Polymetal International announces the signing of two export contracts for the sale to China of hard deposits of gold concentrate from the May, totaling up to 50 tons, the delivery of which will be realized in 2013.
In accordance with the terms of the first contract company sells 15 tonnes of concentrate, with the possibility to increase up to 35 tons at the discretion of Polymetal. The first delivery under the contract is expected in late July — early August 2013, just after the beginning of navigation in the port Pevek.
Under the second contract (signed with another customer) Polymetal will sell 5 million tonnes of concentrate with the ability to deliver up to an additional 10 tons of concentrate. The company expects the first shipment under this contract will be performed at the end of August — beginning of September 2013.
Average gold realizable for 2013 concentrate is approximately 55 g / t According to the company, the sale of concentrate with Maya will be more expensive to own processing Amur MMC about US $ 250 per ounce of gold.
Polymetal believes that the conclusion of this year, export contracts with several customers, creates an important strategic optionality: In the future, this would lead to a more favorable long-term conditions, the discussion of which is planned for the I quarter of 2014. With the same objective in the management of the Company is currently negotiating with two buyers outside of China for the supply of concentrate this year. It is expected that a final decision will be made at the end of June 2013.
— This will start to generate free cash flow in our field is the youngest in the III quarter, as well as eliminate one of the major uncertainties in the project to increase the Albazino — Vitaly Nesis, CEO of Polymetal.