24th Jan 2020 15:30
(Alliance News) - Polymetal International PLC beat production guidance for an eighth year in a row, the Russian miner said Thursday.
Polymetal's quarterly gold equivalent production was 15% lower year-on-year from continuing operations at 383,000 ounces, resulting from limited throughput at the pressure oxidisation hub at Amursk due to scheduled downtime.
Annual gold equivalent production was 1.61 million ounces, 3% higher than the year before and 4% higher than guidance of 1.55 million ounces.
Polymetal said this was driven by a "strong" performance from the Kyzyl mine, which offset asset disposals. Production from continuing operations rose 14% year-on-year.
Revenue for the year was USD2.2 billion, climbing 19%, due to higher volumes and a higher gold prices. Fourth-quarter revenue was up 1% to USD643 million, with a higher gold prices offsetting the lower production.
Looking to 2020, Polymetal reiterated gold equivalent production guidance of 1.6 million ounces, which is also the guidance for 2021.
One downside looking forward is costs, with Polymetal saying a strong Russian rouble and higher domestic diesel prices are set to increase costs in 2020.
"A strong fourth-quarter allowed Polymetal to exceed both original and updated guidance for the eighth year in a row. Robust production and positive gold price dynamics drove strong free cash flow generation," said Vitaly Nesis, chief executive of Polymetal.
"Stable operating performance should ensure steady and significant dividend flow while planned progress with execution of Nezhda and POX-2 projects will enable us to resume production growth in 2022," Nesis added.
Shares were 1.0% higher on Friday afternoon at a price of 1,270.50 pence each.
By George Collard; [email protected]
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