of-the-art 2.0 Mtpa processing plant employing conventional flotation 
    technology. The ultimate product of the production facility is flotation 
 concentrate. Low carbon concentrate is sent for processing to the Company's 
 POX facility in Amursk, while the high carbon concentrate currently goes to 
      third party off-takers. With the launch of POX-2, Polymetal intends to 
           process 100% of Kyzyl concentrate in-house. 
           Competent persons 
 This estimate was prepared by employees of JSC Polymetal Management Company 
      and JSC Polymetal Engineering, subsidiaries of the Company, led by Mr. 
           Valery Tsyplakov. 
         Mr. Tsyplakov is employed full-time as the Managing Director of JSC 
Polymetal Engineering and has more than 18 years' experience in gold, silver 
      and polymetallic mining. Being a Member of the Institute of Materials, 
  Minerals & Mining (MIMMM), London, he is a Competent Person under the JORC 
   Listed below are other Competent Persons employed by the Company that are 
    responsible for relevant research on which the Mineral Resources and Ore 
           Reserves estimate is based: 
? Geology and Mineral Resources - Victor Pchelka, Head of Production and 
Geology Department, Polymetal Eurasia, PONEN, MIMMM, with 33 years' 
relevant experience; 
? Mining and Ore Reserves: Open Pit - Dmitriy Teterin, Head of Mineral 
Resources and Ore Reserves Audit Department, Polymetal Engineering, MIMMM, 
with 10 years' relevant experience; Underground - Andrei Somov, Head of 
underground mining Department, Polymetal Engineering, MIMMM, with 31 
years' relevant experience 
? Concentration and Metals - Igor Agapov, Deputy Director of Science and 
Technology, Polymetal Engineering, MIMMM, with 21 years' relevant 
All the above-mentioned Competent Persons have sufficient experience that is 
         relevant to the style of mineralisation and types of deposits under 
consideration and to the activity being undertaken to qualify as a Competent 
         Person as defined in the 2012 Edition of the 'Australasian Code for 
 Reporting of Exploration Results, Mineral Resources and Ore Reserves' (JORC 
      All Competent Persons have given their consent to the inclusion in the 
 report of the matters based on their information in the form and context in 
           which it appears. 
           About Polymetal 
    Polymetal International (LSE, MOEX: POLY, ADR: AUCOY) (together with its 
    subsidiaries - "Polymetal", the "Company", or the "Group") is the top-20 
 global gold producer and top-5 global silver producer with assets in Russia 
   and Kazakhstan. The Company combines strong growth with a robust dividend 
Media                     Investor Relations 
FTI          +44 20 3727  Polymetal 
Consulting   1000 
                          Evgeny    +44 20 7887 1475 (UK) 
Leonid Fink               Monakhov 
Viktor                    Timofey 
Pomichal                  Kulakov 
                                    +7 812 334 3666 (Russia) 
Joint Corporate Brokers 
Morgan       +44 20 7425  RBC       +44 20 7653 4000 
Stanley      8000         Europe 
Foster                    Marcus 
Brown                     Jamil 
Gordon       +44 20 7886 
Forward-looking statements 
       This release may include statements that are, or may be deemed to be, 
"forward-looking statements". These forward-looking statements speak only as 
        at the date of this release. These forward-looking statements can be 
   identified by the use of forward-looking terminology, including the words 
         "targets", "believes", "expects", "aims", "intends", "will", "may", 
   "anticipates", "would", "could" or "should" or similar expressions or, in 
each case their negative or other variations or by discussion of strategies, 
plans, objectives, goals, future events or intentions. These forward-looking 
      statements all include matters that are not historical facts. By their 
    nature, such forward-looking statements involve known and unknown risks, 
 uncertainties and other important factors beyond the company's control that 
  could cause the actual results, performance or achievements of the company 
 to be materially different from future results, performance or achievements 
           expressed or implied by such forward-looking statements. Such 
  forward-looking statements are based on numerous assumptions regarding the 
     company's present and future business strategies and the environment in 
which the company will operate in the future. Forward-looking statements are 
     not guarantees of future performance. There are many factors that could 
   cause the company's actual results, performance or achievements to differ 
     materially from those expressed in such forward-looking statements. The 
company expressly disclaims any obligation or undertaking to disseminate any 
  updates or revisions to any forward-looking statements contained herein to 
 reflect any change in the company's expectations with regard thereto or any 
  change in events, conditions or circumstances on which any such statements 
           are based. 
[1] Previous JORC-compliant estimate was prepared by RPA Inc. as at 
01.01.2015. Price: Au = US$1,200/oz. Revised estimate prepared by Polymetal 
as at 01.01.2019 accounts only for depletion. 
ISIN:          JE00B6T5S470 
Category Code: MSCM 
TIDM:          POLY 
Sequence No.:  28204 
EQS News ID:   908863 
End of Announcement EQS News Service 

(END) Dow Jones Newswires

November 11, 2019 02:00 ET (07:00 GMT)

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