Russia Polymetal Q1 2008 gold, silver output up

MOSCOW, April 21 (Reuters) - Polymetal (PMTLq.L), Russia's top silver miner, said on Monday its output of the metal rose by 32 percent in the first quarter of 2008 to 4.7 million ounces due to improved ore grades and increased ore extraction.

Gold output rose by 8 percent to 60,000 ounces in the first three months of this year from year ago volumes. Gold sales rose by 11 percent to 53,000 ounces and silver sales more than doubled to 3.4 million ounces.

Revenues rose 100 percent to $107,500 on increased sales.

"A sharp increase in silver sales occurred as annual export licences for this metal were issued by the state earlier than in the previous year," a Polymetal statement said.

The company said both gold and silver sales lagged production since refineries did not release bullion in January because of scheduled accounting procedures.

It added that the company expected to level out production and sales throughout the year.

Polymetal confirmed it expected its output in the whole of 2008 to be 250,000-270,000 ounces of gold and 17-18 million ounces of silver.

St Petersburg-based Polymetal is controlled by Nafta Moskva, an investment company owned by Suleiman Kerimov, a deputy in Russia's State Duma, the lower house of parliament.

It produced 242,000 ounces of gold in 2007, making it Russia's third-largest producer, and 15.9 million ounces of silver.

(Reporting by Aleksandras Budrys; editing by Chris Johnson)