https://www.miningweekly.com

Polymetal buys rest of Nezhda for $185m

29th November 2018

By: Creamer Media Reporter

     

Font size: - +

Russian mining group Polymetal will start construction of the Nezhda mine in March next year, the company said on Thursday, after it announced the completion of the acquisition of the remaining 82.3% stake in the property from Ivan Kulakov for $185-million.

The Nezdha mine, which the London-listed company’s board approved earlier this month, would cost $234-million to build and would produce 180 000 oz/y for the first three years of its 25 year life and thereafter 155 000 oz/y.

"This transaction enables us to start mining at Nezhda immediately and begin construction in March 2019.  We expect to deliver first production in 2021 with a full-ramp up in 2022", affirmed Polymetal CEO Vitaly Nesis.

Nezhda project has a net present value of $302-million at a $1 200/oz gold price and a 10% discount rate, with the internal rate of return estimated to be 29%.

The property has a gold-equivalent (GE) mineral resource of 12.4-million ounces with an average GE grade of 4.5 g/t.  The ore reserves comprise 38-million tonnes at an average grade of 3.6 g/t GE for 4.4-million ounces of GE contained.  

Nezhda is Russia's fourth-largest gold deposit.

Polymetal first entered into the joint venture for the property in 2015, acquiring a 15.3% stake in the South-Verkhoyansk Mining Company, which owns the mining and exploration license for the property. In July 2017, the company has agreed to increase its stake to 24.7% with a call option to buy out the remaining 75.3% in 2018, subject to certain conditions.

Edited by Mariaan Webb
Creamer Media Senior Deputy Editor Online

Comments

The functionality you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION