21st Aug 2018 08:16
LONDON (Alliance News) - Polymetal International PLC said on Tuesday its earnings and revenue for the first half of 2018 saw double digit growth due to increased production and average realised prices.
The FTSE 250-listed gold and silver miner said it increased gold sales in the six months to the end of June by 17% to 445,000 ounces from the year before. However, silver sales were down 2.0% to 12.1 million ounces, in line with "production volume dynamics".
Average realised prices saw mixed results during the period, with gold being up 6.0% year-on-year to USD1,312 per ounce from USD1,240, but silver was down 4% to USD15.6 per ounce from USD16.3.
Polymetal produced 446,000 ounces of gold, up 15% from 389,000 ounces the year before, but silver was down by 1.0% to 12.7 million ounces from 12.8 million ounces the prior year.
This led to adjusted earnings before interest, taxes, depreciation and amortisation rising to 19% to USD305 million from USD257 million the year before. This was on top of revenue that rose 16% to USD789 million from USD683 million.
Net earnings for the period was up USD175 million from USD120 million the prior year. Polymetal declared an interim dividend of 17.0 cents, up from 14.0 cents paid in the prior year.
The group said it remains on track to meet its full -year production guidance of 1.55 million ounces of gold equivalent with all-in sustaining costs expected to be within the guidance of USD875 to USD925 per ounce of gold equivalent. However, the guidance remains subject to exchange rates.
"I am delighted to report strong earnings on the back of solid operational delivery in the first half of the year. We expect stronger production and free cash flow generation for the second half and remain focused on steadily progressing our further growth pipeline, including full ramp-up of Kyzyl, while generating meaningful dividends to our shareholders," said Chief Executive Officer Vitaly Nesis.
Shares in Polymetal International were up 2.2% at 660.60 pence on Tuesday.
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