Polymetal International PLC Polymetal secures offtake for Kyzyl concentrate (4917F)
February 21 2018 - 1:00AM
UK Regulatory
TIDMPOLY
RNS Number : 4917F
Polymetal International PLC
21 February 2018
Release IMMEDIATE
time
Date 21 February 2018
Polymetal International plc
Polymetal secures offtake for Kyzyl concentrate
Polymetal International plc (LSE, MOEX: POLY; ADR: AUCOY)
(together with its subsidiaries - "Polymetal", the "Company", or
the "Group") has signed its first offtake contract for Kyzyl
concentrate.
The concentrate buyer under the offtake agreement is one of
Polymetal's established trading partners, which has purchased
significant volumes of Mayskoye concentrate during the last two
years. Under the agreement, the buyer will purchase Kyzyl
high-carbon concentrate (50% of forecast Kyzyl production in 2018).
Polymetal has the contractual option to increase the amount up to
100% of all annual concentrate production. The Company plans to
process low-carbon concentrate at the debottlenecked Amursk POX
facility, but retains the flexibility to direct this material to
offtake.
Commercial terms of the offtake agreement compare favorably with
management's original expectations, with the percentage of payable
gold in concentrate in line with the project feasibility study, and
a better treatment charge than in the recent Mayskoye contracts.
Under the terms of the contract, Polymetal will deliver the
concentrate from Kyzyl to the seaport of Vladivostok (approximately
6 thousand km via railway). The buyer will then be responsible for
shipping the concentrate for further processing at roasters in
Eastern China or elsewhere.
"Securing offtake for Kyzyl concentrate at good terms is an
important milestone for the project", said Vitaly Nesis, Group CEO
of Polymetal. "This ensures the asset will generate significant
free cash flows almost immediately after the start of concentrate
production".
Enquiries
Media Investor Relations
------------------ ------------------ ----------------------------------------------------
FTI Consulting +44 20 3727 1000 Polymetal ir@polymetalinternational.com
Leonid Fink Evgenia Onuschenko +44 20 7016 9505 (UK)
Viktor Pomichal Maryana Nesis
Michael Vasiliev +7 812 334 3666 (Russia)
------------------ ------------------ -------------------- ------------------------------
Joint Corporate Brokers
-------------------------------------- ----------------------------------------------------
Morgan Stanley
Andrew Foster
Richard Brown +44 20 7425 8000
Panmure Gordon RBC Europe Limited
Adam James Tristan Lovegrove
James Stearns +44 20 7886 2500 Marcus Jackson +44 20 7653 4000
------------------ ------------------ -------------------- ------------------------------
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