UPDATE 1-Polymetal defers decisions on projects after gold slump

* Polymetal says Q4 revenue down 14 pct, y-on-y

* Says 2014 total cash costs to remain flat y-on-y

* Says on track to produce 1.30 mln ounces in 2014

* Shares up 2.8 pct, on a par with FTSE Gold Mines Index

(Adds details, quotes, context)

MOSCOW, Jan 21 (Reuters) - Russian precious metals miner Polymetal POLYP.L has delayed a decision to go ahead with several projects and will keep production flat this year due to weak gold and silver prices, the company said on Tuesday.

The London-listed firm, part-owned by Russian tycoon Alexander Nesis, began a review of its exploration projects in April in response to a 28 percent fall in the price of gold

XAU= last year.

"We can only make a decision about new plant construction once metal prices have stabilised and we are able to predict our financial earnings," said Chief Executive Vitaly Nesis, brother of Alexander Nesis.

Nesis said he expects gold and silver prices to remain volatile this year.

Polymetal reported a 14 percent fall in fourth-quarter revenue to $492 million, which several analysts said was in line with expectations. Net debt fell 12 percent during the quarter to $1.0 billion.

The company is on track to produce 1.30 million troy ounces of gold equivalent in 2014 and 1.35 million ounces in 2015 compared with 1.28 million ounces in 2013, it added in a statement. A gold equivalent is a measure of gold and other metals expressed in units of gold.

In 2014 Polymetal expects its total cash costs to remain flat at between $700 and $750 per ounce of gold equivalent, while 2014 total capital expenditure is expected to amount to $250 million, down from $300-320 million in 2013, Polymetal said in a presentation.

In April the company said that projects, including Kutyn, Maminskoye and a facility at Sopka in Russia, were likely to be delayed or re-engineered. News Search ID:nL6N0DC0WB

The company said in its statement that Maminskoye and Kutyn were subject to ongoing review, along with Albazino-2 and Svetloye.

Its current production plan for 2016 and 2017 is set at 1.40 million ounces per year, the company added.

Polymetal shares rose 2.7 percent in London by 1145 GMT in line with a 2.7-percent increase by the FTSE Gold Mines Index

.FTGM .

The company's presentation is available at http://www.polymetalinternational.com/~/media/Files/P/Polymetal/Attachments/pdf/Presentations/2014/2014_01_Investor%20Presentation.pdf

.

(Reporting by Polina Devitt; Editing by Douglas Busvine and Louise Heavens)

((Polina.Devitt@thomsonreuters.com)(+7 495 775 12 42)(Reuters Messaging: polina.devitt.reuters.com@reuters.net))

Keywords: RUSSIA POLYMETAL/REVENUE