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LONDON(Scrap Monster): Major gold miner Polymetal International is well on track to hit 2012 target of 1 million ounce gold.

The company has just announced its Q2 and H1 production figures and looks to be well on target to achieve its 2012 production aims with almost across-the-board production rises from its major operating units.

The Q2, production was up 54% year on year at 298,000 gold equivalent ounces taking the silver and copper into account - while overall gold equivalent output for the half year was 501,000 ounces.

The Q2 figures in particular do suggest that the miner is actually looking to exceed its 1 million ounce target for the year - perhaps comfortably so if its development projects start contributing as planned.

Strong Q2 figures were driven by higher grade production from Omolon, due to the processing of Sopka ore, and improved silver grades and recoveries at the company's main hub at Dukat.

Metallurgical difficulties at the new pressure oxidation (POX) plant at its Amursk facility, now in ramp up, but which achieved its first pour during Q2, have now apparently been overcome.

The company's next annual guidance figures for the year, promised for release in October alongside Q3 operating results, and which will also include guidance for 2013 and 2014, will be awaited with particular interest.

Q2 financials may not match the excellent production figures as sales lagged production due to temporary increases in work-in-progress (precipitate and concentrate) at Omolon, Albazino, and Dukat.

Increases in work-in-progress, accompanied by corresponding cash outflows, are expected to be reversed before year-end with corresponding cash inflows in the second half of 2012.

Polymetal International is a significant producer of the yellow metal. It is also one of the world's largest silver miners and a significant producer of copper.