Polymetal achieves first gold production at Kutyn mine

(Sharecast News) - Mining giant Polymetal International said on Tuesday that it had achieved first gold production at its Kutyn mine in Far East Russia.

Polymetal stated that following the successful completion of construction and commissioning activities, its Kutyn heap leach facility has produced its first 6,000 ounces of gold, with production in 2022 expected to amount to 40,000 ounces.

The London-listed group added that the site's full heap leach processing capacity of 1.3m tonnes of ore per year will be reached in 2023, while processing of the refractory ore at the Albazino concentrator will commence in 2025.

Construction of the site was completed 24 months after the project's approval and six months ahead of the initial plan, thanks to "effective planning, tight project management, and creative approaches to supply chain issues".

Project capex of approximately $110.0m was 38% above plans - mostly due to expanded scope, higher fuel prices and Covid-19 impacts on logistics and labour costs.

Chief executive Vitaly Nesis said: "Remote location, severe climate, and unprecedented supply chain disruptions presented major challenges at Kutyn. The project team successfully overcame all difficulties to deliver first production six months ahead of the original schedule. This achievement underscores Polymetal's outstanding track record in project execution."

As of 0825 BST, Polymetal shares were down 0.46% at 228.94p.

Reporting by Iain Gilbert at Sharecast.com