PRESS: Russia’s Polyus to spend $650 mln/yr to raise output by ‘18

MOSCOW, Jul 19 (PRIME) -- Russian gold producer Polyus will invest U.S. $600–650 million a year in order to raise its output to 1 million ounces of gold by 2018, CEO Pavel Grachyov told business daily Vedomosti in an interview published on Tuesday.

“I can say that all brownfields have a really low prime cost, our capital expenditures in 2016–2017 – amounting to $600–650 million a year – will be the peak ones in this investment cycle and will far exceed the money we will be spending from 2018 and further on in accordance with the current pipeline of projects,” Grachyov said.

He also said that investments in the Natalka field are expected at $600 million over two years. The final cost estimate will be prepared in August, he said. The ore dressing plant will be launched in July–December 2017.

Polyus also plans to reduce the ratio between net debt and earnings before interest, taxes, depreciation and amortization (EBITDA) by raising the latter, Grachyov said.

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