Download 2004 Annual Report - Polymetal

Khakanjinskoye (Okhotsk Mining and Geological Company)In thousands USD, except as indicated 2004 г.Direct mining expenses 12 848Stripping and mine development adjustments 4Third−party smelting, refining and transportation costs−By−product credits silver (7 449)By−product credits (217)Other 197Cash Operating Costs 5 383Royalties 2 608Production taxes 667Total Cash Costs 8 658Depreciation 5 227Depletion \ amortization−Reclamation and mine closure 55Total Production Costs 13 940By−product (method 1): Silver as a by−productProduction costs 16 324By−product credits (7 666)8 658Reported gold ounces produced 75 795Reported total cash costs per ounce 114Reported noncash costs per ounce 70Total production costs per ounce 184Note:The calculations take into account that silver is a co−product at the Khakanjinskoye deposit (according to Gold In−stitute Standards). In 2003, only mining operations took place at the Khakanjinskoye deposit; no metal productionoccurred.74 Polymetal annual report 2004