Download 2004 Annual Report - Polymetal

Dukat and Lunnoye (Magadan Silver, Silver Territoty)In thousands USD, except as indicated 2004 2003Direct mining expenses 50,603 31,527Stripping and mine development adjustments 228 549Third−party smelting, refining and transportation costs − −By−product credits (32,300) (12,601)Other − 139Cash Operating Costs 18,532 19,614Royalties 8,038 5,254Production taxes 1,910 66Total Cash Costs 28,480 24,934Depreciation 3,491 2,945Depletion \ amortization − −Reclamation and mine closure 11 17Total Production Costs 31,982 27,896By−product (method 1): Gold as a by−productProduction costs 60,780 37,535By−product credits (32,300) (12,601)28,480 24,934Reported silver ounces produced 16,933,856 9,765,675Reported total cash costs per ounce 1.68 2.55Reported noncash costs per ounce 0.21 0.30Total production costs per ounce 1.89 2.86NotePrecious metals production at the Dukat and Lunnoye deposits is a single technological process. The above figuresare calculated for both deposits together. Silver is a co−product at the deposit. Calculations are[This was into ac−count during calculations] based on Gold Institute Standards.Appendix #2: Production costs by Gold Institute Standard75