Polymetal International plc (POLY)
Polymetal: Prognoz fast-track development approval

26-Aug-2021 / 09:02 MSK
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IMMEDIATE                                                         LSE, MOEX, AIX: POLY / ADR: AUCOY


26 August 2021



Polymetal International plc

Prognoz fast-track development approval

Polymetal announces that the Board of Directors has approved an accelerated development of the open-pit mine at Prognoz with ore processing at the Nezhda concentrator. First payable concentrate production is expected in Q3 2023.

"The decision to process ore from Prognoz at Nezhda ensures optimal allocation of human and financial capital within Polymetal. Fast-track development significantly reduces CAPEX requirements and project execution risks, while bringing cash flows forward and lowering environmental footprint", said Vitaly Nesis, Group CEO of Polymetal.


  • Conventional open-pit mining will commence with pre-stripping in Q3 2022, with first ore mined in Q1 2023. The annual mine capacity will amount to 250 Kt of ore with average grade of approximately 600 g/t silver (Ag).
  • Ore will be processed through the 2.2 Nezhda concentrator. Ag recovery to high-grade clean silver-lead concentrate is expected to average 89%. Ore will be trucked by winter road from Prognoz to Nezhda production site (675 km) using contractors.
  • LOM payable Ag equivalent (AgEq) in concentrate is expected to comprise 120 Moz. Average annual payable AgEq production in 2023-2041 is estimated at roughly 6.5 Moz with an average AISC of US$ 13.8/AgEq oz.
  • The project's upfront CAPEX to be incurred is estimated at US$ 105 million comprising US$ 20 million spending in 2021 for engineering and mine preparation and US$ 85 million in 2022-2024, which includes investment in mining fleet, remote site infrastructure, roads, and pre-stripping.
  • Project NPV[1] and IRR stand at US$ 154 million and 35% respectively at US$ 20/oz silver price rising to US$ 323 million and 60% at US$ 25/oz price.


  • Moving first payable production at least three years earlier enabling Polymetal to benefit from the favorable silver market.
  • Reducing project execution risks given remote location, harsh climate conditions, and likely acute deficit of personnel and contractors during the construction stage.
  • Lowering initial CAPEX while maintaining attractive unit cash costs and thus driving higher returns and faster free cash flows.
  • Materially reducing environmental footprint: 20% lower GHG intensity due to grid connection at Nezhda, 50% lower fresh water intensity.


About Polymetal 

Polymetal International plc (together with its subsidiaries - "Polymetal", the "Company", or the "Group") 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.




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This release may include statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements speak only as at the date of this release. These forward-looking statements can be identified by the use of forward-looking terminology, including the words "targets", "believes", "expects", "aims", "intends", "will", "may", "anticipates", "would", "could" or "should" or similar expressions or, in each case their negative or other variations or by discussion of strategies, plans, objectives, goals, future events or intentions. These forward-looking statements all include matters that are not historical facts. By their nature, such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the company's control that could cause the actual results, performance or achievements of the company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the company's present and future business strategies and the environment in which the company will operate in the future. Forward-looking statements are not guarantees of future performance. There are many factors that could cause the company's actual results, performance or achievements to differ materially from those expressed in such forward-looking statements. The company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in the company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based.



[1] At 10% WACC.

ISIN: JE00B6T5S470
Category Code: MSCM
LEI Code: 213800JKJ5HJWYS4GR61
OAM Categories: 3.1. Additional regulated information required to be disclosed under the laws of a Member State
Sequence No.: 120783
EQS News ID: 1228968

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