Polymetal raises ore reserve estimate after 'successful' exploration results

Precious metals miner Polymetal bumped up its estimate of ore reserves for 2019 on the back of its "successful" exploration results.

The group said that its estimated ore reserves as at 31 December had increased by 5% versus the previous year to reach 25.2m ounces of gold equivalent.

That was split between 23.7m ounces of gold and 116m ounces of silver, with the former up by 6% on a year ago and the former down by 14%.

The average reserve grade however dipped 2% to 3.7 grammes per tonne, although Polymetal highlighted that "it continues to be one of the highest within the sector globally".

And the gold equivalent ore reserves per share also improved by 5%.

Polymetal also maintained "conservative" price assumptions for both the Ore Reserve and Mineral Resource estimates of $1,200/oz. for gold and $15/oz. for silver.

198 kilometres of exploration drilling were conducted in 2019 with drilling expenses amounting to $18.1m.

Looking ahead, Polymetal said it was planning further cooperation with junior exploration companies in 2020 and looking to enter into several new strategic partnerships.

It also listed among its goals the preparation of initial ore reserve estimates at Kyzyl, Prognoz and for Voro refractory ore, alongside the completion of an ore reserve estimate at Veduga, an initial mineral estimate at Albazino and upgrading mineral resources categories at Elevator.

As of 1509 GMT, shares of Polymetal were dipping 0.34% to 1,304.0p.