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Top-10 gold and top-5 silver producer Polymetal increases reserves 10%

Mon Mar 01 2021


Russian gold and silver mining company Polymetal reported today that in 2020, the group's ore reserves increased by 10% year-on-year to 27.9 Moz of gold equivalent (GE) driven by initial ore reserve estimates at East Bakyrchik (Kyzyl), Prognoz, and Pesherny (Voro hub). The company said that this increase has more than compensated for depletion and ownership dilution at Veduga.


Share of ore reserves for open-pit mining stood at 53%, up by 2 percentage points (p.p.) year-on-year, while share of refractory reserves amounted to 72%, declining by 2 p.p. Share of silver in ore reserves increased by 5 p.p. to 11% also on the back of the significant contribution from Prognoz.


The company's mineral resources (additional to ore reserves) declined by 14% year-on-year to 21.8 Moz of GE primarily due to resource-to-reserve conversion. This conversion was partially offset by new mineral resource estimates at Albazino (Talgiy) and Veduga. Mineral resources inclusive of ore reserves were essentially stable at 49.7 Moz of GE.


The average grade in ore reserves was marginally up year-on-year and stood at 3.8 g/t of GE. Average GE grade in additional mineral resources was down 10% year-on-year. Polymetal said that its GE grades continue to be one of the highest within the sector globally.


"We delivered maiden reserve estimates at several of our projects resulting in a substantial increase in total Group Ore Reserves. We are confident in our ability to continue per share reserve accretion while maintaining conservative price assumptions", said CEO Vitaly Nesis.


Polymetal is a top-10 global gold producer and top-5 global silver producer with assets in Russia and Kazakhstan. The company combines strong growth with a robust dividend yield.