Polymetal 2Q Gold Output Up 61% On Year To 109,000 Ounces

MOSCOW, Jul 19, 2010 (Dow Jones Commodities News via Comtex) -- Russian precious metals miner OAO Polymetal (PMTL.RS) produced 109,000 troy ounces of gold in the second quarter of 2010, up 61% from 68,000 ounces in the same period a year earlier, the company said Monday.

Polymetal's silver production in the period rose 13% to 4.7 million ounces from 4.2 million ounces in the second quarter of 2009.

The company attributed gold production growth to increased throughputs at Dukat and Voro projects, higher grades at Voro and Khakanja, and contribution from Varvarinskoye.

"In the second quarter of 2010 we saw sustained and stable production growth across our operations," said Vitaly Nesis, chief executive of Polymetal.

Polymetal said all its development projects remain on schedule with start-up of Albazino and Amursk planned for the fourth quarter of 2010 and second quarter of 2011 respectively.

It reiterated guidance for 2010: gold production of 430,000 ounces to 450,000 ounces, silver production of 19 million to 20 million ounces, and copper production of 4,000 metric tons to 5,000 tons.

Polymetal has said that it wants to reach annual gold equivalent production of 1.2 million ounces by 2012.