(In second paragraph corrects to 2013 from 2102)
* Q3 gold equivalent output surges 48 pct to 818,000 troy oz
* Expects 2012 output of 1.1 mln troy ounces of gold equiv
* Cuts 2013 forecast to 1.2 million troy ounces
* To raise dividend payout ratio to match peers - CEO
* Shares down 0.5 pct percent
By Alexei Anishchuk and Andrey Kuzmin
MOSCOW, Oct 17 Russian precious metals miner
Polymetal International Plc has suffered a delay in
starting production at a gold deposit in the Chukotka peninsula
in Russia's far east, forcing it to cut the amount of gold it
expects to produce next year.
Polymetal, controlled by entrepreneurs Alexander Nesis and
Alexander Mamut alongside Czech private equity investor PPF,
revised down its production guidance for 2013 by 100,000 troy
ounces, or roughly 7.7 percent, mostly due to a delay in the
commissioning of its Mayskoye gold concentrator, previously
expected to be operational in 2012.
The downgrade took the shine off a results statement in
which Polymetal raised its 2012 output guidance after a strong
It said expected output of 1.1 million troy ounces this year
of gold equivalent - a measure of gold and other metals
expressed in units of gold - up from a previous estimate of 1
million troy ounces.
"This (delay) slightly spoiled the festive mood from the
strong third-quarter results," said analyst Nikolai Sosnovsky at
VTB-Capital. "It will unlikely cause damage on a net basis, but
may be taken as an excuse by investors to sell (Polymetal) stock
on the currently high level."
Shares in the company, which joined London's FTSE 100
index last year, were down 0.5 percent at 11.54 pounds
by 0831 GMT, having risen 53 percent since June 1, propelled by
high gold prices.
"We have demonstrated another record quarterly performance
this year, driven by strong operational delivery at both mature
and new operations and allowing us to beat our original
production guidance," CEO Vitaly Nesis said in a statement.
Its third quarter, gold equivalent production surged 48
percent to 818,000 troy ounces compared with the same period
The company said it expected to produce 1.2 million troy
ounces of gold equivalent in 2013, including between 760,000 and
800,000 troy ounces of gold and 23 to 24 million ounces of
silver and 5,000 to 6,000 tonnes of copper.
Polymetal also said it would raise its dividend payout ratio
to 30 percent of net earnings from an earlier announced 20
percent, saying this would bring it into line with global
The group kept its 2014 production guidance unchanged at 1.4
million troy ounces of gold equivalent.
(Editing by Megan Davies and David Holmes)