21st Jan 2014 09:40
LONDON (Alliance News) - Polymetal International PLC Tuesday said it has exceeded its full-year 2013 production guidance but expects lower revenues.
The gold, silver and copper-mining exploration company said it has produced 1.3 million ounces of gold equivalent in the twelve months ended December 31, a 21% increase on the previous year and above its production guidance of 1.2 million ounces.
The company said its full-year gold production was up 37% at 805,000 ounces and its silver production was up 3% at 27.2 million ounces following the successful ramp up of its operations at the Amursk POX and Mayskoye sites in Russia, along with strong operational delivery at its Dukat hub in Russia.
However, the company said its copper production for the full year fell 26% to 4,841 tonnes as copper from the company's Varvara site in Kazakhstan was hit by expected grade declines.
Polymetal said its full-year sales volumes for gold increased 38% to 818,000 ounces but its volumes for silver fell 2% to 27.4 million tonnes and its volumes for copper fell 8% to 6,165 tonnes. As a result, the company expects its revenues to fall 8% to USD1.72 billion for the full year 2013.
The company also noted that its fourth-quarter gold production was up 54% and gold sales volumes were up 50% on the previous year. But it said silver production was down 5% and sales volumes were down 1%, while copper production was down 55% and sales volumes were down 34%.
Polymetal reiterated its production guidance of 1.3 million ounces of gold equivalent for 2014 and 1.4 million ounces for 2015.
The company said expects total capital expenditure in 2014 of USD250 million and expects total cash costs to be USD700 to USD750 per gold equivalent ounce.
Polymetal shares were up 2.5% to 584.50 pence, making it the second-leading FTSE 250 gainer in early trading Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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