Download 2004 Annual Report - Polymetal

Vorontsovskoye (Northern Urals Gold)In thousands USD, except as indicated 2004 2003Direct mining expenses 16 954 12 578Stripping and mine development adjustments − −Third−party smelting, refining and transportation costsBy−product credits silver (407) (345)By−product credits (154) (892)Other 139 17Cash Operating Costs 16 532 11 358Royalties 1 664 937Production taxes 88 89Total Cash Costs 18 283 12 384Depreciation 3 526 3 158Depletion \ amortization − −Reclamation and mine closure 21 17Total Production Costs 21 830 15 559By−product (method 1): Silver as a by−productProduction costs 18 845 13 621By−product credits (561) (1 237)18 283 12 384Reported gold ounces produced 82 742 95 351Reported total cash costs per ounce 221 130Reported noncash costs per ounce 43 33Total production costs per ounce 264 163Note:The calculations take into account that silver is a co−product at the Vorontsovskoye deposit (according to GoldInstitute Standards).Appendix #2: Production costs by Gold Institute Standard73