OREANDA-NEWS. August 02, 2012. JSC "Polymetal" (MICEX-RTS: PMTL) (together with its subsidiaries and holding companies - "Polymetal", the "Company", or the "Group") is pleased to announce the Group's production results for the second quarter and six months ended June 30, 2012, reported the press-centre of Polymetal.

HIGHLIGHTS
The Company demonstrated an excellent operating performance in Q2 2012, with quarterly gold equivalent production growing 54% year-on-year and reaching a new high of 298Koz. For the six month period the Group produced more than 500 Koz of gold equivalent, growth of 48% year-on-year. Omolon, now running at full capacity, and Dukat Hub were the key growth contributors, supported by a strong performance at other mines.

Sales lagged production due to temporary increases in work-in-progress (precipitate and concentrate) at Omolon, Albazino, and Dukat. These increases in work-in-progress, accompanied by corresponding cash outflows, are expected to be reversed before year-end with cash inflows in the second half of 2012.

First gold was poured at the Amursk POX plant, a major achievement for the Company and another crucial step towards full ramp-up of the facility in Q4 2012. The recovery ramp-up profile is fully in line with plans with no material metallurgical issues encountered so far.

The Company is firmly on track to deliver on its FY2012 production guidance of more than 1 Moz of gold equivalent thanks to the stronger than planned performance at Dukat and Khakanja. Updated guidance for 2012, 2013, and 2014 will be released together with Q3 operational results in mid-October.

"The first pour at Amursk and successful completion of the Omolon project are great achievements for our Company" said Vitaly Nesis, CEO of Polymetal. "We are now looking to achieve full capacity at the POX facility by year-end and to start-up Mayskoye as the next crucial steps on our growth path".