Polymetal starts Kazakhstan gold mine ahead of schedule and under budget

Polymetal International said on Tuesday that it has started up its new Kyzyl mine in Kazakhstan ahead of schedule and below budget.

The mine successfully produced first gold concentrate on Monday and the company achieved the start-up of the concentrator a quarter ahead of the original schedule that was announced in 2014 and a month earlier compared with the January 2018 updated plan.

In addition, Polymetal said project capex is expected to be around 3% under the original $325m budget, inclusive of 62m tonnes of pre-stripping.

The group plans to produce 80,000 troy ounces of payable gold this year, ramping up production to 280,000 in 2019 and 330,000 thereafter.

Group chief executive officer Vitaly Nesis said: "Polymetal is delighted and proud to successfully complete the largest development project in the company's history ahead of time and below budget. Significant cash flow and net income contributions from Kyzyl should start in Q4 2018."