The year-on-year decrease is due to pre-scheduled reduction in gold production at Olimpiada mine in the Krasnoyarsk Region related to the preparation for the launch of a new mill there.
During the first six months of the year, Polyus Gold's production units mined 5.6 million tons of ore, down 12.8% on January-June 2006. Processed ore amounted to 4.6 million tons, a 14% increase.
Commenting of the company's production results, General Director Pavel Skitovich said: "We are satisfied with the Group's performance in the period under review. The achieved results give us grounds to confirm our previously stated production target of 1.2 million ounces of refined gold for the full year 2007. Excellent results were shown by alluvial operations where production targets were exceeded substantially."
Polyus Gold assets include gold deposits in the Krasnoyarsk Territory and the Irkutsk Region in Siberia, and the Republic of Sakha (Yakutia) and the Magadan Region in the Far East.
The company's net profit, calculated to International Financial Reporting Standards (IFRS), increased 930%, year-on-year, in 2006 to $1.2 billion.
