Polymetal likely to cut 2013 capex by 16%, expects reserves upgrade

Polymetal International is likely to cut its capital expenditure by 16% in 2013 to USD 210 million-USD 250 million, provided no new assets will be purchased by the company, Polymetal's CEO Vitaly Nesis said in an interview.

For this year, capex of USD 250 million-USD 300 million has been planned, with USD 90 million allocated for the development of the Mayskoe gold deposit in the Chukotka region.

Around USD 75 million will be used for exploration this year. In 2013, the exploration budget is likely to remain at the same level.

Nesis said that the company expects an increment in reserves and resources at several deposits to be announced in December this year. The most significant upgrade will be announced for the Albazino deposit.

An increase in reserves is also expected to occur in 2013.

Source (Russian): Prime Gold