Monday, October 16 2017 17:56

ArmInfo. The Kapan Mining and Processing Combine, part of the Polymetal International plc group of companies, processed 389,000 tons of ore over 9 months of 2017.  Only in the III quarter the processing volumes were 143  thousand tons against 116 thousand tons for the same period last year. This is stated in the company's report on the production results of the third quarter of 2017.

According to the report, the gold content in tone of ore in the third quarter was 2.0 grams, which is 15% lower compared to the results of the third quarter of 2016, the silver content was 35 g. (-27%), copper - 0.27% (-14%) and zinc - 1.32% (-17%). At the same time, gold recovery ratio was 84.6% (-1%), silver 81.6% (-3%), copper 92.5% (+ 1%) and zinc 91.4% (0%). As a result, gold production in the third quarter amounted to 6.7 thousand ounces (for the first 9 months of 2017 - 21.1 thousand ounces), silver - 0.1 million ounces (0.4 million ounces), copper - 0.3 thousand tons (0.9 thousand tons) and zinc - 1.3 thousand tons (3.6 thousand tons).

During the third quarter, the report reads, 6.7 thousand ounces of gold were produced in Kapan, which is 4% more than in the same period last year. This was due to the increase in processing volumes against the backdrop of continued implementation of measures to increase the productivity of the underground mine.  In August, the concentrator in Kapan set a new record for productivity, processing 51 thousand tons of ore in one month.

In the first 9 months of 2017, the Shahumyan deposit exploited 12,270 meters of mining work (underground penetration), which is + 107% higher than in the same period last year. In just 9 months, 399 thousand tons of metal ore were mined. Only in the III quarter of the volume of production amounted to 149 thousand tons, which is 33% higher than the same period in 2016.

"We achieved excellent operating results in the third quarter, and we confirm the production plan for the year and the forecast in terms of costs," said Vitaly Nesis, Polymetal Group Chief Executive Officer.  In the third quarter of 2017 Polymetal produced a record 470 thousand ounces in gold equivalent, which is 26% more than in the previous year, and for the first 9 months at the company's enterprises, 1,028 thousand ounces of gold equivalent were produced, which by 15% higher compared to the previous year and corresponds to the production plan for 2017 in the amount of 1.4 million ounces of gold equivalent.

The company Polymetal began its activities in Armenia in 2015 with the acquisition of the gold deposit Lichkvaz-Tey in the south, in the Syunik region. The company operates a concentrator in Kapan, which it acquired in April 2016.

Polymetal - one of the world's largest producers of primary silver is one of the three leading gold mining companies in Russia. It conducts extraction of precious metals and geological exploration in Russia, Kazakhstan and Armenia. Polymetal Int independently carries out the whole complex of works on development of ore deposits - from geological exploration to operation. The key element of the strategy is the creation of processing centers (hubs), which allow the most effective and responsible use of financial and human resources, contribute to achieving higher returns on invested capital. In November 2011, Polymetal Int was the first Russian company to receive a premium listing on the London Stock Exchange (ticker POLY).

We note that the final beneficiary of about 27% of the share capital of Polymetal (LSE, Moscow Exchange:  POLY, ADR: AUCOY) is the Alexander Group of ICTs Nesis, 13% of the company belongs to the Czech PPF Group NV Petr Kellner. In addition, about 1% of the authorized capital controls the management of the company and directors, 19% - private individuals and 40% - individual investors.