Polymetal, the world’s fifth largest silver producer and Russia’s third largest gold producer, is pleased to announce its Q4 and 12 month production results for the period ending 31 December, 2006.

Results overview

The 12 month results for 2006 show a 4% decrease in mined ore to 2,600,000 tonnes compared with the same period in 2005. This decrease was primarily due to a 6% drop in open pit mined ore to 2,113,000 tonnes. At the same time, ore mined from underground operations increased 5% to 487,000 tonnes. This increase was primarily due to higher mined volumes at the Company’s flagship Dukat mine.

Processed ore increased 15% for 2006 (compared to 2005) to reach 2,890,000 tonnes. This increase can primarily be attributed to two factors: the increase in production capacity from 500k to 600k tpa at Khakanja and production growth at Voro’s Stage II (primary ore processing).

During the 12 months of 2006, gold production rose 5% to 256 th. oz. Again this was primarily due to increased gold production at Vorontsovskoye, as a result of increased processing capacity at stage II of the plant.

The Company’s silver production declined 9% in the reported period to 17.3 mln. oz. This was due to lower average head grades at the Lunnoye and Khakanjinskoye deposits.

Source: official web-site of the company.