Polymetal International plc (POLY.L) reported signing two export sales contracts with Chinese off-takers for a total volume of up to 50 Kt of refractory gold concentrate produced at the Mayskoye mine, to be delivered in 2013.
As per the first of these contracts, the company would sell 15 Kt of concentrate, with the option to increase this volume to up to 35 Kt at Polymetal's discretion. The first shipment under this contract is expected in late July - early August 2013, immediately after the start of navigation at the port of Pevek.
Pursuant to the second contract, Polymetal would sell 5 Kt of concentrate with the option of selling up to an additional 10 Kt of concentrate. The company expects the first shipment under this contract to happen in late August - early September 2013.
The average grade in the concentrate to be sold in 2013 is likely to be about 55g/t gold. The company believes that the extra cost of selling the Mayskoye concentrate to off-takers, versus processing it at the Amursk pressure oxidation facility, is about $250 per ounce of gold.
For comments and feedback: editorial@rttnews.com