"Remote location, severe climate, and unprecedented supply chain disruptions presented major challenges at Kutyn," group CEO Vitaly Nesis said.
Polymetal said that through effective planning, tight project management, and creative approaches to the supply chain issue, the development was accelerated with construction completed 24 months after project approval.
Project capital expenditure of about US$110 million ran about $30 million above plan, mostly due to the addition of refractory ore mining and an ore haulage road, higher fuel prices, and Covid-19 impacts on logistics and labour costs, the company said.
Kutyn's heap leach facility produced 6,000 ounces of gold.
For this year, production is expected to amount to 40,000oz with full heap leach processing capacity standing at 1.3 million tonnes per annum of ore due to be reached next year.
The company said that processing of the refractory ore at the Albazino concentrator will commence in 2025 and the average annual output from 2023 to 2030 will be about 100,000oz with average all-in sustaining costs of about $950/oz.
The Kutyn deposit is in the Tugur-Chumikan District of the Khabarovsk Territory, 114 kilometres north-west of the Albazino mine and 600km from Khabarovsk.
The site can be accessed using a winter road from Albazino or by sea through the seasonal port of Ulban on the Sea of Okhotsk.
The London-listed company itself has not faced any sanctions by western countries in relation to Russia's war on Ukraine but it has seen sanction-related impacts on sales, procurement and logistics.
Polymetal's share price fell from more than £10 (US$11.38) to below £2.5 following Russia's February invasion of Ukraine. At 20 September, the company's share price was £2.27.
