For some time now Polymetal International (POLY) has heralded the standout qualities of its high-grade Kyzyl project. Alongside 3.1m ounces of gold-equivalent resources, and a 33 per cent internal rate of return, the mine’s low all-in sustaining costs are expected to widengroup margins and bolster Polymetal’s income case.
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But with net debt at a multi-year high, timely commissioning has become critical. On 25 June, Kyzyl produced its first gold concentrate, one month ahead of schedule, and a full quarter ahead of the project’s original plan. Capital expenditure for the project, the biggest in Polymetal’s history, also came in below budget.
