<p>Polymetal may raise its 2012 production target to reflect the stronger-than-planned performance of its Russian mines, it said on Tuesday.</p>
<p>Polymetal, which joined London's FTSE 100 index last year, said it was firmly on track to deliver on its 2012 production guidance of more than 1 million troy ounces of gold eqmaquinaria para minera minera managuauivalent thanks to the stronger than planned performance at Dukat and Khakanja deposits.</p>
<p>Updated guidance for 2012 to 2014 will be released together with third quarter operational results in mid-October, it added.</p>
<p>"It is too early to talk about it, now we are getting ahead of our plan," chief executive Vitaly Nesis told Reuters when asked if the company would raise its target.</p>
<p>"If we decide to update our plan, it can be done when our production results are clear."</p>
<p>Polymetal, controlled by Russian businessmen Alexander Nesis and Alexander Mamut along with Czech investor PPF, posted $376 million in second quarter revenues, up 19 percent year-on-year, boosted by strong gold and silver production.</p>
<p>Its second quarter gold equivalent production - a measure of gold and other metals expressed in units of gold - grew 54 percent year-on-year to 298,000 troy ounces.</p>
<p>Gold production reached 154,000 ounces, up 52 percent, while silver production jumped 63 percent to 8.1 million ounces.</p>
<p>Gold held steady at $1,622.01 an ounce on Tuesday ahead of the U.S. Federal Reserve's policy meeting, a key factor driving bullion prices.</p>
<p>Polymetal's CEO expects precious metals prices to rise if the Fed decides on a new round of economic stimulus. He also expects that gold prices may break through last year's maximum of around $2,000 per ounce by the end of this year.</p>
<p>Polymetal was one of the most active buyers of Russian precious metals assets during the financial crisis of 2008-2009. Now the company is following valuations closely again, expecting them to be hurt by the euro zone crisis.</p>
<p>"We are waiting for a further deterioration of the situation with public capital, when the valuation of assets of interest to us will come in line with our expectations," Nesis said.</p>
<p>In March he said Polymetal was eyeing acquisitions in Kazakhstan, Armenia, Ukraine, the Russian Far East and Urals.</p>
<p>Polymetal's London-listed shares were up 1.18 percent by 0821 GMT, compared with a 0.11 percent decline in the FTSE 100 .</p>