UPDATE 1-Russian miner Polymetal boosts H1 revenue 88 pct

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MOSCOW, July 23 (Reuters) - Russian miner Polymetal (PMTLq.L) said on Wednesday first-half revenue rose 88 percent to $258 million on higher precious metal prices and the elimination of its hedge position on silver sales. Polymetal, Russia's top silver and third-largest gold miner, said in a statement gold production rose 20 percent year-on-year to 136,000 ounces in the first six months of 2008. Silver sales rose 11 percent to 8.8 million ounces.

Polymetal repeated its full-year 2008 production targets of 250,000-270,000 ounces of gold and 17 million to 18 million ounces of silver.

"We are starting to deliver on our expansion projects while continuing to focus on cost performance by concentrating on grade as the key profitability driver," Chief Executive Vitaly Nesis said in the statement.

"In 2008 we expect to demonstrate the strongest operational and financial performance in Polymetal's history."

Polymetal's owners include businessmen Alexander Nesis and Alexander Mamut and Czech investment fund PPF Group. The three entities acquired a 68 percent stake in June from former owner, billionaire Suleiman Kerimov.

Polymetal swung to a $22.8 million net loss in 2007 from a $61.7 million profit a year earlier on higher costs and a hedge that restricted its exposure to rising silver prices.

To see Polymetal's regulatory release on H1 results, please double-click on [ID:nRnsW6708Z]. (Reporting by Robin Paxton and Aleksandras Budrys; editing by Sue Thomas)