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News and press-releases

25.10.2016

"Gold of Kamchatka" increased its gold output by 179% in Q3

Over the 3rd quarter, "Gold of Kamchatka" produced 40.5k troy ounces of gold and 54.6k troy ounces of silver. The majority of precious metal was provided by Ametistovoye Plant commissioned in September 2015.

In Q3 2016, the plants of "Gold of Kamchatka" group produced 40.5k troy oz of gold (1258 kg), which is 179% more than in the same period last year, and 54.6k troy oz of silver (+574%).

Over nine months, the enterprises processed 534.2k tons of ore.

The key growth factor of the company's total output volumes is the start of gold production at Ametistovoye plant in September 2015.

In Q3, "Gold of Kamchatka" sold 46.1k troy ounces of gold (275% more than in the same period of 2015) at an average price of USD 1337 per ounce. In Q2, it sold 43.2k troy oz of gold at an average price of USD 1265.5.

The company's ongoing development trend confirms the predicted output volumes of over 5 tons of gold in 2016.

About Ametistovoye plant:

Construction of Ametistovoye mining and processing plant, which began in 2011, has brought about the largest mining enterprise in Kamchatka with an expected gold output of approx. 4 tons. It is designed to operate for 15 years at the least: the deposit's mineral reserve base is 51.8 tons of gold and 177.8 tons of silver, with a potential increment estimated at 50 tons as a minimum.

In October 2015 at MINEX, Russia's largest mining forum, Ametistovoye MPP was nominated as one of the best investment projects of 2015, and as soon as in January 2016 the enterprise made its first ton of gold.

In September 2016, Ametistovoye was the winner in "The Mining Project of the Year" of the same MINEX forum.

About us:

"Gold of Kamchatka" is one of the 10 largest gold mining companies in Russia, member of Renova Group. Our company was the first to begin mining gold ore in Kamchatsky Krai, and today is the biggest producer of the metal in the region.

The company holds 9 licenses for development of gold ore deposits of Kamchatka with a total resource base of over 12M troy ounces (more than 375 tons) of gold.

"Gold of Kamchatka" management has developed and implemented a long-range exploration program provided with all necessary licenses, which warrants continuous expansion of the resource base.

One of the fundamental principles of "Gold of Kamchatka" business is sustainable natural resource management. The purpose of the company's environmental policy is to ensure caring attitude to the region's unique nature, increase the capitalization of its mining enterprises through full compliance with Kamchatka-specific environmental safety standards.

"Gold of Kamchatka" is the biggest taxpayer in the territory – several million of rubles will go to the public coffers in 2016; in addition, over 1700 jobs have been created by the company in the peninsula.

"Gold of Kamchatka", jointly with the Far East Development Fund, is working on development of the transport infrastructure.