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Interim Results

Polymetal revenues boosted by higher production

29 August 2017 09:25

Polymetal International's revenue increased by 15% to $683 million in the first half, driven by production growth and tighter management of the seasonal gap between production and sales at Dukat, Omolon and Albazino.

Gold sales were 380 Koz, up 19% year-on-year, while silver sales were 12.4 Moz, down 5% year-on-year.

Total cash costs were $656 per gold equivalent ounce (GE oz), up 28% year-on-year, driven predominantly by the appreciation of the Russian Rouble against the US Dollar on the back of stabilising macroeconomic conditions in Russia and Kazakhstan.

All-in sustaining cash costs (AISC) amounted to $906/GE oz, an increase of 20% year-on-year.

Both cost measures are expected to decline in the second half on the back of seasonally higher production and sales, particularily at Mayskoye and Okhotsk.

Adjusted EBITDA was $257 million, down 12% year-on-year, as a result of increased costs incurred due to a stronger Russian Rouble which was partially offset by an increase in production. The adjusted EBITDA margin was 38% compared to 49% the year before.

Net earnings were $120 million versus $165 million the year before.

Polymetal said it remains on track to meet its 2017 production guidance of 1.40 Moz of gold equivalent. TCC and AISC are expected to trend downward in the second half to meet the original FY 2017 guidance range of $600-650/GE oz and $775-825/GE oz, respectively.

At 9:25am: (LON:POLY) Polymetal International PLC share price was +36.25p at 981.75p

Story provided by StockMarketWire.com

Related Company: POLY

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