Polymetal loses lustre with 9% fall in 2015 output

Russian miner Polymetal said 2015 gold production fell 9% to 861,000 ounces, while silver production rose 12% to 32.1m ounces.

The company reconfirmed its production guidance for 2016 and 2017, which will comprise 1.23m oz of gold equivalent this year and 1.30m oz of gold equivalent in 2017 after restatement of the gold/silver price ratio to 1/80.

It added that total cash cost guidance for 2016 remains unchanged at $525-575 per ounce and all-in sustaining cash costs of US$ 700-750 per ounce, with an update to be provided along with the preliminary financial results release in March 2016.

A further reduction of cash costs is expected from continuing devaluation of the Russian Rouble and Kazakh Tenge, Polymetal said.

"Polymetal has delivered consistent operating performance against the backdrop of weak commodities prices, maintaining robust free cash flow and dividend payments to our shareholders", said chief executive Vitaly Nesis.

"In the year ahead, we will focus on safety and consistent operational delivery at our existing mines, as well as moving Kyzyl towards production in 2018."