Polymetal says ore reserves increased in 2021

Polymetal International said its ore reserves increased in 2021 as the Russian miner discovered more stores of precious metals.

The group ore reserve rose 7% to 30 Moz of gold equivalent due to successful near-mine exploration of Nezhda, Veduga, and Kutyn at its Albazino hub in Russia and initial reserve estimates at other sites.

The reserve replacement ratio was 208% and average mine life increased 11% to 16 years. Mineral resources rose 13% to 24.6 Moz.

"In 2021, exploration success and technical innovation have more than offset depletion and resulted in a significant ore reserve increase", Chief Executive Vitaly Nesis said."Our steady investment in exploration also secured the expansion of mineral resources which ensures Polymetal's consistent long-term growth".

The FTSE 100 group's shares rose 1.6% to 355.5p at 08:29 GMT. The shares more than halved on Monday on concerns about Russia's invasion of Ukraine and resulting economic sanctions. Polymetal's mines are in Russia and Kazakhstan.

Polymetal said on Thursday that its mines were operating as normal and that it did not expect to be targeted by sanctions. But western sanctions against Russia have been more severe than many expected and President Putin has raised the stakes by threatening to use nuclear weapons if the west intervenes.